Contact May/June 17 by Contact

T H E

C H A N N E L

I S L A N D S

B U S I N E S S

M A G A Z I N E May / June 2017

MARK OLIPHANT Exciting times for TISE

DATA PROTECTION

NEW ERA FOR TISE

POPULATION, POPULATION POPULATION

C5 debunks the myths around the new data protection legislation

We find out about TISE’s new operation in Isle of Man and its plans for the future

Richard Digard explores the islands’ differing approaches to the population management challenge

Local legal services in Guernsey and Jersey Business and commercial law Competition law Dispute resolution Employment law Offshore relocations Planning and environment law Property and construction law Regulatory law Trusts Advisory Group Wills, probate and estate planning

ogier.com

SPECIALIST CASH AND FIXED INTEREST MANAGERS

Backed by the UK’s largest mutual insurer RLAM manages assets of £99.58 billion (as at 31st December 2016). Speak to Pierre Paul or Jon Pope at RLAM CI about: • Cash and Treasury Management • Fixed Income Management • Cash and Money Market Funds • Collateral and Security Interest Agreements

Bespoke solutions for corporates & individuals. Call us on 00 44 1481 711261 or email info@rlam.co.gg

ASSET MANAGEMENT

Royal London Asset Management is a marketing brand used by the investment businesses of the Royal London Mutual Insurance Soceity Limited, 55 Gracechurch Street, London EC3V 0RL, including Royal London Asset Management C.I. Limited, 30 Cornet Street, St. Peter Port, Guernsey GY1 1LF which is regulated by the Guernsey Financial Services Commission and licensed under The Protection of Investors (Bailiwick of Guernsey) Law, 1987.

WELCOME TO THE MAY EDITION OF CONTACT

Have two years really passed since I was elected as president of the Jersey Chamber of Commerce? I started my term with some excitement in the ranks, the first female president in the 249-year history of the oldest English-speaking Chamber in the world. Presiding over the largest employer representative body in Jersey I certainly felt the weight of history behind me. The president, together with the executive committee, sets and steers the direction of Chamber during their tenure, and I began with a number of key objectives. These included ensuring Chamber plays a key role in the decision-making process that affects all businesses, making Chamber more relevant to the youth and future business owners of the island and promoting the relevance of Chamber, ensuring the organisation remains relevant to the business community. The last two years have been an incredible journey. I have met some fascinating people, attended some amazing events and had discussions on subjects that have required a lot of research! I know more about Brexit than I felt possible, I have researched worldwide de minimis levels, and I can discuss in depth liquid waste charges across different counties. What other woman has these opportunities! I have had open access to politicians and civil servants of all levels and I have discussed, debated and lobbied on everything from the medium-term financial plan to the liquor licensing law. On 14 May 2015 I rose to deliver my inaugural speech to 250 paying guests and I cannot deny it was a terrifying ordeal. I often get asked why women don’t take on more prominent roles and my initial response of ‘confidence’ has altered to ‘fear of failure’. We will often look at a role and not feel ready to step into those shoes, and that was certainly my thoughts as I waited for the room to quieten. I say with gratitude that during my tenure I have never had anything other than positivity and assistance. From former council members who offered me a listening ear to those who willingly helped me when researching a consultation response. Have I made a difference? I hope so. It has been a frenetic two years and I leave Chamber in a more positive financial position. We have an incredible executive committee and strong committee members, and an executive team that provides exemplary support. We have dragged the Chamber offices into the 21st century, we have put our own house in order and we have become proactive rather than reactive. We are a more relevant organisation, we have implemented procedures and strategies to communicate with our members and we have a far stronger communication network which clearly sets out the value of membership. We can take a call in the morning and relay this to a key politician within a short period of time.

Over what can only be described as a sensational Easter, social media has been alive with glorious pictures of the natural beauty of Guernsey, certainly friends have been sharing special moments from sunrise to sunset of Guernsey all around the globe. In March Chamber welcomed the president of Policy and Resources, Deputy Gavin St Pierre, to speak at another fully attended lunch event. Deputy St Pierre made a point that when it comes to economic success, Guernsey tends to hide its light under a bushel. The economy has been stable over the last 10 years, and government has been consistently delivering on budgetary savings. Against most western developed economies, Guernsey has in real terms outperformed, being close to full employment with an earlier than expected budget surplus this year. All on enviably low levels of government borrowing. Given this good news, and Deputy St Pierre’s caution against complacency, Chamber will endeavour to shine Guernsey’s light more brightly. April saw the population management law passed by the Guernsey States of Deliberation. The law has been very warmly received by the professional sectors in Guernsey, mainly because it enshrines the desirability of high value jobs to the local economy. That said, Chamber has been very vocal in putting focus on the key point that attracting global talent in the broadest possible terms is critical to our future success. Whilst qualifications are a measure of an individual’s base-line competency, success is also down to very hard to measure factors too, such as an appetite to take risk, a balanced work ethic and an individual’s ability to transform business risk into business growth. Chamber is therefore very pleased to report the introduction of what we regard as sensible checks and balances over the governance of the new law. The population advisory panel, and the review of the law by Policy and Resources, are essential levers to pull on to ensure that population management is dynamic and free to move wherever economic success requires it to go. Chamber is actively listening to business in all sectors of the island to find out how we are getting on with the new law, and we will press for change where it is required at the upcoming review. Martyn Dorey, president, Guernsey Chamber of Commerce

My presidency has been a journey for both Chamber and me, and I am proud to have been given the opportunity of taking on this voluntary role with such an historic organisation. I leave it in safe hands and I wish my successor Eliot and his new vice president Mark, and the executive team ably led by Gillian, the utmost success. Kristina Le Feuvre, president, Jersey Chamber of Commerce.

E di to r Trish Grover editor@collaboratecommunications.com SALES Julie Todd sales@collaboratecommunications.com Desi g n & p ro du cti o n Mojoe joe@mojoecreative.co.uk

Contact is produced six times a year by Collaborate Communications Ltd. To receive Contact magazine call Julie Todd on: 01534 858514 or email: sales@collaboratecommunications.com www.facebook.com/ContactmagazineGuernsey @collaborateCI

Contact is published by Collaborate Communications Ltd. Copyright 2017. All rights reserved. Any reproduction without permission is prohibited. Contact contains editorial content from external contributors which does not necessarily reflect the views of the publishers. Contact does not accept or respond to unsolicited manuscripts and photographs. The publishers do not accept responsibility for errors in advertisements or third party offers.

Jersey Chamber of Commerce Chamber House 25 Pier Road St Helier Jersey JE2 4XW Telephone: 01534 724536 www.jerseychamber.com Guernsey Chamber of Commerce Suite 1 16 Glategny Esplanade St Peter Port Guernsey GY1 1WN Telephone: 01481 727 483 www.guernseychamber.com

www.alderneychamber.com

www.sarkchamber.com

F E AT U RE S

12 18 20 48 46 60

JERSEY CHAMBER NEWS

VIEWPOINT With Richard Digard

GUERNSEY CHAMBER NEWS

MARK OLIPHANT Exciting times for TISE

POPULATION MANAGEMENT With Richard Digard

CONTRIBUTORS Trish Grover writer Richard Digard writer Tamara Timothy writer Chris George photographer Peter Trenchard photographer

CHANNEL ISLANDS NEWS

Rare Indian stamps sell for record £500,000

Uruguay last year.

Stanley Gibbons has sold one of the rarest pieces of Indian philately to a private collector-investor in Australia for £500,000, the highest price ever paid for a single Indian philatelic item.

Only two sheets of 50 stamps originally received the ‘SERVICE’ overprint, of which one remains intact in the Delhi Postal Museum. From the issued sheet, only thirteen single examples are authoritatively recorded, including this strip of four and a block of four in the Royal Philatelic Collection, owned by HM Queen Elizabeth II, which is believed to be the world’s largest and most valuable private stamp collection.

The unique strip of four 1948 Gandhi 10-rupee purple-brown and lake ‘SERVICE’ stamps is considered the most important and desirable item of post-1947 Indian philately, with only single examples of this great rarity otherwise recorded in private hands. Stanley Gibbons previously sold one of these singles for £160,000 to a client in

The recent sale follows that of another Indian philatelic rarity, the famous ‘Four Annas’, which sold in March this year for almost £110,000 (a stamp where the head of the young Queen Victoria is inverted in error). The string of sales of high profile, Indian rarities to collectors and investors around the world reinforces the strength of the Indian

JTC Group has expanded into the Netherlands through its acquisition of New Amsterdam Cititrust BV (NACT). The deal, which remains subject to regulatory approvals is expected to be completed in mid-2017.

Further expansion for JTC 4

NACT was founded in 1981 and, through its team of highly experienced professionals, services a client portfolio ranging from entrepreneurs and their families to venture capitalists, private equity firms and publicly listed companies. The business provides a range of corporate and administration services, including: company formation, corporate management, administration, accounting, financial reporting and legal and secretarial services. Commenting on the acquisition, JTC Group CEO and chairman, Nigel Le Quesne

stamp market and the continued desire of both affluent collectors and sophisticated investors to seek and secure rare, heritage stamps. Stanley Gibbons is also fortunate to have one of the world authorities on Indian stamps working for the group. Keith Heddle, managing director of investments at Stanley Gibbons, said: ‘The market for high-quality, Indian rarities has been strong for several years and is supported by the on-going desire of the wealthy, Indian diaspora and savvy, international clients to own these historic assets. Given Stanley Gibbons’ specific expertise, we are best placed to identify, authenticate and trade rare Indian stamps of the highest quality.’

(pictured), said: ‘The expansion of our global network to include the Netherlands is a natural extension of our presence in the Benelux region and the acquisition of NACT strengthens and deepens our offering to both institutional and private clients. We are delighted to welcome to the JTC Group a high quality book of national and international clients and an excellent team in Amsterdam.’ Edmond Hartsuiker, managing director of NACT, added: ‘New Amsterdam Cititrust has for many years been synonymous with technical expertise, first class service and a focus on creating needs-based solutions. We are therefore thrilled to be joining JTC Group, who shares these values and has a similar client population. We will ensure, going forward, that our clients continue to receive the levels and quality of service they expect and deserve.'

CH AN N E L IS L AN D S N EWS

Crestbridge establishes presence in Bahrain Independent trust, fund and corporate services provider Crestbridge has completed its acquisition of Ohad Trust B.S.C.(c) (Ohad), based in Manama. With regulatory consent having now been received from the Central Bank of

Bahrain, Ohad is now part of the Crestbridge Group, which also has complementary offices in Jersey, London, Luxembourg and the Cayman Islands. A full rebranding of Ohad is planned for later in 2017 to bring the business fully under the Crestbridge umbrella.

operating in the region spanning almost 15 years. The Middle East is strategically important and having on the ground capability in Bahrain enables us to continue to add value to clients who require increasingly sophisticated support in relation to their local and international assets.’

Ohad was the first licensed provider of trust services in Bahrain when in 2005 it obtained its ancillary services provider licence and is the market leader in the provision of private investment undertakings. A highly-regarded provider of Shari’a compliant and Islamic finance products such as Sukuk, Ohad benefits from a highly experienced team many of whom are professionally qualified in Islamic finance, complementing Crestbridge’s existing team.

Graham Journeaux and Naser Obaid will continue to lead the Bahrain office, which consists of more than 10 staff and will be supported by staff transfers from the Crestbridge Group. Naser Obaid, director at Ohad, added: ‘We have worked very successfully with the team at Crestbridge over the last few years and see this initiative as a very exciting opportunity for us and for the region. Crestbridge is a highly-regarded service provider in the region and brings a great deal of knowledge and expertise combined with a broad service range.’

Commenting on the new office Paul Perris, group managing director said: ‘This is a significant achievement in delivering our strategy to provide a wider range of services to our clients and demonstrates Crestbridge’s continued commitment to the region. We are delighted to add Bahrain to our network of jurisdictions. We welcome the team from Ohad which has a wealth of experience of

Ashburton Investments’ Jersey-domiciled Global Energy Fund has been recognised for its outstanding performance at the Thomson Reuters Lipper® Fund Awards 2017, held recently in the City of London. The award in the energy sector category was based on the fund’s three-year performance, and was collected by fund manager Richard Robinson (pictured), who has managed the fund since inception, at a ceremony at the Chartered Accountants Hall.

Ashburton’s Global Energy Fund wins prestigious award

It is the second award the fund has won in the past six months after also claiming an Investment Week Specialist Investment accolade (Best Natural Resources Fund) late last year.

SANNE has enhanced its client services in Luxembourg after being awarded a licence to provide professional depositary services in the country.

SANNE awarded depositary licence

Alongside existing administrative and corporate services, clients will benefit from SANNE’S Luxembourg office being authorised as a depositary for assets other than financial instruments held in custody after the company received a Luxembourg professional depositary licence.

Crestbridge’s new office enjoys prestigious business premises located at the Bahrain World Trade Centre, Manama, Kingdom of Bahrain. Picture (l-r) Paul Perris, Naser Obaid and Graeme McArthur

Commenting on the award, Richard said: “It’s great to be recognised by the industry for our innovative approach to the Global Energy Fund and the long-term outperformance it has produced. By actively focussing on the oil cycle and taking exposure to different sub-sectors during different stages, we have been able to extract value consistently from a cyclical sector for the benefit of investors.’ The Thomson Reuters Lipper® Awards have been running for over three decades, honouring funds and fund management firms that have excelled in providing consistently strong risk-adjusted performance relative to their peers.

Peter Dickinson, SANNE Director based in Luxembourg, said: ‘This licence underlines SANNE’s reputation as a trusted global leader in fund and corporate administration services. It also underlines our commitment to the continuing enhancement of services that we provide from Luxembourg to the benefit of our clients.’

C H ANNEL ISLA NDS NE WS

Vantage acquires Hassell Blampied Associates The Vantage group of companies has purchased specialist HR consultancy Hassell Blampied Associates (HBA). HBA, headquartered in Jersey, was established in 1996 and offers remuneration surveys, HR advisory and recruitment services to companies in Jersey, Guernsey and the Isle of Man. Vantage’s HR company, Vantage Personnel will be renamed Vantage HBA, ensuring that both brands and the excellent reputations that they have developed within the local market place will be retained under the new structure. Richard Packman, CEO Vantage said: ‘Vantage Personnel has grown significantly since its inception in 2015 in both Jersey and Guernsey. This purchase is the logical next

step in our growth strategy. The complementary service provision offered and the similar cultures of the two organisations will ensure that the re-structuring will be as seamless as possible for both clients and staff. There were clear synergies and shared values between our two companies, both with a clear focus on excellent service provision across all aspects of human resource management making this an ideal move for us. We recognise that this investment will allow us to take the company to the next level. This is an exciting opportunity for Vantage and forms part of our on-going strategic development in the Channel Islands and further afield.’

Wendy McHugh, managing director, Vantage Personnel, Guernsey said: ‘I am looking forward to working with the new team, which will enable the company to extend the broad HR services we currently provide in both Guernsey and Jersey. The dedicated team will now be able to offer a bespoke pan-island strategic HR service including employee relations, all aspects of recruitment, training as well as writing and reviewing polices and procedures and staff handbooks.’

Founder of HBA, Bob Hassell, added:‘I am delighted that we have been able to complete this deal with a company that clearly has the same emphasis on understanding and meeting client needs. In the 21 years we have been operating, we have developed strong relationships with clients, many of whom have been with us for some considerable time. I am confident that

Vantage HBA will continue to produce remuneration reports through regular pay and benefit reward surveys - a specialist market intelligence service previously offered by HBA across the Channel Islands and the Isle of Man.

TV comedienne Lucy Porter has been confirmed as the entertainment for this year’s Guernsey Construction Awards which takes place on Thursday 2 November at Beau Sejour.

to have secured Lucy for the evening, thanks to the support of Ogier.’

Having cut her teeth at the Edinburgh Fringe Festival, Lucy is now a familiar face and voice on TV and radio panel shows including appearances on QI, Mock the Week, Have I Got News for You, Never Mind the Buzzcocks and What the Dickens. She also appeared alongside Ed Byrne on Celebrity Pointless, and emerged victorious on the Celebrity Mastermind – Children In Need special.

Lucy Porter to entertain at Guernsey Construction Awards

all of our clients will continue to enjoy the same quality of service under the new arrangement and I look forward to continuing to work with them and the Vantage team.’

Commenting on the announcement, co-founder of the Guernsey Construction Awards, Tim Guilbert, said: ‘In a relatively short period of time, our organising team has built a reputation for an event that combines the celebrations of success and achievement for the category winners with entertainment from headline acts. We are especially pleased

This year’s Guernsey Construction Awards will see the introduction of three new categories: Property agent of the year, Industry supplier of the year and Innovation Award for the best new product or service. In addition to the new categories, further developments include an acknowledgement for smaller businesses that may not have been involved in larger projects but, through the quality of their work, have helped shape the built landscape of the island. Tickets for the Guernsey Construction Awards are now available to purchase. There is a discounted rate of £700 for a table of ten, or £70 for individuals, on all bookings made before 31st May. For reservations or more information, please contact: julie@collaboratecommunications.com

CH AN N E L IS L AN D S N EWS

Bedell Cristin explains and explores blockchain An early start on Tuesday 28 March did not deter an audience intrigued to learn more about the emerging blockchain technology and the opportunities on offer.

Further expansion for Praxis PRAXISIFM has completed its fourth acquisition in 12 months and strengthened its presence in the Middle East.

Brooks Macdonald acknowledged for commitment to transparency and integrity

Spanning Guernsey’s finance, banking, insurance and technology sectors, over 50 attendees packed into the Digital Greenhouse in St Peter Port to hear a panel of speakers explore blockchain from different perspectives at an event hosted by Bedell Cristin.

for the States of Guernsey wrapped up by unveiling the States’ Digital Sector Strategy, by which the States aims to drive economic growth by investing in the digital sector. Speaking after the event, Kate Ovenden, managing partner of Bedell Cristin’s Guernsey office, commented:

Bedell Cristin Guernsey associate Marc Piano commenced by providing a much-welcomed explanation for total beginners of what blockchain is, how it works and some of the legal and regulatory issues to consider. PwC’s Tony Corbin and William Woodruff moved on to explore real-world uses of blockchain and emerging developments; Steve Chandler from the Guernsey Financial Services Commission introduced the Innovation Soundbox as a means by which prospective innovative or start-up financial services businesses can engage with the regulator and Gareth Jones, director of business innovation and skills

‘Blockchain is an exciting new technology with the potential to streamline the way in which businesses store, share and protect data, which can in turn transform how they operate in the future. Guernsey is already attracting international attention in the space through pioneering use of blockchain technology in the industry, and we are monitoring this rapidly-evolving technology with great interest, so that we can help our clients looking to use or conduct transactions via a blockchain or cryptocurrency to understand its potential, as well as the legal and regulatory issues to consider.’

The acquisition of Dubai-based Ryland Gray follows the purchase of fiduciary and corporate governance consultancy Ampersand Management SA in April 2016, the fiduciary and accounting company Balmor Management SA in Switzerland, and Cavendish Corporate Investments PCC Limited in Guernsey.

Simon Fielder and his nine-strong team to PraxisIFM.'

CEO of PraxisIFM Group Simon Thornton said:

‘Becoming part of the growing PraxisIFM group is positive for both our team and our clients. Our team will have greater opportunities for career progression and the opportunity to work across the group’s 10 different locations. Both Ryland Gray and PraxisIFM’s clients will benefit from local knowledge of the Middle East, additional expertise and an enhanced product range,’ he said.

‘PraxisIFM has a long-established client base in the Middle East and has been working to develop this market further. Ryland Gray brings additional expertise, particularly in the area of employee benefit solutions, and bolsters our presence in the region. We see this as an important market for the group, and we are delighted to welcome founder

The Channel Islands subsidiary of independent investment manager Brooks Macdonald has been recognised for its commitment to transparency and due diligence having been granted the ‘ARC 3D Award’ by independent investment consultant Asset Risk Consultants. In being assessed for the award, Brooks Macdonald’s businesses in both Guernsey and Jersey had to successfully meet a number of strict criteria in relation to its approach to due diligence, its client investment performance, the quality of its people, and its investment philosophy and processes.

Ryland Gray will rebrand as PraxisIFM Consultancy FZE. The team has recently moved to Dubai Silicon Oasis and the business will continue to be led by Simon Fielder.

Commenting on the award, Kevin Boscher, chief investment officer, international for Brooks Macdonald, said: ‘The assessment undertaken by ARC in granting this award is recognised as being the most comprehensive programme of research undertaken in the investment management industry. In tandem with strong investment performance, a clear commitment to transparency and high standards of oversight and integrity are absolutely vital in modern investment management business. Against that backdrop, this ARC 3D Award is a real differentiator for us in the Channel Islands market.’

C H A N NEL ISLA NDS NE WS

Jersey travel agency makes Travel Trade Gazette’s Top 50 The Channel Islands Co-operative Society’s Travelmaker in Jersey has been named one of the best travel agencies in the UK and Ireland. Travelmaker is one of three in the South West region selected as part of a power-list of the nation’s best agents by the industry bible, Travel Trade Gazette. The TTG Top 50 Travel Agencies list was

revealed in Birmingham after an extensive judging process, which saw agents rated by tour operators and other suppliers, and then assessed by travel trade journalists. ‘We are absolutely thrilled to be recognised for a second year running as one of the top 50 travel agencies in the UK and Ireland, it’s a fantastic achievement. It’s a huge honour to be recognised in this way by what is considered to be the number one travel magazine,’ said Travelmaker’s head of travel, Carl Winn. ‘I’m extremely proud of my colleagues for their hard work and dedication. Such recognition on a national level is fantastic for the Society and for the Channel Islands.’

TTG group editor Pippa Jacks said: ‘Now in its second year, our Top 50 Travel Agencies initiative has seen us scour the UK and Ireland to uncover its most dedicated and dynamic travel agency businesses. ‘It's been truly inspiring to hear how these agencies go above and beyond on a daily basis, to deliver extraordinary service and incredible value to their customers, and to support their local communities. Our winners demonstrate that travel retailing in 2016 is a vibrant and successful business sector, and that – particularly on the high street – agents continue to prove their worth by delivering phenomenal customer service.’

WEDNESDAY 15 NOVEMBER 2017 ST JAMES’, ST PETER PORT

FinVention is an annual interactive one-day forum showcasing ``the best of breed`` innovative products and services in the FinTech, digital and start-up sectors. FINVENTION IS AN EVENT THAT: Provides a platform for start-up industry players to showcase their innovative products and services. Continues to create and stimulate potential investment opportunities and further develops links between business and government.

THE POWER OF FINVENTION IS: Connecting entrepreneurs with potential collaborators. Demonstrating inventive ideas to secure interest and constructive feedback. Attracting first and second-stage investment.

WHAT TO EXPECT: The FinVention Show Stage will feature fast-paced presentations from the industry’s most successful players alongside some of the most exciting start-ups. A keynote speaker who will push the boundaries of conventional and unconventional wisdom. An interactive floor layout where exhibitors, delegates and presenters will come together in one interactive, high energy event. The opportunity to have face-to-face conversations with the originators of financial and digital technological products that are changing the way business is done on a global platform.

GET INVOLVED WITH FINVENTION 2017. BECOME A SPONSOR. BE ONE OF THE PRESENTERS. BOOK YOUR DELEGATE PLACE.

Business DIARY Coming up… A few key business events for your diaries May Date

Event

Time

Venue

Booking / Information

4 May

Start up Guernsey Meet expert Greg Tehven

1230 – 1400

Start up Guernsey

www.startup.gg

5 May

TEDxStPeterPort

0900 - 1700

St Pierre Park Hotel

www.tedxst peterport.com

10 May

Jersey Chamber lunch

1230 – 1430

Radison Blu

www.jerseychamber.com

15 May

Guernsey Chamber lunch

1200 – 1400

OGH Hotel

www.guernseychamber.com

16 May

3 technologies for small business success

1700 – 1930

Digital Jersey

www.jerseybusiness.com

17 May

WDF Jersey Creating a level playing field

1200 – 1400

Royal Yacht Hotel

www.wdforum.org

23 May

IoD Jersey lunch

1200 – 1400

The Grand Hotel

www.iod.je

30 May

Leadership Jersey The executive as coach

1800 – 1930

Pomme d’Or Hotel

www.leadershipjersey.je

9 June

CIPD awards dinner

1830 – 2300

OGH Hotel

guernsey@cipdbranch.co.uk

13 June

WDF Guernsey Women fast forward – next steps in your career action plan

1200 – 1400

Les Cotils www.wdforum.org

14 June

Jersey Chamber lunch

1230 – 1430

Royal Yacht Hotel

www.jerseychamber.com

19 June

Guernsey Chamber lunch

1200 – 1400

OGH Hotel

www.guernseychamber.com

20 June

IoD Jersey lunch

1200- 1400

The Grand Hotel

www.iod.je

22 June

Guernsey leadership conference

1600 -2000

St Pierre Park Hotel

www.thelearningcompany.gg

If you would like your event included in our diary please email details to editor@collaboratecommunications.com

Thursday 14 September 60th Anniversary of the Battle of Britain Memorial Flight & Guernsey Air Display – 11am to 1.15pm Raising funds for RAFA

Become a friend of the Guernsey Air Display

An event from T: 728686 | E: info@eventguernsey.com | guernseyairdisplay.com

201 6

School-leavers, graduates, summer internships, work experience, business placements.

Discover where a career with PwC could take you Voted employer of choice by students in The Times Top 100 Graduate Employers survey for thirteen years running

The experience stays with you Work in: Assurance Tax Advisory

Opportunities are at the heart of a career with PwC. Opportunities to grow as an individual, to build lasting relationships and to make an impact in a place where people, quality and value mean everything. Be part of the worldâ&#x20AC;&#x2122;s leading professional services network and get the experience of a lifetime working for PwC in Guernsey or Jersey. We have what it takes to make sure you thrive. Take the opportunity of a lifetime, email fiona.gibson@pwc.com in Guernsey or sarah.l.hughes@pwc.com in Jersey, today!

@pwc_ci Diverse people make us stronger

JERSEY CHAMBER NEWS

PRESIDENT LINCOLN It seems like far less than two years ago that I became the Chamber vice president. Traditionally, the president has held office for two years and the vice president then steps up into the role of president. I am eternally grateful for having worked with Kristina over the last two years as she has shown me how the mechanics of Chamber operate. In that time, much has changed and Kris is leaving me with a Chamber that is in good shape with a fantastic future. It is time for me to set out my vision for the next two years. Continuing the great work that Chamber does. As a professional change manager, itâ&#x20AC;&#x2122;s clear to me when something is working well. The great work that has been done by all the recent past presidents, committees and the Chamber executive must continue. We will continue to deliver you excellent lunches with thought-provoking speakers, educational events, media commentary,

critical briefings and our hugely important lobbying work that we do with our government on behalf of all of our members and the business community at large. Our six committees are a massively important part of Chamber. Without them we would not be able to function effectively. I want to start my presidency by thanking each and every one of our committee members that give up their time and energy to making Chamber what it is today. I look forward to working closely with all our committees to ensure that the voice of Chamber is heard loud and clear across our island. Investing in the next generation I firmly believe that investment in education pays far greater dividends than any other investment that a society can make. Granted the payback can take a decade or more, but Jersey has grown and prospered with a pool of talent that I believe is second to none around the world. If we are to continue to set the bar on the world stage, then we must ensure that our education is first class and produces talent that is ready to work in our economy. To that end I will be pushing for Jersey to be a destination for education (and not just an exporter of our talent) and I will be launching Jersey Chamberâ&#x20AC;&#x2122;s Young Business Group to help the business leaders

of tomorrow to meet, socialise and have a say in how our island should develop to meet the demands of the next generation. A big anniversary In 2018 Jersey Chamber has a big birthday. As the oldest Chamber of Commerce in the English-speaking world, next year we see in our 250th anniversary. There are very few organisations that can claim such a heritage and I am proud to be presiding over this period. We have plans for a year of celebration, events and communication that will make it clear to us all just what effect Chamber has had on our island and the role we have played in that time. I look forward to sharing this with you. Ensuring that Chamber reaches where it needs to We will be doing some work to ensure that our systems and processes are as efficient and effective as possible. As technology develops and evolves at an ever increasing pace, we must ensure that Chamber keeps up with trends and has technology in place to make our job of reaching our members and supporters as simple and easy as possible. Eliot Lincoln

The great work that has been done by all the recent past presidents, committees and the Chamber executive must continue. We will continue to deliver you excellent lunches with thought provoking speakers, educational events, media commentary, critical briefings and our hugely important lobbying work that we do with our government on behalf of all of our members and the business community at large

J E RS E Y CH AM B E R N EWS

EMPLOYMENT RELATED LEGISLATION The last few years have seen a vast number of new and updated employment related legislation. Changes which businesses, small, medium and large have embraced, such as clarification to rest periods, notice periods, removal of the eight-hour rule, sex and race discrimination regulations, maternity, parental and adoption leave provisions, introduction of the right to request flexible working, changes to the tribunal procedures order and the list goes on. Already in 2017, Chamber has been asked to provide feedback on two employment related policy areas, the disability strategy, family friendly legislation and we’re also

taking a very active role in the development of the island’s skills strategy. Chamber and its members are fully supportive of legislation that provides protective measures to support family life. However, with the existing family friendly legislation only being in place since the 1 September 2015, we felt there had been insufficient time to provide comprehensive analysis regarding the impact on businesses of the current rights and whether those rights could be extended or enhanced in any way. As for the disability strategy, Chamber fully appreciates the need for Jersey, belatedly, to have recognised the requirement to establish the breadth and depth of disability in all its guises across the island as well as the importance to have a comprehensive strategy to deal with the consequences. Any progressive economy lacking in a plan to handle the scope of the issues which this subject throws up will lack credibility in the eyes of its peers and indeed amongst interested parties looking to invest within the island.

Having reviewed the proposals, on balance Chamber broadly endorses the strategy and the principles behind it. We feel a sensibly balanced approach has been adopted and using the broader UN definition of disability to capture the scale of these issues, was the right one. The key to future policy changes in this area, like all business related legislation, is on-going dialogue and involvement of bodies such as Chamber. Getting employment policy right and fair is at the heart of every business. Chamber’s remit is to listen to our members’ concerns, lobby government and push forward an agenda to help the island and businesses flourish. We would urge all Chamber members to take part in the surveys we carry out on proposed or current legislation. As business owners and managers, this is your opportunity to voice opinion on legislative impacts, say nothing and your concerns may never be heard. Continue to use Chamber, as the voice of business. HR & training committee & Chamber’s sustainable business advisor

Getting employment policy right and fair is at the heart of every business. Chamber’s remit is to listen to our members’ concerns, lobby government and push forward an agenda to help the island and businesses flourish. We would urge all Chamber members to take part in the surveys we carry out on proposed or current legislation

J ER S EY CHA MBE R NE WS

CYBER SECURITY STRATEGY, A FIRST FOR JERSEY In February, the States of Jersey asked islanders to respond to their first ever consultation on cyber security. A promising move, as we put an increasing amount of personal data online, cyber security affects us all. The draft strategy, available on the gov.je website, is centred on five key pillars: • Government • Critical national infrastructure • Business

• Legislation and international engagement • Citizens The strategy runs alongside the forthcoming change to the Data Protection Regulations due to GDPR. The draft strategy proposes creating an information sharing entity with the aspiration of having all of Jersey’s workforce trained in basic cyber security to make Jersey a safer place to live and do business. The government has set aside an initial budget of £1.9 million for island-wide cyber security projects. The Chamber of Commerce has for a long time communicated the importance of cyber security and its cost to economies around the world, cybercrime being responsible for a loss of an estimated £11 billion from the UK economy every year, and around £400 billion globally. Also of massive importance is the loss of confidence in a jurisdiction that can come with a cyber attack and loss of data, examples of which seem to be happening all too regularly.

While we understand that achieving absolute cyber security would be unreasonable if not impossible, the proposed strategy would be a big step forward. We feel the proposal of an information sharing entity will prove vital to future security development as will employee training. We would like to ensure that the strategy quickly develops into a plan with tangible goals and timescales, underlining the part that the public sector and private business should be playing to ensure that Jersey is seen worldwide in relation to data regulation as a safe, secure and digitally progressive jurisdiction. In the same way that our regulation and the quality of our financial products attracts financial services clients to our island, we would like to see our global reputation for how we treat our data have the same effect. Eliot Lincoln, digital committee chairman

In light of this draft strategy the Jersey Chamber of Commerce digital committee (chaired by me) and finance committee (chaired by Neil McCluskey), came together to release a joint response.

The Chamber of Commerce has for a long time communicated the importance of cyber security and its cost to economies around the world, cybercrime being responsible for a loss of an estimated £11 billion from the UK economy every year, and around £400 billion globally 14

CH AM B E R E V E NT S

May 2017 Lunch Event

About the Speaker Stephen is a principal economist within strategy & corporate Development at RBS.

Event Sponsor

During his career he has worked as an a cademic and as an economic advisor to the UK government He currently advises the bank on commercial strategy arising from emerging economic trends

Speaker - Stephen Blackman Date - Wednesday 10 May 2017 Venue - The Radisson Blu Timings - 12:30-14:30

June 2017 Lunch Event

Date Wednesday 14 June 2017 Venue The Royal Yacht Timings 12:30-14:30

Remaining 2017 lunch events Wed 12th July

The Pomme D'Or

Wed 13th September

The Royal Yacht

Wed 11th October

The Radisson Blu

Wed 8th November

The Pomme D’Or

Wed 13th December

The Royal Yacht

Jersey Entreprise Week 2017 Enterprise Week 2017, arranged and coordinated by Jersey Business, will provide five days of thought-provoking and practical debate on the key issues facing the island’s business leaders, entrepreneurs and government. With events between 16 and 19 May, the keynote event ‘The Future of Enterprise in Jersey’ on Tuesday 16 May will be the opportunity for Jersey’s business leaders and owners to discuss how to navigate the turmoil in global politics, the subsequent impact on the economic environment and the repercussions for Jersey. With the Chief Minister and two international speakers addressing the keynote event, this is a not-to-be missed opportunity. Joining Senator Ian Gorst on stage will be the BBC’s business editor, Simon Jack and entrepreneur Nick Ogden, founder of Worldpay and more recently Clear Bank.

Event Sponsors

For more information or to book tickets or corporate tables (of 10) online for any of our events please visit www.jerseychambertickets.com. For more information about any of our events or for any queries contact: Hayley Mallet, events and marketing manager hayley.mallet@jerseychamber.com or call a member of the Jersey Chamber executive team on 01534 724536.

Simon Jack has reported on business and economics for the Today Programme, BBC News Channel and BBC’s Breakfast News and now leads the broadcaster’s coverage of events in the business world from money markets to the tech sector. Having interviewed some of the biggest names in UK and international commerce he is well placed to discuss the implications of the current shifts in global politics and how these are shaping the economic environment across the world. Nick Ogden, who is credited with creating what we now call e-commerce, started his entrepreneurial journey in Jersey and, with his unique experience at the cutting edge of technology development, Nick will share his insights into how technology is changing the way we work and play. Other events during the week will look at three simple technologies that small businesses can implement to drive revenue; the journey Liberation Brewery has taken to keep up-to-date with their changing customer requirements and the importance of putting customers at the centre of a

growth strategy. The week will also include an opportunity to hear how Jersey's government is shaping your future by building a long-term vision for the island based on feedback from islanders. The forums and events will feature local and visiting experts and entrepreneurs and are open sessions. Jersey Business hopes that Chamber members will find that the accessibility and diversity of the events will provide stimulus for practical outputs and direct influence on the future of enterprise in Jersey. Everyone involved will hear about the opportunities that exist to grow their own businesses and the Jersey economy through higher performance, growth opportunities and improved technical skills. For more information on all the events being held in Enterprise Week, please visit www.jerseybusiness.je/events or call 610300 or email info@jerseybusiness.je for more information.

J E R S E Y N E W ME MBE RS Established in 2005, Enhance is a market-leading company providing financial advice, investment consulting and treasury services to trust companies, charities and private clients.

Enhance Group

Through the use of fintech we have gained an exceptional reputation for delivering services utilising innovative proprietary technology and now have in excess of £30 billion of assets under review, operating from five jurisdictions.

GradeBusters was established over 13 years ago with the sole purpose of providing excellent support for all abilities and ages in English and maths.

GradeBusters

Age Concern

Liberate Liberate’s vision is of an inclusive society where all citizens of the Channel Islands are accepted equally.

Progression is not age bound, it is solely based upon the ability to cope with the next step. Our success with children is predicated on our belief that all children can succeed in these two key curriculum areas. Our learning systems ensure success through thorough teaching, a child will build an extensive

The company continues to innovate and deliver financial services that provide long-term solutions based on technology but with the foundations of integrity, experience and professionalism. Enhance’s status as a genuinely independent company ensures an impartial approach. Email: jpainter@enhance.je Tel: +44 (0)1534 761500 Website: www.enhance.je

repertoire of experiences that will lead to a deeper understanding of both subjects. Quite often new parents remark on how quickly their son’s or daughter’s self esteem has changed; this is no mistake as early success ensures your child knows how clever they are. Email: info@gradebusters.co.uk Tel: 01534 519 566 Web: www.gradebusters.co.uk

Age Concern’s aim is that everyone should have the opportunity to lead a fulfilling later life.

believes that growing old should be celebrated and the organisation speaks up for all islanders who have reached later life.

The team works towards creating an island where everyone can achieve this. Anyone 55+ is welcomed, whatever their needs, interests or circumstance. Age Concern

Email: info@ageconcern.je Tel: 0800 735 0345 Website: www.ageconcern.je

Liberate supports those who identify as part of a minority or visible minority group by:

• Working with government and other providers to ensure equal access to and equal quality of services;

• Providing safe and inclusive spaces for people to meet;

• Offering advice and help to residents and law enforcement agencies in tackling hate crimes.

• Educating and informing on a range of minority issues; • Campaigning to reform policies and laws; • Questioning social attitudes and behaviours;

Email: paddy@liberate.je Website: www.liberate.je Twitter: @liberatejersey

J E RS E Y N E W M E M B ER S

Signature Transport Group offers market leading passenger ground transportation solutions and commercial vehicle facilities.

Signature Transport Group

Signature Transport Group owns and operates a variety of limousines, taxis and coaches and has the widest choice of passenger vehicles on Jersey with something for all tastes, budgets and occasions. All are fitted with seatbelts throughout. Our in-house commercial facility not only

The Ommaroo Hotel recently celebrated its centenary, officially established and trading as a hotel since December 1916. As a family-run hotel, it has passed down through four generations since the 1920s. It has been under the management of Fiona Kerley since 2008, who has overseen over £1.5 million investment across the property.

The Ommaroo Hotel

Fiona has introduced conference facilities, an outdoor heated swimming pool and

The Lions Club of Jersey was established over 50 years ago. The club seeks to serve our community through its own activities, and the funding of other charities or individuals in need.

Lions Club

The range of its activities is wide. Over the past decade alone the club has helped with the funding for more than 100 local charities and hundreds of individuals have also benefited.

maintains and services our extensive fleet but can deal with small or large private and commercial vehicles of all types. With a combined team of over 60 employees, clients are assured of highly professional and experienced service, from initial contact to completion. Email: alan@signature.je Tel: 07797 789123 Web: www.signature.je

refurbished 82 ensuite bedrooms, all reception and dining areas, as well as restoring the hotel façade to its original grandeur. Refreshed and rebranded, the focus is now on embracing marketing and digital technology to maximise direct, online bookings. Email: reservations@ommaroo.com Tel: +44(0) 1534 723493 Web: www.ommaroo.com

Many of our lions in Jersey are members of Chamber and the links between the club and the local business community are strong, not least through the tremendous support given to the lions’ headline fundraising event, the Swimarathon – always appreciated. Tel: 01534 482035 Web: www.lionsclubofjersey.co.uk

A short company profile is available to all new members of Jersey Chamber of Commerce. For more information email: admin@jerseychamber.com or tel: 01534 724536

VIEWPOINT WITH RICHARD DIGARD

CHANGES TO HOW WE VOTE AREN'T THE ISSUE ...HOW THE STATES MANAGE THEMSELVES IS Forget referenda and amendments to the electoral system for a moment. What has government done to make itself more responsive to today’s needs and challenges? Richard Digard highlights a missed opportunity. Jersey is on the brink of a spending disaster because of its already high levels of debt, and borrowing a further £400m to fund the new hospital could tip it over the edge. That alarming warning came from the Jersey Action Group which, before it changed its name, was the St Helier Waterfront Action Group, opposed to the finance centre at the Esplanade. Chamber members will no doubt have their own views on the group’s credibility or whether its members have a point, but my interest was taken by their intention to

remain as a pressure faction and not to register as a political party. Why? Because Guernsey has no history of political parties and no facility for registering them yet is suggesting that political groupings, alliances or parties will be needed if it adopts island wide voting at a forthcoming referendum. I suppose we all know the mischief that referenda can cause – just ask David Cameron – and Guernsey’s is shaping up the same way with the States department responsible for it insisting on a multiple choice plebiscite offering five different

shades of ‘island wide’. This flies in the face of the States resolution that commissioned the referendum but we all know how much latitude departments have to interpret these things. We also know, from Jersey’s experiences, how much confusion multiple choice referenda cause when it comes to election systems and I see you’re now toying with the possibility of dumping the parish approach to elections and moving to electoral ’super districts’ at the same time as retaining the 12 constables…

Anyway, I mention all this because there is, in both islands, a palpable sense that islanders are losing confidence in their elected representatives. Or, at least, in their ability to steer things as they should. This unease with ‘government’ isn’t a mirror image in each island and different factors are at play, if only because the two economies are in dissimilar places. Yet I’m not sure if even the elected members and their senior advisers in either Assembly believe that things work well or achieve the results the communities really want. It’s one reason why the independent panel set up to review the pay of Guernsey States members and non-States members said: ‘…it received a number of representations to the effect that public opinion of States members is very low and concern was expressed that this state of affairs should be addressed. ‘The view was also expressed that this may be a significant factor that influences a decision by an individual on whether or not to stand for election as a deputy and that the situation appears to be worsening.’ This matters from a business perspective for many reasons, not least because those involved in commerce want a benign climate in which to operate stable and effective government, and at least the belief that their views will be taken seriously by the States. What business leaders and their lobby organisations say in public and private are very often different and there is a lot of concern behind the scenes in Guernsey that insufficient attention is being paid to the economy or to transport and connectivity links. That’s good from Jersey’s point of view as you’re picking up a lot of business from the other island as the cost and difficulty of getting there drives people your way.

So for me, the discussions in each island about voting systems and parish representation seem rather to be missing the point because no one’s discussing how such changes are going to make government better or more effective. To do so, of course, someone would have to define what was meant by ‘better’ or ‘more effective’ and set out in what way it has deviated from what is required in today’s fast-paced environment in which constant change and instability is a given. Instead, when things like voting are raised, they tend to be seen through a political prism: what’s good for deputies/senators or candidates. Yet the system by which we appoint States members and – crucially – what we expect them to do and why, hasn’t materially changed for 70 years, since the German Occupation ended and the islands adopted representative democracy. The panel looking at Guernsey States members’ pay (of which I was a member) said that if there was a clear public statement describing the role and responsibilities of a deputy and the core competencies that a person would ideally need (not only as an ‘ordinary’ member, but also in the senior positions), there would be some significant benefits.

The article elsewhere in Contact this month on population management indicates some of the concerns about how this hugely important restriction on recruitment, and therefore business, is handled by each island. In turn, that highlights how governments consult and respond to representations from the wealth creators and others and whether, in this electronic age of social media and mass collaboration, we’re going about things in the best possible way. Some of Guernsey’s recent experiences of ‘consultation’ have been poor with, on transport and waste for example, vocal lobbies steering policy to a substantial degree. At least the Jersey Action Group, which seeks to put 15 candidates into the Assembly next election, is upfront about its intentions to influence. But is its voice the one that should be heard because it’s loudest? I’m not saying it isn’t, but the way these islands manage themselves would be recognisable to a States member of 1948 while what they have to deal with today would not. As two tiny islands with an overwhelming need to win a living in a hostile post-Brexit world, we need the best tools available to help us do so.

It would materially assist a potential candidate when making a decision on whether or not to stand for election and would help voters to better understand what to expect from elected representatives which, in turn, might have an effect on public opinion of them.

Yet for all the politicking in either island, no one’s seriously addressing how the States should adapt to 21st century demands, use technology to become more responsive to and aware of islanders’ views, or structure collaborative working and policy making with partners like the business community.

In addition, although the panel put it more diplomatically, if you don’t know what States members should be doing or why, it’s damned hard to know how much to pay them.

Not only is it an opportunity missed, it does nothing to improve the esteem in which States members are held. And, ultimately, that concerns everyone.

GUERNSEY CHAMBER NEWS

Sure Customer Service Awards launch for 2017 Chamber is delighted to be supporting Sure Customer Service Awards which this year will include a trophy for entrepreneurial spirit in memory of the local telecoms company’s late CEO Eddie Saints who died suddenly earlier this year. The award will be presented to an individual who has shown initiative and been proactive in developing and implementing new ideas relating to the delivery of customer service in their organisation.

customer service across a variety of sectors in the island. A presentation will be held in Market Square on Thursday 6 July to announce category and overall winners. The 2017 awards include 12 categories covering multiple business sectors. The categories include: aspiring star (under 25), self-employed, best team, overall customer experience, States employee, humble volunteer (charitable/caring), best service at a visitor attraction, food/hospitality award, best service in tourism, innovation in customer service, best use of social media and the new entrepreneurial spirit category. One overall winner is then selected from the 12 category winners for the overall customer service award.

Eddie himself was a keen supporter of entrepreneurial spirit on the island and was passionate about helping to develop entrepreneurial and employability skills in young people, having been a mentor for the Channel Islands Student Business Challenge in Guernsey as well as mentoring many individuals personally in both Guernsey and previously in Bermuda.

Sure customer experience director, Charlotte Dunsterville, said: ‘Eddie was an inspirational leader in our business and we wanted to honour him at the 2017 Customer Service Awards as he was so supportive of the awards and really enjoyed attending last year’s event to present the best business award.

The awards nomination period opened on Monday 24 April. The event, which is now in its seventh year, rewards exceptional

‘The addition of the entrepreneurial spirit award in his memory is a great tribute as Eddie was passionate about entrepreneurialism and developing ideas to

improve and grow our business. Rewarding those who are innovative and really go the extra mile with a can-do attitude to offer a great customer experience, which is vital for business success, is very appropriate.’ Nominations for the Sure Guernsey Customer Service Awards are open until Friday 9 June. People can nominate online at: www.thecustomerserviceawards.com or pick up a nomination form from locations around the island. Nomination forms can be found at: Sure Co-Op stores Guernsey Airport Guernsey Post HQ Situations Recruitment Airtel Vodafone Moores Hotel B&Q The Guernsey Chamber of Commerce Island FM Lloyds Bank (all branches) Barclays Bank White D’Or The OGH Hotel The Duke of Richmond Hotel The Slaughterhouse

G U E RN S E Y CH AM B E R NEWS

The results give us an overview of the opinions of Guernsey’s business community on current business performance and establish confidence levels within the various industries that make up the island’s private sector. It is imperative that as many businesses participate as possible since the more respondents, the more representative the results will be.

Have you completed the survey yet? Don’t forget that you only have until 10 May to complete this year’s Business Trends Survey The survey is organised by Young Business Group (YBG) sponsored by BWCI and run in association with Guernsey Chamber of Commerce. The purpose of the Business Trends Survey is to identify key issues affecting businesses on the island.

Dates for your diaries Chamber is organising a number of events over the coming months. Keep your eye on the website for any updates. Chamber lunch Monday 15 May OGH Hotel Our speaker in May is our lunch sponsor Stanley Gibbons’ managing director Keith Heddle. About the speaker A Cambridge graduate, Keith joined SG in 2009 having built an enviable track record of commercial success with major blue chips from Singapore Airlines to Fosters Brewing Group and Direct Wines.

Keith has significantly developed the Stanley Gibbons investment offering, overseeing international expansion in the US, the opening of new offices in the Channel Islands as well as Hong Kong and Singapore to support the growing Asia market. The investment also now includes rare coins and books for greater portfolio diversification and has several new Bloomberg-listed indices to highlight market performance. The investment division now boasts new investment products and a suite of seven-figure investors.

Chamber lunch Monday 16 June OGH Hotel Speaker to be confirmed Check the website for details.

The results will be released on 18 May and there will be a full presentation on 23 May which will give attendees the opportunity to ask questions on the implications of the survey output.

Vaudin Stonemasons – tour and BBQ Friday 7 July 4.30pm – 7.30pm La Fontaine Vinery Le Murier St Sampsons Vaudin has kindly offered all Chamber and YBG members on a tour of the Vaudin Stonemasons yard. The tour will include a look at the various materials and machinery used as well as the stoneworks Vaudin is currently working on. Following the tour Vaudin has kindly offered to sponsor a BBQ and beers event open to all attendees. There is no charge for this event so book your ticket now as there are only 50 spots available. Come and join us for a fun Friday evening with the Vaudin team!

Join Chamber today the voice of local business

Business support; networking events; business advice; business events; liaison with States departments; new interactive website. Email: office@guernseychamber.com Tel: 01481 727 483

www.guernseychamber.com

@GuernseyChamber

GuernseyChamber

MEET MISS OCTOBER The original ‘Calendar Girl’, Tricia Stewart has been played on the big screen by Helen Mirren and on stage by Lynda Bellingham. But meeting her in person, it doesn't take long to realise she’s got plenty of star quality all of her own. On a recent visit to Guernsey Tricia spoke to Tamara Timothy about the impact of the famous calendar and the change she hopes it encouraged. It’s difficult to believe it’s 18 years since the Rylstone and District Women’s Institute found worldwide fame with their nude calendar, and 14 years since the film Calendar Girls became a global success. But it seems theirs isn’t a story the world is ready to forget just yet, with the subsequent stage play being recently reinvigorated as a musical comedy by Gary Barlow and Tim Firth. That musical, The Girls, launched in the West End in January. It’s the latest chapter in a tale that started as a joke of an idea almost two decades ago. For Tricia Stewart, it was a joke that turned into a phenomenon she’s lived with ever since. “It just goes to show that out of something dreadful really good things can happen. It’s been such a positive thing to be part of, and I’m always motivated to carry on with it because of that.” The ‘something dreadful’ Tricia refers to will be familiar to those who have encountered the Calendar Girls story. In the film, the character loosely based on Tricia, Chris Harper, encourages the others to take part in the calendar to raise funds in memory of

their friend’s late husband. For Tricia, it was the loss of close friend Angela Baker’s husband John to leukaemia that provided the motivation for the group to take their clothes off and pose for the photos. The WI members originally aimed to raise enough money to buy a new sofa for the visitors’ room at the hospital John was treated at. Their current total now stands at over £4million with £5million in sight as the new show heads to Broadway. It’s made a huge difference to the Leukaemia Research charity, and it’s something Tricia believes John would have been proud of. “I think he would have found the whole thing very amusing and would have thought it was a great thing to be attributed to him. Many people die and simply disappear, John will be living on through the difference made by the money raised in his name. ‘The money we’ve raised really has had an impact. If John had the same illness now, he’d stand a much better chance of survival than he did back in 1998 thanks to the research that the calendar has enabled.’ A generation on from the launch of the original calendar, Tricia believes that it has not only redefined society’s perception of the Women’s Institute, but also contributed to a sea change in attitudes towards older women. ‘I think we have helped older women feel better about themselves. We can still look good as long as we keep fit and healthy. I teach pilates, and I would never now ask women to even put their date of birth on a form as I don’t want to judge their

capabilities by their age. 60 is the new 40, and I’m certainly young at heart.’ It’s an attitude that many find motivating, and not just those close to Tricia’s age. Asked if she feels the calendar is still inspiring people, she’s certain that it is. ‘We attended the musical [The Girls] in London for a whole week in February and were in the theatre every night. We constantly had young people of both sexes coming up and thanking us for what we’ve done. It was a complete cross-section of society and really made me realise the impact it’s still having.’ But while the story is still influencing change, Tricia is adamant her nude calendar days are over. ‘Will we pose for another calendar? Definitely not. We did one ten years on from the original and that was brilliant, but I don’t think it would work now. What we want to do is release our original photos along with ones from the current show and sell it in the theatre.’ So while she’s not planning to take her clothes off any time soon, you may yet find the original Miss October in a calendar again. Tricia Stewart was in Guernsey as a guest of the Women’s Development Forum (WDF) on International Women’s Day. The WDF meet regularly in both Guernsey and Jersey. Further information on the WDF’s objectives and their upcoming events can be found at www.wdforum.org.

WE ARE

L E A DE R S

Making the right decision isn’t always easy. When we work with you we adopt your concerns as our own, guide you through the tough times and focus on helping you make the choices that will get you where you need to be. We measure our success from your perspective so when you succeed, we do too. That’s why we believe it’s what we achieve together that makes us great leaders.

To find out how a leading law firm can help your business visit collascrill.com BVI // Cayman // Guernsey // Jersey // London // Singapore

G U E R N S E Y N E W ME MBE RS WSI is a private and discrete company with an international footprint.

West Sealand West Sealand International (WSI) is a specialist security company, offering a 360-degree approach to security from security masterplan design and consultancy to specialist training services, technology, and cyber.

WSI’s team has extensive experience developing, providing and successfully operating security contracts in difficult circumstances. WSI’s robust management methodology incorporates current best practices from both the military and the private sectors, always placing client risk mitigation at the centre of its objectives.

Situated within the tranquil grounds of the exclusive, award-winning Bella Luce Hotel, the Bella Spa is known for its relaxing treatments and high-performance skincare.

Bella Spa

Waves Waves is a new technology logistics company operating from Guernsey.

Sanondaf

From the moment you step through the door, you are transported into a haven of tranquillity.

West Sealand Digital is a specialist in cyber security and able to respond to all cyber security needs. Email: ma@westsealand.com Tel: 07839 700 009 www.westsealand.com

Handpicked and highly trained staff offer a range of effective treatments and spa packages ensuring the most serene and restorative experience. Bella Spa is Guernsey’s only ESPA outlet and also exclusively stocks Wellco Super Elixir and Jan Marini skincare. Email: spa@bellalucehotel.com Tel: 01481 235417 www.bellaspa.co.uk

Waves offers a range of services including an on demand air taxi service for individual passengers, private charter and freight services between the Channel Islands and across Europe to destinations up to two hours flying time.

booking services. Services are planned to start in summer 2017 operating a new Cessna 208B Grand Caravan aircraft. This aircraft type operates in some of the most challenging areas of the world with an exceptional safety and operational record.

Waves will be using its own ‘push to fly’ technology to provide dynamic customer information, passenger experience and

Email: emy@flywaves.gg Tel: +44 7781 165148 www.flywaves.gg

Sanondaf uses electrostatic and fogging technology to bring touchless disinfection and decontamination services to all industries.

over 99.99% of harmful bacteria and viruses such as MRSA, C-Diff, E-Coli, Norovirus, H1N1 and H5N1 flu viruses. Its product is dry, making it especially suited for use on electronic equipment and is 100% environmentally friendly.

Too many people get sick from infections and diseases in places that should be safe, like hospitals, schools, offices, restaurants, hotels, sporting facilities, and public transport. Sanondaf is able to vastly improve upon existing hygiene practices by killing

Email: channelislands@sanondaf.co.uk Tel: 01481 237811 www.sanondaf.couk/ci

G U E RN S E Y N E W M E M B ER S Redwood is a modern customer focused business risk consultancy, with the core principle of quality service delivered by industry experts. The company provides tailored advice and services to financial services businesses in all four sectors of the finance industry, with a focus on compliance, anti-money laundering, data security and company secretarial.

Redwood

FCG

The staff can also fulfil key regulatory positions such as MLRO and compliance

FCG is the parent company, mind and management of the UK insurance provider 1st CENTRAL and was the 2015 Guernsey Awards for Achievement Employer of the Year. With a skilled workforce in Guernsey, FCG promotes and encourages the personal growth, development, health and wellbeing of its staff. The expertise of its IT developers enabled the creation of a major piece of enterprise and innovation, a

Guernsey Golf Limited operates from St Pierre Park.

Guernsey Golf Limited

We have invested ÂŁ2.8 million in a new facility (opening July 17) which will include nine-hole par three golf course, a 14-bay floodlit driving range, a 12-hole pirate themed adventure golf, a professional shop, golf simulators, a golf academy, restaurant and bar.

Our team of dedicated professionals have a wealth of experience to help you produce clean, green renewable energy.

The Little Green Energy Company

Welcome to the Little Green Energy Company. You'll find we are different from a lot of companies operating in the renewable business. For a start we won't sell you a system unless your home or business can benefit. Our free survey will enable us to show you how much electricity you can

officer functions on a short-term basis or for long-term contracts. Redwood strives to provide a first class service and to build long standing relationships which enable the team to add value and allow customers to focus on their profit making activity with the assurance that risk areas are dealt with effectively and efficiently. Email: contactus@Redwoodoffshore.com Tel: 01481 743 690 Website: wwww.redwoodoffshore.com

bespoke insurance platform, Focus, on which 1st CENTRAL sits. This has quickly established 1st CENTRAL and Guernsey as a highly skilled software development hub. FCG launched its motor insurance provider, 1st CENTRAL, to the UK market in 2008. Since then it has experienced phenomenal growth with over 350,000 customers and 2.5 million policies sold. Email: enquiries@first-central.com www.firstcentralgroup.com

We plan to revolutionise the playing of and the perception of golf with the new business. The majority of the new business was funded by local investors keen to see a state-of-the-art facility in Guernsey. We also run www.JamGolf.com which is the number one rated website in Golf on Trust Pilot.

generate and at what cost. If solar PV or a heat pump isn't right for you we will tell you. We promise to deliver outstanding value for money using quality components, comprehensively guaranteed. We look forward to meeting you and helping you generate clean, green renewable energy. Email: info@littlegreenenergy.gg Tel: 01481 255 666 www.littlegreenenergy.gg

Joanne Seal, group partner at Collas Crill

Joanne specialises in estate planning and advising on issues relating to inheritance. In addition to frequently drafting complex wills for both local and non-resident individuals, often incorporating extensive will trusts, Joanne also deals with all aspects of estate administration from advising on Guernsey’s probate procedures, dealing with intestacies (where someone has died without a will) and obtaining Guernsey grants of probate and representation.

develop without being stretched and there’s nothing worse than feeling as if you’re stagnating. Do you have any particular view on the issue of female ‘quotas’ in the boardroom?

Joanne also has a wide range of experience in private client matters including assisting in the recognition of foreign powers of attorney and guardianships and advising upon associated property issues.

As far as Collas Crill’s boardroom goes we have a good representation of women across our partnership and our board. I am a firm believer that boards made up of both men and women are more likely to make better and more balanced decisions. That said, a board shouldn’t simply be balanced between men and women to meet a ‘female quota’. It doesn’t make sense for that to ever be a forced issue. Any appointment should always be based on the merit and accomplishments of the individual in question.

Can you give us a quick overview of your career to date?

Does the glass ceiling still really exist?

My career to date has seen me work my way up at Collas Crill, starting as an associate and progressing to my current position of group partner. From the beginning I made sure to involve myself in committees and to take on any potential responsibilities or opportunities that I could (for example the Collas Crill Moot that I helped establish in 2008 and ran for many years). Over the years I have developed a reputation, both internally and externally, as someone with a wide knowledge in my field, who is hard working but approachable, and committed to developing my career path; and I have been lucky enough to be awarded several accolades along the way. What are your goals and ambitions? As I am only 36, I still feel that I have a long way to go in my career as I believe that you’re never truly done learning. I want to support and grow my department, as well as the wider firm generally and providing mentoring to members of the team is something that is really important to me. To see people grow, develop and achieve is something that I take a lot of joy from. All the while however I still want to ensure that I take on any new opportunities and challenges that may arise as that’s what promotes the most growth – you can’t

Perhaps. There certainly don’t seem to be as many women at higher levels as there are men but there could be many reasons for that. In my opinion, and having sat in on many public forums about this issue, I think that issues surrounding pregnancy and maternity leave still play the biggest role in this, particularly the challenges that companies face to make that workable for both the individuals and the business itself. Have you faced any ‘gender issues’ so far in your career? I don’t believe I’ve faced any obstacles to date simply because I’m a woman. When I started out in law there seemed to be fewer women in the profession, particularly at partner level, but nowadays there are lots of impressive, talented women at the top or coming up and sitting at all levels of businesses.

students. When I was younger I always used to say to her, ‘I’m never going to work as much as you do’ but it turns out, I was wrong. My parents brought me up with the ethos that you have to work hard for what you want in life as well as drumming into me the importance of being independent, particularly from a financial perspective. How is your work life balance? It goes without question when you have a highly pressured job, work can sometimes take over. It can be difficult to juggle all the demands of managing a team, dealing with client work, undertaking business trips etc. while carrying on with everyday life. But I always make time to travel, spend time with friends and try new things. I have activities almost every night of the week and enjoy the vast amount of people I get to meet, through my work life and my personal life. What is your general philosophy on life? I believe that you have to approach everything in the most positive manner that you can, no matter how difficult that can be sometimes. It’s important to embrace challenges but always do everything with a smile and respect for others. We’re not really around for long and I want to make the most of it – push myself to achieve and be proud of my successes. I think it’s important not to stay in your comfort zone, to enjoy new experiences, try everything once and, most importantly, laugh, a lot. What’s the most important thing you have ever learnt? It sounds trite but life is very short. Work hard for what you want to achieve but make sure that you take time to enjoy all that life has to offer along the way.

Who are your role models? Easiest question - my mum. My work ethic and drive definitely comes from her. My mum was the primary ‘bread-winner’ in our household and I clearly remember the long hours, commitment and dedication that she continually gave to her job, her staff and her

Describe yourself in three words It’s always hard to describe yourself, particularly in three words, but, with a little help, here are three ‘A’s that I think describe me: approachable; ambitious; adventurous.

T EC H N O LOGY

LET’S TALK TECH

GDPR myths and misconceptions debunked

Director of C5 Alliance Guernsey, Matthew Thornton tells us more. The general data protection law (GDPR) has been the new regulation on everyone’s lips this year - and rightly so. It comes into force in May 2018 and will mark the most significant change to data protection law in two decades. GDPR broadens data protection regulation, giving EU citizens more control over the use and security of their personal data. The law will impact all organisations that manage or process data about EU citizens, including businesses in Jersey and Guernsey. This will mean implementing or updating processes and policies for managing personal data. Failure to comply or breaches of data under GDPR could result in fines of up to €20 million or 4% of your global turnover! As a C5 Alliance technology consultant, it’s my job to stay on top of the latest tech trends to ensure Channel Islands businesses comply with the latest legislation – and that has included drawing a line between GDPR fact and fiction. In deciphering the rules of GDPR, it’s only natural that some ‘Chinese whispers’ have occurred between local organisations. Here are my top five GDPR myths, debunked: ‘GDPR won’t affect my business because of Brexit’ Some businesses insist that being an EU regulation, GDPR will not apply following Brexit. This is incorrect - GDPR will remain relevant. Under GDPR, Guernsey and Jersey must ensure equivalent protection, and governments of both islands are already writing GDPR into local law. Even if you’re not in the EU, if your company operates across

EU countries or holds data about EU citizens, you must ensure compliance. Finally, UK government will unquestionably implement GDPR or an equivalent as part of its exit without it, any commerce with the EU would be virtually impossible. ‘GDPR will only affect my IT department’ Being a data protection regulation, some believe GDPR is only relevant to IT departments. Certainly, there are issues that IT departments must consider, but GDPR will extend to all areas of your organisation. Under GDPR, organisations must respect and protect personal data regardless of where it is sent, processed or stored. This means reconsidering policies and procedures. It’s critical to recognise compliance as a shared duty by ensuring your whole organisation is aware of GDPR, its ramifications and what must be done to comply. ‘GDPR means I need to hire a Data Protection Officer (DPO)’ Some business owners believe they must hire a DPO under GDPR. This is only half true as it only applies to some organisations. Only public authorities and bodies, businesses of a certain headcount, businesses that process and monitor personal data on ‘a large scale’, and those that observe ‘special’ data categories set out in the legislation, will be obligated to hire a DPO. However, even if you don’t require a DPO, knowledge of GDPR within the organisation remains critical. ‘My cloud provider will deal with my GDPR compliance’ GDPR introduces new considerations for businesses utilising the cloud. The cloud means your data is hosted with a third party, situated externally, and often on the other

side of the world. Even if your data is hosted within the EU, there’s still no guarantee that your provider will ensure compliance. It’s your responsibility to check they can deliver security measures and process logs to ensure compliance. As even high-quality, global cloud hosting providers currently fall short of what’s required, I’d recommend contacting an expert to help find the right provider for you. ‘We can’t comply with some aspects of GDPR as a regulated industry’ GDPR sits alongside other legislations and doesn’t supersede in most cases. For instance, if you have a regulatory duty to keep records for seven years, then GDPR will recognise your legal requirement and you will be protected. Ultimately, GDPR is about reasonableness – if you can demonstrate you’re processing data lawfully and securely, GDPR will protect you. While there’s still time for businesses across the Channel Islands to plan for GDPR before it comes into effect, this is a major legislative overhaul that will require stringent planning. That said, it’s encouraging to see that local businesses are discussing how GDPR will affect them, as evidenced by these myths. Although there’s much to consider, GDPR will create a positive impact in the long run. GDPR has been designed with organisations’ data needs in mind, while applying new measures to safeguard personal information and establish accountability – preparing us for a world that’s more data-driven. If you’re seeking professional advice to ensure your business is GDPR compliant, please get in touch. matthew.thornton@c5alliance.com.

Orchestrating positive outcomes for our clients for over 30 years

For 30 years IAM Advisory has been providing an independent and comprehensive service, providing advice on all aspects of the management of substantial investment portfolios. We take an innovative approach to the structure, management and control of investment portfolios, aiming to maximise investment returns with an objectively set and controlled level of risk that is matched to the needs and objectives of each client. Our unique experience and proprietary systems create dynamic investment structures that deliver risk control through active and effective management.

For more information contact Michael Strachan on + 4 4 (0) 1481 716575 or michael.strachan@iamadvisory.com IAM Advisory, Louisiana House, South Esplanade, St Peter Port, Guernsey GY1 1BJ www.iamadvisory.com

We offer a comprehensive research capability and have offices in Guernsey, Jersey and London, working with family offices, trustees and pension plans and sovereign wealth funds.

Licensed by the Guernsey Financial Services Commission and the Jersey Financial Services Commission. Authorised and regulated by the Financial Conduct Authority.

GUER NS EY PE OPLE

Patrick (right) has joined the bank as the head of products and solutions. Elliott is the firms’ new head of legal. Patrick who has 25 years’ industry experience, is responsible for delivering a range of banking services, including investments, lending, treasury and dealing, with a focus on identifying opportunities post-Brexit.

A chartered wealth manager with more than 18 years’ experience, Colleen was previously corporate investment specialist with Barclays. In her new role she will work closely with the private banking and asset management teams to build a cohesive strategy to develop the business.

S LI With over 30 years’ experience, including 16 years in IT sales and services management at Sigma, and as engineering services manager at Big Fish, Dave brings a wealth of skills to his new role. He will responsible for helping to raise awareness of the firm’s IT service provision.

Richard Saunders, managing director, said:

Tom Bale, business development and technical director said:

‘Colleen’s experience is a great asset to Butterfield and I am very pleased to welcome her to the team. She has worked across a range of sectors and in a number of geographical locations. Her appointment will further strengthen our position and help foster long-term success.’

‘It’s great to have someone of Dave’s experience join the team. We are always looking for experienced IT professionals who have a good knowledge of the market. Dave will be helping businesses of all sizes across all industries implement IT services and solutions.’

Steve has become a director and audit chairman of specialist real estate investment company, Channel Islands Property Fund.

Lance has been appointed as a senior manager to the business risk consultancy and will be responsible for providing compliance consultancy for the firm.

‘Steve has extensive experience in the financial services industry. He will be a huge asset to the board when looking at future investment opportunities in Guernsey, Jersey and the Isle of Man.’

CA Dave is Logicalis’s new sales executive.

LANCE BARCLAY

Shelagh Mason, chairman of the Channel Islands Property Fund, said:

Colleen has been appointed head of wealth management.

STEVE LE PAGE

Steve was a partner with PwC in the Channel Islands from 1994 until September 2013. He is a former chairman of the Guernsey International Business Association and former president of the Guernsey Association of Chartered and Certified Accountants.

BU BA T TE N RF K I GS EL Y D

DAVE SANDS

CH O ISL AN PE A N RT ND EL Y S FU N D

Finance lawyer Elliott (right) joins as head of legal. With 12 years’ legal experience advising financial institutions, corporates and high net worth individuals, in his new role, Elliott will translate opportunities and risks from a legal perspective to help the bank’s development.

COLLEEN MCHUGH

In his new role, Lance’s key focus will be on anti-money laundering training and MLRO appointments on either short-term or long-term contracts. James Wood, CEO said: ‘We are very pleased to welcome Lance to the team and this appointment aligns directly with our intention to recruit senior experienced professionals in order to provide our clients with a top class service delivered by industry experts.’

IN CO T T E R P RU RN OR S AT AT T IO IO N N AL

PATRICK MILLAR AND ELLIOTT DOUCY

R O ED FF W SH OO O D RE

AB N

These people made a great move

JULIE PHILLIPS, IAN ROSS, CARMEN FLETCHER AND LOUIS GRAHAM Julie, Ian and Carmen are the firm’s new trust officers. Louis joins as a trainee. Julie has over 15 years’ trust experience and holds an International Diploma in Compliance. Ian has a background in dealing with complex international clients and holds the ICSA International Diploma. Carmen previously worked for large, international trust companies and has 10 years’ fiduciary experience. Louis joins post A-levels and is the firm’s first trainee. Managing director, Amit Taylor, said: ‘Our business model is based on our ability to provide the highest level of client service and Julie, Ian and Carmen are going to add to that with their experience and quality.’ Photo (l-r) Ian Ross, Julie Phillips, Carmen Fletcher and Louis Graham

Meet the team Left to right Jenny Melissa Nadine Liga

Lisa Anna Becky Kirstie Patrick.

G U E RN S E Y PE OPL E

Jim has been appointed as the foundation’s new chief executive.

Quentin has been appointed as an associate in the firm’s dispute resolution team in Guernsey.

Jim will be responsible for developing and implementing the strategic direction of the foundation, identifying opportunities for future growth, and contributing to the formulation of social policy.

Quentin specialises in complex commercial litigation with a focus on financial services, insolvency, and regulatory disputes. He regularly advises on a variety of commercial disputes, including contracts, debt recovery, insolvency and professional negligence.

Wayne Bulpitt, chair of the Guernsey Community Foundation, said: ‘We are excited by the opportunity to build on Jim’s vast experience to develop our ambitious plans to promote effective philanthropy in Guernsey and especially partnerships between voluntary organisations, the States, businesses and the community.’

Partner Christian Hay said: ‘2016 was an extremely busy year for our dispute resolution practice in Guernsey, particularly in the areas of trusts litigation and regulatory disputes and investigations, so we are expanding our team to reflect this. We’re very pleased to welcome Quentin to the team. His commercial litigation experience will complement our existing practices well.’

RE UV

Photo: courtesey of Guernsey Press

LL É BB BA

QUENTIN BREGG

ROBERT VARLEY AND KATHERINE HITCHINS Robert and Katherine have become partners at the firm. Robert joined Babbé LLP as a consultant in the corporate, commercial and funds teams. He was previously the managing partner of Walkers’ Dubai office. Robert is noted as a specialist in corporate and funds matters. Katherine joined Babbé LLP as a consultant in the corporate and commercial team after more than 13 years’ experience as in-house counsel for leading investment banks in both Europe and Asia. Managing partner Andrew Laws said: ‘At Babbe we encourage development and nurturing of our lawyers enabling them to achieve their goals and aspirations. We are delighted to welcome Robert and Katherine to the partnership.’

CH SA AM FF PN REY ES S

JIM ROBERTS

Jim was previously the States’ director of housing, with responsibility for the delivery of social housing and the implementation of general housing policy.

IL CR AS LL CO

C G F O O MU E R UN M NS DA U N E Y TI IT Y O N

...and so can you with situations.gg

DAN GALLIENNE

JANE KERIN

LISA VIZIA

Dan has been appointed to account manager for Orchard.

Louvre Group has Jane has been appointed board as fiduciary risk director.

Lisa has been appointed as a STEP Private Client Awards presiding judge.

In this new role Dan, who joined Orchard in 2014, will play a key part in client management, winning new business and contributing to Orchard’s business objectives as part of the company’s senior team working alongside the account directors.

She will have responsibility for the compliance team and Louvre’s overarching approach to fiduciary risk. Jane has 30 years’ sector experience from running small bespoke solutions and leading larger fiduciary teams within multinational organisations. Steve Woodhead, David McGall and Martin Boyde have also been appointed to senior roles within Louvre’s fiduciary and fund administration teams.

Lisa is a director of Saffery Champness and has joined the panel of 17 judges from around the world who are each expert in their own fields and together span the international legal, accountancy, financial advisory and fiduciary sectors.

Managing director Steve Falla said: ‘Dan’s promotion is richly deserved. He has continued to develop his PR skills and is an experienced member of the team, playing an active part in the development of PR strategy for clients. He brings a lot to the business and we’re very pleased to have him on the senior team.’

situations.gg

Derek Baudains, CEO said: ‘We’re very pleased to be boosting the business with such experienced financial specialists. These appointments are testament to our ambitious plans for the future and we’re looking forward to offering further expertise within our fiduciary and fund offerings.’

She said: “Part of this role is to raise awareness of the awards in my jurisdiction. The awards are the hallmark of success in the private client industry. Recognition at these awards for a local firm is not only endorsement for the firm itself, but for Guernsey as a leading financial services jurisdiction as a whole.’

The recruitment people

email team@situations.gg, call us on 710639 or visit www.situations.gg

L AW

Criminal prosecutions in the UK for tax offences

Raymond Ashton from abt Advocates examines the powers of HMRC

This article will focus on the increasing number of criminal offences now available to HMRC. Given that these have increased over the last few years it is likely that there will be more prosecutions in the next 10 years than in the previous 10 years or so. Until recently the most prosecuted offence was the common law offence of cheating, the leading case of which was R v Hudson[1956] 1 All E.R.814. Professionals in the Channel Islands can no doubt remember two cases where this charge was successfully prosecuted. R v Charlton [1996] STC 1418 which involved a Jersey company controlled from the UK purchasing goods from overseas and selling them at inflated prices to a connected UK company. The other cases of R v Dimsey [2001] STC 1520 and R v Allen [2001] STC 1537 involved using offshore companies to minimise profits and a failure to declare personal income received from those companies.

More recently this offence has been charged and prosecuted as a precursor to applications under the notoriously wide Proceeds of Crime legislation in England and Wales - see for instance, R v Foggon [2003] 461 and Revenue and Customs Prosecution Office v May [2010] EWCA Civ 521. Another recent and controversial development has been the use of information abroad to prosecute UK citizens - see Simons Weekly Tax Intelligence 2012 Issue 27, 2211. Whilst HMRC has this potent common law weapon, it has also felt necessary to enact legislation relating to the fraudulent evasion of income tax, offences relating to offshore matters involving failure to notify of chargeability to income or capital gains tax, failure to deliver a return and failure to deliver a accurate tax return. Each of these will be examined below. Fraudulent evasion of income tax This offence is confined to the evasion

of income tax and was introduced in the Finance Act 2000. In order to be convicted under this section it must be proved that the individual had both knowledge of the fraud and involvement. Significantly whilst the offence will be committed where a person helps another to evade tax by falsifying business accounts, it did not apply where an individual was invited to pay cash with a â&#x20AC;&#x153;nod and a winkâ&#x20AC;? so to speak, see Parliamentary Debates, House of Commons Official Report, Standing Committee H.25th Sitting June 2000 p1000-1017. The first prosecution was not until 2003 and involved a taxi driver and also claimed tax credits, the result of which was a 12-month conditional discharge, see HMRC press release 17th December 2003. More recent offences (a) Offences relating to offshore matters, Taxes Management Act (TMA) 1970 section 106 E This offence has been in operation since 2017 and involves situations where a person

L AW has not properly declared for income and capital gains tax purposes their offshore income and capital gains but will not apply to persons who are responsible for giving notice or making a return to HMRC in their capacity as trustee of a settlement - which will be a relief to non-resident trustees. The three offences, as they relate to offshore matters and to the offences discussed in (b)-(d) more generally below will not be committed where the taxpayer can show that he has a reasonable excuse for the failure or he took reasonable care to comply with his UK tax obligations. (b) Failure to notify TMA section 106B This arises where a person does not give notice of chargeability to income or capital gains tax by the end of the notification period (see TMA 1970 section 71 (C) in respect of tax where the amount chargeable whether in whole or part is by reference to offshore assets or income and the sum involved is in excess of a threshold amount (see below). The reasonable excuse test referred to under (a) is equally applicable to this provision and to (c) and (d) below.

(c) Failure to deliver a return TMA 1970 section 106 (C) Where a person has received a return and does not deliver an accurate return before the end of the withdrawal period (defined under TMA section 8 (6) TMA 1970) or such time as HMRC or the tribunal allows and there is an understatement of offshore income, or capital gains tax by reference to the offshore element then an offence is committed if the amount involved is above the threshold limit, as in (b), see below for the threshold limit. (d) Inaccurate return, see TMA 1970 section 106 (D) A person who has received a notice to file commits an offence if he delivers a tax return which at the end of the amendment period (defined in TMA section 9ZA) or such further time as may be allowed by HMRC or the Tribunal, which understates income tax or capital gains tax by reference to offshore income, income, assets or activities provided that the threshold figure is exceeded.

surprisingly and the threshold amount is less than ÂŁ25,000. Regulations will be issued for the purposes of calculating whether the threshold has been exceeded. Where the threshold is exceeded and the matter prosecuted the person on summary conviction will be liable to a fine or imprisonment for a term not exceeding 51 weeks or both. Conclusions It is clear from this analysis that HMRC has a plethora of instruments to attack the taxpayer with offshore interests. To this list there is the possibility of adding other charges such as those under the Theft Act 1968 and fraudulent trading under section 206 Companies Act 2006. This non-exhaustive list of possibilities is obviously not conducive to doing business with the offshore world particularly when the outcome of the Brexit negotiations remains uncertain.

Offshore activities are defined widely not

A professional and friendly team with many years experience in the live event industry

Centre Stage Guernsey

J ER S EY P E OPLE

IM IG D

let’s talk your career

DANIEL OBRYK

EMMA HOSKING-WILLIAMS

GLEN KEHOE

Daniel Obryk has joined Logicalis as a senior systems technician, helping plan and implement platform development projects to ensure its iConnect service is performing at optimum levels for customers.

EY has appointed Emma as director in its private client and trust team in the Channel Islands. Emma will be focusing on growing the firm’s service offerings for high net worth individuals, family businesses, large multinationals and trust and corporate service providers.

Glen has been appointed as director for Digimap in Jersey, after 10 years with the technology firm.

Daniel has over eight years’ experience in IT, managing teams of technicians, and leading new projects. His new position with Logicalis will see him support, manage and update the iConnect platforms for clients across a variety of industries. Tom Bale, business development and technical director, Logicalis, said:

‘I am delighted to welcome Emma to the team. Her experience and expertise will be a huge asset in this period of significant change for the fiduciary industry and private clients. Her technical expertise in pensions and employee benefit trusts also strengthens our private client and trust service offerings an complements our existing skill sets.’

Managing director, Colin Le Conte, said: ‘Glen has been a key part of our business for 10 years and a vital driver behind our success in Jersey. We are really thrilled to appoint him as a director and believe it will enable us to continue our growth in the island.’

O S 24 PE .7 RIT

D BRE O W LP I H N IN

‘We are very glad to have Daniel on board at Logicalis. We have lots of iConnect customers and need a strong team to provide the best support for our service.’

Wendy Martin, EY’s partner and head of tax in the Channel Islands, said:

Glen was previously the company’s business manager in Jersey, and prior to that he worked in management roles at Jersey Post. He has been responsible for over 100 commercial customers who use official States of Jersey mapping data.

MARK MILES

MICHAEL CAPRARO, AND RYAN TAYLOR

PAUL MARSHALL AND PETER STOTEN

Mark has been appointed as the new head of office for the company’s Jersey branch.

Michael joins as head of business development and Ryan takes the role of associate director in the firm’s fund services division.

Paul has been promoted to director of business change and Peter has becomes head of business change.

In his new role, Mark will be responsible for the overall profitability and success of the office, building upon its 44-year history on the island. He joined Brewin Dolphin as divisional director in 1995 and has been predominantly involved in the discretionary managed side of the business. Hal Catherwood, regional director at Brewin Dolphin, said: ‘I’m delighted to appoint Mark. He is an experienced and dedicated investment manager, who has enjoyed a successful career with Brewin Dolphin. We look forward to continuing to work with Mark to build on the success of the Jersey office.’

With more than 34 years’ financial industry experience, Michael will focus on building the firm’s client base both in the UK and further afield. Ryan’s role will include improving ZEDRA’s client experience by providing bespoke accounting and valuation solutions. Niels Nielsen, ZEDRA CEO, said: ‘We are delighted to welcome Michael and Ryan to the ZEDRA team. Their collective experience and backgrounds is an important asset as we continue to develop and build on our client base.’

Paul has been with the company since 2013 and has successfully grown the business change practice area. Peter joined in January last year and has been involved with some significant change projects since then. Chris Clark, CEO of Prosperity 24.7, said: ‘By promoting Paul and Pete we are creating greater structure and potential scale within the organisation enabling greater and faster growth in a key practice which is deriving superb attention from our clients across all sectors.’

email us at: letstalk@glsrecruitment.com

J E RS E Y PE OPL E

W SM IL I LI TH AM & SO N

glsrecruitment.com

HARRY LAWSON, LAURA BROWN AND VALLANCE WILKINSON

KELCI SCANLON

LEE MORRIS

Liquid has appointed Kelci as an account executive in Jersey and has also moved office in order to accommodate the growing team.

Lee has been appointed senior investment manager in the firm’s investment management team in Jersey.

‘We are thrilled that someone of Lee’s calibre and expertise has chosen to join us, especially given the demand for his knowledge in the fixed interest arena in this market environment. We also really value the contribution he makes to supporting students on the island.’

N SU

TR ER

Managing director Christopher Golding said:

‘I am very pleased to welcome Harry, Laura and Vallance to the team. The breadth of their experience and knowledge in the sector will add a new dimension to the services we offer to clients.’

‘Kelci is a great addition to the team, with her experience at the heart of the Jersey media, adding to the service we provide to existing and new clients. We’re also looking forward to welcoming friends, colleagues and clients to our new office in Bond Street as we continue to develop the Channel Islands and UK business.’

Managing director Nicola Gott said:

Director Lisa Downes said:

Lee has a strong track record in managing an array of investment mandates for a diverse international client base. He is a Chartered Fellow of the Chartered Institute of Securities and Investments, and an Adjunct professor of Economics.

Laura’s new role will involve managing relationships with clients and Vallance will be helping to develop the firm’s international client base.

Kelci joins Liquid from ITV News Channel TV, where she was production coordinator for four years.

Harry is an experienced tax professional. He worked at HMRC for over 20 years before taking up senior positions in the private sector.

Harry Lawson has been appointed senior tax consultant, Laura and Vallance have been appointed senior managers for client services and business development respectively.

ROGER BOLAN, ALEX DI SANTO, SHANE HUGILL AND STEPHEN LANGAN Roger, Alex, Shane and Stephen have been promoted to directors. Roger works within the private wealth team, Alex becomes director of funds, Shane is director of performance and reward management and Shane becomes director of capital markets. Simon Mackenzie, managing director of Intertrust in Jersey, said: ‘These promotions reinforce our offering in Jersey and across the wider global network, reflecting the breadth of expertise and experience of our employees. I'd like to offer my congratulations to our new raft of directors; their promotions are a result of their hard work, dedication and the consistent delivery of high quality client service.’

KEVIN KEEN

ED SHORROCK

Kevin has been appointed non-executive director for Sun Works.

Ed has been appointed director of compliance and regulatory consulting division in the Channel Islands.

Kevin said: ‘It is rather ironic that the sunniest place in the British Isles is so far behind everywhere else in terms of the number of solar panels you see. I hope that I can help raise awareness and at a time where there is such an international buzz around new battery technologies and electric transport.

The global valuation and corporate finance advisor acquired Kinetic Partners in 2015 to establish a compliance and regulatory consulting division. This appointment is part of the firm’s commitment to advising Channel Islands based clients.

Managing director Mark Brandon commented:

Malin Nilsson, director of compliance and regulatory consulting at Duff & Phelps, said:

‘Kevin has contributed a huge amount to many larger, established organisations, so we are delighted that he has accepted an appointment with a young company where the technology is constantly changing. We believe he can offer us great perspective and experience.’

‘We are pleased to have Ed join the team in Jersey and hope to benefit from his extensive regional expertise. We are confident that Ed brings the knowledge and insight needed to achieve the aims which we have set out for our Channel Islands based operation.’

call us on: 01534 852 111

or visit: www.glsrecruitment.com

IN V E S T M E N T M AN AG E MENT

Cash management Pierre Paul from Royal London Asset Management CI Limited explains the importance of segregated cash management. Cash is an integral part and often a significant component of a company’s balance sheet which, like any other asset, should be looked after properly in order to get the best out of that asset. However in the current ultra-low interest rate environment local businesses can find it extremely challenging to get a good interest rate without loss of liquidity. Added to this is the time-consuming process of opening bank accounts. The Channel Islands have a significant number of domestic and international banks licensed to take deposits but even the most sophisticated treasurers can benefit from the services of a specialist cash management business. Royal London Asset Management C.I. Limited (RLAM CI) has always treated cash as an asset class in its own right. This means that we employ managers, systems and tools whose exclusive focus is cash with the aim of giving our clients an unrivalled experience in terms of service and performance. RLAM CI specialises in segregated cash management for institutional clients. The aim of our service is to help our clients diversify their cash across a wide range of well rated banks whilst at the same time delivering: • Security • Liquidity • Return We aggregate at the point of dealing but the service is not a pooled product. Each client has their own bespoke Investment Management Agreement which details the parameters within which we are able to

invest their funds. In agreeing the parameters we discuss the liquidity needs of the client and design a service suited to their requirements. The requirements of our clients vary from those who have substantial daily movements both giving or withdrawing cash to those who have very infrequent cash movements. Investment objectives are agreed with each client to set an appropriate performance target and benchmark. Once these have been agreed and the IMA signed then the cash to be managed is transferred to us and we get on with the job.

Each client has their own bespoke Investment Management Agreement which details the parameters within which we are able to invest their funds. Our service is based on investing in Certificates of Deposit (CDs) issued by well rated banks. CDs are tradable money market instruments. Because CDs are liquid it is possible to take advantage of higher interest rates available for terms of up to 12 months to maturity. We create a rolling pool of CDs and as they run down towards maturity they are used for client liquidity needs or are re-invested depending on requirements. Our approach to cash management is not merely placing money on deposits

with banks. We have over 29 years’ experience in managing cash and over that time have built a sophisticated system which employs a wide range of investment types. Selecting the appropriate investment type and duration is essential to achieving long-term performance gains. Our investment managers do this with the support of the RLAM asset allocation committee whose weekly meeting includes our group economist and the heads of cash, fixed income, high yield, credit, risk and derivatives. In performing our role we work very hard to ensure reporting is efficient and useful. Reports are generated by our bespoke in-house cash and liquidity management system (CALMS). All investments we make are recorded in CALMS which then generates a variety of reports from a daily diary used by the dealers for the re-investment of maturing CDs to valuations and transaction statements for our clients. The reports can be exported to pdf or excel and e-mailed to clients for their own management information needs and some reports are available on our secure extranet. RLAM CI is a sophisticated investment management operation backed by the UK’s largest mutual insurance company. The experience built up by RLAM in the 29 years we have been managing cash portfolios shows itself in the range of investment types described above which are found across our client portfolios. This wealth of expertise has, over the years, helped our clients enjoy positive returns, diversification and security. Our service levels were set very high from the outset and still apply in today’s fast changing environment.

Mo ving forward togeth er

At Butterfield in Guernsey, we specialise in assembling the best people, products and services to create bespoke financial solutions whatever your requirements. It is a skill we have honed over many years. Although much has changed over that period of time, our core values, entrepreneurial spirit and unrelenting focus on a clients’ needs, remains at the very heart of everything we do. To find out more about Butterfield Guernsey’s personalised wealth management services, please contact one of our Business Development advisors on +44 (0) 1481 733217 or email Guernsey@butterfieldgroup.com.

www.gg.butterfieldgroup.com THE BAHAMAS | BERMUDA | CAYMAN ISLANDS | GUERNSEY | SWITZERLAND | UNITED KINGDOM Butterfield Bank (Guernsey) Limited is licensed by the Guernsey Financial Services Commission under the Banking Supervision (Bailiwick of Guernsey) Law, 1994, The Protection of Investors (Bailiwick of Guernsey) Law, 1987 and the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2000, each as amended from time to time. Company Registration No. 21061. Butterfield Bank (Guernsey) Limited is a participant in the Guernsey Banking Deposit Compensation Scheme. The Scheme offers protection for ‘qualifying deposits’ up to £50,000, subject to certain limitations. The maximum total amount of compensation is capped at £100,000,000 in any 5 year period. Full details are available on the Scheme’s website www.dcs.gg or on request. Butterfield Bank (Guernsey) Limited tel: +44 1481 711521. Butterfield Trust (Guernsey) Limited is licensed and regulated by the Guernsey Financial Services Commission under the Regulation of Fiduciaries, Administration Business and Company Directors, etc, (Bailiwick of Guernsey) Law, 2000, as amended. Company registration No 31645. Both companies are registered under the Data Protection (Bailiwick of Guernsey). Law 2001 and are registered for the purposes of The Companies (Guernsey) Law 2008. Registered Office for both: Regency Court, Glategny Esplanade, St Peter Port, Guernsey GY1 3AP.

IN V E S T M E N T M AN AG E MENT

What next for Brexit? Colleen McHugh, head of wealth management at Butterfield Bank (Guernsey) Limited takes a look at some of the potential implications of the UK’s exit negotiations With Article 50 now triggered, Brexit negotiations begin. The UK has stepped into the unknown and while no one can predict how the next two years will play out, volatility and uncertainty could be elevated. But what of the UK’s experience since the vote on 23 June? Economically speaking, the past 10 months has been a period of remarkable calm, with GDP cruising along at a 2% rate of expansion. With seemingly no negative impact to date, is Brexit a big deal? Financial market effect Although the near-term effect of Brexit on growth has, thus far, been very little, much has happened in financial markets. First was a plunge in the pound. Sterling has slumped 12% versus the euro and 17% versus the US dollar since the vote. Secondly, the FTSE100 surged 16% and substantially outperformed the gains in both the Eurostoxx 600 and S&P 500. Lastly, 10-year UK gilts have fallen and subsequently outperformed their US counterparts, 10-year US Treasuries. UK 10-year gilt yields are down -0.40%, while the equivalent US Treasury yield has risen by 0.90%. Although these moves appear to reflect different asset classes, they do not happen in isolation and are correlated to each other through expected differences in central bank monetary policy. For example, the yield differential between the UK and US is affected by higher base rates in the US (currently a differential of 0.75%) and also the future trajectory of interest rates, with markets pricing in two further rate hikes in the US this year. By contrast, market consensus, with which we agree, is that there is no potential for a rate hike in the UK in the forecast period. Likewise, the outperformance of the FTSE100

has had near-perfect negative correlation to the direction of the pound; as sterling fell, the market rose in tandem. This makes sense as the FTSE100 is largely a collection of multinational dollar earning companies quoted in pounds. Approximately 80% of revenue generated by FTSE100 listed companies is from overseas earnings, making it a yardstick of global corporate fortunes rather than domestic activity. Finally, sterling’s sell off relative to the euro and dollar is a response to what actually drives exchanges rates over the medium-term, namely fixed income cross border portfolio flows, which always seek out the highest yield adjusted for hedging costs. Investment focus Prior to the referendum, the Bank of England (BoE) was vying to be the first developed market economy to raise rates in this cycle. The European Central Bank (ECB) was contending with Greece, ‘broken’ Italian banks and many other problems, so was widely thought likely to keep rates negative, at least through 2017. The new reality is that potential growth in the UK is likely to be lower than recent years, due to lower investment caused by uncertainty. This should keep monetary policy on hold in 2017, and potentially longer. To an extent, the BoE is hamstrung and left watching as European growth improves. Consequently, sterling is only likely to tread water, at best, versus the euro over the remainder of the year. The risk to this being that the ECB turns more hawkish causing the euro to rally versus sterling. The European elections bear close watching and could be a wildcard to damage the value of the euro, but we place a low probability on that outcome. Against the US dollar, sterling is likely to generally remain weak until we have a better sense of what arrangements EU ministers

want. The interest rate differential is set to widen further, not narrow, which is also broadly supportive of the US dollar. The elephant in the room regarding our prognosis is inflation, and how the BoE balances the inflationary spill over of a weak pound. They have responsibility for keeping inflation, as measured by the Consumer Price Index (CPI), near a target of 2%. Inflation in the UK is now at its highest level since 2013 with the February CPI reading measuring 2.3%. Global equity markets The effect of Brexit on global equity markets remains to be seen. The reality is that markets are far more concerned with the future of US fiscal policy than they are with the state of the UK economy. The UK’s capital market is a small player, with its stock market making up less than 5% of global stock market capitalisation. Any localised stock market movement will have little impact globally. For sterling-biased investors, weak sterling actually boosts the overseas revenue and profitability of FTSE100 companies as the UK capital markets dance to a tune played outside the UK. In summary, there is no tangible reason to believe that exiting the EU is going to cause economic Armageddon, either globally or in the UK itself. There is a much more mundane and plausible scenario where UK growth is structurally impaired for a number of years. This will have a direct impact on monetary policy, which in turn will influence local equity markets, sterling and UK gilts. The views and opinions expressed in this article are the sole opinion of the author and are not necessarily shared by Butterfield Bank (Guernsey) Limited. This article does not constitute investment advice.

IN VES T M ENT MA NAGE ME NT

Investment outlook - one way or another? Stock markets continue to take an optimistic view of the risks to future earnings; but we remain gently cautious and note that there are plenty of reasons not to be complacent - Alan Martin, investment director, Rathbones Recent global macroeconomic developments offered investors reasons to be cheerful, but we believe investors have become too sanguine about risks to future earnings. Politics and uncertainty appear to be put to one side on the back of good macroeconomic data. Global equities have rallied where valuations have risen without significant earnings momentum and while quarterly earnings have been robust it has not necessarily been through revenue growth. However, the unpredictable political hurdles to be cleared in 2017 leave financial assets more susceptible than usual to a correction. The same dilemma exists as we enter the second quarter. Our global leading economic indicator suggests output growth could reach 3.75-4.0% by June end, a rate not reached since 2009/10 following the financial crisis. Higher bond yields and higher inflation are likely to curtail growth in the second half of 2017, but growth is unlikely to revert to anaemic levels. On the other hand, the equity risk premium has plunged over the last four months both in the US and Europe to five and three year lows respectively. Investors are demanding less and less compensation for tomorrow’s uncertainties. Some analysts argue that this reflects receding fears of ‘secular stagnation’ – a theory which describes a chronic shortfall of demand as companies stop investing and demographic changes alter consumption habits. If this is the case, one would expect to see upgrades to medium- and long-term growth expectations. There has been little evidence of this. Historically, equity markets struggle as bond

yields are driven higher by expectations of inflation. Some companies may lack the pricing power to pass on higher inflation to their customers and so the future value of their earnings may come under pressure, hence our equity selection is focusing more on ‘pricing power’ – the ability of firms to pass on rising costs. The on-going expansion suggests investors should remain invested as bear markets very rarely occur without recessions but we should not become complacent. Indeed, research tells us that more cautious strategies are again outperforming the more gung-ho strategies. For example, high volatility stocks have started to underperform low volatility stocks. Growth stocks are outperforming value stocks again. In short, despite low volatility, markets are not rewarding higher levels of risk-taking.

Firms and financial institutions have transacted trillions of Euros on the assumption of zero exchange-rate risk, and the estimated cross-border exposure of firms’ and banks’ balance sheets could be as high as €46 trillion. The dislocation that would ensue if this risk needed to be re-priced would swiftly cause a sclerosis of the real economy. We do not pretend to be experts in election forecasting. After last year, who is? Following the defeat of anti-EU Geert Wilders in the Netherlands, the spotlight is now on France. We tend to be a little more sanguine about France, due to its two-stage election process. The core pillars of the EU and Euro also have considerable popular support in France: 80% view free movement of EU citizens positively and 68% support the EU and monetary union.

Political risk Markets appear unaffected this year by the on-going political uncertainty. In the US, surveys of CEO and CFO confidence, which historically correlate with capital expenditure, have rebounded, while stock markets appear to be pricing for President Trump as Ronald Reagan reincarnate. But even Reagan, who governed with a much more cohesive Republican party, took two years to implement tax reform – let’s just say there’s scope for disappointment. When we hear about political risk in the Eurozone, it’s really shorthand for the risk that the Euro breaks apart. The disintegration of the Eurozone would be one of the largest financial shocks in modern history. Currency unions have broken apart before, but none in recent decades compare with the size, global significance and level of cross-border financial integration of the Eurozone.

We keep a close eye on market-based indications that the political uncertainty is starting to spill over into the contagious, dislocating scramble to reprice risk that could result in an economic crisis. We look at the costs banks pay to fund their activities where bank borrowing now is just 20% of the maximum cost in 2011 and 10% of that commanded in 2008/09, as well as the cost of insuring bank bonds against default which has been falling since November and is now 25-30% of the cost commanded in 2011, before the ECB pledged to do “whatever it takes”. In summary, the financial markets that really matter are rather cool on the political risk that really matters, but we must remain vigilant. The ‘read across’ is that we do not expect a large rally as and when political hurdles in the EU are cleared.

Forward-thinking offshore investment management Rathbones in Jersey is part of one of the UKâ&#x20AC;&#x2122;s largest and longest-established providers of high-quality discretionary investment management services to individuals, charities and their advisers. For further information, please contact Grant Hamilton locally on 01534 740 550 or email grant.hamilton@rathbones.com

Rathbones is a proud sponsor of the Jersey Junior Golf Team.

rathboneimi.com @Rathbones1742 Rathbone Brothers Plc

The value of investments and income arising from them may fall as well as rise and you might get back less than you originally invested. Rathbone Investment Management International is regulated by the Jersey Financial Services Commission.

IN VES T M EN T MA NAGE ME NT

Taking an alternative approach Rocq Capital’s Adam Cox explains the benefits of complementing traditional equity and bond investments with ‘alternatives’ As bond markets approach what many perceive to be the end of a 30-year bull market and equity markets hit highs at the same time, the question on many investors’ lips is how they can protect capital if markets were to see a simultaneous fall in the value of both equities and bonds. For some investors this means attempting to time a move to cash correctly (at the risk of missing a continued move up in asset prices or suffering the initial rapid fall if timed incorrectly); for others this means moving to equity markets not at highs, for example emerging markets, in the hope that they will continue to move upwards. Some will attempt to ride out the storm and remain invested throughout. At Rocq Capital, we prefer to take an ‘alternative’ approach to this problem. The term ‘alternatives’ can be seen as an all-encompassing definition of any asset class or strategy other than traditional holdings in bonds or equities. This includes investments in commodities, property, private equity, hedge funds, structured products, timber, vintage wine, patents or cars, to name just a few. The challenge an investor faces within an alternatives allocation is how to allocate to their chosen selection with the same diligence and rigour they would when investing in traditional asset classes. Alternatives are often opaque not only in strategy but also in valuation. How does one assign a value to a vintage Bordeaux, or an old master? Traditional assets can be valued by discounting the cash flows that an investor will receive in the future to a present value; alternative asset classes often have no such cash flows other than resale value in an unpredictable market, often influenced unduly by one or two ‘experts’ in the field. We invest in alternative strategies using financial products held within structures that aim to provide preservation of capital and steady risk adjusted returns over time; however much we might like to think we are oenophiles we remain acutely aware of our limitations in these more idiosyncratic fields.

more aligned with those in traditional assets. Hedge funds alone have grown from $322 billion in 2001 to over $3 trillion at the end of 2016 with investors attracted to the perceived high return, low volatility performance. The sheer number of funds to choose from makes it imperative to choose carefully and understand the risks associated with each investment. What might appear at the outset to be a differentiated approach can have significant and correlated risk associated with it. However the right process, when found, can add enormous value to a portfolio, protecting overall wealth during times of market stress. In the chart below we compare a traditional portfolio, allocated 60% to global equities and 40% to global bonds, with the same portfolio but with a 30% allocation to hedge funds or a 30% allocation to macro-hedge funds since inception of the hedge fund indices. We see that the addition of hedge funds achieves a marginally greater return but with considerably lower volatility. We include macro hedge funds in addition to the broad index because they represent exposures with the least sensitivity to traditional assets. The broad hedge fund index includes funds with significant exposure to traditional markets, negating the benefit of such funds and emphasising the need for careful selection. At Rocq Capital we see alternatives as a complement to allocations in traditional equity and bond exposures. By adding a third asset with a low correlation to other holdings in a portfolio, we aim to reduce portfolio volatility without substantially inhibiting long-term capital growth. At a time when both equity and bond markets are at or near all-time highs, a potential reduction in market sensitivity through an allocation to alternatives appears a prudent move. 10%

1.00

0.80

The ultimate goal of an investor in alternatives is the same, regardless of approach: to diversify risk away from traditional exposures to equities and bonds. A consequence of this diversification is often a lower level of portfolio volatility over a market cycle and thus a more predictable outcome to the investor.

0.60

0.40

0.20

The advent of UCITS III regulation in 2001 allowed greater access to alternative investment strategies through vehicles typically domiciled in Luxembourg or Dublin. The regulation provides comfort to investors through limits on liquidity, leverage and portfolio diversification whilst still offering enough freedom for managers to run some of the more esoteric strategies that were previously only available to the ultra wealthy or large institutions and at fee levels

0.00 Traditional Volatility

Source: Rocq Capital/Bloomberg

with Hedge Funds Return

with Macro Hedge Funds

Return / Volatility [RHS]

People, Precision, Prosperity. Investment management and broking services. Preserving and enhancing wealth for private and institutional clients.

+44 (0)1481 716336

info@rocqcapital.com

www.rocqcapital.com

Rocq Capital is a trading name for Rocq Capital Management Limited (registered company number 36988) and Rocq Capital Securities Limited (registered company number 30541). Both companies have their registered office at Second Floor Suite, 1 Le Truchot, St Peter Port, Guernsey, GY1 1WD and are licensed and regulated by the Guernsey Financial Services Commission.

Good investing is thinking advert several movesJackson ahead If you would like to discuss tactics, please call our Private Client team on 01481 743 600 or email info@odeywealth.com www.odeywealth.com Investment values may fall as well as rise and as with other investments your capital may be at risk.

Odey Wealth Management (C.I.) Limited is licensed by the Guernsey Financial Services Commission. Registered office: PO Box 533, St Peter Port, Guernsey, GY1 6EY. Telephone calls may be recorded.

IN V E S T M E N T M AN AG E MENT

The cat’s out of the bag Crispin Odey, founding partner of Odey Asset Management, gives us his view on post-Trump US economic challenges. The paradox which Mervyn King highlighted is that what we want in the long-term is exactly the opposite of what we want in the short-term. Namely a higher savings rate is what we need but the only thing keeping growth going in the UK is a falling savings rate. At present the UK has a gross savings rate of 5% and a necessary investment rate, to keep things going, of 11%. The currency may be too low on a purchasing parity basis, but until our savings rate climbs, it will keep on falling. The USA has a different problem. In 2014 the US dollar rose by over 20% against its trading partners’ currencies. Almost three years later this rise is starting to undermine the US trade position and its growth rate. Unless Trump does introduce some kind of VAT, which would re-price exports against imports, the chances are quite high that for all the enthusiasm and surge in confidence that greeted his presidential election, the US

economy could already be weakening and with it the dollar’s strength. The paradox of course here is that the weaker that the US economy becomes, the more necessary it is for Trump to introduce such a VAT tax change. Whatever happens to Trump, it doesn’t matter. The cat is out of the bag. Globalisation, which was spurred on by GATT’s passing in 1994, which brought six billion people into a trading system which was originally used only by those developed economies, is now seen by many as an enemy. After 20 years the average Chinese wage is 50% of its US equivalent and the average Indian wage is 40%. Waiting another 10 years for these developing countries to catch up with the west is no longer a political option. Trying to find alternative jobs for those in the developed world has been tricky and with it the productivity globally has fallen to near zero. Now it is not only the

developing world that represents a threat. New disruptive technologies could decimate jobs in the developed world before alternative occupations have been found. We all know with change that it never comes as quickly as you expect and when it comes, it changes things far quicker and more significantly than you imagine. Without Trump effecting a major change in his taxation which goes to the heart of the USA as a consumer of last resort, investors must anticipate that the US economy weakens as imports pick up and exports trail. Luckily QE and general enthusiasm has successfully blanched potential future returns. High prices and low returns looking out are presenting excellent opportunities for the future, as we harvest the disappointment that is likely to come. Crispin Odey will be discussing further investment views at the Guernsey Funds Forum 2017 hosted by Guernsey Finance, on 11 May 2017.

M A R K O LIPHA NT

MARK OLIPHANT 46

Exciting times for TISE

M ARK OL IPH A NT

Mark Oliphant was recently promoted to head of communications for The International Stock Exchange (TISE). He also took on the presidency of the Channel Island branch of the CIPR earlier this year so life is pretty busy. Contact caught up with Mark to find out about both his new roles TISE is the new branding for what was the CISE (Channel Island Securities Exchange) and the re-branding project has taken up a lot of Mark’s time in recent months. The new branding and company name is all part of some exciting development plans for TISE as it seeks to develop new markets and products including the opening of an office in the Isle of Man. ‘Expanding beyond the Channel Islands market meant that our brand needed to reflect our more international business base,’ explained Mark. ‘The Isle of Man development was the catalyst for the name change but we had already changed the rules last year meaning that members no longer have to be Channel Islands based but can come from further afield. The re-brand was the logical step.’ The Isle of Man launch event attracted over 120 people and generated a lot of interest and post-event enquiries. The office opened for business on 1 May, with the appointment of Carolyn Gelling who takes up her post on

that day and will head up the office. Carolyn’s role will focus mainly on local business development. The decision to open the new office came following a significant amount of research and planning.

Part of the strategy of opening an Isle of Man operation is to create a platform into the north of England as a means of further developing market opportunities for TISE ‘We spent a lot of time meeting with business owners, the local regulator, finance professionals and advisers and there was

real interest in Isle of Man companies being able to access an exchange – particularly for trading companies. The local Isle of Man authorities are actively seeking ways of diversifying into new industry sectors such as pharmaceutical and gaming and many of these companies will need funding in the future as they grow and expand. Listing on an exchange is one of the ways they can do this. ‘The island also has an existing professional service infrastructure – law firms and accountancy practices - to support companies seeking to be listed We have had very positive feedback from these sectors too.’ Part of the strategy of opening an Isle of Man operation is to create a platform into the north of England as a means of further developing market opportunities for TISE. ‘Much of our existing business is debt and investment vehicles because of the financial services industries in the Channel Islands. We will continue to develop that business but at the same time we want to diversify

M A R K O LIPHA NT

As well as a new office location, TISE is also seeking ways to collaborate with other smaller existing exchanges. The team has a working agreement with the Bermuda Stock Exchange and is looking into ways that the two operations can co-operate to mutual benefit

by having more trading companies listed. Some of these might well be Guernsey and Jersey SMEs as they start to grow and are seeking funding but we can also fill a niche for UK SMEs which are often based outside of London and which have similar funding needs. For this type of business, listing on the London Stock Exchange is cost prohibitive so TISE can fill the gap. The Isle of Man operation will give us access to cities such as Manchester, Birmingham, Liverpool etc. and creates an exciting development opportunity for TISE.’ There is still much work being done in the background to support these new developments with on-going dialogue and research with city firms and advisers who deal with these types of companies. ‘We are currently reviewing the trading company rules and have been seeking input an opinions from professionals - such as brokers, investor groups - to ensure that they are ‘fit for purpose’ going forward.’ As well as a new office location, TISE is also seeking ways to collaborate with other smaller existing exchanges. The team has a working agreement with the Bermuda Stock Exchange and is looking into ways

that the two operations can co-operate to mutual benefit. ‘Cross-promotion is one area that we are discussing with them,’ said Mark. ‘They are close to New York and we have easy access to London so there are potential cross-promotional and shared costs opportunities there. Discussions are at early stages but this is an approach that could benefit everyone concerned. If this arrangement is successful then we will seek to replicate it with other exchanges around the world.’ Mark joined TISE in June 2015 as communications manager following nine years working for Guernsey Finance. His time there gave him a broad valuable understanding of the financial services industry and its various sectors. His current role encompasses all aspects of communications. ‘it’s ‘communications’ in its broadest sense. I am involved with marketing, PR and business development which means I travel to London, Jersey and now the Isle of Man regularly. Meeting advisers and clients helps clarify the marketing and PR messages that

we need to communicate.’ Mark has been on the committee of the Channel Islands branch of the CIPR for three years including one as vice-president. Now in the president’s seat he has a busy year ahead. He also became a chartered PR practitioner last year following the CIPR’s robust assessment process. ‘The procedure for gaining chartered status used to be very academic and required a lengthy dissertation-style written submission. The CIPR realised that fewer people were even attempting to gain this ‘gold standard’ because it was so time consuming and most individuals who were potential candidates already had senior full time roles and couldn’t dedicate enough time to it. So they changed the process completely.’ Mark had to attend an assessment day in London which he described as an ‘ Apprentice-style’ event. He and 12 other candidates were given case studies which they had to discuss in small groups and then present how they would react and what they would do in similar situations. Candidates had to illustrate both theoretical knowledge and practical ability to a number of senior CIPR assessors.

M ARK OL IPH AN T

‘It was extremely interesting meeting PR professionals from such a diverse range of industries and from both the client and consultancy side of the business. Apart from the case study exercise, it was a great opportunity to exchange ideas on PR and communications generally and make some excellent contacts within the profession.’ Whilst nobody got fired on the day, only 11 out of the 13 people were successful in attaining chartered status and Mark becomes the 6th member of the local branch to achieve the accolade. ‘The Channel Islands branch is the smallest regional branch of the CIPR,’ he said. ‘But we have the highest proportion of chartered practitioners which is a great achievement for the group and a reflection

of the high level of professionalism in the sector locally.’ The local branch is a very active group particularly considering its size. Over the past couple of years the focus has been on training and development. ‘Our objective has been to provide learning opportunities on the islands so that individuals don’t have to travel to the UK for all their training. We can’t provide everything but we have created a programme of speaker events and training that has proved very popular. The main annual event is the PR forum which we have organised for the last two years, bringing over a range of PR professionals. These have attracted great numbers from the local PR sector and so my challenge is to create an equally successful

event this year. ‘The other thing we are looking at as a group is how to build awareness of PR as a career opportunity for young people considering their options. The image of a communications role within businesses has certainly changed and improved in recent years with people recognising it’s more than ‘spin’! Many business owners now recognise the value that a communications professional can bring in providing input and advice at board level (whether as a member of the board or not).’ Two new roles plus a toddler at home to keep him busy, Mark’s main challenge this year might well be time management!

The other thing we are looking at as a group is how to build awareness of PR as a career opportunity for young people considering their options. The image of a communications role within businesses has certainly changed and improved in recent years with people recognising it’s more than ‘spin’! 49

OS A R EC RUI TME NT

OSA Recruitment marks 30 years Founder Nick Graham is proud of the companyâ&#x20AC;&#x2122;s success and the team that has helped achieve it. Naturally, recruitment is all about individuals. It is about understanding the wants and needs of a person and matching them with their perfect role, and vice versa. This personal element is one of the factors that make it such a rewarding field in which to work. Similarly, a recruitment agencyâ&#x20AC;&#x2122;s true strength lies in its own personnel. In order to operate as successfully as possible, they must be approachable as well as capable. Changing jobs can be confusing and uncertain, and we have an obligation to make the recruitment process as accommodating and comfortable as possible. I have the pleasure of working day-to-day with a team of nine other wonderful individuals at OSA Recruitment, several of whom have been there for over a decade. They genuinely work with smiles on their faces, and their attitude and enthusiasm perfectly embodies our values as a business, and makes OSA such a great place to work. Their longevity is a testament to the team spirit that has been formed over the years, and helping to foster such a positive working

environment is something of which I am very proud. Every member of the team, irrespective of seniority, has a great deal of responsibility. They are all trusted rather than micromanaged, and this element of autonomy really seems to bring out the very best in each of them. As an employer, we also aim to be understanding and flexible, operating with respect and compassion, as we know that our team is our biggest asset. We also encourage all members of our team to continue bettering themselves and to never stop learning. This applies to even our most experienced individuals, as shown by temp desk manager Alice Digard completing her executive coaching course last year. On the other hand our newest team member, Jade Corbin, recently became a certified PRISM practitioner, which means our candidates can now, through psychometric profiling, learn more about their strengths and improve their self-awareness.

Our values of compassion, integrity and professionalism are all abundant in our team, and they also show a great affinity to the community. For many years we have been involved in supporting local causes, while Belinda Windsor and Esther Weysom do a remarkable job with the OSA Pop Up Shop. Having hosted hundreds of different residents since its inception in December 2012, it has given us the perfect platform to give back to the community in our own unique way. In 2011 at the Guernsey Community Awards, OSA won the Corporate Social Responsibility Award and we were also shortlisted at the 2015 Awards alongside companies 10 times our size, which shows just what has been achieved through the hard work of the team, particularly Belinda and Esther. From our day-to-day work to giving back to the community, at the core of everything is a fantastically committed team who are a pleasure to work with.

I T T

PEOPLE G N

SIN

www.osa.gg

CE 1987

Knowledge, Experience & Integrity Our team are a friendly bunch with a reputation for professionalism, discretion and commitment to helping you take the next step in your career. We are professionally qualified and have been working with in the Guernsey recruitment market for over 30 years, providing objective support and advice to thousands of jobseekers, and ultimately finding them their perfect new job. If youâ&#x20AC;&#x2122;re looking for your next career move, give us a call on 712 891

The Sure Customer Service Awards 2017. Whoâ&#x20AC;&#x2122;s gone that extra mile for you?

If you know an individual or team in the Bailiwick that has gone the extra mile, we want to hear from you. Now is your chance to earn them the recognition that they deserve! There are two ways in which you can nominate: By post: Simply fill in a nomination form available at various places across the island. Then just drop it into one of the nomination boxes. Online: Itâ&#x20AC;&#x2122;s quick, easy and free.

www.thecustomerserviceawards.com Drop your form off at any nomination box across the island

Vote now at www.thecustomerserviceawards.com

Closing date for nominations is 5pm Friday 9 June

Supported by:

IN V E S T M E N T M AN AG E MENT

Islands are strong on funds Debbie Payne, tax director, PwC Jersey and David Waldron, tax director, PwC Guernsey outline the continued strength of the islands as domiciles for investment funds. The last three years have been a time of unprecedented change in both the economic and tax environment. In 2013, when the OECD launched its base erosion and profit shifting (BEPS) initiative, there were few people who believed that the timetable would be met. Whilst there are still some issues to be resolved, many of the changes are already law in many countries. In addition, the Brexit vote in June last year has also changed the landscape and created uncertainty. In this environment, the Channel Islands are well placed to take advantage of the opportunities which this offers. Unlike many of the fund centres within the EU which have complex and constantly changing tax regimes, both Jersey and Guernsey offer a stable tax environment which has not been subject to major change for a number of years. In common with other countries seeking to attract investment funds, the Channel Islands offer an uncontroversial tax neutral environment, with generally no VAT or GST applicable, and without reliance on BEPS-prone and complex systems of tax rulings, exemptions and deductions, hybrid-financing or double tax treaty (DTA) networks. The islands are not host to morally ambiguous and politically sensitive ‘profit-shifting’ or state aid arrangements hosted in some onshore EU centres. All of which means that we are in a strong position to compete with the other fund domiciles. During this period, both islands have continued to move forward and to engage with the OECD. Guernsey and Jersey are BEPS

associates and members of the BEPS inclusive framework. All BEPS associates are committed to a consistent implementation of the BEPS package. Both islands have also signed the multi-lateral country by country reporting (CBCR) instrument. This follows on from their commitment to the global transparency agenda through their implementation of FATCA and being early adopters of the Common Reporting Standard. Given the continued developments in tax law, we can expect the Channel Islands to sign up to further international initiatives in the future both to protect and enhance their reputation. To ensure that all countries are adhering to the minimum standards set out in the BEPS framework, BEPS associates will be subject to peer review by the OECD to ensure that they have both implemented the relevant legislation and that they have procedures in place to ensure that local businesses are complying. This means that processes will need to be in place to review compliance by local businesses which is likely to include reviews by the tax office of policies and procedures. This will be new to many businesses on the islands but is designed to enhance their reputation as a tax neutral jurisdiction which is both transparent and well-regulated. Signing up to international agreements also means that the Channel Islands’ authorities will be in receipt of information from other countries relevant to local businesses. This means that directors will need to be aware of all the new reporting and other requirements to ensure that they are compliant and that they avoid incurring

penalties for failure to meet reporting deadlines or non-compliance, which could arise as a result of information being received from other countries. Finally, the Channel Islands have built a reputation on substance with a highly skilled group of people who can sit on the boards of funds and not by relying on DTAs. Typically, directors take on a small number of such roles ensuring that they have sufficient time to devote to each role. Guernsey and Jersey have never been locations for letter box companies which are clearly one of the targets of the OECD’s agenda. If the new world requires additional substance, there is a pool of industry professionals who can be drawn on to provide the employees required. These may prove greater challenges for countries which have built their business model on their network of DTAs with little or no substance in the companies who seek to reply on the DTAs. These are increasingly attracting attention from tax authorities who are challenging their right to access a DTA. With this in mind, the Channel Islands are still and will continue to be an attractive domicile for investment funds, particularly those raising capital from Asia and the US where compliance with AIFM, which can be costly, is not required. Whilst there may be a decrease in investment funds which are mainly marketed to European investors, these are only a small and decreasing part of the investor population. Attracting investors from other markets is the real prize.

TA X AT I ON

New domicile rules and the use of trusts Mandy Connolly from LTS Tax explains the implications of the recent changes in domicile rules.

On 6 April this year a new era began for non-domiciled individuals living in the UK, following the issue of Finance (No. 2) Bill 2017. The new legislation introduces two types of ‘deemed domicile’ status, one aimed at individuals of UK origin returning to the UK and one aimed at those of non-UK origin who have resided in the UK for over 15 years. Individuals with a non-UK domicile of origin, who have settled trust structures from which they can benefit, will be subject to a number of changes in relation to the taxation of trust income, regardless of whether they have yet become deemed domiciled. Whilst the tax implications of becoming deemed domiciled may be considered unwelcome, the introduction of ‘protected foreign income trusts’ will enable non-dom settlors to grow their trust funds in a tax free environment and only pay tax at the point that benefit is taken from the structure. An added bonus for settlors who are not yet deemed domiciled is that this tax deferral can be achieved without the need to pay the annual remittance basis charge. Under the new rules, trust structures

will have a pool of protected income comprising foreign income that has arisen since 5 April 2017. Settlors will only be taxed on this income when ‘benefits’ are received (e.g. distributions or use of trust assets) in accordance with the existing ‘relevant income’ provisions. Certain protections are also provided for foreign income of prior years that had not been distributed from the trust as at 5 April 2017. UK source income will continue to be taxed on the settlor as it arises. Under the protected foreign income rules, it is the remittance of the benefit taken that will dictate the tax charge for those not yet deemed domiciled, rather than the remittance of the income itself. Furthermore, the remittance basis is dis-applied in relation to protected pre-April 2017 foreign income. This may prove a welcome change for trustees who have previously needed to avoid remittances of foreign income within the structure. If any ‘tainting’ of the trust occurs once the settlor is deemed domiciled, the protected status of the trust will be lost and cannot be regained. A trust may be tainted if property is added or transferred from another trust, with

certain exceptions. The protected foreign income rules do not apply to stand-alone companies so settling a trust before becoming deemed domiciled could be advantageous. The rules which directly attribute trust gains to UK resident and domiciled settlors will not apply once a settlor becomes deemed domiciled under the '15-year' rule providing the settlor was not domiciled nor deemed domiciled in the UK when the trust was created and the trust does not become ‘tainted’. The treatment of trust capital gains therefore remains potentially unchanged with capital distributions and benefits continuing to be taxed by reference to stockpiled trust gains. However, no remittance protection will be available for deemed domiciled beneficiaries. Therefore, despite the new domicile rules potentially bringing more individuals within the scope of UK tax, trusts remain a tax efficient option in many cases.

Whilst the tax implications of becoming deemed domiciled may be considered unwelcome, the introduction of ‘protected foreign income trusts’ will enable non-dom settlors to grow their trust funds in a tax free environment and only pay tax at the point that benefit is taken from the structure 54

Down to Earth yet above the crowds

LTS Tax Limited is an independently owned ﬁrm of Chartered Tax Advisers based in Guernsey, led by a management team with a combined professional experience of over 100 years. Acting primarily for individual private clients and owner-managed businesses, we deal with all manner of personal and corporate tax and accounting issues, as well as the provision of advice to intermediary and professional ﬁrms on a range of complex tax issues.

Guernsey and UK tax advice Preparation of tax returns UK residence and domicile planning Inheritance tax planning Emigration and immigration planning Trust tax advice and compliance Fund taxation and reporting obligations Estate planning and executorship services

For further information on our services or assistance, please contact our management team.

Advising on real estate holding structures

www.lts-tax.com

Pensions including: RATS / QROPS / IPPs / EBTs / EFRBS

Simon Graham Managing Director E: simon.graham@lts-tax.com

Francis Snoding Director E: fran.snoding@lts-tax.com

ATED and tax on UK residential property Private client services

Paul O’Neill Director E: paul.oneill@lts-tax.com

PO Box 20, Les Echelons Court, Les Echelons, St Peter Port, Guernsey, GY1 4AN T: +44 (0)1481 755862 F: +44 (0)1481 713369 E: taxenquiries@lts-tax.com LTS Tax Limited (registration number: 54292) is registered with the Chartered Institute of Taxation as a ﬁrm of Chartered Tax Advisers. Please see our website www.lts-tax.com for details. Registered oﬃce: Les Echelons Court, Les Echelons, St Peter Port, Guernsey, GY1 1AR.

Mandy Connolly Associate Director E: mandy.connolly@lts-tax.com

Thereâ&#x20AC;&#x2122;s strength in numbers. The right people count. Every year, thousands of individuals and businesses pay more tax than they need to. Our team has the know-how to advise you and your business on your overall tax exposure and to guide or work with you on dealing with the complexities of both the Channel Islands and international tax systems. Our specialist team can help everyone from high net worth individuals to multi-national large companies; entrepreneurs growing their businesses to employers looking to offer the most effective tax solutions to incentivise and reward their staff.

www.grantthorntonci.com

Kensington Chambers, 46/50 Kensington Place, St Helier, Jersey JE1 1ET Channel Islands T +44 (0)1534 885885 PO Box 313, Lefebvre House, Lefebvre Street, St Peter Port, Guernsey GY1 3TF Channel Islands T +44 (0)1481 753400

TAXAT IO N

Taxing times Mark Colver, tax director at Grant Thornton, considers some of the challenges facing the local financial sector following recent changes to the UK tax regime By the time you read this, 5 April will seem long gone but I suspect that it will still be firmly imprinted on all tax minds, especially those still recovering from what has frankly been one of the most dramatic UK tax upheavals for many years. I refer of course to the UK non-dom and inheritance tax (IHT) changes, which have necessitated so much reorganising and planning. We are now faced with what seems a quite different racecard for the Channel Islands fiduciary market which relies quite heavily on its UK client base. Residential property in the UK has been especially targeted over recent years. Annual tax on enveloped dwellings (ATED) was introduced in 2013, then extended in 2015 and 2016 to cover properties worth only £500,000 or more; in 2015 non-resident capital gains tax (NRCGT); and now also IHT. Just how that property market has held up when we see so much ownership through the islands seems almost unbelievable, but onwards it marches albeit perhaps at a lower and slower rate. So what’s next, apart from hoping to pick this year’s Derby winner? I’m afraid there are more taxing times to come, and I would like to just highlight some issues to avoid anyone being blinkered about what’s around the corner, as well as provide some tips to help get through safely. I begin by following the theme of UK residential property to highlight what is now a series of very onerous deadlines and tax return filings that we must all take in our new stride: annual ATED forms were due by the end of April (including both to claim relief and to pay the annual charges); NRCGT within 30 days of a sale occurring (here it will always be a challenge to avoid late filing penalties); and now new IHT notifications as well. IHT reporting has yet to be fully unveiled (at the time of writing this at least) whilst recent consultation material from HMRC

suggests that it could be given secured debt status for unpaid IHT, in addition to the introduction of a new liability to pay any outstanding IHT to be imposed on any person who has legal ownership of the property, including directors. Watch the going and be prepared to note ‘events’ occurring, such as the death of a settlor or beneficiary as well as the old chestnut of 10-year anniversaries.

Another sting in the new IHT tail - proceeds from the sale of UK residential property, and also property loan repayment monies, will remain subject to IHT for a period of two years post-sale.

The islands still have much to offer and an ever-expanding client base outside the UK, plus for instance funds are still being launched and in the property sector offer a possible exemption from both CGT and IHT when widely held

Finally, another change for some local businesses: a late surprise move from the UK Treasury for another change on QROPS, issued a week after the budget changes which themselves caused a new 25% levy on funds being exported here. Until Guernsey and Jersey arrange to have an official regulator in place, all schemes will cease to qualify as QROPS after 5 April, causing more delays to transfers for UK expats and disruption to another CI service line.

One point worth noting is that the promised rebasing for ATED values has arrived; a new current April 2017 value will determine which ‘band’ charges apply from April 2018. We expect that this will see many properties previously valued at less than £2 million moving from the current annual charge of £7,050 to £23,550 next year as their value now exceeds £2 million. De-enveloping isn’t dead yet, you’ve just missed the first hurdle date on the 5 April.

A well-trodden course, but again don’t forget that our first CRS deadline is this summer, which goes hand-in-hand with the requirement to notify clients a month before.

I started the article with the above heading, and if you have run the distance then I think you’ll agree all horses face very taxing times, not least because of the many filings we all now face to deal with our ever growing responsibilities. However let’s not be despondent just yet. The islands still have much to offer and an ever-expanding client base outside the UK. For instance funds are still being launched and in the property sector offer a possible exemption from both CGT and IHT when widely held. As ever we are available to help, both to plan how you manage the compliance for these events and also when it comes to completing and filing the returns. Of course we can also help plan in advance for clients to minimise the tax and associated costs.

On IHT please do not forget that a loan to acquire UK residential property is now ‘relevant property’ and can have its own IHT charge, as of course will the property itself (albeit the loan can reduce the latter’s value).

LOANS

MORTGAGES

INSURANCE

COMMERCIAL

MORTGAGES

MAKING DREAMS REALITY As independent mortgage brokers, Cherry Godfrey has access to all mainstream lenders providing competitive rates and mortgage deals, tailored to your individual needs. Our team of mortgage and finance experts are always on hand to answer any question you may have – that dream home could be closer than you thought!

For expert advice on any of our mortgage services, please contact us on 711666 or email mortgages@cherrygodfrey.com

• Mortgage experts • Save time and money • Independent advisors • Access to mainstream lenders • Expert advice and guidance • More choice • Quick and easy

.com

711666

Cherry Godfrey Insurance Services Limited is licensed by The Guernsey Financial Services Commission. Cherry Godfrey Insurance Services (Jersey) Limited is regulated by The Jersey Financial Services Commission in the carrying on of investment and general insurance mediation business.

V IRT UAL PA

GOING IT ALONE Lisa Buesnel has been self-employed as a virtual PA for about a year. She shares her experiences and the pros and cons of working for yourself. Although stepping out by myself was one of the best decisions I have made, there are a lot of days it still feels like a job, despite what many people would like to think. Being self employed offers a number of benefits and a few ‘downsides’. And my first 12 months have been a real eye opener in many respects. So here are my thoughts on the pros and cons of going it alone. The pros Flexible hours My time has become my own again, this is by far my favorite ‘pro’, If I need to be at home to let the plumber in, I let my in-house clients know that I am not available to come in at that time, I do not have to go through the stress of asking the boss if I can take some time out of work to do this, or waste booking a day’s holiday, and as a bonus I can work for my remote clients whilst the plumber does his thing, thereby not losing any earnings. Also, I can choose when I work. If I want to work at the weekend or take a day off in the week, I can. Costs Yes that is right, cost, it is cheaper for me on a daily basis not to go to work, there are no cafés to go to, I have my lunch at home, there are no parking expenses, or commuting costs, and I am not spending all my earnings on expensive office attire,

as I only need to be smartly dressed when meeting my clients. There is a lot to be said for getting straight to work when you are still in your pajamas. I recently read an article that said the sale of shampoo has declined and they are putting that down to more and more women working from home! Lower tax burden There are a lot of expenses when you work for yourself that are tax deductible, and therefore reduce your tax liabilities. Charging I am not on a fixed salary, so I can charge according to the level of work I do. When you are working for an employer the work you do is charged out at a higher rate than what you would have earned for doing the work, so cutting out the middle man, i.e. your employer, you earn all the money for the work you do. The cons Social Security payments Social security in Jersey is 12.5% and when you are employed, your employer pays 6.5 % and you pay 6% out of your salary. When you are self-employed you have to pay the whole 12.5%. There is one bit of light relief in this, which is when you set up your own business you can apply for a reduction in your rate for up to two years (as long as your earnings are under a certain threshold).

No holiday pay If I do not work, I will not earn any money, so I have had to learn to budget if I want to be able to take some time out for a holiday. No one talk to It can be very lonely working on your own. I miss the hub of the general office chit chat, and the camaraderie of colleagues. Just having someone there to have another opinion would be great. I do find this it quite daunting sometimes having to make all the decisions. Pensions/healthcare insurance Some employers offer pensions and healthcare insurance as part of your salary package, if you want this when you're self-employed you need to arrange this for yourself and as I have found out, this can be very costly, and it is worth shopping around. Conclusion Running your own business is not for everyone, there is security in being employed, even if that employer is considering cutting back on staff. That said if you are comfortable with the risks associated with running your own business, there are opportunities out there in this technological world to work for yourself, and all I would say is do your research on every aspect, then if you are comfortable with the outcome of your research, go for it.

Population – and how to manage it – is a huge issue across the Channel Islands

The declining number of people living in Sark and Alderney plus the ageing demographic of those in Jersey and Guernsey show how important it is to be able to manage it yet still grow the economy. Richard Digard takes a closer look at how the Bailiwicks monitor migration. Few topics trigger more debate in these islands than population, with the business communities frequently accused of wanting unrestricted immigration and driving up property prices for ordinary islanders by bringing in essential staff. At the same time, both States want the taxes generated by an active, working population and to keep their dependency ratios – the

number not working and theoretically reliant on those in employment – as low as possible. A lot of work has been done in each island on trying to square these apparently conflicting demands. Jersey changed its management regime in 2013 and Guernsey adopted a new law as recently as April, something that took six years and triggered controversy and last minute legal amendments.

In Guernsey’s case, the driver was a shift in political focus from housing to population because the island decided it needed the right make-up of people to meet social, fiscal and environmental objectives and to help meet its growing demographic problems but lacked the tools to do so. The previous Housing Control Law, introduced after the Occupation to protect

All British passport holders can live and work in Jersey and need to be registered on arrival to become registered under the law. They must live in registered accommodation, including lodging houses and specific other housing

homes for islanders from wealthier incomers, only affected a small percentage of residents and in some circumstances risked challenge on human rights grounds, hence the need for this year’s significant changes. In Jersey, the approach is still focused on accommodation and the stated aim of its legislation is ‘to control the overall population density… and the availability of work and housing for people with strong connections or associations with Jersey, and, more generally, in such a way that is in the best interests of the community’. How Jersey does it… That’s why Chris Philpott, a Carey Olsen Jersey partner and head of its property law group, makes the point that the island has no direct population management. Although introducing that has been regularly debated in the island, there is indirect control through housing licence processes, which limit who can buy and occupy property via the Control of Housing and Work (Jersey) Law 2012. ‘In short,’ he says, ‘a person has to be “Entitled” or “Licensed” before they can buy, rent or occupy “qualified” residential property in Jersey. If a person is “registered” – been in the island for less than five years – or “entitled to work” – in the island for more than five years – then they can rent or occupy what is classed as “registered” accommodation.’ All British passport holders can live and work in Jersey and need to be registered on arrival to become registered under the law. They must live in registered accommodation, including lodging houses and specific other housing.

rented at a premium. Advocate Philpott says that the area of the market which is controlled is where businesses require licences to employ essential staff who are moving to Jersey. ‘Businesses apply to bring essential workers to the islands and these are generally in middle and senior positions (equivalent to the old J-Category regime.). If a person has the benefit of a “licensed” position, they can rent or buy any property in the island. Some licences which are issued to businesses can be limited in time (say five years) and may need to be re-applied for.’

‘In this way Guernsey ensures we are meeting the needs of our businesses. A more structured review of the law, and how it works, will be conducted in two years. The regime is flexible and open to change as needed. It is also cheaper and far quicker than the old housing regime, and a significant step forward is the introduction of clear published policies dealing with key issues which might arise,’ Advocate Gray told Contact. One area untested is out-of-policy applications (not pre-approved through PEAP) and she believes the benefits of the new regime will be seen here very quickly.

As a result, the Population Office has a role in regulating migration through the licensing system and manage the population register. ‘The population control comes indirectly from the above restrictions,’ he says.

‘Industry will be able to tell us what works and what roles presently fall outside the pre-approved lists but which should be included in future. This lets the regime be examined and changed as needed.’

Guernsey’s approach… Since 3 April this year, Guernsey’s regime has become much more direct and now everyone aged 16-plus living in the island needs to hold a certificate or permit to show that they have permission to live and work there.

When the new Guernsey law was published it caused considerable alarm in certain quarters. Under the old arrangements, seasonal staff were able to work in Guernsey for nine months, leave for three, and then return to work again.

Elaine Gray, a partner in Carey Olsen’s dispute resolution and litigation team in Guernsey, is the representative for the finance and professional services industries on the Population Employment Advisory Panel (PEAP), a group of industry experts which provides the Committee for Home Affairs with independent advice on policies relating to granting employment permits

After five years, registered residents become “entitled to work” residents and, after 10 years, they can be granted “entitled” status, which then allows them to rent or buy any “ qualified” property in Jersey.

She is unequivocal about the benefits of the Guernsey approach: ‘The new population regime is a significant improvement on the previous housing licence system, which was cumbersome and difficult to work with,’ she says.

All properties in Jersey are categorised as either qualified or registered. Most of the property is qualified. The registered sector of the market can be at either end of the spectrum – sometimes being cheaper lodging accommodation or for more significant properties which will be

While no system is perfect, the new one has an in-built ability to adapt and review. This comes from the requirement in the law for the PEAP to carry out six-monthly reviews with their sector to enable feedback from industry to be reflected in the policies for pre-approved roles.

Many had done so for years and were regarded as valuable and skilled staff by the businesses, frequently in hospitality, which employed them but the Population Management (Guernsey) Law, 2016 was seen as preventing this. That has since been changed and Advocate Gray said that the amendment to allow seasonal workers who have been using the ‘nine months on, three months out’ system for a period of four years or more to continue indefinitely with this system, was welcomed and provided surety for these workers. Hospitality had generally been welcoming of the new regime. ‘For the first time we have a system which overtly courts entrepreneurs and those involved in the new digital industries. It demonstrates Guernsey is very much open for business,’ she said. That view was supported by Andrew Chantrell, general manager of the Old

Guernsey’s population regime strips away levels of bureaucracy, is far more transparent and simple to use and less labour intensive for both the States and employers and fees involved are significantly cheaper

Government House Hotel in Guernsey, one of the Red Carnation Group’s 17 luxury hotels in the UK, South Africa, Switzerland and the USA. ‘I believe that on the whole our new population management law regime has many more advantages for our business than it does negatives,’ he said. ‘The online portal for “in policy” jobs that reflect a skills shortage within our labour market is a fantastic tool that has made the application process for these role so much simpler and quicker than under the previous system.’ Having access to “in policy” jobs was also a significant development from the previous system under which employers were unable to see how a job role was perceived before submitting an application. ‘This also demonstrates that the formulation of PEAP is another good development of the new regime to give each industry a voice and an opportunity to better inform the board as to what support our specific industry requires,’ said Andrew. He believed it was a positive move for other employers within the hospitality and tourism sector, and for other industries, that changes were made to grandfather rights for short-term housing licence holders.

term employment permit for eight years] through the pre-approved list.’ Business worries remain Concerns about the respective regimes exist in both islands however, with the Confederation of Guernsey Industry remaining vocal critics, and Carey Olsen’s Advocate Philpott saying that the Jersey hospitality sector was also worried by the restrictions they faced. ‘These businesses, when granted their business licence, will have a fixed number of how many registered persons they can employ. For example, a hotel might be able to employ 50 people but will be restricted to, say, only being able to employ 10 registered persons, i.e. those persons who have been in the island for less than five years.’ The hospitality industry would argue that this hampered its abilities to adequately service Jersey’s increasing tourism sector and the very nature of such business meant the roles available within hospitality were predominantly those which new immigrants to the island undertook, he said. ‘Certainly there needs to be more discussion around introducing flexibility to allow this sector to employ more registered individuals,’ said Advocate Phillpot.

These amendments to the law were noted by Advocate Gray. Because of the scale of the changes, she said there appeared to have been some misconceptions in Jersey – recently referred to by IoD chair John Shenton – over the five-year medium term employment permit (MTEP), where there was a view that it required all people on a MTEP to leave permanently after five years.

‘Jersey increasing tourism is a very positive thing for the island. Personally, I think we should be doing all we can to support our hospitality industry at this time; it is working hard to foster the island’s economic growth.’

‘This is not the case and has been clarified,’ said Advocate Gray. ‘The beauty of this system is that anyone on an MTEP who improves their skills, gets promoted and/or can demonstrate they have gained further qualifications will be granted an LTEP [long

‘I believe population growth in Jersey is a positive thing and should be seen as such. We know from recent projections that the island’s population will continue to grow and develop and I think the government should adopt policies to reflect and support

A growing, economically-active population also fostered investment through property purchases and spending.

that growth.’ Guernsey change ‘positive’ However, the Guernsey view of its new legislation is far more positive, according to Advocate Gray. ‘Guernsey’s population regime strips away levels of bureaucracy, is far more transparent and simple to use and less labour intensive for both the States and employers and fees involved are significantly cheaper,’ she says. ‘Every island in the world has some form of population management. It may be called a different name or have different components but they are all similar in that the islands seek to understand their populations and what they need to prioritise in terms of who can come and live there.’ The particularly positive aspect of the new regime was that engagement from industry was unprecedented, the input provided invaluable, and that would continue to be the case. She said there were more than 230 jobs on the pre-approved list which would automatically be entitled to a permit and covered every business sector in Guernsey. ‘It is universally agreed that the new regime will stimulate the economy,’ she said. Chambers’ views on immigration Kristina Le Feuvre, president of the Jersey Chamber of Commerce, says its line on population/immigration over the last 12 months, and possibly longer, is that immigration in the island had to be targeted. ‘It’s absolutely right that government reviews population and immigration at the same time. Jersey needs a migrant population and immigration can often bring innovation,’ she said. ‘It is vital for the future success, continued growth and diversity of the island.’

She pointed to the latest ‘actively seeking work’ figures from the States of Jersey, which showed positive signs for the island’s economy as unemployment figures continued to fall and were at their lowest since June 2010. At the same time, however, the most recent Business Tendency Survey was relatively unchanged, with the labour market growing by only three percentage points. ‘In light of the current States’ initiative to reduce the number of new migrants and combined with the uncertainty surrounding a future migrant workforce, caused by the triggering of Article 50, the Jersey Chamber of Commerce would urge government to not heavily restrict the number of licenses allocated to businesses,’ she said. Kristina added that it was vital the States provided stability for the local economy, especially during the period of uncertainty caused by the UK exiting the European Union. ‘It is, therefore, imperative that businesses continue to have the flexibility to employ the right workforce to help maintain and grow their businesses,’ she said. ‘Yes, unemployment is falling, which is great news for the island, but the number of overall jobs available in Jersey remained relatively static in 2016. Growth in employment means growth in the economy and that can only be achieved by support and flexibility from government,’ she said.

Guernsey Chamber of Commerce President Martyn Dorey acknowledged that the new Population Management Law is better and a step forward but he and Population and Migration sub-group chair Guy Anderson believe Guernsey has got to use the review to create a bigger opportunity. ‘When it comes to population controls it is often better to decide what you don’t want, and restrict that, and send a signal that you are open to everything else.’ said Martyn. ‘As a general rule, economies do better with a freer movement of people, ideas and business. You must trust in the markets to find a level. The UK legislation has in the main scrapped skilled labour fast tracking, and now the core principle is a right to stay if you are in gainful employment. In the UK some job roles, such as domestic workers and farm labourers have higher risks of human trafficking, and that is where a spotlight needs to shine to ensure that human dignity is protected.’ Martyn continues, ‘I fully accept that the intention of the legislation is not to be prescriptive, however by publishing a list of jobs and residency terms, there is a risk that the wider world will perceive the list as centralised economic planning. The reality is that Guernsey is a great place to bring your business, find talent, and of course it is a delight to welcome new talent to our shores.’ By way of illustration one example that PEAP has, is a facilities or utilities chief executive who reports to a board, and is responsible for the delivery of financial, and operational targets, and has to have a relevant masters degree and 10+ years utility-based senior

management experience. This is too prescriptive. Chamber’s view is that it is really for the employer and the employee to figure out if they are a good fit, and to be open to a range of skills that an employee has to offer a business they said. Martyn says ‘We need to be alert to the arrival of individuals who hold different core values, or individuals who will become a drain on limited community resources. Citizenship tests and giving people tools for financial self-reliance, such as a secondary pension, are all important tools to create a more open island, and a culture of financial self-reliance. Increased individual financial responsibility should be our focus to give Guernsey resilience in the face of changing population demographics’. He and Guy believes there needed to be more emphasis on Guernsey as an attractive place to live, and support the role of L ocate Guernsey. With so many uncertainties, including the impossibility of predicting what Brexit would bring, the island needs to remain flexible. The governance checks and balances being introduced around the new law are going to be key. ‘It’s very simple, we must be enablers for future generations of Guernsey,’ he said, ‘we need to send a strong signal that we are open to the unpredictable, the idiosyncratic, and all the exciting possibilities for commerce that are out there, but are just out of our sight.’

M O R T GAG E S & LOA NS

Finding your way through the mortgage maze Taking out a mortgage is a huge financial commitment and not one most of us can afford to get wrong. It doesn’t matter if you are a first-time buyer, moving home or remortgaging, wading through the vast range of mortgage deals on offer can be stressful and daunting. More than that, it can take up a large amount of time. However, there is one way to skip the lengthy and convoluted research process and this is where a mortgage broker comes in. Simply put, a broker acts as a middleman between borrowers and lenders – they can do all of the arduous legwork for you. For couple Seamus and Jayne McAnoy, turning to SPF Private Clients for advice proved an invaluable decision. The brokers, who are the longest established and largest in Guernsey, assisted them from the early stages of saving for a deposit and throughout the intricate lending process from start to finish. They first met with specialist advisor and SPF managing director Pierre Blampied just over a year ago, and this April they collected the keys for their new home. But the couple genuinely doubt they would have bought a house at all without the expertise and support of a broker. ‘I don’t think we’d be where we are now – about to move in – had we not gone to SPF. Before meeting with Pierre, we’d been direct to lenders, and even another broker, and we’d been turned down. It was like that Little Britain sketch, “computer says no,”’ said trust officer Seamus, who had been saving for a few years before approaching SPF. ‘At our first meeting, Pierre went through our finances and our savings and he was able to say there and then how long it would take

us to hit our target. He was confident that if we stuck to what we were doing, we’d have enough for a deposit in six to nine months.’ With Pierre’s advice, Seamus and his wife, who are in their 30s, had successfully saved enough within the timeframe estimated. When they met with SPF again, Pierre was able to explain how much they qualified to borrow. ‘Jayne and I both work in finance, we are both good with money, but we didn’t realise how complex mortgage lending is and having a broker to explain the technical details, and put all the pieces together on our behalf, was a huge help. Pierre was a godsend. ‘And when we found a house we liked, Pierre dealt with our house insurance and life insurance – SPF is a one-stop-shop. ’ The mortgage team at SPF Private Clients is undoubtedly the most experienced in Guernsey. Its brokers have expert knowledge of the different lenders so they know which deals are suited to each client’s individual circumstances. ‘We know who offers the most competitive terms and best rates to fit a client’s needs, but also who to approach if a higher lending multiple is required, or the circumstances are complicated, for example. In addition, we deal with lenders who only accept applications directly from brokers, as opposed to dealing directly with customers, so there are some products you can only access through a broker,’ said SPF managing director Pierre Blampied. ‘It’s not just finding a mortgage deal where a broker can prove invaluable. They’ll also help

you apply for and set up your new mortgage, provide help and support with the paperwork throughout the process. A broker can liaise with the lender on your behalf to deal with any problems and avoid any unnecessary delays.’

HOW AN SPF MORTGAGE BROKER CAN GUIDE YOU THROUGH THE PROCESS • It doesn’t matter if you have a deposit ready to go or are still in the early stages of saving for a mortgage, a broker can offer invaluable advice at any stage of the process. •

An initial meeting with a mortgage adviser at SPF Private Clients will be an opportunity to discuss your current financial circumstances and the options available for your needs.

• An SPF adviser can tell within 10 minutes if you qualify for a mortgage, in principle, providing they have the basic information, like income, assets and liabilities. • Once you are in a position to apply for a mortgage, an adviser will then collate the required documents and then lodge for the mortgage on your behalf. •

The mortgage broker will liaise with the lending bank, surveyor, and estate agent to keep the transaction running smoothly until completion.

HOW DIFFICULT IS IT TO FIND YOUR IDEAL MORTGAGE It’s easier than you think, when you ask SPF. We are Guernsey’s longest established and most experienced mortgage broker and we have access to ALL the local mortgage products, even from lenders not physically based in Guernsey, so we can save you the time and hassle of shopping around. And, because we are independent, you can be sure you’re getting unbiased advice. For friendly, helpful advice, please call us today.

Tel: 715234

mortgages@spf.gg

www.spf.gg

/SPFGsy

@SPFGsy

The Financial Suite, The Maze, Berthelot Street, St. Peter Port, Guernsey GY1 1JT. Mortgages | Pensions | Financial Planning | Insurance | Wealth Management Licensed by the Guernsey Financial Services Commission to provide advice on insurance business and collective investment schemes.

The Skipton Mortgage Centre is now open. T

Pizza Express

Specsavers

BERESFORD STREET

HALKETT PLACE

DON STREET

Banjo WATERLOO STREET ENTRANCE

MARKET

Ormer

D S T R EE

CATTLE STREET

BURRARD PLACE

WATERLOO LANE

BU R R A R

Next door to Andersons DIY Store KING STREET

After helping thousands of islanders move home, weâ&#x20AC;&#x2122;ve decided to do the same. Come and see us for all your mortgage needs:

9 Waterloo Street, St Helier, JE2 4WN. We look forward to welcoming you to our new home.

Contact us on 509501 www.skiptoninternational.com Skipton International Limited, 9 Waterloo Street, St Helier, Jersey, JE2 4WN

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Skipton abides by the Jersey Code of Practice for Consumer Lending. To help maintain service and quality, telephone calls may be recorded and monitored.

M ORT GAG E S & LOA NS

Two islands, two markets, similar needs Lorraine McLean, Skipton International’s mortgage sales manager, explains how the launch of the company’s new mortgage centre shows confidence lenders have in Jersey housing market. A few years ago, Jersey’s housing market appeared to be in the doldrums – transactions were down, prices were falling, and everyone involved in buying or selling houses had an air of gloom about them. To be fair, the situation wasn’t as bad as in parts of the UK, Ireland or Spain, where prices tumbled and whole developments were left half-built as property firms went bankrupt, and buyers evaporated. Jersey, like the rest of the Channel Islands, was cushioned by its location and well performing economy. Unlike places such as Singapore where many people commute from Malaysia, or places ike Monaco, where most workers come in daily from France – if you want to work in Jersey, you have virtually no choice but to buy or rent property here. The limited amount of land available for building homes in Jersey was another stabilising force. We simply did not have the overcapacity caused by new developments waiting for investors to invest. Sure, we had some houses that took a long time to sell, but essentially, provided sellers were prepared to adjust prices, most properties went eventually. Skipton International kept lending throughout this period, ensuring buyers had access to the necessary funds to complete transactions, and keep the market moving. This was particularly important with first time buyers as they are usually the ones at the start of the chain, and without them, the whole market would have to rely on cash-buyers or investors. Now the market has picked up, with transaction levels at their highest levels since 2006, and the average house price now back above the 2008 peak,

it’s no less important to ensure the market remains liquid. This is why Skipton International is continuing to invest in Jersey. 12 years after launching our mortgages in the island, we have opened a new on-street sales office and we are taking on new mortgage sales staff to help look after our expanding customer base.

A sudden leap in house prices would not be in the long-term interests of islanders, as it would widen the affordability gap, and potentially lead to longer term price fluctuations The new Skipton International Mortgage Centre, on Waterloo Street, is conveniently located so people can pop in to ask a question, or make an appointment with one of our experienced team. Our new centre is exclusively for mortgages, so customers wishing to enquire about Skipton International’s offshore savings accounts for Channel Island residents will need to contact our friendly offshore savings colleagues in Guernsey, who will be happy to help. Housing transactions in Jersey rose by 12% in 2016, with a 4% rise in house prices taking the average price of property in Jersey to £468,000 (figures from Q4 2016). We would

expect housing transactions to remain buoyant in 2017, although we would hope that house prices rise by no more than RPI +1%. This would be a sustainable level of growth for the island that would keep house price rises in line with increases in earnings. A sudden leap in house prices would not be in the long-term interests of islanders, as it would widen the affordability gap, and potentially lead to longer term price fluctuations. Over 1,400 properties were sold in Jersey last year, with three and four bedroom houses reaching their highest mean prices to date – a sign that Jersey’s market is growing steadily through people buying their second, or third home, rather than needing to rely on first time buyers or investors. It is a different picture in Guernsey. In 2016, there were 633 housing transactions, up from 539 in 2015, and 594 in 2014, and a step towards the 706 transactions of 2013. Indeed, transactions for the first part of the year were on a par with 2013 levels, showing that the market might be stablilising. We have been offering residential mortgages in Guernsey since 2002, and are one of the largest lenders in the island, however one company does not make a housing market and we are delighted to see new lenders coming to the island. Jersey and Guernsey have very different housing markets, yet islanders in both places have very similar needs – good homes, at the right price. By continuing to invest in Jersey and Guernsey, and to keep offering Islanders a good choice of products for their requirements, we can help make securing your dream home more achievable.

M O R T GAG E S & LOA NS

Alternative lending solutions Sancus business development manager Stephen House explains the concept of co-funding as a financing solution. Who is Sancus? Sancus was originally launched in Jersey over three years ago as an alternative finance provider. In January of this year the company became part of the wider Sancus BMS Group and now operates in six jurisdictions (Jersey, Guernsey, Gibraltar, Isle of Man, Ireland and the UK). The core of the Channel Island business is providing secured, asset backed loans. Sancus is unique in that it has its own capital, which allows it to underwrite loans, but then syndicates with its co-funders. The Sancus Group now also includes an expanded range of financing solutions, including secured cash flow lending (loans secured by debenture) and a variety of working capital solutions that assist cash flow and liquidity for businesses and their owners. What are alternative finance companies and market place lenders such as Sancus and what do they do? Sancus delivers straightforward financing by way of secured loans from £250,000 upwards to borrowers on one side, and providing co-funding opportunities on the other side for participants who wish to diversify their wealth and make an allocation to lending. Our minimum co-funder allocation is £100,000 and all the associated risks for co-funders in a transaction are managed by Sancus. Lending is provided to entrepreneurs, small medium enterprises (SMEs), fiduciaries, institutions and professionals on a fully secured basis and co-funders are able to participate in each loan at an agreed rate of interest. Interest rates vary, according to type of borrowing, term, security, interest serviced monthly, etc. but rates start typically at 9%, which after deduction of our administration costs, co-funders usually receive 7%+.

A holistic approach to credit is taken, always taking into consideration a potential borrower’s total asset base, security offered and ability to cover interest and ultimately repay the debt. How does it work for borrowers? We have an initial meeting with you to understand your borrowing requirements, agree headline terms and outline our due diligence process. We then complete our anti money laundering and KYC checks and prepare an internal credit assessment and proposal document for our local credit committee to review. On approval, we produce a binding offer letter for you to sign with an agreed repayment strategy and pre-drawdown requirements. The borrower pays all of the legal fees to prepare the legal loan agreement and perfect our security etc.

What are the typical types of borrowing that you see at Sancus? We are entrepreneurs lending to entrepreneurs and professionals lending to professionals, providing a quick, simple and bespoke alternative to traditional lenders. As our minimum loan participation is £250,000, we do not offer consumer loans. Typical types of borrowing through Sancus are: • Bridge financing – for property relocation; • Property development – to assist local developers; • Property loans – lending against existing commercial, second residential or property portfolios; • SME and entrepreneur loans – for short term expansion capital, for example up grading current business premises; • Portfolio lending – short term funding against investment portfolios. Naturally, the list is not exhaustive and we would review all opportunities.

How does it work for co-funders?

An example of how we can help

Following receipt of a generic term sheet explaining the basic details of the opportunity, prospective co-funders can choose (on a first come, first served basis) the loan in which they wish to participate. Once the appropriate paper work has been completed, Sancus will provide full transparency on the loan.

Our client had accepted and agreed the purchase price for a house they wished to buy, however, the purchaser of their existing home pulled out at the last minute and they needed to obtain bridging finance.

Sancus underwrites the loan, syndicates with other co-funders and the loan agreement is signed by the co-funder alongside Sancus and the borrower. We also ensure that co-funders receive appropriate, independent legal advice, which Sancus pays for. Sancus then monitors the on-going performance of the loan and is the facility and security agent.

Since the financial crisis, many banks are no longer in a position to provide bridging finance, irrespective of whether the vendor has a purchaser lined up or not. Our client did not wish to lose the new property and wanted to complete the purchase but they needed a bridge until a new buyer for their current property was found. We were happy to offer this facility, looking at the overall value of the two properties, the ability to service the facility and the costs associated with execution.

Collateral Speed

Our lending is secured on tangible assets.

For a borrower we know that quick decisions are a priority.

We add a layer of comfort by funding alongside, or (where required) in front of our co-funders.

Higher returns

Straightforward

Compared to traditional asset categories, such as bonds and cash.

We are pragmatic and professional, and our experienced team understand complexity.

Financing Business funding for organisations and their owners.

We believe in direct funding and borrowing between fellow entrepreneurs and professionals. This means funders can expect higher returns, greater transparency and comfort in the knowledge that we shall be lending alongside – and where required – in front of you. For borrowers, we work hard to ensure we understand your needs with our experience and permanent capital, acting with speed and flexibility. We provide certainty by having the ability to underwrite the loan and syndicate thereafter.

sancus.com

We’re in it together

M ORT GAG E S & LOANS

It would be fair to say that most industries have a ridiculous amount of jargon attached - phrases like ‘blue sky thinking’, ‘pushing the envelope’ and ‘empowerment’ to name a few. Mortgage professionals are no different in this regard and it begs the question - why does everything need to be so complicated? Mortgages are a vital part of most people’s lives but that doesn’t mean they are fully understood and it is not uncommon for a mortgage seeker to feel overwhelmed by the jargon and the seemingly frustrating bureaucratic process to get a mortgage. The rules on borrowing have changed significantly in the last few years. The old, arguably simpler, income calculator model is extinct. Since the UK Mortgage Market Review came into force in 2014 lenders now use an ‘affordability calculator’ to assess each applicant’s borrowing capability. This means every outgoing – car loans, credit cards and even your Netflix subscription - is taken in to account. This is where the experience of a reputable professional mortgage broker comes into its own. It is up to them to be the translator for the client; to ensure the client understands the different options and to be the one to make it easy for them to make decisions. It is that professional who understands the various lenders’ rules and guidelines and can save a lot of time, and avoid disappointment, by ensuring a mortgage application is forwarded to only those lenders likely to approve. A mortgage broker will work with the client to understand their financial objectives and

Mortgages for the bewildered The world of seeking a mortgage is fraught with emotion and complication. Cherry Godfrey mortgage manager Philip De Garis considers the ever-changing landscape of mortgages and argues that it is up to the professionals to make the road to owning a home easier to navigate for all career progression - assessing the future as well as the present. For instance a newly-qualified lawyer engaged and planning a wedding will often be thinking about their immediate housing needs and not considering the future. In the not too distant future that lawyer could be promoted, could take maternity leave and there’s also the possibility of partnership and profit dividends. It is up to the mortgage professional to ensure they get to know the client in a way where they can anticipate these milestones and form a mortgage application which reflects both the potential earning as well as the actual. Of course every client is different and solutions need to be tailored to suit individual requirements. Excellent mortgage brokers endeavour to assist clients every step of the way starting with the initial enquiry through to the completion of the mortgage. They should help with application forms, liaising with the lender and the estate agent and assisting with arranging surveys. Ideally the broker has strong links in the community and can steer the client in the right direction to an appropriate lawyer and any other skilled professional they might need.

mortgage’. Arguably few people would consider what else is needed around a mortgage to diminish the power of this statement. This is where life insurance, critical illness cover and income protection are almost as important as the mortgage itself and some would say every bit as important. Qualified, professional advisors will be able to provide a suite of alternatives and advice tailored to each client. Essentially it is not up to the client to be less bewildered in this strange world people only visit a few times in their lives. It is up to the broker to demystify the jargon and set out the options clearly. There is more and more information literally at the fingertips of individuals but access to a deluge of jargon isn’t necessarily the way to enlightenment. The main benefit of speaking to a local, experienced, reputable mortgage broker is that they are the experts and can help make sense of the information overload. Reliable and suitable information is the key to making the best decisions. Using a mortgage broker, who has the client’s best interests at heart, to ensure all the options are understood and explored will save time, stress and will shine a light to show the way.

Then there is the dreaded threat familiar to most: ‘your home may be repossessed if you don’t keep up repayments on your

M O R T GAG E S & LOA NS

Finance options for baby boomers Paul Welch, CEO and founder of largemortgageloans.com, gives an overview of how â&#x20AC;&#x2DC;later life lendingâ&#x20AC;&#x2122; for those over 65 in Guernsey gives borrowing opportunities that could secure their financial future and help the next generation. I returned to Guernsey last August with the aim of bringing years of experience and strong relationships with a range of lenders to the island, for the benefit of mortgage borrowers. In establishing a presence on the island my firm also brings with it access to three new lenders. This exclusive access to additional products will bring various benefits to the island, not least to the baby boom generation. The baby boom generation, born in the late 1940s up until the 1960s, is now passing from working age into retirement. Making up nearly 20% of the Guernsey population, residents above the age of 65 are the fastest growing demographic. Over the past three years the population above 65 years of age increased by 7%, and this trend is set to continue in 2017 onwards. The ageing population, along with the ever-extending life expectancy, is having a profound impact on the make-up of the island. This is something the incoming population management law and the new open market housing register law are set to attempt to counterbalance. This could potentially leave some retired homeowners in a predicament. They may wish to release equity from their property in order to enjoy their retirement fully or help out younger generations in the family. However, lenders are often reluctant to lend to those over 70, despite the fact they are in good health and could be looking forward to many more years of a full and active life. This could be something of a frustration to those who have worked hard to pay off part,

or all of their mortgage, in order to build up equity for future generations. Now they find that they have limited cash with which to enjoy the benefits of a lifetime of hard work. This liquidity could give them the chance to enjoy additional luxuries such as holidays or even just going to visit family and friends around the world, which their current savings or pension pots do not cover.

With the equity in their homes, older family members could be well placed to support younger family members. However, with the barriers to borrowing they have faced, for many this has been just out of reach This also renders older homeowners unable to help out younger generations. Whether it be paying for school fees or helping younger family members who are struggling more than ever, to get their foot on the housing ladder. Although selling up and down-sizing is an option, it is perfectly understandable that they would want to stay in their home. A review of the Guernsey housing market was given the go-ahead by the Committee for the Environment and Infrastructure, at the

end of last year. It aims, among other things, to identify the barriers to homeownership faced by first time buyers, in order to better inform policy making decisions. However, it is not hard to identify that a large part of this is due to the dramatic increase in house prices. While this has been beneficial for homeowners, for first time buyers it is making it much harder to afford the deposit and the mortgage repayments. Especially if the money they could be saving is instead going towards paying expensive rent. With the equity in their homes, older family members could be well placed to support younger family members. However, with the barriers to borrowing they have faced, for many this has been just out of reach. This is where the islandâ&#x20AC;&#x2122;s access to one of the new lenders, with mortgage products designed for those above the age of 65, could be of huge benefit to borrowers in the Bailiwick of Guernsey. Allowing older borrowers to take out a mortgage that will allow them access to the equity currently tied in their property, giving them greater financial freedom. Even those who, up until now may have considered a mortgage out of reach, may find they have more options than they thought. Since it was established in 2003, my company has gathered a wealth of experience in arranging a broad range of mortgages, both residential and commercial, in the UK and overseas. The team and I are looking forward to working with Guernsey residents to find them tailored mortgage solutions, that best fit their circumstances.

largemortgageloans.com The UK’s first large mortgage specialist

We are a multiple award winning mortgage broker specialising in larger and more complex mortgages. Soon to be featured in the Spear’s 500 for the second year in a row, as one of the top property financiers for High Net Worth and Ultra High Net Worth individuals. Our specialist service includes residential and buy to let mortgages above £1 million, onshore or offshore, as well as overseas mortgages. We will also arrange mortgages through company and trust structures. Our team of highly experienced specialist Mortgage Managers make arranging your mortgage simple, however complex your needs. If you would like to discuss your mortgage requirements with one of our Mortgage Managers call us today at either our Guernsey or London office.

Residential

Development

www.largemortgageloans.com

London office 020 7519 4900

Commercial

Overseas

info@largemortgageloans.com

Guernsey office 01481 234527

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT. 79

largemortgageloans.com is a trading name of Largemortgageloans.com Limited, registered with the Guernsey Financial Services Commission, reference number: 2269418 as a Non Regulated Financial Services Business. Largemortgageloans.com Ltd. 12 Pepper Street, Docklands, London, E14 9RP, is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some aspects of commercial and overseas mortgages.

BUS I N ES S IN THE C OMMUNI T Y

AFM purchases lawnmower for GROW Ltd

Jersey Child Care Trust receives ÂŁ23,000 from Lloyds Bank Foundation

RBC Wealth Management staff support Jersey Trees for Life's hedgerow campaign

Islands Insurance paartners with Jersey Fire and Rescue to promote fire safety

Businesses encouraged to enter relay teams in the Saffery Rotary Walk

Barclays volunteers in Jersey and Guernsey support disabled islanders on the Jubilee Sailing Trust trip

HSBC staff raise funds for Cancer Research UK in a Beat Cance Boat Race

B U S IN E S S IN T H E COM M U NIT Y

Guernsey Gas donates boiler to GSPCA

Health agency Align promotes exercise regime to Hautlieu pupils

Guernsey Electricity funding helps makeover at GO2 Charity Shop staff garden

Barclays Jersey supports Music in Action

Ravenscroft supports Andrea Nightigale's challenge of three triathlons in aid of Les Bourgs

Alex Picot Steps Challenge raises ÂŁ3,000 for Jersey Stroke Association and Motor Neurone Disease Association Jersey

Guernsey Electricity funds refurbishment of library at St Mary and St Michael School

Canaccord supports Schools' tag rugby event

C5 Guernsey are growing We are looking for smart people to join our team

Following continued client success, we need new team members to work in technical areas ranging from development to application support and project management. Our competitive benefits package, culture of continuous learning and friendly team will allow you to achieve more and create real impact on the Guernsey technology community.

Send us your CV today careers@c5alliance.com

www.c5alliance.com

www.wearebwi.com Guernsey. Jersey.

Instinctively Distinctive

Guernsey 55 Le Bordage, St Peter Port, Guernsey GY1 1BP. Tel 01481 723456. guernsey@wearebwi.com Jersey 7 Esplanade, St Helier, Jersey JE2 3QA. Tel 01534 734444. jersey@wearebwi.com

â&#x20AC;&#x153;

a powerful tool for improving the monitoring and control of your project portfolio

â&#x20AC;?

Capture Consolidate Communicate troupa makes it easy for project and programme managers to track the status of their projects.

www.troupa.com

T E CH / D IG ITAL

Does tracking my projects have to be so challenging? Tim Rawles from troupa.com looks at common sources of pain in the world of programme management, and the key criteria that any software solution must meet Different stakeholders, different needs In the high-pressure world of change and project management, stressed by 'initiative overload', having the right toolkit can make the difference between success and failure.

Further, to produce a consolidated programme-wide report can literally take days of work. As a consequence by the time the report is ready it is out of date. The ExCo member – where the buck stops

From the project manager on the ground, through the programme manager trying to keep it all together, and up to the executive director with ultimate responsibility for project activity, each has their own pain points.

Frequently, either the COO or CFO will have responsibility for reporting programme status to the executive committee. However, the long-winded manual reporting process means they do not have real-time view of status, only a monthly snapshot.

The project manager – the sharp end

Any project tracking tool must actually help the project manager and be seen as a friend, not an enemy.

Project management has been described as ‘an on-going battle with the “to do” list’. Day-to-day activities include maintaining risk and issue logs, recording decisions, documenting meetings and actions, tracking budgets and managing change requests. This is often achieved through a collection of Excel spreadsheets either stored on a network folder or on Sharepoint. The partitioned nature of this approach creates a challenge when it comes to the generation of project status reports (again typically Excel based). The project manager has to extract the most up-to-date information from the various spreadsheets and ‘paste’ it into the status report. This process is time consuming and so status reporting is often perceived as an unwelcome distraction from the ‘real work’ of managing the project. The programme manager – a problem squared For the programme manager the reporting challenge is magnified several times over. For example, project status reports may arrive in a variety of non-standard formats, each project manager having expressed their artistic side with the layout and colour scheme.

Any intra-month request of the programme manager for a more up-to-date report is met with a look of panic and despair. Also, the reports received are typically not quite at the professional level expected by senior executives. Easing the pain So any technological solution to these issues must meet the following criteria. First, it must be quick and easy to use. If it isn’t then the project manager is not going to use it (back to Excel then!) and you will not have reliable granular data on which to base your reporting.

This will enable real-time consolidation across the programme. For example, if a project manager adds a new ‘red’ risk to the project’s risk log then this must instantly become visible on the programme manager's risk dashboard. Similarly, adding a new invoice to the project’s budget tracker must be reflected immediately in the total programme spend. Thirdly, the quality of reporting must be consistent and professional. Although it is feasible to present ‘live’ project dashboards at senior executive meetings the reality is that many ExCo members want to see a reporting pack that is distributed in advance. Therefore, it is important that all system outputs, both on-screen and printed, are of the highest quality. Taking action A client of ours in Guernsey, Generali Worldwide, wanted to enhance the efficiency of its project tracking and reporting processes and are now enjoying the benefits of implementing our Troupa solution. All organisations I speak to about the management of their project portfolio recognise the challenges outlined earlier, though many feel they are too busy to do anything about it! Technology can help you, though it is crucial that you are clear on your requirements and are willing to take action.

Secondly, it must be fully integrated. In other words, all project data (for all projects) must be stored in a single repository.

T EC H / D I G ITA L

Quantum Cabling was set up in 2004 by Mark Addlesee, Rob Dodds and Nigel Moullin. The three guys – all of whom come from an engineering/telecoms background – worked together over a number of years before spotting a niche in the market and setting out on their own. Offering cabling installations to both businesses and residential property locally covering everything from fibre optics, Wifi networks, data and voice cabling and electrical installations. They put their success down to a number of factors. Their small team (five full-time individuals as well as the three principals) means that they can offer highly cost effective solutions and very flexible service levels, and they

have successfully built up long-term relationships with many clients. ‘Trust is really important,’ said Rob. ‘When we first set out, we had to quote for every single job. Now many of our clients just give us a project to complete because they know we will deliver. That doesn’t mean that we can get complacent or take them for granted.’ Their work has taken the team to Jersey and even to Cyprus where they were appointed by a Guernsey company with subsidiary offices elsewhere. From a local perspective, there is plenty of work although fewer large-scale projects – reflecting similar trends in the local building arena. Work comes either directly from clients but also from facilities management companies, IT service providers or telecoms operations. ‘We work in partnership with other suppliers with complementary services. So for example an IT company will provide hardware for an installation project and then we come in and sort the cabling,’ said Mark.

When experience counts Electrical Installations Cat 5e / Cat 6 Data Cabling Installations Telephone / Broadband / WiFi

Tel: 01481 242800 Mob: 07781 163224 Email: support@quantum.gg

Whilst the domestic market only constitutes around 20% of its business, the team epitomises the cliché that no job is too small as Nigel explained. ‘We are happy to sort out anything even just a Wifi connection – you never know who that client is or if they have major extension plans for their house next year. Houses will typically have cables that were installed say 40 years ago which are no longer fit for purpose and can’t cope with high-speed broadband.’ For a small company, Quantum punches above its weight from a CSR perspective. With an annual budget allocation set aside for charitable/sponsorship funding, the three sit down with their wives once a year and decide the organisations which they will support in the coming 12 months. These have included supplying a defibrillator unit for Herm Island, donating high-viz jackets for Amherst School and purchasing Christmas presents through the Island FM present giving scheme for local children.

T E CH / D IG ITAL

Understanding DDoS Justin Bellinger, carrier, wholesale and business development director at Sure, provides an overview of distributed denial of service (DDoS) attacks and how to stop them preventing you from doing business. Maintaining constant uptime and minimising disruption to service are vital factors to running an online business but they are threatened by DDoS attacks which aim to bring down websites by overwhelming them with requests. The World Economic Forum’s ‘Global Risk Report 2016’ notes that cyberattacks are both the most likely technological risk and the one that has the greatest impact. In short, they’re the biggest single risk to organisations. Our diverse client base (from small business owners to multinational companies) means that Sure has plenty of experience protecting customer networks and, without doubt, DDoS attacks are one of the threats we see most often. Last year, Sure’s automated systems performed thousands of individual mitigations, with the largest volumetric attack against a customer peaking at 94Gb in size. Already this year we have seen a steady increase in the volume, size and complexity of all attack types compared with our experience in previous years. How DDoS attacks work DDoS is a type of denial of service attack where multiple compromised systems, which are often infected with a Trojan virus, are used to target a single system, causing a DoS attack. The attack is an attempt to exhaust the resources available to a network, application or service so that genuine users cannot gain access, making even short-lived successful attacks extremely costly to businesses. Victims of a DDoS attack are both the end-targeted system and all systems maliciously used and controlled by the hacker in the distributed attack.

In a DDoS attack, the incoming traffic flooding the victim originates from many different sources – potentially hundreds of thousands of compromised machines. The use of multiple sources makes it impossible to stop the attack simply by blocking a single IP address – the usual means of blocking attacks. An additional concern is that it’s very difficult to distinguish legitimate user traffic from attack traffic that is spread across so many points of origin, leaving open the possibility of blocking legitimate users and ruining their experience of your platform. The difference between DDoS and DoS attacks A DoS attack typically uses one computer and one internet connection to flood a targeted system or resource, as opposed to the many which are deployed in a DDoS attack. Therefore the attack is targeted from a single IP address and easier to ‘black hole’. DDoS attacks, on the other hand, are often global attacks distributed via botnets. Types of DDoS attack DDoS attacks come in various forms, from volumetric attacks that aim to consume a victim’s bandwidth to cause congestion and disrupt their service, to state-exhaustion attacks which target application servers and firewalls. Why are DDoS attacks so dangerous? DDoS represents a significant threat to business continuity. Although most attacks are aimed at disrupting a service, they have been used as a distraction by hackers looking to infiltrate networks, possibly to steal data. It is believed that the well-known TalkTalk breach of 2015 was preceded by a DDoS attack.

What can be done to prevent attacks? In relation to data centre hosting, internet service providers (ISPs) can provide an on-net/off-net solution to protect their customers. This can incur significant costs but the alternative, which is to implement your own solutions based on best practice, comes with the greater risk of attacks succeeding, causing downtime and loss of business. Of course, there is no perfect solution. Every business has to decide on its security provisions by weighing up the permissible level of risk against cost but an ISP’s ability to provide on-net solutions means it’s able to detect an attack before it even reaches the customer’s hardware. At Sure, we’ve deployed Arbor DDoS protection to mitigate DDoS attacks. The system secures the high bandwidth gateways at the network’s edge and keeps malicious data far from the core and our clients’ systems. Above this, we’ve deployed an integrated, high capacity off-net cloud-based solution powered and managed 24/7 by Arbor. The security cloud solution is capable of mitigating attacks in excess of 1Tb/s, so customers stay online even when their systems are under heavy assault. Cybersecurity should be a paramount concern for businesses of all sizes in today’s increasingly digital world and taking steps to protect your business should be a natural part of any business plan.

T EC H /DI G ITA L

Don’t be the weakest link Professional networking sites are becoming the weakest link in cybercrime as fraudsters exploit our natural desire to connect - Ricky Magalhaes, head of cyber security, Logicalis.

LinkedIn has always been one of the quieter platforms of social media. Used extensively by recruiters and job seekers, LinkedIn is often seen as a good place to keep in touch with people you know professionally. If Facebook is built around ‘friends’, LinkedIn is more about ‘acquaintances’. We all have a natural desire to connect, and for many, LinkedIn makes connecting a lot easier. You can stay in touch with former colleagues, reconnect with university alumni, and reach out to people you’ve met briefly at conferences or events. Unfortunately, it’s also becoming an excellent way for fraudsters to connect with potential victims, and cybercriminals to find the next target to con. In 2012, hackers breached security at LinkedIn, potentially compromising the accounts of over 100 million users. While the hackers were caught last year, and users were warned to change their passwords, having a profile on LinkedIn, like on any social media platform, can put you at risk. Despite attempts to remove them, LinkedIn is a hotbed for criminals. The con artists may start with a fake profile, often using a photo of an attractive woman or the logo of a well-known brand. They will try to build up connections, to make their profile seem more authentic, and a lot of people will accept out of politeness, or a desire to build up more connections themselves. The scams may vary from job offers to romantic proposals. They might try to get you to send them money, or give them

valuable information that can be used in spear-phishing attacks on your contacts or on other people in your organisation. A well-known con is for someone to trick people in a company into making a payment because they think their director is asking them to. However, even the message itself may be a trap – asking you to click a link that downloads malware onto your device, or that redirects you to a fake website that then requests data. Ransomware attacks are on the rise. In the first three months of 2016, FBI figures showed ransomware attacks in the US alone cost victims $209 million, up from $24 million in the whole of 2015. While ransomware fines may now cost US companies and individuals upwards of $1 billion a year, the real costs – through lost productivity – are much greater. In November 2016, KnowBe4, an online cyber-testing service we use, discovered fraudsters were using a fake LinkedIn profile for the US bank Wells Fargo to target people. They used InMails to tell people their personal security key for their Wells Fargo account had expired, and they needed to click a link to reactivate it. The link went to a fake page, which asked users to enter their banking credentials. So how do you recognise a fake profile? One clue is that they don’t have many connections (a bit like fake apps that don’t have many reviews). The next thing to look for is the text – are there lots of empty sections? Is the text badly written, or grammatically incorrect? Or does it just sound like it has been lifted from somewhere

else, where it would belong much better? If you’re suspicious that you’re getting an approach from someone with a fake profile you can drop the image into Google’s reverse image search and check if the sources tally. It’s easy for criminals to create fake emails that look like they are from LinkedIn, so if you get anything asking you to click on it to confirm your email address, for example, you are better to log in separately to the platform, and double check. Networking involves exposing yourself, so it can seem counter-intuitive to hide your profile. Nowhere is safe from cybercriminals, but you can make yourself a lot safer by checking connection requests before accepting them. Education is still the best way to help avoid infection by ransomware - or any other form of malware. Make your staff aware of popular social engineering methods and tactics so they don’t fall victim to phishing emails or spoofed messages. Staff security awareness is best when coupled with a bit of ‘light touch’ testing. A corporate-sponsored phishing attempt such as those Logicalis can offer through Knowbe4, can redirect those who click links back to the training programme as a refresher. If it is not reinforced, it won’t be remembered. Like everything else in security, it’s a matter of people, processes, technology, and policy. But don’t forget the people - because if you forget to teach people security, they will forget to secure the network.

www.je.logicalis.com | www.gg.logicalis.com

Cyber Security.

Governance, Compliance and Risk Management

Before

During

Discover, Enforce and Harden

Detect, Block and Defend

Threat Intelligence

Network

After

Scope, Contain and Remediate

Point in time

Endpoint

Professional Services

Mobile

Managed Security

Continuous

Virtual

Cloud

Security Operations Center

If you would like more information on how Logicalis can provide secure and bespoke IT solutions for your business, call our experts in Jersey on 288088, or in Guernsey on 737000 for a no obligation and confidential discussion.

Guernsey +44 (0) 1481 737 000

Email solutions@gg.logicalis.com

Jersey +44 (0) 1534 288 088

Email solutions@je.logicalis.com

Why social advertising? The flexibility of social advertising is incomparable, with the ability to monitor and adjust in real-time based on performance, and most importantly track the user journey all the way to conversion. This is results driven strategy, and itâ&#x20AC;&#x2122;s built entirely around engaging content suited to your target market; and on their terms.

We understand how to develop complex social ad campaigns that get you noticed. Get in touch: hello@crowdmedia.co.uk / 01481 721632 / crowdmedia.co.uk

STRATEGY / CREATIVITY / SUPPORT

T E CH / D IG ITAL

How social is your strategy? Jo Porrit, managing director of Crowd Media, tells us why social advertising needs to be a part of your digital strategy The social advertising industry looks set to grow to $40 billion dollars in 2017. That’s a hefty increase on the past two years. The reason is simple - it works! It also provides brands with a depth of data and information about their potential targets and customers that no other form of advertising has ever been able to match. You reach your targets and you learn more about their online behaviour, giving you deeper insight into how to keep them loyal and coming back for more. Certainly at Crowd our largest increase in revenue is from clients understanding how powerful these media have become, and rather than seeing them as a maybe, targeted social advertising campaigns are now firmly at the centre of all social strategy. Social platforms' clever ad management systems allow us to choose our targets from an amazingly complex range of variables; we can now go far deeper than the traditional age, location and household income. We can target users based on deep analysis of their existing online behaviour and preferences. The flexibility of social advertising is incomparable, with the ability to monitor and adjust in real-time based on performance, and most importantly track the user journey all the way to conversion. This is results-driven strategy, and it’s built entirely around engaging content suited to your target markets; and on their terms. So how have we helped clients grow their business through a social advertising strategy? Lead generation Want to build your database? We can set up

lead generation campaigns that not only deliver email addresses to you via social, but they’ll be qualified leads.

customers access to a physical event that they otherwise might not have been able to attend.

Social targeting means we can run defined campaigns aimed at very specific audiences with specific calls to action. Email marketing and lead generation campaigns are still firmly at the heart of many of our clients' strategies and blending this seamlessly into social means CRM systems can be kept up to date, in almost real time.

Re-marketing

Live video and engagement campaigns Major social networks have been adding live streaming functionalities to drive revenue and strengthen their hold on social media users. These video campaigns run across all screens - desktop, laptop, tablet and mobile. They allow businesses to communicate brand stories seamlessly and fluidly and are getting the most traction in the social advertising arena. The keyword here for brands is accessibility. Live streaming gives you the chance to bring your customers directly into your world. Nothing creates loyalty like co-creation and savvy brands understand that allowing customers direct access to their product/ service processes and development stages builds trust and increases a sense of ownership. We’ve had great success with retail brands in particular, telling their stories live as they develop and letting consumers comment and question and feel part of the brand evolution. Live streaming industry events has also been a success story for some of our clients. Being able to live stream your brand’s presence at important sector events enables you to create on the fly commentary, and gives your

As users become less engaged with traditional media, the need for personalised and relevant content and advertising delivery is vital. We’ve been taking advantage of Facebook re-marketing, which allows us to produce adverts based on identifying where users have been online as well as their own preferences and interests. We know that relevant content helps users to recall a brand and their experience of them, which hopefully prompts them to interact more personally and convert them into loyal customers. As consumers, we are now bombarded with content, and the impact of highly targeted and relevant content served via adverts, at the right time and in the right place, is a powerful proposition as part of a defined digital campaign. How can we help? The team at Crowd has invested heavily in building strong relationships with the big social players. We speak to Google, Facebook and Twitter regularly, via dedicated account managers who get to know and understand us, and more importantly, our clients. This means we don’t ever second guess, because it’s in the interest of these social giants to keep us informed of the latest development and solutions. As a business we strive to keep innovating and delivering this approach to our clients.

Shop at Waitrose and leave the heavy lifting to us Use the Waitrose Delivery Service and we’ll bring it home at a time that suits you. Ask for details at the Welcome Desk in store.

Delivery costs £3 when you spend £50 or £5 for smaller shops. Terms and conditions: Delivery Service; Book a delivery slot at the Welcome Desk before you start shopping in store. Shopping must be completed at least 2 hours before booked delivery. Hot food and large bulky items are excluded. Food that should be consumed on the day of purchase must be delivered on the same day. For same day deliveries you will need to complete your shopping by 5pm. For next day delivery you will need to complete your shopping at least 1 hour before the branch closes. Charges; Spend of £50 or more will be subject to a charge of £3. Less than £50 will be subject to a £5 delivery charge.

T E CH / D IG I TAL

Can Jersey be a ‘Smart Island’? Chris Knight, head of business development at Digital Jersey explains why he thinks it can.

It may be a lesser known fact, but looking back through the island’s rich history books reveals that Jersey has been a hotspot for the testing of new ideas and concepts for well over 100 years. In fact, the Royal Mail’s first pillar post boxes, which were originally green, were first trialled in Jersey in 1852. This was long before they cemented their place as the red British cultural icon that we recognise today. Fast-forward to the digital age and the ‘test-bed’ concept has now become synonymous with the testing of innovative technologies. Digital Jersey has been exploring ways to boost our digital economy by re-introducing the idea of the Jersey test-bed as part of our vision for 2017 and beyond. Our island holds unique potential in the test-bed space and could be an extremely attractive proposition for entrepreneurs and tech businesses. =We’re the ideal size, connected and digitally enabled. We’re now the third most connected destination in the world based on the percentage of homes with access to a fibre connection (source: JT). We’ve also already made several strategic moves to create an infrastructure which we hope will attract innovators to test solutions and experiment with new ideas here. You may have heard about the ‘smart city’ concept. These forward-thinking urban metropolises are leading the way for connective ‘internet of things’ (IoT) technologies, underpinning data to improve the efficiency and quality of city services. Now, we’re not trying to compete with these smart cities. Instead, we aim to carve our own path as a smart island. On realising our smart island vision, Jersey will become

an environment that is good for local employment and inward investment, as well as an attractive test-bed for new and innovative technologies, products and services. This could improve our overall economy and way of life, and foundations are already being laid. This includes creating an infrastructure that will support IoT technologies. IoT allows connectivity between everyday devices, enabling them to send and receive data. For example, as part of Estonia’s smart city project the government has installed a network of IoT devices to provide insight into the causes and evolution of flooding, allowing it to collect data and mitigate the risk of future flooding. IoT is set for explosive growth over the next five to 10 years, and will allow us to harness the power of data to improve our daily lives. Jersey was an early adopter of IoT and many islanders are already benefiting from these technologies every day, even if they’re not aware of it. The States of Jersey’s Track My Bus application, which uses trackers on buses to show their location, is a prime example of how IoT can be applied to improve our existing services. We’re also one of just a few places in the world to launch a jurisdiction-wide low power wide area (LoRa) network. LoRa supports the requirements of IoT, allowing us to collect a range of island-wide data more easily, from weather to traffic data. Using trackers and sensors, LoRa and IoT can be used across our industries and services – we could use traffic data to create fewer traffic jams and be guided to the nearest available parking space, or connect devices to Jersey cows to detect illness and improve efficiencies in our agriculture industry – IoT opens the door to some truly exciting possibilities.

LoRa is just one of the emerging network technologies, but with access to at least three proactive and innovative telecommunications companies, there’s no reason why Jersey can’t implement, test and critique more in the future. With our unique combination of urban and rural spaces, varied geology and topography, we are in an ideal position to create a quick, wall-to-wall test environment for comparing these networks. The smart island concept gets even more exciting when you consider the opportunities created by open data, of which I’m a big believer. If we’re going to make these smart concepts work we must allow public access to our sets of aggregated anonymous data. This is an attractive proposition for businesses that can benefit from access to a large range of data to experiment with, but it also creates value from a community perspective. We want islanders to find their own ways to utilise data, giving anyone the ability to combine data sets and use them to their advantage. For example, if your hobby is kite-surfing, you could combine data on the island’s tides and weather with wind speed data to get accurate, real-time data on when or where is best to go surfing, rather than relying on current predictive data. Open data creates endless possibilities for experimentation. As we continue to develop our smart island vision, I’d like islanders to begin thinking about how their lives could be improved using these types of technologies. What would your smart island look like?

Secure Data Destruction and Hardware Recycling Services in Guernsey & Jersey.

With over 23 years experience, our specialist team operate to the highest International Compliance Standards using state-of-the-art shredding and degaussing techniques. We also provide advice and support to businesses about the risks associated with data loss and cost effective ways to avoid them.

For further information please contact: Registered Guernsey Address

Registered Jersey Address

Galaxy Computer Brokers Ltd Bulwer House, Bulwer Avenue St Sampsonâ&#x20AC;&#x2122;s, Guernsey GY2 4LQ

Galaxy Computer Brokers Ltd Reclamation House, La Rue Grellier Rue des Pres Trading Estate, St. Saviour, Jersey JE2 7QS

Phone: 01481 242412 Email: Guernsey@galaxyci.com

Phone: 01534 509007 Email: Jersey@galaxyci.com

www.galaxyci.com Galaxy Computer Brokers Ltd is part of the Guernsey Recycling Group

ON SITE SECURE DATA DESTRUCTION | CORPORATE IT EQUIPMENT RECYCLING | SUPPLY AND PURCHASE OF SERVERS, STORAGE AND NETWORKS | IT EQUIPMENT RENTAL

T E CH / D IG ITAL

Reduce, re-use, recycle Contact magazine found out from Galaxy Computers’ managing director Stuart Moseley that secure destruction of IT hardware isn’t as straightforward as you might think. What does Galaxy Computer Brokers do? Galaxy Computer Brokers is a specialist IT asset disposal company (ITAD). Our mission statement is based on security and sustainability, both within the environment and the technology industry. We securely process a wide range of hardware for our clients. We permanently remove their data from IT equipment, and irreparably destroy data carriers such as hard disk drives. We follow the ‘reduce, re-use, recycle’ ethos, and reduce the amount of redundant hardware going into landfill by reusing and recycling hardware components and systems wherever possible. What first made you recognise this as a niche market? Galaxy Computers was established in 1995: at that time, no one else in the Channel Islands was recycling a wide range of computer hardware. It was commonplace to take old computer screens and printers down to landfill, for example. We destroy and recycle everything! We have adapted as new technologies emerge. Initially we used to destroy mainly desktop PCs and data tapes but now we are processing more modern technologies including smart phones, SD cards and storage arrays. What are the dangers of not destroying IT equipment properly? If a company loses customer data, it is likely to lose that customer and incur financial costs through law suits, reputational damages and fines. When any system reaches end of life it needs to be disposed of securely in order to mitigate those risks. We provide a secure destruction service, and alongside that, a recycling service. Historically, computer technologies were thrown into landfill. Galaxy recovers the value

in redundant hardware by re-using systems and components, and recycling composite materials. So how is Galaxy different from any other company destroying hardware? Galaxy Computer Brokers is the only ISO accredited on-site data destruction and hardware recycling specialist based in the Channel Islands. We can disintegrate and shred tapes and disks at customer sites so that all data has been destroyed before it leaves the company’s property. We are accredited against ISO 9001 Quality Management, 14001 Environmental Management and BS-EN 15713 Secure Destruction of Confidential Materials. We are audited twice a year by a UK assessor and we also offer our clients the opportunity to come and visit our warehouse. Can you cite any examples of companies that thought their data was destroyed and then experienced problems? Unfortunately, drilling holes through the disks or dousing them in water does not guarantee that data is irretrievable to those with the capability to recover it. Data theft can be very lucrative by recovering confidential data, or using more sophisticated attacks, fraud or ID theft. For example, the Brighton and Sussex University Hospitals and NHS Surrey were fined £325,000 and £200,000 respectively for losing confidential information. Neither organisation checked that the third party service contracted to dispose of their kit was doing so securely, and old hardware was recovered which displayed NHS data. We all assume it will never happen to us but data security is now a wider issue. If a company uses online software, for example, then there is a risk that the software provider may not comply with relevant data protection legislation, or dispose of hardware safely.

Have you seen demand for this service increase because of cyber-crime? As online threats become ever more sophisticated, computer based industries are having to pay more attention to hardware and data security. Another reason to utilise accredited destruction services is to comply with the changing EU data protection regulations. Galaxy is working closely with clients who are preparing for the regulatory changes that will take effect with the introduction of the GDPR, in May 2018. Non-compliance could result in fines of up to €20 million, or 4% of a company’s annual global turnover. Galaxy will soon be offering an additional data security service to help clients identify any weaknesses or issues of non-conformance in their IT infrastructure or data processing operations. Congratulations on winning the 2016 BWCI Guernsey Business Innovation Award. What has winning meant for you? It is an honour to be recognised for being ‘ innovative.’ The award is testament to the value of the secure destruction services we offer, and the creative ways in which we work for our clients. The judges praised us for achieving ISO accreditation. We work hard to comply with industry best practices so it’s great to have this recognised, and it gives our customers some reassurance regarding the professionalism of our service. Innovation is important to us. 2017 is already proving to be a very busy year! We have recently opened a second sales and business development office in Jersey which is managed by Neil Bredonchel; and we will soon be launching an online shop, and a security service. We’ll be sending out more information in the near future – so watch this space!

T EC H / D I G ITA L

Is your smartphone helping your business work smarter? Peter Zunino, head of sales and marketing at Airtel-Vodafone, looks at how SMEs can use smartphone technology to help boost business efficiency. Since the 1990s, mobile phones and devices have gone from being a luxury to a necessity in the business world. We’ve come a long way from buildingcentric work environments and we are no longer tied to our buildings let alone our desks. Today, fast, efficient and seamless access to information and data drives competitive advantage and your smartphone can be a key enabler of that, if used to its full potential. Other than staff costs, the cost of premises, infrastructure and hardware are the high-ticket items on a company’s balance sheet. As a mobile only provider, focused purely on Channel Island business, we spend a lot of time talking to local businesses, and the key message that comes out is how do they increase business efficiency, maximise business opportunities and reduce costs. Getting the right smartphone strategy in place is a key part of that. It’s never been easier to communicate with family, friends, colleagues and clients. We are fortunate in the Channel Islands to have a such a great connectivity platform, supported by three 4G mobile networks. Combine that with global mobile connectivity and marketing automation, it has changed the way that individuals interact with organisations. Good or bad, there is an expectation to be always on and always contactable. For SMEs in particular, with limited resources, embracing smartphone technology to improve efficiency is key to gaining competitive advantage. This is even more relevant given the relentless pace of the ‘internet of things’ with more and more smart devices getting connected to the internet.

Businesses who embrace new digital models and understand the way customers want to interact with them are putting mobility at the heart of their strategy. The statistics back it up as well. Our partner Vodafone has reported that for every working day a small business is separated from its smartphone capabilities, it misses an average of four new business opportunities. Boost productivity 65% of SMEs say that wireless technology boosts competitive advantage, and mobile business is not only key for business growth, but key to a productive work environment. 61% of business leaders say that new technology makes people happier, smarter and enables growth. Implementing real-time mobile communications into a business improves communication by 49%, boosts business efficiency by 47%, and enhances decision-making by 43%. Nearly 60% of organisations now equip the majority of their employees with devices to enable remote working, and 54% of employees said that flexible working makes them more productive. This increased flexibility has numerous advantages. If you’re away from the office you can stay in contact with your customers and clients, showing them that their business counts, and that your business is the one to be with. Attract the most talented staff Being mobile and digital first is also becoming hugely important in attracting the most talented staff. 34% of the new generation of job applicants now expect as standard to use advanced technology to communicate remotely with colleagues. What has become very clear is that, if businesses don’t adapt right now to attract the new millennial talent, they will miss out on the elite of a demographic that will

soon form the majority of the workforce. Stay secure In 2016, 700,000 handsets were stolen in the UK. It could happen to you, so make sure you know how to protect your smartphones. The best devices on the market are all protected with fingerprint and password security, and with the advent of cloud storage, we no longer need to be tied to our desks in order to access and share sensitive files over an internal network. Cloud storage solutions are an absolute must when you need your business to be mobile, but for secure mobile business, choose a business-specific cloud storage solution that offers built-in encryption and secure storage. The right advice and the right device for your business The infrastructure is in place for the Channel Islands to become smart islands and for SMEs to take advantage of smartphone technologies, but make sure you get the basics in place first. Are you using the right devices for your business which are empowering your employees? Are your employees up to speed with making the most of their smartphones for business? Does your mobile tariff suit your business needs, both on island and off island? Businesses that embrace the full potential of the smartphone to keep connected with employees, colleagues and customers in the way they want to be connected, will succeed in creating happy and productive employees as well as a responsive and engaged customer base. *Statistics based on data reported in Vodafone’s Perspective Series, 2017.

T EC H / D I G ITA L

A greener landscape A new partnership heralds the next phase of Guernseyâ&#x20AC;&#x2122;s use of electric cars. With the number of electric cars in the Channel Islands growing, Guernsey company Green Acorn Energy Solutions is pleased to announce it is partnering with EO Charging to supply electric vehicle (EV) charging points across the islands. The EO range benefits from robust and easy to install designs which require minimal maintenance. They are suitable for all electric vehicles and can be fitted for private or public use. The EO product offers a great option for anyone with an electric vehicle visiting the islands. With potential to be installed in public carparks, at hotels/guest houses, at visitor attractions or other popular locations

such as the ports, access to the points is controlled using a smartphone app. Unlike other chargers, which require a card to activate, the app allows them to be accessed by anyone at any time, the charge is monitored and the vehicle owner notified when the charge is complete. Owners of the charging points can decide if they require payment for their use, this cost is passed onto the EV owner through the app, with the charging point owner receiving payment from EO Charging, making the process easy to manage and administer. Green Acorn which specialises in energy management and energy storage, offers a turnkey solution that includes the supply of

equipment, installation and ongoing support and maintenance. The company has been working with EO Charging in the UK and are excited about the opportunities the product offers islanders. Managing director, Keith Hounsell said: â&#x20AC;&#x2DC;Our partnership with EO Charging provides customers with an on-island sales, installation and maintenance team to meet the expanding EV market of domestic and non-domestic users.â&#x20AC;&#x2122; EO chargers are already used by leading organisations in the UK including Addison Lee, EDF Energy and Leeds City Council.

T E CH / D IG ITAL

Will your job be replaced by a robot? Advances in technology are set to affect the employment market significantly as Jason Connolly from Next Generation IT explains. In addition to competing against other jobseekers for work, you’ll soon be pitted against robots as well. Millions of UK workers are in danger of being replaced by computers and artificial intelligence (AI), an Oxford University study has concluded. Experts predict that we are entering the fourth industrial revolution (4R), where unrelenting technological progress is blurring the traditional boundaries between physical, digital and biological realms. Breakthroughs in many fields, including AI, robotics, biotechnology, nanotechnology and the ‘internet of things’ (which is forecast to grow to 10 billion devices connected by 2020) are creating unprecedented opportunities for the automation of millions of jobs. In the face of this brave new world, political and economic structures need to be urgently updated to support this rapid change. Philip Hammond, Chancellor of the Exchequer said: ‘There is a once-in-ageneration opportunity for Britain to cement its role as a leader in tech innovation […] the fruit of British genius being harvested here in Britain as we move into a fourth industrial revolution, creating jobs, wealth and success. Future-proofing the economy of post-Brexit Britain.' Top 10 jobs targeted for automation The bad news is that we could soon all be out of a job. So, to avoid unemployment, which jobs are most at risk of automation? As many blue-collar jobs have already been automated, the next target group is knowledge workers who have so far been sheltered from the effects of mass production and robotics. These include many administrative roles, which could affect many local jobs: • Data entry, billing administration, cashiers and filing clerks • Loan officers, credit authorisers, checkers and clerks • Bookkeeping, accounting and auditing clerks • Tax preparers

• Factory workers • Insurance underwriting and claims adjusters • Translation • Fast food employees and cafeteria assistants • Legal advisors and secretaries • Receptionists, switchboard operators and office clerks Dr Carl Frey and Dr Michael Osborne from Oxford University estimate that nearly half of all current jobs will be automated by 2033. By 2020 one in five in banking will be put out of work by an algorithm. Machine learning and AI The good news is that the Channel Islands have shown themselves to be very adaptable in the past. We must move up the value chain to ensure our survival and ongoing employment. There are opportunities to be had for nimble and adaptable businesses to take advantage of the rapid change. Machine learning and artificial intelligence is not all about saving money, but used well can raise productivity, reduce errors, improve quality, safety and speed. Adopting automation could enable local businesses to become more productive and effective, unlocking competitive advantage for our businesses against other competing jurisdictions. Top 10 jobs safest from automation For those planning a future career or considering a change in direction, below are the least likely jobs to be automated, featuring as they do a great deal of human contact, creativity and flexibility: • Healthcare • Dentists and hygienists • Teachers and education • Social workers • Physiologists and counsellors • Scientists and engineers • Human resources and training • Clergy • Sales, marketing and PR • Musicians and artists

A revolution in the way we work. Automation will disproportionately affect the poorest in our society as those at the low-skill end of the labour market are replaced by robotics and AI. This will progress to threaten middle-income administrative and service roles. With such a dramatic change, there will likely be a temporary spike in unemployment whilst staff and businesses retrain and refocus. Welfare provisions will need to be extended to cover a larger proportion of the population. Further developments in technology will bring globalisation of people-centric service sectors, impacting rich countries far more than the decline in manufacturing. In the UK, the service sector accounts for around 80% of the economy. The disruption won’t be caused because people move freely across borders (as many popularist politicians believe), but because technologies will enable the work to be done elsewhere. Knowledge-driven globalisation will be driven by technology. For example, through telerobotics, a surgeon can operate on a patient remotely from another country. Who will own all the robots? We may be due for a leap forward in efficiency, leading to more leisure time, improved public services and lower costs. Technology has the potential to rid the world of hunger, but at what cost? Who will own all the robots? In a dystopian future where a few multinational corporations control everything, we will need to develop a strong political and social framework to ensure that inequality between the rich and poor does not spiral out of control. Peter Frase, sociologist and Jacobin editor, postulates that there are four potential futures: communism (unlimited resources, shared equally), rentism (all resources are controlled by a few ‘elites’ and rented by the community), socialism (social equality but with scarce resources – e.g. climate change will unite all communities to work together to reduce consumption) and, chillingly, the most likely scenario (based on current trends) is exterminism (workers are superfluous, and climate crises make elites conclude that the most expedient solution is to cull the population). Let’s hope it doesn’t come to that. 93

Lowlands Industrial Estate, Braye Road, Vale, GY3 5XF Tel: 01481 256586 Email: guernseytradewindows@gmail.com Web: www.guernseytradewindows.com

Your local supplier & installer of the Super-lightweight roof External view

Internal view

Super-Light Conservatory Roof Conversions. Thinking of replacing your existing glass or polycarbonate conservatory roof ? We have the perfect solution. Affordable and quick to install, average installation time in under one week. A revolutionary new highly insulated tiled roof system which will transform your old unusable conservatory into a room that can be used all year round. We take care of all planning and building control permissions to make sure your conversion meets current local regulations. Viewings of our installations available upon request. All quotations are free with no obligation.

New build conversions

Finance options available subject to terms & conditons

O N AI R

Tune in How does Mike Huston deal with taking over 100 flights a year? He hasn't the foggiest!

I want to start this month with a question. What do we have no control of, we have had lots of it, and it has been the subject of a famous film and book? You will probably have guessed correctly that I am talking about the dreaded ‘F’ word, the fog! There are probably not many people reading this who haven’t been affected by the fog in some way, particularly over the last few months. The weather men and women advise me that we have had a year’s supply of the stuff in the first three months of the year. As I type this in glorious sunshine it does seem strange to be talking about fog but it’s an important part of island life, and a very frustrating part of it too. I guess there are many reasons for our frustration and everyone is different but for me there are several. It is often the unpredictability, the inability to have any control over it, and the impact it has on our final outcome, whether that is a meeting, or holiday destination. I am often asked how I manage to handle travelling on over 100 flights a year, my answer is usually, “It is absolutely fine”. The first reason for saying that is I am the eternal optimist and let’s have a reality check first. There are many worse places to work on than these lovely islands and again with the flight time averaging around twelve minutes it is not exactly long haul, is it? Our working lives are often interrupted by unpredictability and this can be seen as a

challenge or a curse and in most cases the outcome and perception stem from our attitude towards the unpredictability.

for whatever reason, then a conference call or Skype work well for me. I have even had some meetings at the airport.

We can only control what we have control of, and fog is NOT one of those things. If it were then I could have made a lot of money out of it. Taking control of events and circumstances surely has to underpin what we do, in life. Fog happens (quite frequently) but with it comes a number of upsides.

For me the time spent at airports is a productive one, because I make it so. I have to. I can’t afford to lose that time or make it up somewhere else so I have to implement my plan B or even C. I can also listen to our radio stations as a listener, which I enjoy.

I absolutely understand that if you don’t get to a holiday destination, wedding, event etc. that falls outside the folder marked ‘work’ then there will be an element of disappointment. For the less exciting things marked ‘work’ then there is still so much we can do. I do actually think that airports are a great place to network. If you excuse the pun, we are all in the same boat! I have also experienced generally speaking a Dunkirk spirit that exists amongst most passengers as we wait for the fog to lift, or the latest information to be delivered. I have often spoken to my bosses on the phone from the airport and I now refer to the fact that the airport is now my ‘other office’. I do also have to tell you that I can often get an awful lot of work done at the airport for a couple of hours, so I personally find the time very productive. Thank goodness for technology, a reasonable Wifi signal, strong coffee, and a quiet seat close to a power supply!

For me dealing with the fog is a state of mind, I can choose to let it ruin and seriously disrupt my day or not. I choose the latter. Unpredictability keeps life interesting. It keeps us on our toes. It provides good thinking time, and it challenges both our resilience and our sense of humour. I like being tested, challenged, disruption and a break to routine. They are good things and there are many positives that can come from such inconveniences. There are few guarantees in life but although I am not a betting man but it is a pretty safe bet that we will see fog again, and again, and again. Let’s make the most of it and embrace it and do the best we can with it and control what we have the ability to control. We really do control its outcome and its impact. We can make the best of it and we do. Sometimes it is hard to see past the fog, but it doesn’t have to be. It is always worth remembering that it is only ever temporary, and the fog always lifts. Always, I can guarantee it.

I will never argue that technology can replace face-to-face meetings, absolutely not, but if those meetings can’t happen,

DIRECT TO THE DALES FLY DIRECT TO LEEDS BRADFORD FROM GUERNSEY

BOOK NOW AT AURIGNY.COM

FROM JUST

£118 RETURN*

FREE 20KG

HOLD LUGGAGE ALLOWANCE

RESERVATIONS +44 (0) 1481 822886 Facebook @AurignyAirServices †

GUERNSEY • ALDERNEY • BRISTOL • DINARD • EAST MIDLANDS • GRENOBLE • LEEDS BRADFORD † LONDON CITY • LONDON GATWICK • LONDON STANSTED • MANCHESTER • NORWICH • SOUTHAMPTON Free luggage allowance up to 20kgs checked-in and 10kg hand luggage. *Price includes taxes, bookable online. Payment card fees may apply. Subject to availability. Terms and Conditions apply. Price only available when booking online. Fare based on travel between Leeds Bradford and Guernsey. † Seasonal route.

With our flexible plans and a 24/7 network operations centre, we deliver a mobile roaming experience that businesses rely on.

Ever growing network of international roaming partners.

We know data is essential to your business. So that’s why we offer mobile data from just 15p/MB in the UK, France and Rep. Ireland or 25p/MB in the rest of Europe. Exclusive to our Sure International business customers.

Roaming prices as low as 15p/MB in the UK, France & Rep. Ireland or 25p/MB in the rest of Europe and free to receive calls in Europe with our business roaming booster.

With over 420 partners in 188 countries, our extensive roaming network means wherever you travel, you’ll be able to keep the data flowing.

international.sure.com

Receive calls in the UK for free.

Discount boosters for your calls and texts. Channel Islands and Isle of Man are on Sure’s local network so no roaming fees apply when you’re travelling there.

Pricing is ex GST and VAT where applicable. Terms Terms and conditions and conditions apply. apply. See wwwinternational.sure.com See international.sure.com for details.

Business opportunities happen everywhere. Roaming mobile business plans.