September/Autumn 2018 by Gallery Magazine

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Iod-iom

brand voice

Secretary, pam watson Interview

KPMG - isle of man WHIreland international wealth Thomas miller investment

brexit no-deal scenario

the workplace

five ways to negotiate a pay rise

Entrepreneur

Dan fenlon, Ellan Vannin electrical

DEAR MEMBERS,

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welcome

to the eighth edition of Agenda.

he Isle of Man experienced the hottest June on record and the driest since 1949. The rest of the summer continued to impress with warm evenings and sunny days. This has had a positive impact on service businesses on Island, and it will certainly attract more visitors to TT next year. Personally, I really enjoyed this summer’s TT atmosphere where records were smashed in every race, and locals together with over 40,000 visitors could enjoy the options of a drink and bite to eat at the Hooded Ram Festival, Bushy’s Village and the Grand Stand

Beer Tent. This summer also saw the launch of four new Isle of Man Government Department for Enterprise Executive Agencies: Visit IOM, Digital IOM, Finance IOM and Business IOM. Each of the four boards have delegated powers from the Minister for Enterprise to enable them to leverage the private sector expertise and knowledge and create a partnership approach to product development, policy input and promotion. Though not directly involved with the formation of the agencies, many IoD Members now sit on the four boards and will help shape and influence business on and off island. Mike Batey from MB Executive was invited to give an interesting breakfast presentation in June on the features and benefits of the new Isle of Man Pension Freedom Scheme. In particular, a comparison with UK pension freedoms highlighted the additional benefits offered Isle of Man residents. Also in June, Peter Waddup, National Director of the Leprosy Mission UK, gave a well-attended IoD breakfast presentation at Appleby on the challenges that are currently facing the third sector. Louise Timmins and Paul Halliday added their views on the growing issues regarding transparency, corporate governance and safeguarding policies. The following month the IoD Isle of Man Branch held a Ladies Lunch at 14 North. Many successful ladies attended and listened to Chiva Samani, a specialist litigation advocate and a Director at Athena Law, speak inspirationally about empowering women in industry and ignoring one’s own inner critic as a step in this process. The topic of women in business isn’t new, but it is always thought-provoking to listen to a professional such as Chiva share her passion in this area, reveal how she started attributing her achievements to ability rather than luck and made the leap to pursue a dream career opportunity. I look forward to welcoming Bill Shimmins speak at our September IoD Dining Club, and I hope many will attend our IoD Prestige Lunch in October where the Lieutenant Governor, His Excellency Sir Richard Gozney, will share his views on business with members and guests. Have a wonderful continued warm and sunny summer, and remember, the IoD is the voice for business so we are here to assist and support our members when faced with new challenges. Lesh yeearreeyn share - with best wishes,

Jennifer Houghton Chairman Institute of Directors - Isle of Man

CONTENTS UPDATE

3 6 10

WELCOME BUSINESS NEWS MANX TELECOM CUSTOMER EXPERIENCE TRANSFORMATION

20 22

ISLE OF MAN CREAMERY - GOES EVEN GREENER

APPOINTMENTS

THE WORKPLACE - SACKING STAFF IS HARD BUT... TISE - SUMMER DRINKS EVENT

BRAND VOICE

24 28

KPMG IOM - BUILDING AN INNOVATION CULTURE

WHIRELAND INTERNATIONAL WEALTH - SUPERMARKET SWEEP

THE WORKPLACE - FIVE WAYS TO NEGOTIATE A PAY RISE

ON THE AGENDA...

BREXIT FEATURE

THE FATAL ATTRACTION OF A NO-DEAL BREXIT

WHAT TO DO IF THERE IS A NO BREXIT DEAL

OPINION

42 43

SURE - INNOVATION & DIGITAL TRANSFORMATION TISE - WHAT ARE REITS AND WHAT ROLE CAN THE IOM PLAY?

IOD – IOM

IOD CPD EVENT

IOD - IOM MEMBER INTERVIEW PAM WATSON

39 EQUIOM - A DOZEN FACTS ABOUT MANX PERSONAL INCOME TAX

50 52 54

THOMAS MILLER INVESTMENT THE ECONOMIC LANDSCAPE

AUTUMN LUNCH EVENT LADIES LUNCH EVENT BUSINESS EVENTS - WHAT’S ON

ENTREPRENEURS

DAN FENLON - ELLAN VANNIN ELECTRICAL

CONTRIBUTORS

Matt Mosur (Photographer) Les Able Gillian Ku (FT) Pitta Clark (FT) Gideon Rachman (FT) Claire Veale, IoD - IoM Suzy Holland

MANX WILDLIFE TRUST INVESTING IN NATURE CONNECTING BUSINESSES

update news

KHT Has Triple Hopes for Citywealth IFC Awards 2019

nox House Trust shortlisted for prestigious Citywealth IFC Awards in three categories. Knox House Trust (KHT) is delighted to announce that it has been shortlisted in three major categories in the Citywealth International Financial Centre (IFC) Awards 2019. The categories are; ‘Trust Company of the Year – Isle of Man’, and for the second year running, ‘Family Office of the Year’. Managing Director, Anthony Page, has also been nominated for ‘Trustee of the Year – Channel Islands, Isle of Man.’ Now in their eighth year, the awards were established to highlight the excellence of advisers and managers in the private wealth sector in the major international financial centres. Winners are recognised for their success in achievement, innovation, expertise and service. Speaking about the nominations, Anthony Page said; “Our people make the difference and this recognition is down to the hard work and dedication of all the team within KHT. They take the time to get to know our clients and understand their individual requirements, ensuring that we place them at the forefront of everything we do and undertake on their behalf. We are a boutique business with ambitious growth plans, so to be

shortlisted alongside some of the leading firms within the industry is a fantastic achievement in itself.” Anthony continues; “On a personal note, I am also proud to have been individually recognised as a professional within the trustee sector. As head of the business it is my job to make sure we

continually provide our clients with the highest levels of customer excellence and commercial integrity. Furthermore, our collaborative approach of working with trusted advisers and intermediaries ensures we work for the greater good of the client at all times.”

2006 when Liverpool University vacated the site and were extensively damaged by fire in December 2016. Enterprise Minister Laurence Skelly MHK said: ‘Port Erin is seeing lots of interest and investment and I’m delighted

that this transaction is moving forward. The Department will continue to support the redevelopment of this prime site as part of its wider drive to creating a supportive and inclusive environment that allows businesses to thrive and flourish.’

Port Erin Marine Laboratory sold for redevelopment

he property has been bought for £500,000 by Delgatie Limited, which plans to replace the existing buildings with a mixed use development including residential, retail, non-retail and commercial. An exhibition space is included in the developer’s proposals, as well as visitor accommodation in the form of self-contained suites. Agreement has also been reached for the company to improve the appearance of land at the front of the property which will remain in the possession of the Isle of Man Government. The sale involves two and three-storey buildings which are linked. The original dates from 1892, with a laboratory added in 1932 and a library, teaching laboratory and dive centre constructed in 1980. The buildings have been unused since

ON THE AGENDA...

ISO Certification Success for Isle of Man Ship Registry

he Isle of Man Ship Registry has been awarded standards in ISO 9001 (Quality Management Systems) and ISO 14001 (Environmental Management Systems) making the Isle of Man one of the only Flag States to have received both international standards. Minister for Enterprise, Laurence Skelly MHK presented the certificates to Director of the Isle of Man Ship Registry, Dick Welsh and the Isle of Man Ship Registry Quality Assurance Manager, Ray Ferguson. The three year certificate renewals were awarded after external audit by Lloyd’s Register Quality Assurance (LRQA), which provides ISO certification accredited by the UK’s National Accreditation Body (UKAS).

Ray Ferguson (Isle of Man Ship Registry Quality Assurance Manager), Laurence Skelly MHK (Minister for Enterprise) and Dick Welsh (Director of the Isle of Man Ship Registry).

Millennium Tynwald Day chair to form part of First World War commemorative installation

The President of Tynwald, Steve Rodan MLC, the Speaker of the House of Keys, Juan Watterson SHK and Royal British Legion Isle of Man county vice-chairman Major Charles Wilson CONNECTING BUSINESSES

chair made for the 1979 Tynwald Day ceremony is to form part of an installation at the In Flanders Fields Museum in Belgium to commemorate the centenary of the Armistice. The chair is one of a number made by Remploy, a company specialising in supporting disabled people into work, to provide seating for guests who attended the ceremony in St John’s in 1979 to mark the millennium of Tynwald. It is crafted from laminated sheets of softwood, with the back decorated with an embossed gold-coloured Viking ship. The installation by UK artist Val Carman will feature more than 120 chairs from countries around the world which had suffered losses in Belgium during the First World War. The Tynwald Day chair will be the sole chair to represent the Isle of Man and will remain in Ypres.

update news

Les Nicol from the Construction Federation, and Brian Butler, Construction Forum Secretary. Front row, Stephen Smyth, Isle of Man Chamber of Commerce Construction Sector Lead; Gary Crittenden, Construction Forum Chair; and Seymour Corkill from the Construction Federation.

Chamber of Commerce Construction Committee merges with Construction Forum

wo of the representative bodies within the Island’s construction industry – the Isle of Man Chamber of Commerce’s Construction Committee and the Construction Forum – are joining forces in a move to strengthen the collective voice of the industry. Following the merger, the new organisation is now known as the Isle of Man Construction Forum (incorporating Chamber of Commerce Construction Committee). In a joint statement, Stephen Smyth (former Chair of Chamber’s Construction Committee and now Chamber’s Construction Sector Lead) and Gary Crittenden, Construction Forum Chair, said: “This merger streamlines representation within the industry and will enable a more joined-up, focused approach and provide Government and other bodies with a single point of contact and engagement with the industry. The decision follows a long-running debate

about the best way for the construction industry to be represented. It’s been clear for some time that some of the good work done by both the Construction Forum and Chamber’s Construction Committee was being duplicated. Indeed many companies and individuals within the industry were represented on both bodies. A catalyst for the change was the formation of the new Department for Enterprise agencies. For the construction industry to continue to have a strong voice within the agency model it became clear that the Forum and Chamber’s Construction Committee needed to combine their strengths, and following discussions within both bodies it was decided that a merger was the best way forward.” Post-merger, the combined Forum is a multi-disciplinary body that discusses a wide range of construction issues, and promotes training and good practice within the local industry. The

Construction Federation, which represents the Island’s contractors and runs the Manx Accredited Construction Contractors Scheme (MACCS), will continue to exist in its own right, but will provide input to the Forum and have representation on the Executive Committee. Also represented at the Forum are various Government departments and political members, plus a wide cross-section of the Island’s private sector construction companies, including architects, consulting engineers, quantity surveyors, developers, property agents, main contractors, subcontractors and materials suppliers. Isle of Man Construction Forum (incorporating Chamber of Commerce Construction Committee) meetings take place at 8am on the last Friday of each month at the Construction Federation offices, Village Walk, Onchan. ON THE AGENDA...

Chamber of Commerce looks ahead to busy autumn schedule

sle of Man Chamber of Commerce has a busy schedule lined up for the autumn, with its main focus continuing to be on its campaign to break down barriers to economic growth. Chamber recently welcomed a delegation of MHKs to explain the campaign which addresses issues such as attracting workers with essential skills, commercial accommodation, the Island’s transport links, and the planning system. Chris Allen, Chamber President, said: “Chamber fully supports the Department for Enterprise’s Executive Agencies, and we are pleased that we have representatives on all four agencies. We believe that these agencies will be a vehicle to discuss issues, assign resources and progress actions – and in this context should help to accelerate progress in breaking down more barriers to economic growth.” Here are the highlights of Chamber

events and initiatives to look out for in the coming months: Sector Forums (on-Island events) Following the success of the monthly forums – sponsored by Manx Telecom – which began at the start of this year, the forums will resume after a summer break. The sector forum series is organised through a partnership between the Isle of Man and Wirral Chambers of Commerce and aims to allow businesses to share ideas and benefit from networking opportunities. The forums focus on a different sector of the Island’s economy each month, building links between business sectors here and in the north west of England. A construction sector forum will be held on September 19th at the Salmon Lake Centre in Laxey; and a digital sector forum will be held at Chamber’s HQ at Barclays Eagle Lab, Queen Victoria House, Victoria

Street, Douglas, on October 30th. A forum focusing on the third sector is also being planned for the autumn – the date and venue will be announced in due course. Sector Forums (off-Island events) Building on the collaboration between the Isle of Man and Wirral Chamber forums here on the Island, both Chambers will now organise forums in Wirral, which Isle of Man Chamber members are welcome to attend. The intention is to build on relationships that have been established and develop further collaboration between Wirral and Isle of Man Chamber members. AGM Chamber’s AGM will be at The Claremont Hotel on September 14th. Chief Minister Howard Quayle MHK is the guest speaker, and his speech will be followed by an update from Chamber President, Chris Allen.

Update on work to meet Code of Conduct Group commitment

he Isle of Man Government is publishing an update on the progress towards the proposed introduction of legislation which will require companies tax resident in the Isle of Man, undertaking specific activities, to demonstrate that they have sufficient substance in the Isle of Man. In November 2017, the Government made a high level commitment to address the EU Code of Conduct Group’s concerns over companies tax resident in the Island having sufficient substance to access the Isle of Man’s corporate tax regime. The Government has worked closely with the other Crown Dependences and put forward proposals to the Group which

will enable it to meet its commitment by 31 December 2018. These proposals will require companies that are tax resident in the Isle of Man and engaged in key activities identified by the EU to demonstrate they meet minimum substance requirements as part of their annual tax return. The key activities that would be required to demonstrate these substance requirements are: n Banking n Insurance n Fund Management n Finance and leasing n Shipping n Collective Investment Vehicles

n Intellectual Property n Holding companies that generate income from any of these key activities. Chief Minister, Howard Quayle said: ‘The Isle of Man is a well regulated, transparent and cooperative jurisdiction. We have worked closely with our colleagues in Jersey and Guernsey to develop proposals to ensure that they meet the needs of our businesses as well as ensure that we fulfil our commitment to the EU. A copy of the update provided to Tynwald Members is available on the Government website.

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update news

Customer experience at the heart of Manx Telecom’s transformation

anx Telecom is being transformed from a traditional telecoms company into a more dynamic, more creative and more effective communications provider. While there are some obvious outward signs of how the company is evolving, there are other more subtle, but equally significant, changes happening behind the scenes – especially in the context of improving customer service. Just over a year into her role as Head of Customer Experience, we speak to Anita Barnard to find out more.

What is your approach to providing excellent customer service? Anita Barnard (AB): “Ideally, customers shouldn’t have to contact a company for service because their expectations are consistently being met. That’s the ultimate goal for any successful customerfocused business, and that’s what we are aiming for at Manx Telecom. With the latest technology, and our excellent pool of very talented and highly skilled staff, my aim is to make it as easy as possible for customers to interact with us, and to do business with us. As Bill Price, former Global VP, Customer Service, at Amazon, famously observed: ‘The best service is no service’. That’s a philosophy that I strongly believe in.” Since Manx Telecom launched its Transformation Programme, what has been done to improve customer experience? AB: “From the start, one of the main aims of the Transformation Programme was to deliver outstanding customer experience by investing in our people, processes and technology. We are constantly carrying out customer surveys to identify areas which we needed to focus on, and by listening to our customers more than ever before we learned a great deal about what we need to improve. “Over the last year we have created our Customer Experience Team (CET) which now has 50 staff, incorporating our Helpdesk, Billing and Sales Support departments. We have invested in new systems and we’re developing that capability into new ways of working, training and developing our customerfacing staff which will ultimately enable them to understand quickly and easily how to help a customer, focusing on getting it right first time. Our investment

in new customer service software is key to enabling easier interactions and proactive communications with customers. “The Transformation Programme has delivered a complete refurbishment of our CET space, creating a modern, open and flexible environment designed to suit the way we work today, and long into the future. “We have recently launched our myMT platform to replace the My Account and eBill platforms. myMT has many additional features that make it much easier for customers to access details of services in real time 24 hours a day, check balances, monitor data allowances, pay bills, make changes to personal information, and update contact preferences. Customers are registering on the new myMT platform quickly and their feedback is excellent. Changing My Account and eBbill was high on our customers’ wish-list; myMT will develop into a key tool for customers. “For business customers, we are expanding our Support Team and Account Executives are available at our shop, improving the service we provide to over 3,500 businesses that rely on us all year round. Of course, all of our consumer and business customers continue to be supported by the Isle of Man’s largest team of telecoms and IT specialists. “Those are the major changes but there are also other improvements we have made in response to customer feedback, such as making calls to our main 624 624 number free to all of our customers calling from a Manx Telecom mobile or fixed line.” How does Manx Telecom benchmark against UK telecoms providers for customer service? AB: “Very well. Our Net Promoter Score – which is a widely recognised method of measuring customer satisfaction – shows that we are ahead of leading UK telecoms providers. When customers interact with our staff, the average score they give us is 9 out of 10. Having said that, we recognise that there are areas where we must improve, and we are never complacent regarding our commitment to providing customers with the best possible experience.” Finally, what else is in the pipeline in the next 12 months? AB: “The myMT platform has the capability to add many more functions, and customers will be seeing new features in the next 12 months, especially selfservice and self-help options – and we are planning to introduce software to improve queuing of customer calls to our contact centre. We will continue to listen to customers, and do everything we can to make it even easier to interact with us.” ON THE AGENDA...

Anita Barnard profile

n Manx Telecom Head of Customer Experience since March 2017 n Joined the company from Virgin Media Ireland where she held two senior customer focused positions n Prior to that held senior roles at IBEX Global and HCL BPO n 18 yearsâ&#x20AC;&#x2122; experience working in customer management across the telecoms, media and financial services sectors CONNECTING BUSINESSES

update news

ISLE OF MAN CREAMERY GOES EVEN GREENER

sle of Man Creamery is going even greener by introducing the first plant based carton in the British Isles with no oil based plastic. From September the 10th, Isle of Man Creamery cartons will be replaced with the innovative plant based cartons, produced using only fully sustainable and renewable sources. The production of these is carbon negative, meaning that they actually remove carbon from the environment during their creation. The board used for the body of the carton comes from FSC Certified forests and the cap and lining is produced from a sugar cane polymer. The sugar cane is grown on previously farmed pastures in Brazil, meaning that there is no encroachment on the rainforests and all plants used are sustainable and renewable. Plant based cartons are only available in metric measurements which means that Isle of Man Creamery will now be offering a 500ml plant based carton for 55p and a 1 litre plant based carton for £1. This makes

a 1 litre carton of Isle of Man Creamery milk the best value Manx grass fed milk on the market. There will be no changes to the size and price of the 2 and 4 pint polybottles. Managing Director, Findlay Macleod said: ‘We are delighted to be the first dairy in the British Isles to be able to offer this plant based carton to the market. We have been working on this project for the past 18 months with our suppliers Tetra Pak and it’s exciting to see it finally coming to fruition. The fact that the production of the carton is carbon negative and removes carbon from the environment during creation, makes these cartons the most environmentally friendly packaging available for our milk. ‘Additionally, it would take 9 lorry loads of plastic or glass bottles to pack the same amount of milk that we can pack with just one lorry load of these plant based cartons, which come flat-packed. That carbon impact applies to the nonManx milk on the Island’s shelves too. So, buying your milk in a carton makes a

We are delighted to be the first dairy in the British Isles to be able to offer this plant based carton to the market

huge difference to your carbon footprint. ‘The look and feel of the cartons has also been changed. The cartons now have a fresh, clean look which really highlights our Grass Fed Accreditation and uses photographs of the Island to reflect the environment in which our herds are kept. ‘With the achievement of our Grass Fed Accreditation last year, the introduction of the plant based cartons, means that we now have the most naturally produced milk in the most environmental containers that a consumer can buy on the Isle of Man.’ ON THE AGENDA...

update Movers & Shakers

Quinn Legal further strengthens its Leadership Team

eading Isle of Man law firm Quinn Legal has recently appointed Kerry Smith as Head of Regulation and Compliance, a further reflection of Quinn Legal’s progressive approach and focus on delivering the highest level of professionalism to their clients. Kerry comes from the financial sector, having spent almost 20 years working within the regulatory compliance arena, having spent time with the Financial Services Authority and two large fiduciary services companies, and has an invaluable wealth of knowledge and experience covering risk management, corporate governance and project management. Such experience has given her an invaluable insight into compliance, regulation and corporate governance, areas that she will continue to focus on at Quinn Legal. James Quinn, Founder and Chief Executive Officer at Quinn Legal commented: “I am delighted that Kerry has joined Quinn Legal; her background and practical experience of dealing with compliance and risk management will be a fantastic asset for the firm. The demands placed on our industry are ever increasing and to have an individual of Kerry’s calibre and experience onboard to deal with the inherent compliance risks is a real triumph.” Kerry Smith went on to say, “I am absolutely delighted to be taking on this role and am enthused and excited by the opportunity to join Quinn Legal at a time when it continues to evolve and develop. I am pleased to be part of a such a great forward thinking and innovative team, and this role gives me the perfect opportunity to build upon what I have learned over the years as well as apply new ideas to help shape Quinn Legal’s future and provide solutions to its client base.”

Sarah Dunnage takes over as Ardan CEO

arah Dunnage, Head of Finance for RL360, has been appointed Interim Chief Executive Officer for Ardan International. She takes over, for an initial period of six months, following the departure of Richard Preston. Sarah has been part of the Ardan management team since it was purchased by International Financial Group Limited – owner of the Ardan, RL360 and RL360° Services brands – in late 2016 and has worked closely with both Ardan operations and management. “I’m really excited about the challenges of leading Ardan International,” said Sarah. “The Ardan wealth management platform provides a great solution for advisers and investors who are looking for a transparent, easy to use and cost effective location to hold and service all their investments in one place.”

CONNECTING BUSINESSES

update Movers & Shakers

HSBC cites further growth with senior retail and wealth management appointment

SBC has strengthened its senior leadership team in the Channel Islands and Isle of Man with the appointment of John Goddard as Head of Retail Banking and Wealth Management. Based in Jersey, John will take on responsibility for the Bank’s retail banking and wealth management business, including its international HSBC expat business which is headquartered in the island. John has a remit to grow the businesses, which provide a broad range of banking, lending, currency and investment services to local and international expatriate customers. With over 21 years of experience with HSBC as a senior executive at country, regional and global levels, John was previously based in London as Global Chief Operating Officer for HSBC Group’s Retail Banking. He moves to Jersey having worked in a number of international markets including Dubai, Hong Kong, mainland China, Poland and Korea and has undertaken a broad range of roles across consumer finance, insurance and sales and distribution. John takes on the role from Dean Blackburn, who successfully led the retail and wealth management teams from 2016. Commenting on his appointment, John Goddard said: “HSBC has seen strong growth in Jersey, Guernsey

and the Isle of Man and in its international HSBC Expat service in recent years. I’m delighted to be able to join such a talented and hard-working team as we continue that positive journey. We are absolutely committed to supporting the banking needs of residents in all three islands and we have some exciting plans to enhance our service for local people. “It’s also a pleasure to have the opportunity to move with my family to such a beautiful and communityspirited location, and I’m really looking forward to playing a central role in cementing the Bank’s links with the local communities in all three islands.” Tracy Garrad, Chief Executive Officer, HSBC Channel Islands and Isle of Man, added: “We are now in a position where the islands make an important contribution towards the overall success of HSBC globally and we see further significant opportunities here. John’s experience and strong connections across the Bank mean he is perfectly placed to lead the business in this next stage of growth.”

Aidan McCowliff

Estera Announces Four Senior Promotions in it’s Isle of Man office

our appointments have been made including three in the Fiduciary team: Aidan McCowliff, Senior Manager; Zoe Lowey, Manager and Jessica Carridge, Assistant Manager, while Sarah Malley has been named Assistant Manager in the Compliance team. This comes at a time of global expansion for the firm with more than 45 promotions and new appointments made across the 11 jurisdictions it operates in. Aidan, a member of the Society of Trust and Estate Practitioners (STEP), has been with the company for more than 10 years and has considerable experience in the corporate services sector, dealing with all aspects involved in the setting-up and ongoing administration of client structures. Zoe, affiliate of the Society of Trust and Estate Practitioners (STEP), has been with the company for more than 4 years and has a range of experience in the fiduciary industry, assisting with the

Jessica Carridge

Zoe Lowey

various stages involved with continual administration of client structures. Jess has been with the company for almost two years with significant experience in the trust and corporate services sector, particularly the ongoing administration of client structures. Jess is currently a student member of STEP and is working towards the TEP qualification. Sarah is a member of the International Compliance Association, she has been with the company more than five years and has considerable compliance experience in both the fund and trust/corporate services sector. Gary O’Connor, Managing Director of Estera’s Isle of Man office, said: “As a global company with offices and clients all over the world, it is core to our business to provide a dynamic and challenging work environment as we nurture Isle of Man talent and help staff to grow, develop and achieve their career goals.”

Sarah Malley

ON THE AGENDA...

Lynn Kelly, Senior Learning and Development Executive; apprentices Jack Leasor, Oliver Morris and Jess Ward; and Grace Eames, Head of Human Resources at Nedbank Private Wealth.

TRIPLE SUCCESS FOR APPRENTICES AT NEDBANK PRIVATE WEALTH

The first three apprentices employed at Nedbank Private Wealth have marked the end of their first year with a triple success

ess Ward and Jack Leasor, who are employed in the IT department at Nedbank Private Wealth, have successfully completed the first year of the Level 4 BTEC HNC in Computing. While banking apprentice Oliver Morris celebrated the completion of his Level 3 Professional Banker Certificate by becoming a permanent member of the bank’s operations team. These are the first three apprentices that Nedbank Private Wealth has supported through the Isle of Man Apprenticeship Scheme. Oliver (20) from Onchan, joined the bank’s operations team in August 2017, and he was

followed by Jess (19) from Colby and Jack (19) from Douglas, who both joined in September 2017 through the Manx Information Communication Technology Association (MICTA). Lynn Kelly, Senior Learning and Development Executive at Nedbank Private Wealth, said: “We are delighted to congratulate Jess, Jack and Oliver on their success. This has been a great start to the apprenticeship scheme for us and we are currently looking to recruit three more apprentices over the next 12 months. We understand how important it is to develop and retain professional skills in the Manx economy, and this

scheme offers a great opportunity for young people to continue their education and gain qualifications without leaving the Island. Our three trainees have become valued members of the Nedbank Private Wealth team, while developing new skills and building experience which will be beneficial throughout their careers. We are delighted to continue with the scheme and are currently looking for three new apprentices to join our banking and marketing departments.” www.gov.im/categories/education-training-andcareers/apprenticeships www.micta.im/apprenticeships.

BE DIFFERENT. BE BRILLIANT. BE BOLD

lex Wilson assumes the position of Marketing Project Manager, joining Directors Helen Ward and Richard Corlett at Bold Marketing Consultancy in Tromode. With extensive experience of project and event management, channel optimisation, digitisation of business processes, customer engagement and creative marketing, design and digital communications, Alex’s focus at Bold Consultancy will be on business development, marketing advisory services and customer discovery – a creative agency approach unique to Bold on island. Helen Ward, Company Director, commented: “With 9 years professional marketing experience in the public, private and third sector, and the highest accreditation from the industry leading professional body, Alex is a sound acquisition who’ll help build the Bold brand and presence both on island and in target locations off island. Alex’s customer orientated approach fits with Bold’s ethos as we focus on delivering customer results through tried and tested methods deep rooted in market intelligence research and customer needs”. Alex is best known for leading the Department for Enterprise’s events programme and the successful introduction of the Island’s largest entrepreneurial festival ‘ISLEXPO’ over the last three years. CONNECTING BUSINESSES

update Movers & Shakers

WHIreland International Wealth Celebrates Employee’s Exam Success Lee Branston gains level 6 PCIAM qualification

HIreland International Wealth are delighted to announce that Lee Branston has obtained his level 6 PCIAM qualification, the qualification of choice for discretionary portfolio managers. Lee joined the WHIreland International Wealth Investment team in September 2016 as an Assistant Portfolio Manager. It was a pivotal time in WHIreland’s development as the business looked to increase their offerings. David Bushe, Head of Investments, International, said: “Over the last year Lee has put considerable effort into his studies around his day job and sat the paper on the island in June 2018. As a business, WHIreland is

very keen that all our clients receive the highest levels of service and investment expertise, and Lee’s success is a demonstration of our commitment to developing highly qualified investment personnel on the island.” David said: “All our islandbased investment managers are qualified to level 6 or above. In order for the discretionary investment management sector to grow on the island we need to give more candidates the opportunity to follow in Lee’s footsteps whilst ensuring the continued success and contribution from the sector to the island’s economy.”

KPMG in the Isle of Man welcomes the return of former advisor in new role

PMG in the Isle of Man are delighted to announce the appointment of David Watterson, who has joined their Advisory team as a Senior Manager, specialising in Forensic and Data & Analytics Services. David has been a member of the KPMG family for almost 20 years, having begun his career at KPMG in the Isle of Man in 1999 in the Restructuring and Forensic team. He has also held Forensic roles with KPMG in the UK and KPMG in Central and Eastern Europe. He is a Certified Fraud Examiner and holds a Bachelor’s degree in Psychology, a Graduate Diploma in Law, a Master’s degree in Counter Fraud and Counter Corruption Studies and an MBA. In his new role, David will have responsibility for delivering Forensic services, including Fraud Risk Management, Anti-Bribery and Corruption Services, Investigations and Forensic Technology Services. Drawing on extensive Forensic Technology experience, David will also develop the firm’s Data & Analytics offerings, assisting clients in using data to understand risks and recognise opportunities. David’s most recent experience within the KPMG network has seen him work across a diverse group

of 18 countries within Central and Eastern Europe. In contrast, his new role will be focussed primarily on the Isle of Man, allowing him to tailor KPMG’s services to the specific needs of organisations on the Island. On the challenges of his new role, David says: “My main ambition would be to encourage more organisations to seek support in managing the fraud, corruption and misconduct risks they face before a serious incident arises. As an investigator, it can be very satisfying to support a client in understanding and managing the impact of an incident, but prevention is usually better than cure. Welcoming David to the role, Managing Director of KPMG in the Isle of Man Russell Kelly said: “It’s vital that the Isle of Man protects its reputation as a leading international business centre. While money laundering risks have been on the radar for some time, and rightly so, we shouldn’t forget that organisations also face a range of other financial crime risks. “David’s depth and breadth of experience across a range of Forensic services will further strengthen our offering, and I am sure our clients will welcome David’s return to our Advisory team.” ON THE AGENDA...

Annexio appoints Sebastien Jeanneau as Director of Operations

ebastien Jeanneau has been appointed to the Board of Annexio, taking up the role of Director of Operations as the lottery services company continues to expand its reach in new markets. Previously Head of Operations, Sebastien joined Annexio in 2013 to lead its IT team after more than a decade working in the financial services sector. As Director, he will continue to manage the development of the business’s payment processing, call centre and betting operations while contributing to the strategic direction and corporate governance requirements of the company. Commenting on his promotion, Sebastien paid tribute to the support and hard work of the operations team. “I am delighted to accept the role of Director of Operations with Annexio and feel this opportunity is due in no small part to the excellent performance of the operations team over the past few years. “It is a very exciting time for everyone at the business and I look forward to our continued success and growth driven by our energetic team.” Born and raised in the south of France, Sebastien moved to the Isle of Man in 2002. He lives in Douglas with his wife Niamh and son Cormac. Annexio Group CEO Tom Brodie said Sebastien’s promotion was well deserved. “Sebastien’s in-depth technical knowledge and his management skills will be valuable assets in his new role. I am sure he will be a great help in driving us forward to achieve our ambitious expansion plans which include obtaining more licences to operate in other jurisdictions around the world.”

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update feature - the workplace

Five ways to negotiate a pay rise W By: Gillian Ku (FT) Associate professor of organisational behaviour at London Business School

If you don’t ask, you don’t get

ork and business are inextricably tied to money. We work for pay and daily working life involves monetary transactions: we recommend others for pay rises, we set rates for our time and we negotiate budgets.

Yet many of us feel uncomfortable talking about and asking for money at work. There are many reasons for this but perhaps the most important one is that employees often lack information: we do not know how much we are worth, how much others are paid, how much employers are willing to pay us. With such a disadvantage, the process of talking about money becomes daunting — at the very least we become unsure of how to start the conversation and what to ask for. The relationship you have with your employer can exacerbate this information haze. If you have a good relationship with your boss, you may feel that talking about money could damage it, which could then affect both your daily experience and long-term career prospects. Equally, if you do not have a great relationship with your manager, queries about money could jeopardise your position. Research shows that women may be concerned that asking for money will be seen as pushy. Many people have the sense that (nice) women do not ask for money and, if they do, maybe they are not so nice after all. As such, women may fear a backlash and are often reluctant to ask. For example, some research looked at MBA graduates and found that women were less likely to negotiate their starting salaries. The women then had significantly lower starting salaries than their male counterparts. Putting all of this together, it is unsurprising that talking about and asking for money is something many people dread. There is, however, a lot of research that can help us do it more effectively and confidently. Here is the best advice:

2018 18

ON THE AGENDA...

1. Get as much information as you can Arm yourself with information. In salary negotiations, think about what you are worth. This means knowing what those in your position (internally and externally) are paid — online salary surveys can be very helpful, but talk to friends, mentors and contacts who would be comfortable sharing this information. It means thinking about the value you bring in terms of your experience and proven performance. You also need information about your employer — have others tried to negotiate better salaries and what has the reaction been? Is the company (or unit or team) experiencing growth or decline that could affect its ability to give you what you want? What is company policy on pay? You may never have perfect information. But the more you can get, the clearer, stronger and more rational your arguments will be, allowing you to present your case with confidence.

5. Think about who to ask and how to ask A final thought is to consider who to ask. Speak to the person who cares most about helping you and the person who can push for things to happen. With luck, this is the same person. If not, you may have to think about asking the individual who cares about you to help you approach the decision maker. Remember to ask politely and to find a time that is convenient for the other side. As an extreme example, rudely laying down an ultimatum just before your boss has a board meeting is best avoided.

When it comes to talking about and asking for money, we all get nervous and uncomfortable. But you are not alone and can learn from a fantastic wealth of research. If you don’t ask, you don’t get — a trite but true saying, so prepare thoroughly and ask politely.

2. Consider getting another offer Even more powerful than information is having another job offer. Although it can be draining to secure interviews and a job offer, having an alternative opportunity is incredibly useful. First, it shows you what the market looks like — are there more attractive options elsewhere or perhaps your current job is actually very desirable? More importantly, an outside offer provides a very concrete and undeniable benchmark of your worth. 3. Think about all the issues Most of us care about far more than money. So although money may be “king”, reflect on the other issues that are important to you and which you might want to ask about. This could include salary, bonus and incentives (still monetary but performance based), training opportunities and the team you work with. Our happiness is not solely defined by money — maybe you will be satisfied and productive working for the same pay but with other benefits and perks. 4. Prepare thoroughly and make the first offer Once you have gathered information, considered alternatives and thought about all the issues you want to discuss, consider the minimum you would be willing to accept, as well as your ideal package. Be confident in your preparation and ask for what you want. Although there is often debate about who should make the first offer, research clearly shows that making the first bid allows you to “anchor” discussions in your favour.

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2019 19

update feature - the workplace

Sacking staff is hard but let’s be adult about it

doubt I will ever forget the first time I fired someone. The casualty was a young worker, unfairly thrust into too big a job at an outfit too small to offer suitable work. There were tears. There was shock. I still hate to think of how badly I handled it. The one thing there was not, though, was a secret recording of the sacking, like the one that Omarosa Manigault Newman says she made when she was fired from the White House in December. Ms Manigault Newman, a contestant on The Apprentice-turned-White House aide, caused a stir recently when she plugged a tell-all book with what she said was a recording of her booting by chief of

By: Pilita Clark (FT)

staff, John Kelly. President Donald Trump’s response — he called her a low-life “dog” — suggests the recording was genuine, which makes it very unusual. People are fired all the time around the world and a lot of them have a smartphone. Yet we rarely see or hear a sacking. The closest a lot of us get is a Hollywood film like Up in the Air, where George Clooney plays a man who fires people for a living. Or reality television shows like The Apprentice, still going in some countries 14 years after Mr Trump hosted its first season in the US. Part of the show’s appeal is surely the glimpses it offers of the horror of the sack, a disaster that can take longer to recover from than

either divorce or the death of a spouse. I would not know because thankfully I have never been fired. I came close as a university student, when I took a telephone marketing job, selling ads for a business directory that I was never sure actually existed. I failed to make a single sale and would have certainly been shown the door if I had not taken the precaution of sacking myself first. Smartphones had not been invented then but even if they had, I cannot imagine I would have had the gumption to covertly record a sacking. I am still astonished when I hear of people who do, though I can see why it happens.

ON THE AGENDA...

Not that long ago, a man I know was thoroughly stitched up by bosses who made him a scapegoat for a superior’s mistake. They hauled him in for a disciplinary hearing where he was so sure he would be unfairly treated that he took in a hidden tape recorder. Unhappily, the device was discovered and he was fired on the spot for deception. The reaction was understandable but I still think he was mistreated. So would it make any difference if more sackings were made public? Probably not. An enormous amount is written on the right way to fire someone: always do it in person and never without a warning. Don’t blather on with small talk. Be direct but also compassionate. Never say anything like “I know how you feel”, because you almost certainly don’t. But ultimately there can never be a truly good way to fire someone. It is a horrible thing to endure and only a psychopath could enjoy doing it. The dread of dismissal is so profound that workers will openly round on a boss for firing a troublesome colleague — even if the casualty is so repellent that the

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There are many ways to fire people but it always helps to be upfront and honest

entire office has been dreaming of their disappearance for months. For this reason, I have a lot of time for the bracing approach taken by Netflix. The online entertainment company calmly states on its website that its idea of a great workplace has nothing to do with “sushi lunches” and fancy offices. It sees itself as “a team, not a family”, where people are paid well but shown the door if they fail what it calls the “keeper test”: managers have to think about whether they would try hard to keep someone from leaving for another firm. If the answer is “no”, a merely adequate performer is supposed to be promptly offered a generous severance package so a star replacement can be found. I am not sure I would want to work there myself and obviously not every company is big enough to afford such a policy. But it does have two big advantages. It treats its staff like grown-ups and it is honest about an unavoidable truth: companies do not exist to make life joyous for their employees.

update events - (TISE) Summer Drinks reception

he International Stock Exchange (TISE) held a summer drinks reception on Tuesday 19th June in Coast Restaurant at The Claremont Hotel.Â The event celebrated a year since TISE opened an office at North Quay and in which time, it has built up a network of relationships including new member firms and new listed entities from the Isle of Man. Speeches were given by Jon Moulton (Chairman), Carolyn Gelling (Head of Isle of Man office) and Alf Cannan MHK.â&#x20AC;&#x153;

ON THE AGENDA...

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brand voice - KPMG isle of man

By: Simon Nicholas Director, KPMG Isle of Man

Y Building an innovation

culture 24

ou cannot pick up (or download or stream) any business news, whether on the island or the broadsheets in the UK, without reading about success stories of entrepreneurs and yet the disruption of another traditional sector. The Sunday Times (others are available!) even has standing small business and entrepreneurship sections. It has long been said that small and medium sized businesses (SMEs) are the blood and catalyst of any growing economy. It is for this reason that the island launched the Enterprise Development Scheme to invest in high-growth young companies and why KPMG and likeminded, well established local groups on the island formed Bridge. eGaming businesses disrupted the land-based casino and bookmaker businesses; challenger banks and payment wallet providers disrupted the UK banking ON THE AGENDA...

sector; Expedia changed the travel agent business model – the list goes on. What do all of these have in common – innovation….by and large, disruptive highgrowth companies have to be innovative in order to succeed, however there is nothing to say that only companies operating out of a garage or an incubator can have an innovative culture. The most successful large businesses have a form of innovation culture but if you don’t feel you have one where do you start? Building an innovation culture Ways to connect with employees, inspire cultural change and embrace innovation. Change is imperative. Yet many organisations’ large-scale transformation initiatives meet with setbacks, delays and even failure. Those that succeed are soon confronted with a painful truth: they are CONNECTING BUSINESSES

not leapfrogging. At best, transformation can put these organisations on par with their newer, more nimble competitors. As the pace of change continues to accelerate, organisations across the financial services industry are seeking a way forward. Financial institutions must create the agility and digital capacity to compete with the start-ups and hyperscales encroaching on the financial sector to achieve long-term success – but how? Creating the foundation for innovation There are three steps to achieving success in the innovation space: n Build an innovation culture. n Build innovative solutions in collaboration with the business. n Acquire, partner or invest in new technologies. Cont’d...

brand voice - KPMG isle of man

All three of these steps are necessary but they must be worked through in order to achieve success. Culture, therefore, is the foundation upon which all successful innovation must be built, and it is in the development of an innovation culture where many financial institutions go awry. Creating an innovation culture is not a project or a task. Innovation culture is a by-product of broader business decisions. For this reason, leadership has the most critical role in sparking cultural change and encouraging that change to flourish over the long-term. Looking at trends we estimate 70 percent of the impact on culture comes from leadership decisions, guidance and modelled behaviours, while the remaining 30 percent is driven by elements such as training and engagement programs. Leaders looking to inspire cultural change need to consider the foundational elements of innovation culture as relevant to the organisation and its position. This includes monitoring what is happening across the industry and in other sectors, as

well as recognising signals of change both within the organisation and in the broader market. What is the business now, and what must the business be in the future in order to remain relevant? Only when an organisation can answer this question will it become clear how the organisation must think and behave in order to achieve its goals, and thus the cultural changes required in order to move forward. Capacity to think, freedom to fail When people think of cultural change, most think of large-scale behavioural patterns. However, it is not organisations that change, it is individuals. Any cultural change visible on a team, be this departmental or at an organisational level, is made up of many ON THE AGENDA...

smaller, individual changes: employees inspired to think, act and engage differently. While at a high level we must think about the broader patterns of transformation; creating cultural change is about finding ways to connect with individual employees’ hearts and minds. To achieve this goal, leaders need to do three things: n Communicate goals and expectations. At a base level, change is threatening, and employees are especially threatened by digital or technological changes that may make their roles redundant. To address these fears, leadership must explain the broader purpose for the changes and clearly communicate expectations for employees moving forward. Make it clear that change is an opportunity, not just a disruption. Innovation enables opportunities to grow, reduces pain points and enables employees to focus on the important things in their roles. n Build capacity. Today it is hard to find employees at any level who are not stressed or feel that they are working near to capacity. This culture of ‘busyness’ is present in most industries but is especially pervasive within the financial sector. Innovative thinking, however, requires mental space. Leadership needs to free up capacity for employees to be creative. This can take many forms, from free ‘innovation time’ built into the workweek to special cross-functional teams that come together to work on innovation projects. n Embrace failure. Successful innovation requires failure along the way, yet many employees are terrified of failure and its consequences. To build an innovation culture it is imperative to take this fear away. One way to do that is to be clear that the push to try new and different ideas is coming directly from the CEO. Another method is to create KPIs around pushing for innovation, rewarding processes and innovative thinking over specific results or achievements. Creating space for innovation Innovative spaces matter. Experience shows a strong correlation between the physical workplace and a culture of innovation. This does not mean interior decoration drives innovation; rather, in contrast to the traditional cubicle setup, spaces designed to encourage collaboration and creativity have a positive effect on employee mindset and motivation. Organisations are also finding that an innovative workspace that includes access to the right technologies improves candidate attraction and hiring, which can be imperative as financial institutions increasingly look to compete with the likes CONNECTING BUSINESSES

of Google and Amazon for top talent. One approach that many financial institutions are taking is the creation of separate innovation labs where new thinking can flourish. Innovation labs offer many advantages, including a break from the culture and routines of the core business. However, in order to be effective, these innovation labs cannot be entirely separate entities that work in isolation and then pipe ideas back into the business. Labs that take this approach are likely to fail, as their solutions often make little contribution to the organisation’s strategic direction, do not address real pain points, or result in solutions that cannot be brought to scale. Instead, the innovation lab and the business must work together in concert. Ideas and issues should come from, and be owned by, the business while the innovation lab first creates the space to draw out those pain points and then drives the creation of new models or solutions in response. Thus, the role of the innovation lab is to facilitate innovation and help the business be successful. Build credibility but expect resistance Change does not occur overnight. Throughout the process of cultural change it is important to build credibility throughout the organisation. Company leadership, from the CEO down, must be role models that visibly ‘walk the talk’ and follow through on what they have communicated. While incremental innovation may be less impactful long-term, addressing the low-hanging fruit and implementing small changes that employees will notice in their day-to-day operations are critical steps for building credibility. Only when change is felt and employees have begun to think and behave differently with regard to innovation can you embrace the larger changes: business model innovation, new markets or customer segments, new consumer propositions, and more. The path to cultural change is a bumpy one and organisations need to expect resistance along the way. Change – as well as its personal and career implications – is frightening, and it is normal for employees to feel threatened. Yet this resistance can be overcome. As you demonstrate the organisation’s commitment to change and show how innovation is beneficial for both the business and the employees themselves, mindsets will shift. With time, an innovative culture becomes selfsustaining: not only will employees want to be part of the change, but the business as a whole becomes a magnet for talent.

What is the business now, and what must the business be in the future in order to remain relevant? Only when an organisation can answer this question will it become clear how the organisation must think and behave in order to achieve its goals, and thus the cultural changes required in order to move forward.

brand voice - WHireland international wealth

Supermarket sweep Food retailers consolidate

UK food retailers may have had several difficult years of trading, but the industry’s intention is now clear and a consolidation of the sector is underway. We review the recent deals and some of the major themes in the food retail sector and highlight the opportunities and risks it faces. 28

ollowing Tesco’s deal to buy wholesaler Booker last year it sparked several acquisitions and alliances in the food retail sector. Most recent was Tesco’s strategic partnership with French operator, Carrefour. The deal will be focused around its relationship with their global supplier network. They plan to join together in the purchase of global branded and own label products to purchase larger volumes in order to receive a discount for bulk purchases. This is also part of a wider initiative to consolidate the supplier base by up to 20% rather than focus on product rationalisation. Bargaining power may be good for keeping up with the competition, but the industry is facing wider challenges from changes in consumer shopping habits. There is a growing proportion of shoppers that have abandoned the weekly ‘big’ shop and now favour shopping ‘little and often’. Indeed, this focus on convenience has actually stood Marks & Spencer Food in good stead, although the price premium is now looking stretched. To this end in recent financial results, Chief Executive Steve Rowe announced plans to open a concept specifically aimed at families. Tesco’s Chief Executive, Dave Lewis, hopes a combination of leaner business and strategic partnerships will improve margins and provide some defence from the challenge of discount retailers such as Aldi, Lidl and most recently B&M. Kantar, who provide a survey of market shares in the food retail sector, shows Tesco as the market leader in the sector with 27.7%, whereas three years ago that figure was 28.3%. In contrast, Aldi has grown its market share from 6.1% to 7.4% over the sameperiod. The stock market has taken a brighter view of Tesco in recent months, with shares up almost 50% on recovery hopes. There are some signs that the discounters relentless march on the UK is slowing. In the last twelve months prices were increased by the discounters in line with the rest of the sector. Any slackening in the level of price competition is welcome news. The incumbent operators, most notably Sainsbury’s, have been

ON THE AGENDA...

investing heavily in price investments. Volume improvements following this can ultimately take up to three months. Tesco is not alone in its strategy to grow larger to combat competition. Sainsbury’s has been equally active in growing through acquisitions and making alliances. It first acquired Home Retail in 2016, who owned general retailer, Argos. The deal was done to gain greater exposure to the Click & Collect market in response to changing consumer shopping habits. The Argos deal is now looking excellent as the online proposition is driving volume, and the fine tuning of the estate is bringing some excellent self-help benefits. The shares have also been in favour, rising some 40% in the last year. Now it plans to merge with Asda in a deal that will share ownership between Sainsbury’s and US Retail giant, Walmart, who will own 42% of the combined entity and receive £2.975bn in cash. There are similar benefits from scale in purchasing power and lower cost of distribution, but the brands will remain separate. The deal also suggested that there would be some investment in technology, which would be a clear sign the deal is much more than just scale. The ability to adapt to changes in consumer demand for convenience and online shopping is also of key importance. Interestingly, a deal between Sainsbury’s and Asda, on current standings of the Kantar survey, would have over 30% market share, which could see Tesco relinquish its market leading position if the deal is granted a ‘Competition and Markets’ approval with no stipulations to divest some of its store estate. There is a strong belief that such a large deal will be anticompetitive and should be blocked. Concerns also surround the impact on smaller suppliers; it is estimated that Asda has 1,700 suppliers that transact less than £250,000 with the company per annum. If it passes regulatory scrutiny the deals likely to complete in the second half of 2019. WM Morrison has lagged somewhat behind the other major operators with a share price up only 9% in the last year. This could start to change as the company has addressed a much needed question mark over both its online strategy and the growth in its wholesale offering. Last year it agreed an exclusive deal to supply 1,000 McColl’s convenience stores. There is often speculation that the agreement with Amazon to supply products to Prime and Pantry customers could lead to a wider integration, but there have also been rumours regarding the Co-Operative as well. Management has done an excellent job

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in terms of reducing the debt levels and remains focused on reducing costs. Earlier this year 1,500 management roles were made redundant; for example the position of warehouse manager has been removed at every store. As a sector, nearly 25,000 jobs have now been cut in the last three years in response to fierce competition. Following consolidation, investment discussion is moved to the wider supply chain and the impact on the large consumer goods brands is unclear; the Marmite dispute between Tesco and Unilever only serves to cloud the issue of who holds the bargaining power. General market trends have led to greater choice, price competition and convenience, many of which call into question the future of smaller food retailers. Formats such as Amazon Go have made checkouts and cashiers obsolete, and automation and robotics are having a profound impact throughout the different aspects of a business. Ocado Solutions has finally gained traction in selling its smart platform solution overseas and has signed deals with Groupe Casino in France, ICA in Sweden and – more crucially – Kroger in the US. The Co-operative has recently completed a deal for the convenience shop chain NISA and has also had a bid rejected for convenience store estate, Costcutter, and B&M Retail has bought Heron Foods, a frozen food specialist. Both are valid strategies to find a niche in a difficult market, but both are susceptible to higher food costs. Much clearer is that these deals are favourable for the UK consumer, both in terms of service and price. The operators also need to be aware of long term changes in the habits of consumers, with more and more people buying ready meals rather than individual ingredients. Although, with individual items, the emphasis has switched to more local products and so retailers will now stock seasonal/temporary lines to tailor their offering. With the advent of online ordering there also seems to be an increase in bulk buying and crucially this can be heavily influenced by price initiatives. Competition is likely to remain high in what is a crowded marketplace. Although many constituents have seen some operational improvement from shrinking central costs, it has been very challenging to grow sales organically. With disruptors like Amazon and Ocado providing greater competition with technology platforms and home delivery, huddling together seems more like survival rather than a means to thrive.

The operators also need to be aware of long term changes in the habits of consumers, with more and more people buying ready meals rather than individual ingredients.

By: Chris Bell Senior Investment Manager WHIreland International Wealth

brand voice - Thomas Miller investment

A Whistlestop Tour

of the Economic Landscape A review of the backdrop

By: Abi Oladimeji Chief Investment Officer Thomas Miller Investment

uring 2017 investors enjoyed several positive surprises. Economic growth was stronger than consensus forecast at the start of the year, inflation was notably lower than expected in most major economies (with notable exceptions like the UK) and corporate profitability recovered from the weakness seen the previous year. All these meant that investors’ expectation at the start of 2018 was that growth would accelerate further over the course of this year. The reality, however, has fallen short of those expectations. Rather than a pick-up in growth rates in 2018, the momentum of economic growth has slowed across the major developed economies. The notable exception is the US which is being supported by a temporary fiscal boost from tax cuts and increased government spending. In addition to a broad based slowdown from the growth rate achieved in the second half of 2017, the global economy’s performance since the turn of the year has been uneven. Indeed, economic releases in recent months have demonstrated the extent of the ongoing divergence in growth momentum across major economies. For instance, data for the second quarter showed that the Euro-zone’s economy expanded by 0.3% over the previous quarter, the weakest pace in two years. In contrast, the US reported a growth rate of 4.1% for the second quarter of 2018, the fastest pace of growth since the third quarter of 2014.

ON THE AGENDA...

GDP growth across selected economies 6

Four-quarter percentage changes

4 2 0 -2 -4 -6 -8 -10 00

Euro area

06 Japan

10 UK

Source: Thomson Reuters Datastream / Fathom Consulting

Contâ&#x20AC;&#x2122;d... CONNECTING BUSINESSES

brand voice - Thomas Miller investment An assessment of the outlook At this point, the evidence from a range of important leading economic indicators suggests a modest outlook for global economic growth over the next few quarters. In the US where growth has been most resilient, the Q2 2018 growth rate is unsustainable and growth should moderate in the months ahead. In the other major developed economies (including the UK), the outlook is less constructive, with signs of easing growth momentum. Beyond shorter term dynamics, the medium term global economic outlook has become clouded by the risk of a trade war between the US and its major trading partners. At this point, it remains unclear how the trade disputes will pan out but the risk to the global economy and financial markets from an outright trade war could be significant. This introduces a negative skew to the range of possible outcomes for the global economy in the months and years ahead.Â Implications for investors In recent months equity markets have been caught between two powerful forces. On the positive side, investor sentiment has been buoyed by strong corporate earnings, particularly in the US, where companies have benefited from recent cuts in corporate tax rates. On the negative side, markets have had to contend with the combination of a rise in political risk and ongoing uncertainty about the potential fallout from US trade policy. Looking to the rest of the year and beyond, the risks are quite finely balanced. Despite providing short term support, the strength in recent earnings growth is not sustainable and the likely decline in earnings growth rates should begin to weigh on expectations for 2019. This could prevent equity markets from making much headway over the next few months. Strong growth, low unemployment rate and rising inflation mean that the US Federal Reserve is likely to maintain its course of interest rate hikes. Further increases in US interest rates will drive further flattening in the yield curve. The tone of monetary policy has also changed outside the US, with the Bank of England recently raising interest rates while the European Central Bank has announced plans to end quantitative easing. This combination is negative for bonds in general. However, safe haven demand, driven by concerns about the economic impact of a potential trade war and fears about spill over effects from the ongoing crisis in Turkey should provide some support. We remain cautious on corporate bonds across the credit spectrum on the basis that credit spreads remain tight. Over the years, we have fine-tuned our approach to alternative investments and enhanced the performance of our clientsâ&#x20AC;&#x2122; portfolios as a result. In recent months

we have benefited from the performance of the listed PPP/PFI Infrastructure sector which has been boosted by a series of secondary market transactions and a takeover approach for John Laing Infrastructure Fund. We believe that fundamentals also remain strong for a number of other sectors, such as digital infrastructure, that exhibit low correlation with traditional assets. Finally, in the currency markets the key trend looks set to remain that of US Dollar strength against other major currencies as the USD continues to enjoy yield support. Focusing on sterling, the recent slide in the GBP/USD rate has been driven by ongoing Brexit-related uncertainties as investors assess the risk of a no-deal exit from the EU. In the short term, the weight of bearish investor positioning could push GBP much lower than what could be justified on fundamental grounds. Nevertheless, an actual no-deal outcome would most likely result in a far more protracted sterling selloff, likely pushing sterling below $1.20. On the other hand, sterlingâ&#x20AC;&#x2122;s sensitivity to Brexit news flow is such that any news of a UK/ EU agreement could trigger a sharp relief rally which would be further fuelled by short covering as bearish positions are unwound. It looks set to be a long summer for sterling! The value of investments can go down as well as up. Any past performance or yields quoted should not be considered reliable indicators of future returns. Opinions, interpretations and conclusions expressed in this document represent our judgement as of this date and are subject to change. Furthermore, the content is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or a solicitation to buy or sell any securities or to adopt any investment strategy. Thomas Miller Investment is the trading name of the businesses in the Thomas Miller Investment Group. Thomas Miller Wealth Management Limited is authorised and regulated by the Financial Conduct Authority (Financial Services Register Number 594155). It is a company registered in England, number 08284862. Thomas Miller Investment Ltd is authorised and regulated by the Financial Conduct Authority (Financial Services Register number 189829). It is a company registered in England, number 2187502. The registered office for both companies is 90 Fenchurch Street, London EC3M 4ST. Thomas Miller Investment (Isle of Man) Limited is licensed by the Isle of Man Financial Services Authority. It is a company registered in the Isle of Man, number 48181C. The registered office is Level 2, Samuel Harris House 5-11 St Georges Street, Douglas, Isle of Man, IM1 1AJ. Thomas Miller Investment is a registered business name of Thomas Miller Investment (Isle of Man) Limited. Telephone calls may be recorded.

In recent months equity markets have been caught between two powerful forces.

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BREXIT FEATURE

NO-DEAL SCENARIO

The fatal attraction of a no-deal Brexit What to do if there is no Brexit deal

brexit feature - no-deal scenario

The fatal attraction of a no-deal Brexit

By: Gideon Rachman (FT)

hortages of medicine; the garden of England turned into a lorry park; a surge in red-tape; new tariffs on cars and food; factories halted for lack of parts. Those are the grim scenarios conjured up by planning for a “ no-deal Brexit”. Who in the world would volunteer for that kind of chaos? Quite a few people, as it happens. There are hardline Brexiters who regard the British government’s current proposals for Brexit as a betrayal — and so would prefer no deal. There are ardent Remainers who hope that the spectre of no deal could provoke a political crisis that stops Brexit altogether. And there is the European Commission, which sees no deal as preferable to compromising on the basic principles of the single market.

Together, these three groups could lead the UK and the EU into no-deal territory. But they are all deluded in their own way. In their refusal to compromise they risk jointly unleashing a dangerous crisis, whose endgame they can neither predict nor control. The motivations of the hardline Brexiters are, in some ways, easiest to understand. They believe that the proposal of Theresa May’s government would be the worst of all worlds: leaving Britain with the obligations of EU membership, without the supposed benefits of Brexit. But their argument that Britain should hold out for something better depends on dismissing all the warnings about no-deal as scare stories or “Project Fear”. So what are the hardliners really

thinking? Perhaps they believe their own propaganda and simply do not accept or comprehend the legal and regulatory consequences that flow from no deal. Maybe their reverence for Britain’s “finest hour” in 1940 has created a certain nostalgia for rationing and the “blitz spirit”? But the Brexiters are surely mistaken if they believe that the chaos unleashed by crashing out of the EU would create national unity. It is more likely that Leavers and Remainers would round on each other with renewed fury, and that the political careers of many prominent Brexiters would come to an end. It is this last prospect that leads one school of Remainers quietly to embrace the idea of no deal. They argue that the ON THE AGENDA...

A bitter rift between Brussels and London would be geopolitical madness

only way of finally discrediting Brexit and politicians like Boris Johnson and Jacob Rees-Mogg is to let them have their way, and to force them to take responsibility for the results. But that argument is uncomfortably close to a Marxist embrace of the immiseration of the people as a necessary condition for political progress. It also rests on the questionable assumption that an economic and social crisis would strengthen the centre ground in politics. In the real world, it is more likely to empower the political extremes. There is also a milder version of the Remain case for no deal that, I admit, I have been attracted to. This rests on the hope that the May government is simply CONNECTING BUSINESSES

unable to negotiate a deal, or cannot get a hard-won agreement through the House of Commons. Under those circumstances, the Remainers hope that parliament would call a halt to proceedings and ask the EU for extra time to negotiate. The passage of time would make it possible to call a second referendum and Brexit might actually be stopped altogether. But, alluring as that option sounds to Remainers, it is actually a very hazardous long-odds bet. There is no guarantee that the EU would be willing or able to stop the Brexit clock. And there is no guarantee that a second referendum would be won. For Remainers, the more pragmatic, if depressing, option is to accept that Brexit will go ahead and to push the UK government to embrace the least-

damaging version. After Brexit, economic and political logic is likely to lead Britain and the EU gradually to rebuild ties. The EU is evolving and Britain might eventually rejoin a second tier of the club focused mainly on trade and the single market. But where do the EU’s interests lie? While there might be a certain schadenfreudein Brussels at the sight of the British hoarding food and stuck in massive traffic jams, chaos in the UK is not ultimately in the interests of the rest of Europe. For while the hardest economic blows would fall on Britain, there would also be serious consequences inside the EU, particularly in economically vulnerable areas like northern France. A bitter rift between the EU and the UK would also be geopolitical madness at a time when Europe is under mounting pressure from Russia, China and the Trump administration in Washington. The EU cannot micromanage British politics from Brussels. Nonetheless, it is clear that if the EU side forcibly and explicitly rejects the May government’s proposal — essentially that the UK stay inside the internal market for goods, but not for services — it will make a no-deal Brexit much more likely. The European Commission has consistently argued that the “four freedoms” of the single market can never be divided, and that Britain must therefore choose something like the deals offered to Canada or Norway. But given the unique political, strategic and economic ties between the EU and the UK, it is not unreasonable to accept that the post-Brexit relationship should also have its own unique characteristics. All sides need to re-learn the art of compromise. And they do not have long to do it.

brexit feature - no-deal scenario (Source: FT reporters)

or the first time, the UK has offered advice on what to do if there is no Brexit deal. In 24 technical papers, the government sketched out its plans for sectors including financial services, nuclear and farming in the worst-case scenario of negotiations ending in failure and acrimony. Dozens more papers are expected during September, but here are the key details from the August batch.

FINANCIAL SERVICES

The government’s advice for financial services largely repeats the scenarios already laid out by the Bank of England and the UK’s markets regulator, the Financial Conduct Authority. They have said European companies that access the City of London would be able to rely on temporary regulatory authorisations for as long as three years after Brexit, regardless of whether there is a deal or not. City companies have already put in place their contingency plans for losing their passport, which allows them to sell services and products across the bloc under London’s regulation. There remain concerns over what will happen to cross-border contracts, especially ON THE AGENDA...

The main UK paper on trading relations notes that there is no pain free solution for companies to navigating the red tape, saying that either seeking professional help from a customs broker, or going it alone by acquiring the necessary software and authorisations, “will come at a cost”. Along with bracing for checks and formalities, businesses are also invited to get up to speed with the import charges they might end up paying on products that previously moved across borders duty-free because of the EU’s single market. Even without a deal, Britain would try to hang on to some of the benefits it has enjoyed as an EU member, notably preferential trading arrangements it has with some non-EU countries because of trade deals struck by Brussels. The government said it would “seek to transition all EU free trade agreements for day one in order to ensure continuity for both goods imported to the UK, and for UK exports”, adding that “maintaining these benefits is of clear importance to businesses, consumers and investors”. But such a move would require the agreement of the countries, such as South Korea and Mexico, that signed the deals with the EU. VAT

for derivatives and insurance, that a no-deal Brexit might render void. There is a joint working group on the issue between the BoE and the European Central Bank. The UK said on Thursday that it was ready to take “unilateral action” over the contracts, but that this would not address risks without “co-ordinated action with the EU”. “While the government says it has done everything it can to ensure continuity of financial business, the stark fact is that there can be no continuity without EU reciprocity”. Meanwhile, the UK government told asset managers that it expects delegation — where companies can be registered in the EU but do the bulk of their business in London — to continue. “Unless the EU confirms it does not CONNECTING BUSINESSES

intend to put such arrangements in place, asset management firms can continue to plan on the basis that the delegation model will continue,” the technical paper said. The UK also warned of higher charges and possible disruption to financial services for British citizens living in the EU if a no-deal Brexit severs access to European payments infrastructure. TRADE

Without a deal, “the free circulation of goods between the UK and EU would cease”, the UK said. The plans urge businesses to start boning up now on the import declarations, licences and other paperwork that would become essential for trade between Britain and the continent in this new reality.

If Britain leaves the EU without a deal, HM Revenue & Customs has indicated that the VAT system would need to be torn up for trade in goods both with EU and non-EU countries. For importers, HMRC has tried to minimise the increased cash flow costs of paying VAT at the border. Companies would be allowed to continue as present and account for the tax on imports in their quarterly returns. This procedure would be extended to imports from non-EU countries to be compliant with World Trade Organization rules, providing a cash flow bonus to these importers. But allowing imports into the country without taxation opens the door to “missing trader” fraud because goods can enter the country and circulate freely while traders can go missing, never paying the VAT due. HMRC also has pledged to introduce a new VAT system for parcels in which foreign companies would register on a digital system and administer UK VAT for goods destined for Britain, paying HMRC directly. It said it hoped that system would be running by early 2019, but gave no indication how it would stamp out potential fraud in the 2m parcels a day that enter the UK and did not comply with this system.

CONTINUE... 37

brexit feature - no-deal scenario CONTINUEd Exporters would be expected to show proof that goods leaving the UK had crossed the border because, unlike other countries, HMRC propose no checks directly at crossings, again raising opportunities for fraudulent activity. NUCLEAR

Companies may need to secure licences to import nuclear materials from the EU if there is no deal. The UK “will engage with importers” on any new arrangements and provide further guidance on these, the technical paper said. The current regime does not require operators to obtain an import licence. On export licences, the paper stated there would be a “continued requirement for operators to obtain export licences for certain sensitive nuclear materials, facilities and equipment”. The government confirmed that a new domestic nuclear safeguards regime would come into force under the UK regulator, the Office for Nuclear Regulation, after Britain leaves the EU. Responsibilities currently held by Euratom, the pan-European nuclear regulator, would be transferred to the ONR, including the “safeguards” regime required under international rules to prevent misuse of fissile materials. The UK government has already signed new international agreements with the International Atomic Energy Agency to replace the existing trilateral agreements between the IAEA, Euratom and the UK, the paper said. The UK’s current arrangements for the reprocessing of spent fuel and the treatment of radioactive waste would also continue after the UK’s withdrawal from Euratom, the paper confirmed. MEDICINES

Pharmaceutical companies were told to stockpile at least six weeks additional supply of medicines by March 29 next year “in case imports from the EU through certain routes are affected” by a no-deal Brexit. Existing authorisations for medicines, and safety testing and batch release procedures, carried out in other European member states would continue to be honoured in the UK. But approvals for new medicines would need to be submitted with the same application to the UK drugs regulator, the Medicines and Healthcare products Regulatory Agency, and the EU regulator, the European Medicines Agency. This process would “place no greater burden on industry”, ensuring that patients “can access new and innovative medicines at the same time as EU

patients”, said the government. Companies that import medicines with short shelf lives, that cannot be stockpiled, from Europe must have plans in place to air freight them in case of border delays following a hard Brexit, the government said. Ministers are seeking evidence that contingency plans have been put in place and gave the industry a deadline of September 10 by which it must respond. In a letter to the health sector, Matt Hancock, the health secretary, warned hospitals, GPs and community pharmacies against doing their own stockpiling. Nor should patients “seek to store additional medicines at home”, he added. AID

UK aid organisations could lose their funding from the EU’s core budget, if there is a no-deal Brexit. This could cause the aid agencies “high extraction costs”, and cause “negative programmatic consequences” to their development projects. British aid agencies are already stopping applying for EU funding because of such risks. If there’s no deal, the UK will make up any funding pulled by the EU. STATE AID

The UK is passing legislation to adopt all EU state aid rules, which will operate regardless of whether there is a deal with Brussels. After Brexit, the Competition and Markets Authority would immediately take over the enforcement role, currently fulfilled by the EU Commission. ORGANIC FOOD

UK producers could no longer use the EU’s organic logo. The Department for Environment, Food and Rural Affairs has commissioned research on logos worldwide to inform the design of a new UK one. UK businesses would only be able to export to the EU if they were certified by an organic control body recognised and approved by the EU. This application cannot be made until the UK is a third country and approval may take nine months. “We expect to negotiate an equivalency arrangement with the EU which will allow the free movement of organic goods between the EU and the UK. We will ask the European Commission to discuss these applications in advance of March 2019.” The Soil Association said the continuing recognition by the EU of the organic status of products certified in the UK is “left entirely unresolved by this paper and a similar document that was issued by the EU some months ago”. Source: FT.com reporters-Caroline Binham, Chris Giles, Sylvia Pfeifer, Sarah Neville, Jonathan Eley, Henry Mance and Jim Brunsden.

We are working to ensure the Island is as well positioned as possible

The Isle of Man prepare’s fororkBrexit is continuing apace to

ensure the Isle of Man is well prepared for the implications of the UK’s withdrawal from the European Union on 29 March 2019. Chief Minister Howard Quayle MHK says the Isle of Man Government is working closely with the UK across a number of key policy areas at political and official level. The UK Technical Notices will be published on the Isle of Man Government’s Brexit web pages www.gov.im/brexit as they are released. Comments from relevant Departments about any potential impact for the Island will also be published. Mr Quayle said: ‘We started preparing for the UK’s exit from the EU before the result of the public referendum was announced in 2016. Significant work is taking place to help us secure the best possible outcome for the Isle of Man, our people and businesses.’ He added: ‘It would be unhelpful to speculate on the outcome and potential consequences of the Brexit negotiations. However, it would also be irresponsible for us to ignore the possibility of a no-deal scenario. ‘We are working to ensure the Island is as well positioned as possible, whatever the outcome, and that our legislation, vital services and economic activity continue to function.’ www.gov.im/brexit ON THE AGENDA...

opinion - alison Quayle, equiom solutions

A dozen facts you may not know about Manx personal income tax With the 6th October personal tax deadline looming, Alison Quayle from Equiom Solutions Tax Consultants outlines some helpful hints for filling out your tax form.

s someone who is well-versed in completing tax returns for local residents, I fully understand how complex it can be. As we approach the deadline, I thought it fitting to share some of the important, yet lesser known facts about reporting income. n A Manx resident taxpayer must include their total worldwide income on their Isle of Man tax return. n Failure to declare all income correctly may result in interest and penalty charges when any omissions come to light. n Under the terms of the exchange of information agreements currently in place, the Isle of Man government receives details of many types of income received by Isle of Man

taxpayers from Isle of Man entities and from several other countries including the UK, Jersey, Guernsey, Ireland, the USA and much of Europe. These details are cross referenced to individual records in order to identify omissions. n A change in circumstances – such as your departure from the Island, marriage or your partner’s death - must be notified to the Treasury and may require submission of a tax return within six months of the date of the trigger event. n UK investment products such as Personal Equity Plans (PEPs) and Individual Savings Accounts (ISAs), while not liable to tax in the UK, are subject to income tax in the Isle of Man. n ‘Tax free’ lump sums received from UK pensions may not be tax free in the Isle of Man. n Full details of income and expenditure arising from selfemployment or rentals must be included in your Manx tax return - even where the net result may be a loss. n Income (but not capital) received as part of a legacy must be declared in full on your Manx tax return. n A Manx resident who is in receipt of UK income – such as pensions or interest - may find that UK tax is deducted from their payments before they receive them and this may be incorrect. n Tax relief may be available to Manx resident taxpayers for mortgage or loan interest paid to a Manx lender. n Tax relief may also be available for nursing expenses paid by you in respect of yourself or a close relative. n Charitable donations in excess of £100 per charity in a year, or made via a charitable deed of covenant, may give rise to tax relief.

If you need help or advice on your Isle of Man tax return, contact Alison Quayle on 652049 or alisonquayle@equiomgroup.com.

This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The article cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Equiom to discuss these matters in the context of your particular circumstance. Equiom Group, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.

www.equiomgroup.com

Equiom Solutions Limited is registered as a Designated Business with the Isle of Man Financial Services Authority.

CONNECTING BUSINESSES

Investing in Nature opinion - Tim Graham, manx wildlife trust

is All of Our

Business International experts will arrive this September to explore how new Natural Capital approaches can benefit the Isle of Man. Words by: Tim Graham Manx Wildlife Trust - Protecting Manx Wildlife for the Future

ON THE AGENDA...

g e

t may be unexpected, but one of the fastest developing areas of investment and valuation is surrounding us in our everyday lives. Alongside the trend in social investment, and the increasingly environmental conscious investor or customer, Natural Capital is becoming an increasingly valuable tool and business opportunity. Natural Capital is a way of describing the assets that are provided to us from the natural world. We get a range of products and services from this “bank account” such as food, building materials and water. The new approach uses this philosophy to introduce nature into our decision making and balance book, so that environmental degradation isn’t a cost passed on to others or to future generations. “Why does this matter to us?” you may well ask, but along side internationally developing markets such as carbon and the divestment of fossil fuel investments there is a new look at what natural capital may mean for business. This may be about understanding risk (miss use of resources may open investors to larger risk of low returns), providing supply chain advice, new investment mechanisms (such as environmental bonds), or new regulatory approaches to accounting and reporting standards in the future. No matter what the angle that may interest you, in business or in your home life, its worth remembering that one valuation put the value of global ecosystems up to $145 trillion a year. An old assessment for the Isle of Man put the value we get from our ecosystems at £42 million a year, so not to be sniffed at. The impacts of the environment on business risk is well understood internationally (e.g. see WEF Risk Report 2018), and there are considerable moves to use markets as tools to enable a more sustainable future (e.g. Carbon trading). The growing international movement for Natural Capital accounting has moved a long way since the first valuation of services from the world around us ($33 trillion p.a. back in 1998) and future applications include insurers, utilities, corporate accounting, and perhaps most interesting of all is the new investment mechanisms coming out of the United States and elsewhere. An event in September offers a chance to find out more, contribute to what this may mean for the Isle of Man and learn from international expertise. If we think closer to home, its interesting to think about what this may mean for the Isle of Man. New Marine Nature Reserves can look more like a savings account for our children and their children, with 10% of our coastal waters now designated. This recovery enables other areas to be repopulated and fisheries to recover, better supporting sustainable fishing. It also highlights some ways this CONNECTING BUSINESSES

could be controversial, as when you think about other nations fishing our waters and potentially causing damage, they are passing on the degradation of that asset to ourselves and future generations. On a brighter note, research shows just how much green spaces and nature reserves can help in our everyday lives, with reduction in stress, faster recovery from surgery and improvements in mental health. This just goes to show how far reaching nature can be in our lives and provides a logical foundation on which to encourage better planning for our resources and investment mechanisms. While Corporate Social responsibility has been a major motivator in developing the natural capital approach, we are increasingly seeing new innovations. The increase in private investment and mechanisms such as green bonds (such as YES Bank, VanEck, and Triodos Bank) have really started to kick start market mechanisms that provide funding support for natural infrastructure. This is still early days, but there are big opportunities to think what this means for the Isle of Man and how business can seize the opportunity. It is for this reason that Manx Wildlife Trust and DEFA are bringing international experts over to run a oneday event exploring natural capital in September. Perhaps the Isle of Man could be a trailblazer and build on its UNESCO Biosphere Reserve status, making the most out of what really makes our Island such a special place to live and work.

Opinion - Mike Phillips, sure

Sure’s approach to innovation and digital transformation

Words by: Mike Phillips, Chief Executive, Sure

he telecommunications sector, although hi-tech, is traditionally not massively innovative. We bury glass cables under the ground or under the ocean floor, then figure out how to get the investment to pay back over years or, often, decades. The basics of communications, as hi-tech as they are, shouldbe boring to its users; the dial tone on your phone, 24/7 access to the internet from your home or mobile - they just work, without any labour required on the part of the user. So how do we at Sure approach innovation? We do that in two ways; one is to help equip our society with the tools to develop and innovate using our technology and

international.sure.com

connectivity. The other is to equip our staff to enable them to transform our solutions and to transform our business. Enabling necessary change Sure is passionate about instilling digital skills in the next generation of islanders and Manx businesses – from providing free internet connectivity to the Junior Achievement Hub through to supporting ‘not for profit’ initiatives such as the Bridge Angel Network which supports entrepreneurs and early stage businesses in many different ways. The future is only going to get more and more digital and we will see more and more innovation so if we can start developing these kinds of skills today and support these initiatives we can help to ensure a better prepared, connected and digital Isle of Man of tomorrow.

People are crucial to any success in the digital age, no matter how much you read about jobs disappearing and being taken over by robots. But infrastructure and hardware are also key; Sure has undertaken major projects such as the installation of a fibre access network into business districts on the island and been heavily involved in the construction of the Isle of Man teleport – just two examples of developments that enable society to advance and innovate using the latest tools. Preparing our employees for the future When we turn our attention to developing our own staff and business we have numerous tools to help us do this. For people just starting out on their journey into employment we have the Sure Academy programme. The Sure Academy runs for two years and takes our new interns through many areas of our business, while offering the opportunity to take professional qualifications. One of the key ways we achieve these goals is through Project-i, our innovation programme. Anyone in our business is free to sign up to Project-i and the last cohort was 17 people. We offer an intense two-day session on the stages of developing an idea to a point where it can be tested by potential users. There are keynote speakers, tools, insights and cash to help the participants take their idea to a level that can be pitched to an investment board. The great thing about Project-i is that it’s not the product that is eventually developed that matters to us but, rather, the change in the people who have taken part. We don’t care if the idea is directly related to telecommunications or a new piece for a combine harvester, the important thing is the process to develop the idea as far as possible. Project-i aims to get our staff to think outside the box and provides a safe space to innovate and develop problem-solving skills. From a digital transformation perspective, we have specific objectives covering our strategy, customer, technology, operations and culture, people and organisation. Finally, we measure our performance, constantly. We measure our staff engagement weekly in the form of a short online poll. We measure our customer engagement through every transaction. In terms of digital skills, we measure the transition of our workforce over time, plus we have over a hundred digital KPIs that we measure every month to give us a true picture of our ongoing transformation. As you can tell, working in telecommunications is a lot of fun; but what’s more satisfying than anything is enabling social change through our work. Now that’s worth burying cables for. ON THE AGENDA...

opinion - carolyn gelling, tise

What are REITs and what role can the IOM play? Words By: Carolyn Gelling Head of Isle of Man Office, The International Stock Exchange Group

Real Estate Investment Trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centres, hotels and agricultural land.

History REITs have been around for some time. They were created in the United States in 1960 and since then, more than 35 countries around the world have established REIT regimes. The legislation laying out the rules for REITs in the United Kingdom came into effect in January 2007. Significant changes to the UK REIT regime in 2012 and smaller changes in 2013 and 2014, have continued to enhance the attractiveness of the UK’s REIT regime for property company holdings and investors. Why REITs? REIT status affords a number of commercial and tax benefits, including access to the Global REIT brand which is known and accepted by investors and analysts worldwide. This can attract international capital where specific investment pools are designated for investment into REITs and REIT conversion can therefore often unlock new sources of funding. REITs are attractive to investors for several reasons including easier access to property investment, improved liquidity, greater diversification, lower costs and potentially enhanced return. REITs provide property exposure without purchasing a property directly and can seek investment in areas of the property sector that private investors cannot usually access. Indirect investment into property through REITs is generally more liquid than traditional investment into ‘bricks and mortar’ and REITs can provide diversification across a range of property assets, as well as a generally more regular and stable income stream. In terms of cost, investment through a REIT involves lower transaction costs, i.e. up to 0.5% stamp duty on shares compared to up to 5% stamp duty land tax on commercial property. In terms of

return, after-tax returns for shareholders may be improved as profits are generally only taxed at the shareholder level, REITs are exempt from corporation tax on rental income and capital gains and there is a tax rebasing of the properties used for the rental business to market value on entry to the REIT regime. The rise of REITs A series of factors have come together in the past few years to drive up interest in UK real estate as an asset class, including a low interest rate environment and currency changes post-Brexit vote, as well as investment in REITs as a vehicle for that investment. The number of UK REITs has risen to around 70 and more than a quarter of these are listed on The International Stock Exchange (TISE). Why TISE? The UK REIT regime requires that a vehicle is admitted to trading on a recognised stock exchange and either ‘listed’ on such an exchange, or ‘traded’ on such an exchange in every accounting period. TISE is deemed a recognised stock exchange and listing venue by HMRC under section 1005 of the Income Tax Act (2007).It is this same recognition which also enables investment into TISE-listed products by Self-Invested Personal Pensions (SIPPs) and Individual Savings Accounts (ISAs). Similar to the UK REIT regime itself, TISE’s Listing Rules specifically exempt REITs from the free-float rule requiring 25% of the issued share capital to be held in public hands. This has proved particularly attractive for those REITs where there are a smaller number of increasingly international institutional investors and especially, where they are likely to hold for the long term and therefore do not require significant levels of liquidity. Having said that, there has been a recent trend towards

TISE also proving attractive to more widely held REITs, such as ‘club’ deals of high net worth individuals and retail offerings. Why Isle of Man? While UK REITs must be tax resident in the UK, they can be and often are incorporated in other jurisdictions. Using Isle of Man incorporated companies to avail of the UK REIT regime has some advantages. These include company law enabling, for example, distributions to be made on a solvency test basis, there being no stamp duty payable on the transfer of shares and the recognition of protected and incorporated cell companies, which may be useful for ring-fencing REIT assets and liabilities within underlying subsidiaries. The Isle of Man is also part of the VAT Union with the UK, which would be relevant for REITs that are registered for VAT purposes. The Isle of Man has a long standing reputation for its expertise in administering and advising upon real estate assets for international clients. This, coupled with access to TISE for listings, as well as the island’s abundance of expertise across professional services firms to help facilitate and support a listing, means that REITs now present another offering upon which the Isle of Man can promote itself on the international stage.

This article does not constitute investment or other professional advice and should not be construed as a recommendation to buy, sell, hold or solicit any investment, security or other financial instrument or product. www.tisegroup.com CONNECTING BUSINESSES

iod-iom committee members

meet your institute of directors - isle of man IOd-iom committee members committee members

JENNIFER HOUGHTON

CHAIRMAN

DAWN WEBB TREASURER

PAM WATSON SECRETARY

(Dawn Webb Advisory Limited)

(Lloyds Bank International)

Institute of Directors - Isle of Man The Claremont 18-22 Loch Promenade Douglas Isle of Man IM1 2LX

Isle of Man Member Benefits QUICK LOOK

CLIVE PARRISH

DEB BYRON

CLAIRE MILNE

(CDP Associates)

(Hansard International)

(Appleby)

n Discounted entry to Rendezvous Lounge at the IOM Airport n Discounted VIP Business Travel and Airport Transfers with K&B Carriage n Discounts on Leisure and Business Travel with Richmond Travel and MannLink Travel n Discounts on selected training courses with TLC

JADE ZORAB

PHAEDRA BIRD

(SMP Partners)

(Crowe Clark Whitehill LLC)

PETER REID

(Lloyds Bank International)

Additional Benefits for all members

n Access to our local HQ

and Business Hub and locations throughout the UK

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

SALLY BOLTON (Corlett Bolton & Co)

ALICE MARTIN

(Isle of Man Government)

MARK WATERHOUSE (Isle of Man Financial Services Authority)

ON THE AGENDA...

iod-iom breakfast event

Breakfast event

n 19th June, Mike Batey from MB Executive gave an interesting breakfast presentation to members and guests of the IoD on the features and benefits of the new Isle of Man Pension Freedom Scheme (PFS). Mike explained the trail of events which resulted in Tynwald introducing the new scheme on the 6 April 2018. The main features of the new product include the following: n Only one PFS per person is permitted n Tax relief is available on annual pension contributions up to a maximum of the greater of 100% of earnings or £50,000 (but no lifetime limit) n Transfers can be made into a PFS from other IOM approved schemes (excluding defined benefit scheme) subject to a transfer fee of 10% CONNECTING BUSINESSES

n Transfers cannot be made directly into a PFS from UK schemes n Retirement benefits can be taken from minimum 55 years, with no maximum age n An initial, one off 40% tax free sum must be taken (under review) n There is flexible access to the balance, which is taxed at the individual’s marginal rate of tax n There is no spouse or dependent’s pension following the death of the individual (under review) n Recycling of pension funds is not permitted n There is no charge to income tax on funds contained within a PFS which are paid out following the death of a member, provided the funds are paid out within 2 years.

the PFS is not a replacement scheme but an alternative and as always advice should be taken before making any changes to a pension plan. A transfer fee of 10% is quite substantial and although at 40%, the tax-free cash is greater than the 30% permitted under existing IOM schemes, the obligation to take it might not suit everyone. Mike also pointed out that directors may have an obligation to consider the duty of care owed to employees when deciding whether or not to set up a PFS as a work scheme. The IoD would like to thank MB Executive for sponsoring this event.

Mike went on to compare the PFS with other IOM schemes and with UK pension freedoms. He commented that

iod-iom member interview

The financial services sector is more than ever looking for those people who have the right qualifications, which is why I urge young people in particular to take advantage of the various courses offered by the IoD.

ON THE AGENDA...

PAM WATSON

Institute of Directors Offers ‘Good Balance’ Between Male and Female Membership Representing Wide Range of Businesses, Says New Secretary Pam Watson.

By: Les Able Photographs: Matt Mosur

ompany directors and others who have senior positions within a business need to understand not only their own roles but the responsibilities they have to employees. “I don’t think it’s always appreciated just how important that knowledge and those skills can be,” is the view of Pam Watson, recently appointed as secretary of the Isle of Man branch of the Institute of Directors.

CONNECTING BUSINESSES

Senior manager, transformation & engineering at Lloyds Bank International, Pam herself holds the IoD’s prestigious Diploma and Certificate in Company Direction which covers a variety of challenges and crises which a company’s board members might face in running a business. She adds: “As far as I’m concerned it’s been crucial for me to have attained such qualifications if I want to move into higher roles within the bank. The financial services sector is more than ever looking for those people who have the right qualifications, which is why I urge young people in particular to take advantage of the various courses offered by the IoD.” Pam’s role with Lloyds Bank International is, on her own admission, both varied and demanding; leading a team of specialist, motivated colleagues who support the ongoing development of the business through effective change management and continuous improvement initiatives. “Yes, it’s highly dynamic,” declares Pam. “It requires a good balance of pro-activity and responsiveness to simultaneously manage and deliver a significant portfolio of change, working closely with a wide range of stakeholders

across the Group, Lloyds Bank Corporate Markets, external suppliers and all business teams.” In addition to her day-to-day role and responsibilities, she also leads on the bank’s Inclusion & Diversity agenda, plus her secretarial and committee roles with the IoD. Awards include those for Most Innovative Use of Data and Most Innovative Support for Customers in Vulnerable Situations. Despite her high-profile role in business Pam, 50, very much values her family life. Husband Nick and his father own and run Watson’s Nurseries in Greeba, a business which has been in the family for 90 years. Daughters Katie,aged 23 and Alice 21 have both graduated with Katie going back to university to do a master’s degree in biological sciences and geography. Both are looking to careers in ecology and environment management. Pam comes from a St John’s farming family, with her parents and brother running Kennaa Farm which, when she was growing up, was run by her grandparents. “From an early age I so much enjoyed being on the farm, I can remember moving the milk kegs, when we had kegs, and chasing the cows into the field so they didn’t poop on the concrete.

iod-iom member interview

As I got older my grandfather got lambing to coincide with the school holidays so I could help out as chief shepherdess. “It was just such a happy upbringing with lots of freedom, but at the same I was given a lot of responsibility. When growing up it’s important for children to be given responsibility and learn to be independent, using their judgement and being aware of what is right and wrong, as a result hopefully becoming good people. My daughters were very fortunate as their grandparents played a big part in their lives and the experience contributed to setting them up in good stead for their futures.” Pam readily admits that when she leftschoolshe thought about going into farming. “I spoke to my Dad, who suggested I try something else for two years then come back to farming if that

was what I wanted, I think he knew I probably wouldn’t. I went into banking and started with Barclay’s in Castletown where I got a lot of experience In different roles. “I was then asked to go and support the Douglas office, that was in 1987 when all banks were growing, and just couldn’t keep up with the volume of new accounts. The idea was that I would be in the Douglas branch for two weeks but managing director Ray Naylor asked me to stay. For the next seven years I did a variety of roles and ended up as asecurities administrator.” In 1989 Pam left Barclay’s to become manager of investment business at Bank of Scotland International. During those years she had her two children and became the first female part-time manager. “That was a big deal inthose years,” she adds.

After seven years Pam became senior investment business manager at the Bank of Scotland for the next four years. Promotions, and with them challenges, rapidly followed but in 2010 she became a senior manager at Lloyds Bank Internal, a role she held until this year when she took up her present position as senior manager in transformation & engineering at Lloyds Bank International Ltd. This followed four months as senior manager in business management. What about her management style? Managing directors see her as calm, capable, a good and popular leader. “I have high standards but I’m fair and don’t expect anyone on my team to do something which I wouldn’t be prepared to tackle. I want them to fulfil their potential. What does frustrate me is someone with ability but no drive when there are those ON THE AGENDA...

Fact File Revelations I was then asked to go and support the Douglas office, that was in 1987 when all banks were growing, and just couldn’t keep up with the volume of new accounts. The idea was that I would be in the Douglas branch for two weeks but managing director Ray Naylor asked me to stay.

who have to work hard to achieve, while others, with ability, don’tuse it.” She is excited to have joined the IoD at a time when the membership profile has changed with more female members. “We now have a diverse group on the committee, along with a good balance between male and female, representing a wide range of businesses,” she declares. As for unwinding after a demanding week Pam, who has both personality and sense of humour, can be found in the garden she has created from an overgrown area of land about the size of two-thirds of a football pitch behind her home in Greeba. “I’ve dug out a pond to encourage wildlife, done a lot of recycling of waste soil from the nursery, created areas with some exotic plants from the Far East and this year there wasfrog’s spawn for the first time,” enthuses a proud Pam. CONNECTING BUSINESSES

BEST GADGET? Has to be my iphone, predictable but it is so useful - communication / social media / camera / video / diary / contacts / managing your finance and we also have secure email through our Work app – a good and a bad thing!. I along with most people would be lost without it. SPARE TIME ACTIVITY? Gardening; cooking for friends and family; yoga and travelling. We purchased some extra land a few years ago and I’ve been developing from a mess of briars and weeds into a garden. It really helps me switch off. I also help out on the family farm mostly at lambing time when it’s all hands on deck. It’s a real family team effort and everyone has been involved from an early age. My girls were helping out from the time they learned to walk! I also help out from time to time, in my husbands’ business. He is a third generation at Watson Nurseries, I was in action helping out at the Royal Manx Show in August. FAVOURITE MEAL? There are too many. I love my food. A good roast, but it has to be good, otherwise it’s not worth having! Thai food. My Mum’s chips – everyone loves these. Love going to new countries and trying out things, like Krolan, made and sold by the side of the roads in Cambodia. A very simple thing, but lovely. Made from Bamboo shoots stuffed with rice, coconut milk and beans. Delicious. Not brave enough to try the deep fried scorpions though! WORST CHARACTER TRAIT? Trying to solve every problem that comes my way. Being a whirling dervish. FAVOURITE FILM OF ALL TIME? Tends to change over time, there’s no single stand out. The last film I watched that I really enjoyed was The Greatest Showman, an inspiring story and very much of the moment. Also Hugh Jackman is brilliant and a great actor too and who knew he could sing! GUILTY PLEASURE? Going for a spa treatment, hot stone massage or lava shell – both so lovely and I totally zone out.

different cultures - it clears and expands my mind. Re-establishes perspective and what’s important when you get away from the everyday and makes me realise how lucky we are and how much we take for granted. For example, our guide. Leda, in Siem Reap was fascinating. She was the first girl from her province to go to University and has changed the future for other girls in her home town. She also told us about the Pol Pot and some of her family were killed. And person – Story Musgrave. Brought up on a farm and got be an astronaut despite not finishing high school. He’s been into space 6 times. He also trained to be a trauma surgeon by using his experience and thinking applied when he started fixing tractors as a boy and then planes. He’s achieved a huge amount in his life, he’s a great speaker and thinker. Some of what he says really resonates, like giving lots of life experiences to your children, as what they learn and experience when young really shapes their view of what’s possible. A PERFECT DAY? With my husband and two grown up girls, doesn’t matter where. These get togethers are becoming increasingly precious as they both live in the UK and live their own lives. They are great company and we love spending time with them. Or having a house full of our wider family and friends. These are the moments along with holidays and graduations that are special. Family parties for birthdays and celebrations and cooking for 30 people is fab. BEST PIECE OF ADVICE YOU’VE HAD? Fail to prepare, prepare to fail. Or from Story – The more you put in, the more you get out! I’ve seen many people who have ability but have lacked the drive, its frustrating when you can see the potential and can’t help unlock it. TOP OF YOUR BUCKET ‘TO DO’ LIST? No surprises here, it’s all about travelling. Costa Rica is next on the long list, an amazing country that values its nature and wildlife and has turned this into a national and regional asset. So very much looking forward to getting to explore and experience the country and it’s people. South America is also high on the list, the obvious must dos like Machu Pichu but also places like Iguazu falls.

BIGGEST INSPIRATION? Travelling and meeting people from

iod-iom Autumn lunch

Autumn Lunch Speaker Lieutenant Governor, His Excellency

Sir Richard Gozney KCMG CVO

is the guest speaker at the IoD Autumn lunch on Thursday 25th October. This Autumn marks the 30th Anniversary on the Island of the IoD and we are delighted that His Excellency is able to join us as our speaker.

ow in their 6th year, the prestige lunches organised by the IoD and supported by Barclays are very popular with members and their guests alike welcoming a variety of guest speakers from Stephen Martin, Director General of the IoD, to Ian Rowland – “The man who taught the FBI to read minds” and Adrian Moorhouse. Sir Richard Gozney will be the 11th speaker to attend the prestige lunches, which commenced in 2013 to commemorate the 25th Anniversary of the Institute on the Island with Simon Walker, the previous IoD Director General in attendance. Ahead of speaking at the IoD Autumn Lunch the Lieutenant Governor said; “I have been struck by the care and concern which many Chief Executives and Senior Managers here show for their employees as individuals. This may partly reflect unemployment of less than 1%; if workers don’t feel valued they can take their labour elsewhere. However, I suspect it reflects something deeper – the strong sense of community in the Isle of Man, where people care about their fellow Islanders rather more than in cities or diffuse rural communities elsewhere in the British Isles” Stuart Nelson from Barclays said: “I’m pleased that Barclays will once again be sponsoring the IoD Autumn lunch this year. These events give local directors the opportunity to meet and share their experiences while gaining valuable insight from a range of impressive guest speakers. I’m looking forward to celebrating the IoD’s anniversary in

the island and hearing from Lieutenant Governor Sir Richard Gozney at the lunch.” Jennifer Houghton, Chairman of the IoD “As Chair of the IoD Isle of Man Branch, I am honoured that His Excellency Sir Richard Gozney will be speaking at the IoD Autumn lunch. I have had the pleasure of listening to His Excellency speak passionately and eloquently in the past about business on and off island, and I look forward to hearing His Excellency’s views and experience with our Members and Guests. I would also like to thank Barclays for their continued support of our prestige lunches since their inception in 2013.” Sir Richard Gozney is the current Lieutenant Governor who was appointed in May 2016. The Lieutenant Governor is the personal representative of the Queen on the Island. He is appointed by the Sovereign, on the advice of the Home Secretary and with the concurrence of the Government of the Isle of Man, and usually serves for a five year term. Sir Gozney was previously the Governor and Commander in Chief in Bermuda from 2007 to 2012. He was educated at Magdalen College School, Oxford and St Edmund Hall, Oxford. He is married to Diana and has two sons; James and Alexander.

ON THE AGENDA...

iod-iom ladies lunch

The IoD Isle of Man Branch held a Ladies Lunch at 14 North on 18th July.

ver 20 successful business ladies attended our lunch and listened to Chiva Samani, a litigation specialist and founder of Athena Law,speak inspirationally about the empowerment of women in the workplace. The research consistently indicates that, education and learning aside, the biggest barriers to a woman’s career progression are a lack of selfbelief and the presence of socio-cultural restrictions. Chiva highlighted some of the ways in which we can break down these walls including by challenging our “inner critics”, understanding that our achievements stem from our own ability rather than chance, owning our success rather than apologising for it (and indeed celebrating other women’s success!). This in turn enables us to be better negotiators for ourselves and allows us to reach for opportunities which might seem (albeit on a subjective basis only) out of our comfort zone. There is fantastic support at the IoD to help you achieve your goals, whatever that may be, e.g The Digital Academy and Information Advisory Service, both free resources for members. For further reading on the topic of empowerment in the workplace, you may wish to visit www. LeanIn.org – a global community initiative by Facebook’s COO Sheryl Sandberg dedicated to helping women achieve their ambitions. IoD Breakfast On the 19th June Peter Waddup, National Director of the Leprosy Mission UK, gave a well attended IoD breakfast presentation at Appleby Global offices on the challenges that are currently facing the third sector. Louise Timminsand Paul Hallidayalso

gave their views on the growing issues regarding transparency, corporate governance and safeguarding policies. Peter thanked the IoD for the opportunity to discuss these important issues and expressed hope that the experiences of The Leprosy Mission throughout the world might be helpful to those who attended. Local attendees debated the continuing lack of an Isle of Man Charities Commission. The problems highlighted during Peter’s presentation indicate this should be given serious consideration. Peter Waddup has been in touch since

the event to say how thrilled he is that the Leprosy Mission is now incorporated in its own right in the Isle of Man. He is very appreciative of having been given the opportunity in June to speak to and share governance issues with the Isle of Man business community. The IoD would like to thank Appleby Global for their sponsorship of this breakfast.

ON THE AGENDA...

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Struggling with your company? Considering a liquidation? Why not contact either Craig Mitchell or David Craine to find out more about liquidating your company and how we can assist you. +44 (0) 1624 629369 office@burleigh.co.im www.brownecraine.com

Business Events - What’s on September - November 2018

Isle of Man Business Network (IOMBN)

ILS World Panel Debate DATE: 12th September, The Palace Hotel

& Casino, Douglas TIME: 17:30 - 19:30 PRICE: £13-£16 The Isle of Man Business Network are pleased to announce the next event in collaboration with ILS World; the biannual IOMBN & ILS World Panel Debate. The debate will propose the motion: “This house believes that due to the Island’s rapidly ageing population and historically low rate of unemployment, all restrictions on immigration and employment should immediately be lifted”. Bill Shimmins MHK will propose the motion and Rob Callister MHK will oppose. The second proposer will be Caren Pegg, Vice President of the Isle of Man Chamber of Commerce and partner at Appleby and communication and public relations consultant, Michael Josem will be the second opposer. ILS World Chief Executive Officer, Chris Eaton will chair the discussion.

(IOMBN) Christmas Party DATE: 29th November, Bar George,

Douglas

This year’s Christmas party is at Bar George. More details will be available soon. www.iombn.im

CIPD Breakfast Meeting on Pensions DATE: 19th September, Zurich House, Isle

of Man Business Park TIME: 08:00 - 10:00 PRICE: £10-£15 The changing pensions landscape and the impact on Isle of Man employers An outline of Isle of Man pension changes over the years and the challenges that Isle of Man employers face. What solutions are currently available and how do they help employers and employees. The session will provide a background on employer provision over the years and the transition from Defined Benefits schemes to Occupational Defined Contribution arrangements through to Group Personal Pensions and now the launch of Pension Freedoms legislation. It will focus on employer obligations, the options currently available and what employers are doing in the current market to maximise retirement provision for their staff. www.cipd.co.uk/learn/branches/isleman Or Search Eventbrite for event tickets.

Manx Wildlife Trust Natural Capital: Making the environment count on the Isle of Man DATE: 26th September, The Claremont

Hotel, Douglas TIME: 09:30 - 17:30 PRICE: £11:37 Thanks to the expertise of the Ecosystem Knowledge Network and their speakers, we have an exciting introductory seminar in the morning and more technical methodology and accounting session in the afternoon. This event will be ideal for environmental professionals, civil servants, planners, ecologists, policy makers, politicans, and businesses involved in investments/natural resources/asset accounting. A networking lunch is provided between the sessions. The morning provides a great introduction to explore the use of the new approach for the Isle of Man with a chance to feed in your ideas and expertise. The afternoon then allows those who wish to use the approach to find out more, whether directly putting it into action or wanting to understand what may be needed to commission natural capital accounts. Search Eventbrite for event tickets.

ON THE AGENDA...

North West England & isle of man Institute of Directors North West England

Enterprising Women Conference 2018 DATE: 11th October 2018, The Plaza,

Stockport TIME: 09:30 - 18:00 PRICE: £35 + VAT per person – special discount for Isle of Man members. Last year’s event proved extremely popular with over 180 business leaders coming together to share stories, learn from peers and celebrate how inclusivity drives success, so don’t miss out! Current speakers include: n Rebecca Long-Bailey MP, Shadow Business Secretary and MP - Salford and Eccles n Jess Moore, Executive Director, Corporate Responsibility - Warner Bros n Tom Bloxham MBE, Chairman Urban Splash Group Ltd n Kate Willard, Head of Corporate Projects - Stobart Group n Vanda Murray, Manchester Airport Group www.iod.com/events-community/ regions/north-west/events

raise funds for a local charity. The event will start with pre-lunch drinks in The Claremont Hotel Blue Room followed by lunch. We aim to finish the lunch no later than 2pm. The early bird price of £30 inclusive of VAT per person is available until 10th September 2018.

Christmas drinks

Digital Sector Forum

The evening will commence with a glass of bubbly and include a wine tasting quiz hosted by Anne Berry from ‘Wine Down’ in Douglas. Food will be available to purchase separately at the bar.

Following the success of the monthly forums – sponsored by Manx Telecom – which began at the start of this year, the forums will resume after a summer break. The sector forum series is organised through a partnership between the Isle of Man and Wirral Chambers of Commerce and aims to allow businesses to share ideas and benefit from networking opportunities. The forums focus on a different sector of the Island’s economy each month, building links between business sectors here and in the north west of England. A Construction Sector Forum will be held on September 19th at the Salmon Lake Centre in Laxey; and a Digital Sector Forum will be held at Chamber’s HQ at Barclays Eagle Lab, Queen Victoria House, Victoria Street, Douglas, on October 30th. A forum focusing on the third sector is also being planned for the autumn – the date and venue will be announced in due course.

All proceeds from the event will go to the Isle of Man Foodbank and we will also be holding a raffle to raise funds for this incredibly worthy cause. We very much look forward to welcoming you to what is always a fun and enjoyable evening with friends and peers. www.iod.com/events-community/ regions/isle-of-man/events

DATE: 25th October 2018, The Claremont

The lunch is being supported by Barclays and we will be organising a raffle to

CONNECTING BUSINESSES

Centre, Laxey

Date: 8th November 2018, The Claremont Hotel, Douglas Time: From 18:30 Price: £25 per person

Autumn Lunch with His Excellency

We are delighted to invite you to our Autumn Lunch with the Lieutenant Governor, His Excellency Sir Richard Gozney KCMG CVO.

A Construction Sector Forum DATE: 19th September, the Salmon Lake

Institute of Directors Isle of Man

Hotel, Douglas TIME: Drinks Reception from 11.45am Lunch: 12:15 - 14:00 PRICE: £35 per person

Howard Quayle MHK is the guest speaker, and his speech will be followed by an update from Chamber President, Chris Allen.

Isle of Man Chamber of Commerce

Chamber’s AGM

DATE: 30th October, Barclays Eagle Lab,

Victoria Street, Douglas

Building on the collaboration between the Isle of Man and Wirral Chamber forums here on the Island, both Chambers will now organise forums in Wirral, which Isle of Man Chamber members are welcome to attend. The intention is to build on relationships that have been established and develop further collaboration between Wirral and Isle of Man Chamber members. www.iomchamber.org.im

DATE: 14th September, The Claremont

Hotel, Douglas

Chamber’s AGM will be at The Claremont Hotel on September 14th. Chief Minister

entrepreneur - dan fenlon, eve

Dan Fenlon Ellan Vannin F Electrical

When Dan Fenlon set up Ellan Vannin Electrical in 2013, his main motivation was having and using his own tools on every job! He’d worked for a number of local electrical companies since his apprenticeship and although he valued the experience he’d gained, he realised that he wanted to be his own boss. By: Suzy Holland Photo: Matt Mosur

ive years later he employs three other electricians, one of whom will start his own apprentice training at UCM this month. “I’d already started doing ‘foreigners’ at the weekends, so although I knew the business was there to be had, it was a big leap from employee to self-employed,” says Dan. “I knew about being an electrician but it was the government’s Small Business Startup Scheme which taught me how to be a businessman. There’s a lot of help available from the Department for Enterprise if you know where to look!”

ON THE AGENDA...

CONNECTING BUSINESSES

entrepreneur - dan fenlon, eve Like most new start-ups, EVE’s first clients were family and friends but word about Dan’s high standard of work, his dedication and his professionalism soon spread and now recent work includes complete domestic re-wires, wiring of new buildings and large office refits. “Our work now is about a 50:50 split between commercial and domestic projects, and it’s this variety which keeps me interested,” Dan says. “I’m really happy to talk to clients about some of the latest innovations, and it’s great when I can tell them that the lighting schemes they’ve seen in a high-end magazine might not be as expensive to buy and fit as they imagine. And I always try and anticipate what clients might like to install in the future and make sure the wiring is there, ready to go.” Following Dan’s advice, recent clients have incorporated wiring for a possible extension and future garden lighting into the wiring of their new kitchen – with everything carefully labelled so EVE’s electricians can go back and pick up where they left off, even years from now. “I really like working with some of the best interior designers on the Island, like Cubbin & Bregazzi,” says Dan, “and one of our current jobs is a very ‘industrial’ lighting design for an office in Douglas. Flickering strip lights are a thing of the past, thank goodness,” he continues, “and it’s now more LEDs and hidden lighting which don’t create shadows and won’t give anyone a headache.” Dan’s interest in pursuing the latest innovations has really paid off: EVE is now the sole Isle of Man supplier of Solar Roof Tiles. “When most people think of solar heating, they think of those huge ugly panels retro-fitted to the roof in what is actually a misguided attempt to save on electricity bills,” says Dan. “Solar roof tiles – or PV Slates, to give them their proper name – are a much better option, and not just in a summer like the one we’ve just had.” PV Slates are supplied by Welsh company GB-Sol, and are designed with flexibility in mind. They have the look and feel of natural slate, combined with hidden electricity generating power of solar cells and Dan says that they are an obvious choice for buildings in the Isle of Man, where the buy-back from the MUA is vanishingly small. “PV slates generate electricity which is stored in a battery which immediately kicks in whenever you go to use an appliance, so there’s no wastage,” says Dan. “And they don’t just save you money, they look good and from an aesthetic point of view they’re so similar to normal slates they can be used on any building. Although the planning department would need to approve the roof in a conservation zone, the manufacturers designed these solar tiles to satisfy even the most restrictive planning

PV slates generate electricity which is stored in a battery which immediately kicks in whenever you go to use an appliance, so there’s no wastage

regulations.” The PV slates are the equivalent of three ‘normal’ slates and, because of the electrical components, can’t be cut. Dan works with roofers to ensure that however large the solar tile area, they are surrounded by traditional slates on the roof borders and around any roof lights and windows. “Despite their size, the PV slates are actually lighter than the ones they replace,” explains Dan, “so there is no increased loading, and no remedial strengthening is necessary. This is particularly important when the new roof is on an old building, something which has caught the eye of local architects with an interest not only in energy efficiency but also in building conservation.” It’s not all good news of course, the PV Slates are more expensive than traditional ones but the fact that there is 100% payback on all your electricity usage means they are well worth considering if you’re planning a new roof, when you’ll soon see the money you’ve spent repaid in lower electricity bills. The power generated is stored in what is actually quite a small battery (about 50 cms wide, 50 cms tall) and continually tops up, and

the tiles are designed to withstand the elements of even an Isle of Man winter. Unlike tradition solar panels, PV Slates can be installed on any roof, although a south-facing roof will generate the most electricity, and can fit an area as large or small as you choose. “Sadly, the major developers here don’t yet see solar tiles as a selling-point,” says Dan, “but architects of one-off homes, and anyone contemplating an expensive new roof can see the advantages. I’m happy to talk to homeowners, or to any architect, roofer or builder about how PV Slates work and how much an installation will cost.” When Dan Fenlon set up Ellan Vannin Electrical five years ago, he didn’t imagine he’d be working with solar energy. “I’ve always been interested in new products,” he says now, “but energy efficient buildings were the last thing on my mind. New and creative lighting systems? Yes. Wiring for efficient data networking? Yes. I even planned to be the electrical company of choice for some of the biggest businesses on the Island. But being the sole supplier of such an incredible money and energy saving product as PV Slates? Not in my wildest dreams!”

Ellan Vannin Electrical T: 07624 469265 E: dan@ev-electrical.co.uk W: ev-electrical.co.uk : @ellanvanninelectrical : @ellanvanninelectrical ON THE AGENDA...

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Together we thrive *Lines are open 9am to 5pm, Monday to Friday. Your call may be monitored and/or recorded for training and security purposes. HSBC Bank plc, registered in England and Wales number 14259. Registered office 8 Canada Square, London, E14 5HQ. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. In the Isle of Man HSBC Bank plc is licensed by the Isle of Man Financial Services Authority. ÂŠ HSBC Bank plc 2018. All Rights Reserved. 180605/NN/214