CONNECTING BUSINESSES
mental health awareness brand voice KPMG-Taxation of Non-Uk Companies Investing in UK Properties
Interview Anne Mills-chief Executive officer, Hospice Isle of Man
FEATURE Social networking and the Increasing burden on mental health
JUNE/SUMMER 2019 £ FREE
CONNECTING BUSINESSES
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CONNECTING BUSINESSES
Time you woke up?
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heodore Roosevelt once said. “Nobody cares how much you know, until they know how much you care.” It might take a while for the idea to fully bed-in but mental health in 2019 and its impact on business is a very real concern with massive consequences, and it simply makes no sense anymore, if you’re not in the business of caring. Gone are the days of ticking a CSR box on a form, business has become a lot more personal. “Woke” businesses are those that are truly committed to supporting a social or environmental initiative, those that support their staff and allow their brand to show who they are, not just what they’re selling. It’s increasingly becoming an arena where profit and purpose can complement each other very nicely thank you very much. If all this makes you scoff or develop persistent eye-roll and you find that your business doesn’t have some semblance of a social conscience or an awareness of mental health issues then you might as well pack up and leave, because mental health problems at work are the leading cause of sickness absence and the problem is not going away. Gillian Tett’s article on page 30 highlights the stark reality that almost 20% of the population in the UK has suffered from mental stress and this can be attributed to an “unequal” society. Local Telecoms Company, Sure, has tried to redress the balance by introducing drop-in sessions run by mental health first aiders, which provide staff with a safe place to discuss mental health concerns and equip them with the tools to address and manage any issues (pg 32). Darren Dodd’s article on page 34 also questions the effects of being switched “on” all the time. He says, “There is now widespread acceptance that the burden of emails, which continue to flood into inboxes even after individuals have finished work, could have negative effects on mental health.” People are becoming “overloaded” as boundaries are crossed and companies are beginning to notice the real and tangible impact on productivity. An increasing desire to “do the right thing,” to genuinely listen and consider other factors than just making a buck, is trending in a big way, and it seems that women are leading the charge here. Social Enterprise UK claim that 41% of social enterprises are female led and 43% of the non-profit sector has female leaders. Anne Mills, chief executive officer for Hospice Isle of Man, shows us on page 42 how she has moved the hospice into the digital space and she wants to change perceptions, reminding people that care extends beyond the hospice building. 70 million work days are lost each year due to mental health problems, so take a moment to care for yourself and read these, “Five tips to avoid burnout,” as recommended by www.mentalhealth.org.uk on page 33. Steve Redford Publisher
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CONTENTS UPDATE
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WELCOME BUSINESS NEWS
FEATURE-WORKERS WILL BE PAID WHEN THEY PLEASE IN A TIGHT MARKET
BANKER AND ECONOMIST PROVIDES INSIGHT TO ISLAND AUDIENCE
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ISLE OF MAN RESIDENT WINS QUANTA £10,000 JACKPOT
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LUVIAIR- HELICOPTERS, THE FUTURE OF CORPORATE TRAVEL
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INTERVIEW WITH CHRIS HOLMES TAX CONSULTANT, KPMG ISLE OF MAN
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TIM SHALLCROSS TRAVEL DIARY
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CHINESE COMPANY ATTRACTS OVERSEAS INVESTMENT
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INTERVIEW WITH NIGEL WATSON
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APPOINTMENTS ON THE AGENDA...
BRAND VOICE
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SOCIAL NETWORKING AND THE INCREASING BURDEN ON MENTAL HEALTH
KPMG-TAXATION OF NON-UK COMPANIES INVESTING IN UK PROPERTIES
OPINION
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INCOME INEQUALITY AFFECTS ARE MENTAL HEALTH
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IOM COMPANIES MARK MENTAL HEALTH AWARENESS WEEK
IOD – IOM
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JENNIFER HOUGHTON CHAIRMAN MESSAGE ISLE OF MAN SPRING LUNCH
46 48 50
IOD 99 ROADSHOW IOD NORTH WEST AND ISLE OF MAN DIRECTOR OF THE YEAR AWARDS BUSINESS READS
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IOD MEMBER INTERVIEW WITH ANNE MILLS, CEO HOSPICE ISLE OF MAN
CONNECTING BUSINESSES
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update news
Exam success at KPMG Isle of Man
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wo members of the KPMG Audit team have been placed in the Isle of Man’s Order of Merit from the Institute of Chartered Accountants England and Wales (ICAEW) advanced level exams. Conor Stephens was placed second and was closely followed by Adam Creamore, achieving fourth place. Their awards were acknowledged at the recent Isle of Man Society of Chartered Accountants Annual Dinner. The Order of Merit recognises those island students who have achieved the highest average results in their ICAEW exams to become an ACA qualified chartered accountant. The ACA is a highly-respected qualification that requires students to complete at least three years on-the-job training while passing a series of exams. Commenting on the results, Nick Quayle, Audit Partner at KPMG Isle of Man said, ‘It is an amazing accomplishment for two of our team to be positioned within the top results and we are very proud of their achievement. Conor and Adam will now both qualify as chartered accountants in August and I am delighted to see such new talent continue to develop within the exceptional team we have here at KPMG.’ Reflecting on his studies, Adam
L-R - Adam Creamore and Conor Stephens
commented, ‘Having worked hard for nearly three years to pass the professional exams, it is great to be recognised locally for those efforts’. Conor continued, ‘I’d like
to thank the Partners for the support they have provided throughout our studies – from providing great tutors to allowing time off for revision’.
CONSTRUCTION OF ISLE OF MAN’S FIRST PREMIER INN HOTEL COMPLETED
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andara, the award-winning property developer, has successfully handed over the Isle of Man’s first Premier Inn hotel to Whitbread, Premier Inn’s parent company. Situated on Market Street in Douglas, the new 85-bedroom Premier Inn hotel and Thyme restaurant will open its doors to customers on 24 June – with advance bookings currently being taken on the premierinn.com website. The six-storey hotel was granted planning permission in September 2017. Whitbread worked closely with the Isle of Man Job Centre and University College Isle of Man to recruit 35 new team members to work at the new hotel and restaurant. The new team will shortly start Whitbread’s industry leading training programme and benefit from its ongoing apprenticeship and career advancement opportunities once the hotel opens.
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ON THE AGENDA...
Manx Telecom stronger with new owners, says CEO
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anx Telecom, the Island’s leading communications solutions provider, has today (Thursday, 9 May 2019) announced that the company’s acquisition by Basalt Infrastructure Partners II LP (Basalt) is complete. Gary Lamb, Manx Telecom CEO, says: “Basalt’s status as a committed, long-term infrastructure investment firm with a strong track record of investing in strategic infrastructure assets, means that the acquisition is a massive vote of confidence in Manx Telecom and in our future. It is great news for our customers, employees, and the Isle of Man - and as such represents the start of an exciting new era for the business and the Island. With the financial strength and experience of our new owners behind us Manx Telecom is in an even better position to invest in communications technology infrastructure. Most significantly, we are now in a much stronger position to invest in FTTP and 5G.” In March this year Manx Telecom, a PLC listed on the Alternative Investment Market of the London Stock Exchange, recommended that shareholders accept the Basalt offer. In April 2019 shareholders voted in favour of the takeover which was formally approved under Manx Law on 3 May. Manx Telecom has led the way to deliver significant investment in the Isle of Man’s telecoms infrastructure - £110m+ has been invested in the last 12 years, the company owns all the Island’s copper network and the vast majority of the Island’s growing fibre network. State-of-the-art 1Gbps Fibre to the Premise (FTTP) broadband for consumer and business customers is already available to over 10% of premises on the Island and is expected to increase to 23% by the end of 2019. Basalt will work with the Manx Telecom management team to invest in new technology to deliver improved customer service and efficiencies to the business. The new owners recognise the skills, technical ability, industry knowledge and experience of Manx Telecom’s management and some 300 employees.
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T: +44 (0) 1624 631710 E: enquiries@khtlimited.com W: knoxhousetrust.com
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Knox House Trust Limited is licensed by the Isle of Man Financial Services Authority and registered in the Isle of Man. Company No: 125720C. CONNECTING BUSINESSES
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update news
Business Network Drives Forward with New Leadership Team Voted In
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he Isle of Man Business Network’s Annual General Meeting saw a change in the leadership team with existing Chairman Katie Nicholson of Bridge Angel Network assuming the role of President and Vice Chairman Dearbhla Doyle of Microgaming graduating to Chairman for the April 2019 to March 2020 term, with Head of Marketing Alex Wilson of Bold Consultancy joining the leadership team as Vice Chairman. Under Katie’s stewardship, the Isle of Man Business Network has put on 12 events over the last year attended by more than 1,000 members and non-members at ten different venues, and with 19 guest speakers and various
event sponsors, achieving solid year on year membership growth with numbers currently at an all-time high. Events are open to members and non-members, with monthly events published online. Upcoming events include a Summer BBQ, Annual Debate sponsored by ILS World and various Team IOMBN community initiatives including a feeding station at the Parish Walk, End2End and committee beach clean with Beach Buddies. Membership is open year-round from £30 for individuals and £150 for corporate organisations. For more information, visit www.iombn.im or email info@ iombn.im.
L-R: Alex Wilson (Vice Chairman), Katie Nicholson (President), Dearbhla Doyle (Chairman)
Chamber hosts IOM’s first ‘Be The Blockchain’ event
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lockchain is increasingly in the news, but do you understand the impact it will have in the future? Many of us don’t, which is why Isle of Man Chamber of Commerce in conjunction with PwC Isle of Man and the Isle of Man’s Digital Agency has organised a training event – titled ‘Be The Blockchain’. The event – on June 20 at Woodbourne House, Woodbourne Road, Douglas – is designed for anyone with little or no understanding of blockchain who wants to find out how it works. The event starts at 2pm for registration and refreshments, with the training experience running from 2.30pm to 5.30pm with a half-hour break at 3.45pm. An informal blockchain forum, with drinks sponsored by PwC, takes place from 5.30pm to 8pm. Tickets are £90 (exc VAT) per person for Chamber members, and £110 (exc VAT) for non-members. There’s a limit of two tickets per company. For tickets please visit the Isle of Man Chamber events page at: www.iomchamber.org.im
Offering ownership and responsibility: Tynwald parliamentary internships
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ynwald has offered 12-month parliamentary paid internship programmes since 2014. Arranged by the Clerk of Tynwald’s Office they provide an opportunity to gain training and experience in a wide range of parliamentary functions, procedures and services. Interns Emma Gaines, 23 and Benjamin Awkal, 21, entered the programme in August 2018. They will be completing their internships this July and have been reflecting on their experiences. University of Kent law graduate Benjamin said: ‘Policy and legislation are areas of special interest to me, so to be able to work in similar fields as a Tynwald intern has been really valuable.
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From the very first week I was given a lot of responsibility, working on evidence reports and clerking committee meetings, for example, which was very interesting. I found that much of the work you’re given tends to be tailored to your particular skill set, but you also get involved in areas you’re less familiar with, which expands your knowledge and helps to develop new skills.’ Emma graduated from the University of Newcastle with a degree in business and sociology. She said: ‘None of the work has been mundane. We’ve both been given ownership of projects, which is great. I’ve always been interested in children’s education and having worked at a summer camp in the US, was pleased
to be involved in Tynwald’s outreach activities, which included leading school tours of the Chambers and devising a programme for Year 12 and 13 students from Castle Rushen High School. Feedback has been very positive and I’ve been approached by a few students asking me about work experience opportunities at Tynwald. ON THE AGENDA...
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update - news
Vannin Ventures invests in innovative UK IoT technology firm
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annin Ventures, the Isle of Man-based business incubator, has invested in Trak365, the UK technology start-up focused on accelerating the development of a smart economy by using leading-edge IoT (Internet of Things) technology. The investment, says Vannin Ventures, is the start of a partnership to develop and scale-up Trak365’s innovative solution on the Island, in the UK, and across Europe. Trak365 has developed a high-quality, highly-configurable and easy to deploy solution for intelligent IoT connectivity and they are well positioned to benefit from the massive growth that is forecast in the IoT market. Trak365’s intelligent IoT solutions enable users to measure virtually anything and then automatically trigger, based on pre-set rules defined by the user, notifications, alarms and actions, in response to that input. This highly customisable approach enables the effective, automated monitoring of and response to, a massively wide range of situations. For example, if the temperature indicates there is a risk of frost damage to crops, heaters can be activated automatically to mitigate the threat – or if a river is rising rapidly, a warning can be sent via SMS to the community so that they can prepare. Both of these scenarios are real-life examples of Trak365 deployments in the UK. Tom Meageen, Managing Director of
L-R - Nigel Devenish, Operations Director of Trak365; Tom Meageen, Managing Director of Vannin Ventures; and Roger Roberts, Managing Director of Trak365.
Vannin Ventures, commented: “We all know that IoT will help to shape the future, but the practicalities of providing wireless connectivity for digital and legacy analogue devices is a real challenge for all technology businesses. While many companies claim to have a ‘plug and play’ solution that is easy to deploy, the reality is often very different. We’re investing in Trak365 because it is the highest quality, most reliable, and most flexible IoT solution that we could find. Trak365 has the potential to support a massive range of applications in all sectors of the Island’s economy, and the public sector.” In addition to its investment in Trak365, Vannin Ventures - which is part of the Manx Telecom group of companies - is also in the process of developing an IoT test bed on the Isle of Man, which
will be used to showcase and support Trak365 and other, future IoT technology partners. The Isle of Man is uniquely well-positioned to offer this inviting ‘proof of concept’ environment and Vannin Ventures is committed to supporting its development. Trak365 Managing Director, Roger Roberts, said: “We are very proud of the innovative products we have developed so far and are excited about the future potential for our intelligent IoT solutions. We are delighted to now be partnering with Vannin Ventures, as we enter the next stage of our development. As two businesses, we have very complementary skills and by working together, we can unlock the limitless growth opportunities open to us.”
For more information, and to see Trak365 case studies, go to www.trak365.com | www.vanninventures.com
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ON THE AGENDA...
update - Quanta
Blockchain - Cryptocurrencies
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y now, most people have in some way heard about the blockchain revolution - whether it’s local establishments accepting payments in Bitcoin, or Quanta operating an Ethereum-based lottery, blockchain technology is appearing everywhere. However, for such a significant technological breakthrough, it is difficult to get into. Blockchain-based cryptocurrencies allow for there to be a decentralised currency without the interference of banks and middlemen. The reason why blockchain can be used in this way is because of its inherent transparency. Blockchain can be thought of as a public ledger which keeps track of financial transactions. It is impossible to register fraudulent transactions or otherwise attempt to manipulate the system. It is a global collaboration on an epic scale. Getting hold of crypto starts with an “exchange”. Exchange websites come in all shapes and sizes, and can definitely be a daunting thing to navigate alone. Most exchanges work in the same basic way though - you create an account, deposit traditional currency, and exchange your currency for
your preferred cryptocurrency. Choosing an exchange for the first time can be confusing, so let this article be your crypto-compass! Some notable exchanges include CEX.io, Lykke and Binance. Make sure to conduct your own research before choosing the one which is right for you! First, create an account. It is usually the more credible exchanges which have very stringent signup procedures, so it’s
probably best to have an ID handy for when you create your account! CEX.io, for example, asks you for your email and to set a password - standard procedure. The exchange will then send you a confirmation email. After clicking the link, your account will be activated. This is where the high-security stuff comes in - you will need to enter your phone number and receive an activation text, submit photographic ID and a selfie of you with the ID and you’re good to go. This is all to prevent people from registering multiple accounts on the same exchange. Once the signup process is complete (you may have to wait a day or so for the exchange to review your information), you can deposit money with your credit/debit card and exchange it for Ethereum! The final step once you have your crypto is to transfer it from the exchange into your personal wallet. There are many wallet applications out there, such as Jaxx or Infinito. Once your crypto is in your wallet, it is yours to do with as you wish! Quanta 3rd Floor, Goldie House, Goldie Terrace, Douglas, Isle of Man, IM1 1EB W: www.myquanta.im F: www.facebook.com/QuantaTechnologyLTD Instagram: @quantalottery
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Play now at myquanta.im/get-started Now accepting Bitcoin
“*Winnings are paid out in Quanta Game Tokens (QGT), and at the time of transfer, the amount of QGT paid out to the jackpot winner will be equal to GBP £10,000. The timing of withdrawal of any winnings thereafter may affect the actual amount received once converted to Sterling due to the volatility of the Ethereum exchange rate which could go up or down. Quanta Lottery is owned and operated by Quanta Technology Limited, 3rd Floor, Goldie House, Goldie Terrace, Douglas, Isle of Man, IM1 1EB and is licensed and regulated by the Isle of Man Gambling Supervision Commission under the Online Gambling Regulation Act 2001 (licence issued 7th August 2017). Online gambling is regulated on the Isle of Man. Quanta Lottery is available to players aged 18 and over. Terms and Conditions apply. Visit myquanta.im for further information. Online gambling debts are enforceable in the Isle of Man Courts. Quanta is committed to responsible gambling and access to information and help is available on our website and at GamCare (www. gamcare.org.uk) or GambleAware (https://about. gambleaware.org). Both organisations offer vital support and we encourage anybody who has difficulty in controlling their gambling to contact either or both organisations for further assistance. Remember, when the fun stops, stop!”
brand voice - Luviair limited
Helicopters:
the Future of Corporate
Travel
Discovering Corporate Helicopter Transport Helicopters have many uses: as military vehicles, flying the rich and famous, or filming events like the TT from the air. An often overlooked use of these aircraft is corporate transport. The market for corporate helicopters is still smaller than it could be. Their value is especially true for island-based companies where executives have to rely on often sporadic and unreliable third party methods to get them to where they need to be. Corporate helicopter travel is becoming more popular, especially in the United States. We spoke with a representative of a large US insurance company about how he sees their flight capability and the future of corporate flying. “This situation is still quite unique”, he says. “Most helicopters in the Northeast [of the USA] are VIP-only helicopters. Our helicopters, along with our Jets, are used not only for VIPs but for anyone in the company with a business-related reason for travel.” In fact, they hardly ever fly VIPs. “Most of our flying is with nine passengers per helicopter; it is more like a shuttle.” Helicopters are on the rise in megacities. So much so that companies dubbed “Ubers of the sky” that offer travel by the seat have cropped up in cities like New York and Mumbai. The reason for this is simple: urban transport is a nightmare. It is impossible to
Imagine this:
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ou have a meeting scheduled in mainland UK. This meeting is an incredible opportunity for the future of your company - your attendance is vital. However, the day of the meeting, you wake up to discover your flight has been cancelled and the upcoming sailings are all booked up. Now stuck on the island, you are faced with the fact that you may miss it, and risk the opportunity that lies before you. This is where helicopters comes in.
Words by: Emma Watson
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ON THE AGENDA...
“Most of our flying is with nine passengers per helicopter; it is more like a shuttle.” model, how it has been operated and how it was originally configured will determine how it is seen in the market place and dictate its resale value. A discussion at the earliest stage of purchase is vital to provide the best options in the future.
get anywhere via normal transportation methods, hindered by scheduling, delays and traffic. Sound familiar? Off-island travel is sometimes just as difficult and unreliable, if not more. Helicopters are the versatile and time-saving solution to this problem. There has never been a better time to buy a helicopter. Because there are so many excellent models on the market! From the classic to the innovative, the elite to the functional, there is a make and model for every use. However, they might not all be suited to how you want to fly. Simply put, the best helicopter for your business is a helicopter you can use. So, you need to figure out what your needs are exactly, to assist you in making the right choice. How regularly will you be flying, and how far away? How many people will you be carrying? Will you be needing a VIP finish to the interiors? Will you be offering flights commercially? Should you buy new or pre-owned? The answers to questions like these will help you narrow down your choices, until you find your perfect aircraft. CONNECTING BUSINESSES
Helicopter lives can exceed thirty years. Components are replaced during regular maintenance intervals until aircraft are approximately 80% renewed by their 15th anniversary: a repeating cycle. They will always have the capabilities they began with, but this cyclical maintenance means that the machines also undergo upgrades to engines and systems that continually maintain or even improve performance. Refurbishments of the cabin interior and external paint are easily done, and can transform the helicopter into something fresh, new and modern. Under proper management, like that provided by Luviair Limited, at thirty years old your aircraft will look almost as it did when you first purchased it. Luviair manages a fleet of globally-operating helicopters out of their Isle of Man base. Find out more at www.luviair.com. A helicopter can provide a long and dependable service. Of course, circumstances can change. This is why future-proofing is essential. When the time comes to move on, either selling the helicopter, or trading it in for a newer
Helicopter transport is possible at every level. There are many costs associated with helicopter ownership; as such, corporate rotorcraft have, for the most part, been limited to use in very large corporations. However, smaller companies have still been known to invest in this time-saving mode of transport, with a few cost-saving methods. Costs can be offset through charter flights. The aircraft can be leased out for a period of time or a particular trip. Or, should they be flying to a popular destination at half capacity, they can offer up the extra seats to individuals who need to complete the same journey. Some companies cannot justify the cost of full rotorcraft ownership, in which case they may opt for a fractional ownership scheme. Thereby, they share a helicopter and all the costs associated with it with another party, or parties, who have similar flight needs to themselves. Finally, companies may opt to book charter flights if helicopter travel is a truly sporadic need, or as a means of ‘testing the waters’ before committing to an aircraft of their own. Helicopter ownership is a competitive advantage. With a corporate helicopter, you could have full control of your business travel. They serve as an impressive machine for entertaining visiting guests, and branded with your corporate identity, they are a unique marketing tool. With long lives, versatility and reliability, helicopters are the future of corporate travel. Getting to the bottom of your flying requirements can be tricky. Nigel Watson has been flying for 20 years, and now living on the Isle of Man, is expertly placed to help you make your decision. Contact us for an assessment on whether your company may benefit from helicopter ownership, or visit www.nigelwatson.im for more.
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update - news
Banker and economist provides insight to Island audience
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leading Chinese economist has praised the Isle of Man’s economy and regulatory environment saying there is real scope to learn from each other and develop working relationships. Jinny Yan, Managing Director and Chief China Economist for ICBC Standard Bank, recently visited the Island to present a lunch seminar at Standard Bank’s headquarters in Douglas. During her visit Jinny also met senior figures from the Isle of Man Government, including Treasury Minister Alfred Cannan, alongside Chris Till Chief Executive Officer of Standard Bank Isle of Man. Jinny is considered a go-to expert on Chinese finance, believes the quality of growth and regulation in the Island is something China can learn from. She explained: ‘It was a pleasure to travel to the Island and find out first-hand about the impressive economic growth and hear more about what is a second-to-none regulatory environment which is firmly embedded in the economy. ‘China now has the second largest economy in the world but, to put things in perspective, the Isle of Man is more affluent than even the wealthiest city in China, by almost four times. That will be against some perceptions, but it is very much what the statistics are showing, and we can learn from the island’s experiences.
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‘The Isle of Man has a sound infrastructure and from the moment I landed I saw evidence that business clearly thrives and diversifies here.’ Ms Yan provided fascinating insights into the economic slowdown in China and the need for sustainable projects to support growth. She also spoke about the comprehensive research programme that she has been working on – the ICBC Belt and Road Economic Indices - which
“It was a pleasure to travel to the Island and find out first-hand about the impressive economic growth and hear more about what is a secondto-none regulatory environment which is firmly embedded in the economy”
measures the health and connectivity of China to other economies along the Belt and Road. The Belt and Road initiative is a Chinese fiscal policy which encourages global connectivity with large-scale infrastructure projects spanning across Asia, Africa and Europe. The index provides individual country indicators, helping investors to make informed decisions. Jinny continued: ‘The Belt and Road initiative helps focus on recreating ancient trade routes with the rest of world as increased bilateral connectivity clearly drives economic development in these countries. ‘Originally the initiative included 65 countries spanning from Asia to western Europe, but we’ve seen this increase to more than 88 countries, reaching into Africa, Australia and South America. This is clear evidence the Belt and Road initiative in expanding, with more than $750 billion in investments. ‘Infrastructure still dominates the projects, but increased investment in new sectors is growing. For example, $15 billion dollars to tourism, $18 billion in technology and finance and $65 billion in real estate. ‘With a healthy infrastructure in place and connectivity you are more likely to receive attract investments. The rise of Chinese consumers could certainly bring opportunities to the Island in the future. ON THE AGENDA...
update - Interview When (& how) did you first get interested in table tennis? I started playing table tennis when I was about 8 years old on my Gran’s dining room table, so I was used to being regularly being beaten by a 75 year old woman with 2 fake hips. However, I overcame that embarrassment and, like a lot of people on the Island, I entered the Manx Youth Games to try a few different sports (and play against some people my own age) with table tennis the one that stuck. Having played in the Manx Youth Games I was really keen to continue playing so joined the local junior league on the Island and I have been playing fairly regularly ever since. What’s been a highlight of playing the sport so far? / Your proudest moment? This year me and Scott Lewis (who is also going to the Island Games) won the Isle of Man doubles championship. That was a gratifying moment for me as it showed the work Scott and I had been putting into practicing was paying off.
Interview with Chris Holmes Tax Consultant, KPMG Isle of Man Chris Holmes is representing the Isle of Man in table tennis at the 2019 Island games that is taking place in Gibraltar between 6 - 12 July. Agenda caught up with Chris, a tax consultant at KPMG, who also support the table tennis team. CONNECTING BUSINESSES
How have you been training in the run up to the Island Games? The team gets together and practice once a week at the NSC and there are a couple of other sessions in Ramsey and Castletown during the week. I’m trying to attend as many of these as I can. Also, I have recently put a table in my garage which has made everything a little bit easier, it has been nice to be able to go and practice for just an hour or even less without having to drive anywhere or book anywhere. I have also been going away to competitions in the UK. It has been really helpful to play different players and play people with different styles. What’s the feeling in the team about the upcoming Island Games? We are all very excited to be going. I know in some sports the Isle of Man is the favourite to win a raft of medals and that can add some pressure, in table tennis we going to do the best we can, but I know other Islands have 24/7 practice facilities and we find it quite hard to complete with people who have the option to play all the time. So I don’t feel too much pressure and I’m just really looking forward to going. The one thing I am nervous about is playing in a school hall, in Gibraltar, in July. I’m slightly concerned I will melt. What words of advice would you give to anyone looking to play table tennis? Just get involved! Table tennis is great sport, that is very friendly and anyone can play. It doesn’t matter how old you are or how good you are. If you are interested have a look at the Isle of Man Table Tennis website or Facebook page.
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update - Workplace feature
Workers will be paid when they please in a tight market Employers should abandon a payroll system left over from the last century Words by: Merryn Somerset Webb (FT.com)
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ON THE AGENDA...
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n 1954, UK-based technology company Pye Radio came up with a neat little cost-cutting innovation. In order to avoid the expense that came with collecting cash from the bank, guarding it, checking it and sorting it into individual wage packets, they decided they would pay their (mostly very skilled) workers by cheque. It did not go well. Employees weren’t keen on having to do the extra work of collecting the cash themselves. Protests were made on the basis that the system contravened the Truck Act of 1831, which forced employers to pay wages in the “current coin of the realm” (rather than in scrip). The labour market was tight at the time; unemployment in the UK was under 2 per cent. Pye went back to cash. It was another six years until they could try again: the 1960 Payment of Wages Act finally allowed employers to pay wages by cheque, something the banks had long been pushing for (people with cheques often like to have bank accounts). Take up was slow — so slow, in fact, that the secretary of the UK’s Banking Information Service, John Hunsworth, was driven to hope that there could be a way to make a status symbol out of the depositing of cheques into a bank account. Once everyone had an account, he hoped employees would begin — as was already the case in the US — being paid fortnightly or monthly instead of each week. Good for the banks and good for employer cash flow. Innovation hasn’t always come fast to the payroll sector. In the end it happened as he hoped. And, for the past 40-odd years, nothing has changed. The assumption that being paid monthly into a designated bank account is a correct and sustainable norm is so embedded into payroll thinking that even the recent revamp of the UK’s benefit system insists on benefits being paid monthly. Welfare recipients, says the state, must learn to budget like workers. But here is the interesting part: it seems that this is not how workers want to budget. And, with the US labour market very tight (unemployment is the lowest since the late-1960s) and the restoring of manufacturing in a tariff-tense world likely to make it more so, that is beginning to matter. So, what do workers want? They want employers to abandon the idea that payroll timing has to be dominated by a system left over from pen and paper calculation days and to start paying them more flexibly — daily or perhaps after every shift. Some employers are responding already, particularly at the lower end of the market (where labour is harder to find than at the highly-skilled end). Drivers for CONNECTING BUSINESSES
“A slogan used, Instant Financial, sums the idea up as: a “solution to succeeding in a tough labour market”
the ride-hailing app Lyft can be paid the old-fashioned way into a bank account or via Express Pay, which lets them draw down their pay to a debit card every time their accumulated earnings hit $50. Uber and franchises of McDonald’s, Taco Bell and Wendy’s all offer similar plans and a whole sector of companies providing instant payroll services to employers is popping up to serve the nascent demand. It makes sense for many workers: if 75 per cent of Americans say they live payday to payday why wouldn’t they want to rip up a system that effectively makes them a creditor to their corporate employers and force those employers to pay them in real time? It should work for employers too. One company that facilitates such a system claims that those who use it see a 41 per cent reduction in staff turnover and that workers are nearly twice as likely to apply for a job that offers pay on demand. The slogan used by another such business, Instant Financial, sums the idea up as: a “solution to succeeding in the toughest labour market”. The arguments against catering to workers’ demands in this way mostly come down to admin and expense. Transferring money to bank accounts or to prepaid debit cards costs either employers or employees something. The more often you do it, the more it costs. Lyft workers pay a 50-cent transfer fee when they drawdown, for example — and that’s a relatively low fee. Charges of this kind draw the criticism that pay on demand is no more than a cheaper version of a payday loan. Then there is the fact that companies wanting to internalise the cost via their own payroll (rather than via effective loans from a payment company) usually have to submit data to the relevant tax authorities with each payment. Do that every day instead of every month and you’ll need either better software or a lot more people. Finally, some take the view that allowing workers to draw their earnings as and when they want them will make it harder to budget sensibly. These objections are all either manageable or irrelevant. The only thing that matters in a period of labour shortage is what a worker requires in order to take, and keep, the job that is offered. So to build a good workforce, employers will have to pay up for the relevant software; cover the extra transfer costs; manage their cash flow; and stop patronising low earners about their money management. The Pye workers used the labour shortage as leverage to force their employers to pay them their way back in 1954. Today’s workers will probably do the same. What labour wants labour will get. The writer is editor-in-chief of MoneyWeek.
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update - Tim Shallcross KPMG
Travel Diary to Finland
by Tim Shallcross, Senior Markets Manager, KPMG Isle of Man
IN THIS EDITION WE FOLLOW KPMG’S SENIOR MARKETS MANAGER TIM SHALLCROSS AS HE TRAVELS TO HELSINKI FOR A EUROPE, MIDDLE EAST & AFRICA (EMA) KPMG MARKETS CONFERENCE.
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have been very privileged in my career to date to have travelled all around the world but this is the first time I have travelled to Finland and in fact, any Nordic country, so I was looking forward to experiencing a new country and their culture.
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Monday Having flown over to London a day earlier, I had an early start to catch my flight to Helsinki from Heathrow. Flights are a perfect opportunity to catch-up on work especially as there were no distractions for 3 hours. I landed in Helsinki to glorious warm sunshine and clear skies - I am latterly told it is always like this…though that sounds similar to what I say to visitors to the Isle of Man on a sunny day. Having checked-in at my hotel and caught up on some work, it is early evening so I ventured out of my hotel for a spot of exploring whilst finding somewhere to eat. Although travel is never as glamorous as it seems, I always try and find an hour to explore and get a vibe for a new place I am in. Helsinki didn’t disappoint and displayed so much character mixing in both old and new from the cobbled streets and to electric trams through to street markets and picnics in the parks. Tuesday Today was the main reason for travel, attending the conference. With it being EMA, there was a wide representation that covered Bangladesh and Dubai from Middle East, South Africa from Africa, a good representation from the larger European nations as well as a strong representation from the Nordic offices. We were privileged to have a leading Finnish businessman speak to us, offering insight into transformational change within business and incorporating his recent experiences in how incorporating digital and automated solutions are aiding rapid growth to their business. This was extremely interesting to hear particularly as that is an area we are seeing real opportunity from within our Isle of Man Office for the local market. Following this talk, there was an update on where KPMG are with our various digital solutions where we are now global market leaders. This is supported by the fact KPMG have recently been recognised by three separate organisations: Gartner, Forrester Wave, and HFS Research. It was also encouraging to see that as an Isle of Man firm, we’re turning emerging trends into innovative solutions and no more so
than with cyber, automation and robotic process automations (RPA). The time set aside for networking was really beneficial. This can usually be seen as a time to catch-up on emails and make calls back to the office but today, everybody was keen to hear and learn off each other - where one might be struggling with a various process, another office has a ready-made solution. It is one of the best aspects about being part of a global network in that everybody is aiming for the same goal and willing to help where they can. The afternoon saw smaller breakout sessions that included technology to enhance client experience, social media (particularly LinkedIn), upcoming events and ways, as a collective, we can make the most of our social media exposure. The day concluded with dinner looking across the Baltic Sea and we were privileged to have another successful local entrepreneur speak to us, who provided his insight, again following the digital trend, of how his business is utilising automation, RPA and AI in the medical industry. Over dinner it was, again, a fantastic opportunity to develop relationships with other offices, share ideas and open up dialogue about future collaborations. Wednesday No sooner had I arrived in Helsinki, it was time to depart and I would find my way back home using ‘planes, trains and automobiles’. There was a lot to absorb from the conference, a lot for me to bring back to the office in the Isle of Man to share and see how it can be implemented. The few days were also helped by Helsinki being such a beautiful and charming city and I have already told my wife that we are coming again for a city break holiday. ON THE AGENDA...
What I listened to en route
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CONNECTING BUSINESSES
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update - company profile
Chinese Company Which Can Attract Overseas Investment for Island-based Businesses
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major promotion to make potential Chinese high net worth investors aware of the opportunities offered by the Isle of Man and its small and medium companies with ambitious entrepreneurs at their helm is due to take place over the coming months. Behind this move is Counton Global Mobility Solutions (“Counton GMS”), a specialist immigration and wealth consultancy firm based in the City of London which opened an office in Victoria Street, Douglas two years ago. “We attract overseas investors to invest their funds in island-based businesses,” says Ted Fang, the company’s business development manager. “We have a long-term presence in the island, with eight people working here already and we will be seeking to employ more local employees. “We want the island to be aware that it has a professional firm specialising in immigration and global mobility. We are the island’s only mandarin-speaking consulting firm that can provide professional consulting on investment, entrepreneurship, immigration law and education to Chinese and other overseas individuals with global awareness. “More and more small and medium businesses are thriving, particularly in the food and beverage sector, and we want to make them aware there is an option to attract investment funds for those businesses,” says Ted. “There are, however, many high net worth investors who haven’t heard of the Isle of Man and the opportunities it is currently offering. To overcome this, we are looking to create more information about it to attract more clients to consider the island as a potential destination for their investments.” He continues: “Unfortunately, there are not many island-based businesses that are currently aware of our presence, but that is something we want to change. There are new businesses that we believe would welcome start-up funds. “On the one side, there are entrepreneurs who want to flourish and expand, and on the other are high net worth investors who have the funds to put into those businesses. We want to create a bridge between the two sides.
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“As the island is now welcoming more and more overseas talent to contribute to its economy, today’s workforce is increasingly international with companies now competing for talent on a global scale.”
ON THE AGENDA...
“Investors bring with them a breadth of knowledge and valuable skills which can be highly useful to a company’s future development. Our goal is to introduce and encourage our clients in China to place their investments here in the island. We wish to create more confidence and knowledge about the island and demonstrate to our clients there is an alternative option to typically more traditional investment destinations such as the UK, the United States or Canada. “There are also Chinese nationals who have UK related experience; perhaps they have studied in the UK or have a similar employment background in the UK. Taking it a step further, all due diligence is conducted by us and the ultimate time for investment funds is five years. “Those coming to the island will also want to know more about the lifestyle and compare it with that of the UK. Another all-important factor is the immigration rules.” Ted continued: “Our selling point for the Isle Of Man when talking to potential investors is that it is more open and continues to welcome new citizens and investment under the Tier 1 Entrepreneur Immigration scheme. The UK discontinued their scheme in March this year, which we see as being beneficial to the Isle of Man where this scheme is still in operation. The Tier 1 Entrepreneur visa is just one service we provide for both clients and companies. “We strive to do the best for our clients and the communities in which we operate. As the Isle Of Man’s workforce is increasingly international, with companies competing for talent on a global scale, we believe our service will be beneficial to the relocation involved. “When a business is looking to strategically deploy and secure talent, getting the immigration procedures right is a critical yet complex process. Even island-based employers do not always fully understand that even one small mistake in a visa application may result in it being turned down. “As the island is now welcoming more and more overseas talent to contribute to its economy, today’s workforce is increasingly international with companies now competing for talent on a global scale. “Two companies that have already benefited from Chinese investment include Harbour Lights at the Sefton Ltd with £230,000, and Garey Food Services Ltd where the figure is £237,000. There are many other medium and small companies that could benefit from more investment, but in doing so there is the complex process of getting immigration right. So that’s where Counton GMS steps in; our specialist approach provides fast turnaround solutions to any unexpected issues that arise.” CONNECTING BUSINESSES
“Those coming to the island will also want to know more about the lifestyle and compare it with that of the UK. Another all-important factor is the immigration rules.” Ted FANG Business Development Manager :: Counton GMS, European House, 22-24 Victoria Street, Douglas, IM1 2LE :: Email: ted.fang@countongms.com :: Direct Line: +44 (0)333320 8006
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update - Interview
The “Insecure Little Boy� Who Grew Up To Mix With Royalty And Billionaires A self-confessed insecure little boy who notched up changing seven schools and failed the 11-plus today manages the helicopter fleets of international billionaires and is regarded as a luxury yachting expert to the rich and famous. Words by: Les Able
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ON THE AGENDA...
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igel Watson, chief executive of Luviair Ltd which has its head office in Ronaldsway, is a man of many facets. While now a major name in the helicopter industry, here on the island he is founder of Manx Youth Opportunities (MYO), helping young people in their pursuit of a professional future. He also proudly holds a Cordon Bleu diploma from the Leith School of Food and Wine in Kensington. “I was then 30, single and had previously been in all male environments during my eight years at Sea in the Royal Navy and Sultan of Oman’s Navy, suddenly I was exposed to London’s female circuit,” says Nigel with a grin. “I experienced some great food at that time, I learned that the essence of good cooking is to cook simply, but cook well, but for some reason I don’t get invited out for many dinners,” laughs Nigel who, after a year at Leith’s went on to work for Wine Magazine. “One of the results of this was that I invested in wines over 10 years, at that time in my life I had a disposable income to do that,” adds Nigel, who with his wife Frauke and two daughters moved to the Isle of Man ten years ago. Born in Kent into a middle-class family, his father was a prison governor; being promoted from one prison to another meant the family moving with him. Nigel then faced what became normal to him, getting used to yet another school. “These moves made it easier to work and live anywhere but perhaps I was seeking where I belonged, so there was the wandering factor which is why I think island lifestyle suits me. We now live in a world where people aren’t sure what they
CONNECTING BUSINESSES
“The Sultan had small ships with British officers attached, I stayed there for over two years and had a wonderful experience of the culture and generosity of the Middle East. The Sultan’s commission hangs next to that of Her Majesty the Queen with pride at home.”
want, they may have to make changes to their life so being flexible is not such a bad thing.” The final school move came about when his father became governor of Wakefield Prison, housing some of the most notorious ‘lifers’ and although Nigel had failed his 11-plus first-time round Wakefield’s Queen Elizabeth Grammar School accepted him as a pupil. “I was not naturally academic, but I worked hard and was a good pupil.” From grammar school, where he had become Head Boy, it was to Trent Polytechnic in Nottingham, doing an accountancy course which eventually led to him being articled to a major firm of accountants. “It was useful experience, but I decided accountancy was definitely not for me. I am a good communicator, I like people, and this has served me well.” After a brief spell with a marketing company he decided he wanted to be a flight commander flying helicopters, and at the age of 21 was selected for entry to Britannia Royal Naval College in Dartmouth, having earlier failed an aptitude test to fly. “It was April,1979, the Duke of York arrived there in the Autumn as a flight entry and I was a seaman entry both of us in Hawke Division up on the hill, interesting times. The Queen took the April 1980 passing out parade, Lord High Admiral’s Divisions, which of course included her son.” From there he was sent to the Far East aboard HMS Naiad, travelling around Asia and then patrolling British seas as the navigating officer aboard HMS’s Stubbington and Orkney. These years saw him visiting the Isle of Man for the first time and offered the privilege of seeing Dunlop and Grant racing in the TT. “Little did I know that one day I would be living there.” He had already decided he didn’t want to be a long-term naval officer, flying was still his aim and he then took up a position with the Sultanate of Oman’s Navy. “The Sultan had small ships with British officers attached, I stayed there for over two years and had a wonderful experience of the culture and generosity of the Middle East. The Sultan’s commission hangs next to that of Her Majesty the Queen with pride at home.” One of the first luxury super yachts which Nigel recalls was the Nabila, then owned by the notorious Saudi billionaire and arms dealer Adnam Khashoggi, sitting alongside in Djibouti enroute through the Red Sea. Nabila’s name was later changed to Trump Princess when bought in 1988 by the man now President of the United States of America. A Naval officer with a Cordon Bleu diploma and a keen interest in service became a logical fit for the luxury yachting industry. He registered his CV with a number of agencies but discovered that it
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update - interview wasn’t so much his naval background that impressed but his Cordon Bleu diploma. “I travelled to the South of France walked the quays and knocked on doors but did not find the opportunity I was seeking. I returned to London somewhat depressed when a man called Peter Jago phoned me, having seen my CV he explained he was looking for someone who was sound at sea and the fact that I had a food and wine background was a bonus. A Saudi prince wanted a team around him and I became the chief officer of the Golden Odyssey for four years; then it was to San Diego to oversee the build of the Prince’s support ship, Golden Shadow which I was due to Captain.” San Diego, he discovered, was a good place to learn to fly at a reasonable cost, and soon had a private’s licence plus a Cessna 172 to enjoy. “It was a great time to learn to fly. I had started with airplanes, but I wanted to fly helicopters. I went to a helicopter school and after 20 years of that monkey sitting on my back, finally got my private and commercial helicopter licences.” Then came the realisation that there was nowhere to go for him in the “extraordinary world” of luxury yachts. Now married and living 45 miles from Nice airport, he decided to branch out on his own with an aviation consultancy advising yacht owners how to integrate helicopters aboard their yachts. “I love to interact with people at this level, they have a common theme of being wealthy and yet are so different. There is an openness to new ideas and adventures and of course the resources to pursue them.” The consultancy, HeliRiviera, is a success to this day but it was in 2006 that a management client offered an exciting opportunity and Nigel opened a new operating company Luviair based on the Isle of Man. “This was the turning point in my ambitions,” declares Nigel, now aged 61 and with no plans to retire yet. The short list of clients whose helicopters he manages is impressive. “They are very much VVIPs,” says Nigel. Looking back over an exceptionally varied career path he says: “There’s been a lot of success but I regret that my parents never got to see it. As a little boy I was insecure and as a young adult I struggled and battled through to achieve what I have today. “Young people are frightened to make mistakes when the reality is that mistakes are part of life. Making them is necessary to enjoy success and fulfilment. What now saddens me is that in the young there is a fear of making mistakes, when in most instances it does not really matter and will be called experience in years to come. Live your dream, take risks, sometimes you will be right, other times you will be wrong - but you will be living”
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FACT FILE REVELATIONS FAMILY? Married to Frauke for almost 25 years, thank you. Two amazing daughters Emma Louise and Olivia, Blessed. BEST GADGET? Technology changes so fast. At the moment, probably my most used is my Apple Watch – solely due to its health monitoring and easy pay functionality. SPARE TIME ACTIVITIES Cycling, singing at church, golf, reading from Waterstones’s Five Star Fiction table. FAVOURITE COLOUR? Blue. FAVOURITE MEAL? A Vodka Martini at Bentley’s in Mayfair, dressed Crab cocktail, Dover Sole with new potatoes and cream of spinach and a glass of Sauvignon Blanc. You have to sit at the downstairs bar, the people and
conversations are better. Not one that you can do all the time, but I love it. P.S Duke’s Bar in Mayfair is where you go for a cocktail and to talk to Alessandro. P.P.S I love the Tadich Grill in San Fransisco, similar reasons. WORST CHARACTER TRAIT? Impatience and too many ideas before breakfast, some of which actually fly which is useful in my business. PHOBIAS? Flying… just kidding! I think I’ve become more claustrophobic with age – based upon needing to know my way out of something. This is so important in the aviation and maritime world – in an emergency how do I get out of the craft? If I don’t know, as soon as you close those doors I get uncomfortable.
ON THE AGENDA...
FAVOURITE FILM OF ALL TIME? Forrest Gump, or something like that anyway. I am a Tom Hanks fan and Forrest’s journey is representative on a larger scale of many aspects of my life. MOST EMBARRASSING MOMENT? First hover in a helicopter as a solo pilot. Helicopters are so weight sensitive and when you learn you always have 2 people in the helicopter. When one of the people leaves the aircraft, the centre of gravity changes. So when I set off to hover for the first time, I was unprepared (I had been told) and did not reposition the cyclic enough. The three foot hover height ended up at about 30 feet and 10 feet too far to the right. My instructor stared at me open-mouthed and slowly told me to come down. Mooring the Motor yacht Golden Shadow in the Miraflores lock on the Pacific side of the Panama Canal. I had difficulty adapting from salt water to fresh and with the strong current, I nearly dented the stern of the 30M dollar yacht. Only avoided by an enormous fender in the way that almost popped from the impact. YOUR BEST QUALITY? Honesty & Openness. GUILTY PLEASURE? New owner of an R44 helicopter... and eating double cream with a slab of chocolate as a spoon.
CONNECTING BUSINESSES
BIGGEST INSPIRATION? Peter Jago. Mentor in Yachting, helped me though the passing of my Father and with my career. CV Failed A Levels, Choral scholarship to Cambridge, Law at Cambridge, Fleet Air Arm F4 Jet Jockey, Taught at TOP GUN, Helicopter pilot, Entrepreneur, Yacht Captain and defender of the weak. A PERFECT DAY? Everybody comes home safe at night. BEST PIECE OF ADVICE YOU’VE EVER HAD? Address conflict face to face. Take in conflict if it is of value, if not let it go out the other ear. Don’t hold grudges. My Dad always used to say: It’s always easy to say Yes, except when you mean No. WHAT DO YOU MOST DISLIKE? The insecurities of youth, when it really doesn’t matter. The fear of failure is such a limiting factor in the human condition. Again, it really doesn’t matter. IF YOU COULD GO BACK IN TIME, WHICH AGE WOULD YOU GO TO? I like the 20s. Theres something elegant about that time. Jazz, clothes, cars, times that seemed less complicated. An age of adventure and discovery. But with modern medicine please!
THE CRAZIEST THING THAT EVER HAPPENED TO YOU? Searching for a sailor drowned off a yacht that I was working with in Hurghada, Egypt. For 3 days we looked and the wind blew. When it was clear we wouldn’t find him, his parent’s flew in from Singapore and gave a blessing on the water. The second they dropped the rose petals, the wind stopped. There was peace. BIGGEST EXTRAVAGANCE? Golf membership at Terre Blanche, Airstream caravan, and an R44 helicopter. I have a small art collection which I consider to be more of an investment. TOP OF YOUR BUCKET ‘TO DO’ LIST? Survive Cancer. I was diagnosed with Bowel Cancer in 2017, I had curative surgery and chemotherapy and for now am free. It remains in my mind though I am grateful for each day and my faith. I could say a bunch of things of course, but honestly if it all ended tomorrow it wouldn’t be that bad. I’d like to see my wife happy and my kids grown up and happy as well. WHAT SONG/HYMN DO YOU WANT AT YOUR FUNERAL? Nimrod, Elgar’s. The Armed Man, a Mass for peace Polyphony & Stephen Layton - Karl Jenkins Something from The Shires or The Script. Country music and Ireland with great lyrics.
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update - movers & shakers
TISE adds experienced finance professional to local office
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he International Stock Exchange (TISE) has recruited experienced financial services professional Mike Lightfoot to its Isle of Man office. Mr Lightfoot joins as Business Development Manager with responsibility for helping to raise the visibility of TISE across the north of England. Carolyn Gelling, Head of the Isle of Man Office of TISEG, said: “I am delighted to welcome Mike to TISE. He brings a wealth of experience and knowledge from his time in a number of technical and business development roles in the financial services industry. I look forward to him progressing our work in the cities of the Northern Powerhouse as we increase the visibility of TISE and raise awareness of the proposition, with a particular focus on Small and Medium Enterprises (SMEs) and owner-managed businesses in the scale up or capital exit stages of their life cycle. Mr Lightfoot has previously worked across a range of firms in the international pensions and trust industry and was previously Managing Director with a private equity owned trust and corporate services provider. Mr Lightfoot said: “I am really pleased to join TISE. I have watched the significant growth of the business in the last few years and the development of the office in the Isle of Man and now I am excited to be playing my part in raising the profile of TISE in the UK.
New hire bolsters new look Creechurch Capital
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reechurch Capital, the Douglasbased boutique discretionary fund management firm, has announced the appointment of Miles Ashworth as its new Head of Private Wealth. This significant appointment follows the recent acquisition of Creechurch by the Nayyar Group and reinforces its intention to drive the business forward. Ashworth is no stranger to Creechurch having worked for the business for six years, most recently as a Senior Portfolio Manager, until his departure in 2017. He commented: “It was a great opportunity to re-join a successful business I have a close affinity for having started my investment management career at Creechurch Capital. Following the recent acquisition, I have been impressed with the new management team and their plans for the future. My ambitions have a clear focus on producing high quality investment returns and delivering on our client objectives. Creechurch have a client centric focus and a strong investment
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proposition, which is a great starting point for building on current relationships and attracting new assets during this next phase of growth.” Nayyar Group have a wealth of experience and expertise, and a determination to drive the business forward. Members of the Nayyar family are also shareholders of UK firm, Brookfield Partners INTL Limited, which owns multi award winning investment management firm, FACET. Jim Dolan, Director, Creechurch Capital, who arrived as part of the acquisition team and is now responsible for overall investment strategy, commented: “We are delighted to welcome Miles back to Creechurch and also to recognise his undoubted ability with his new title. I believe it is testament to the vision of the Nayyar Group that someone of his calibre has chosen to return and I look forward to working with him as we evolve the investment strategy of the business.” ON THE AGENDA...
Old Mutual International welcomes appointment of AAM Advisory CEO
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AM Advisory, the Singapore-based financial advice business which is part of Quilter plc, has announced the appointment of Eryk Lee as its new chief executive officer. The news has been welcomed by Old Mutual International which is one of the largest financial services employers on the Isle of Man with over 450 staff. Eryk Lee, previously chief financial officer of AAM, has vast financial and managerial experience in a number of large organisations which make him ideally placed to take over the day-to-day running of the business as it expands and collaborates further with Old Mutual International to produce good client outcomes. Prior to joining AAM, he was a director at Royal Bank of Scotland and had previously held roles at HSBC, KPMG and Ernst & Young among others. He said: “I’m really excited about the future prospects for the business, including opportunities to work more collaboratively with Old Mutual International to support the further expansion of AAM and continue to deliver great outcomes for our clients. I am thrilled to be able to spearhead this strategy as we embark on the next phase of the company’s growth.”
International Institute of Space Commerce announces Dr. Michael Simpson as new Managing Director
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he world’s leading open source think-tank on the economics and commerce of space, the ISU’s International Institute of Space Commerce (IISC), has appointed Dr. Michael Simpson as its new Managing Director and Board Member. “It was a privilege to be a founding director of the Institute during my Presidency at ISU, and to remain connected as a Senior Fellow afterwards,” Dr. Simpson said. “Now, a decade later, it is a special opportunity to guide its next steps into the future.” Dr. Simpson joins the Institute after his retirement as Executive Director of the Secure World Foundation (SWF), the world’s leading not-for-profit association focused on the secure, sustainable, and peaceful uses of outer space contributing to global stability and benefits on Earth. Prior to his service at SWF, Dr. Simpson served seven and a half years as the President of the International Space University where in collaboration with fellow IISC director, Dr. Walter Peeters, he was instrumental in fashioning the school’s now widely respected curriculum in space business. Dr. Simpson continues to hold a post of Professor on ISU’s Global Faculty, teaching in the departments of Space Policy and Law and Space Management and Business.
CONNECTING BUSINESSES
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brand voice - KPMG isle of man
TAXATION OF NON-UK COMPANIES
INVESTING IN UK PROPERTY
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ON THE AGENDA...
As many readers will be aware, the taxation of non-UK residents in relation to UK property has changed beyond all recognition in the past few years. Non-UK resident companies investing in UK real estate are used to filing UK income tax returns to declare their UK rental profits, and have also got to grips with the filing of Non-Resident Capital Gains Tax (“NRCGT”) returns and ATED-related capital gains tax (“ATED-CGT”) returns on the sale of UK residential property. They must now contend with the far more complicated issue of UK corporation tax which has, since 1 April 2019, applied to gains on the sale of both residential and commercial UK property and will shortly apply to their rental income profits. Below is a brief summary of the changes and overview of the implications and considerations.
Words by Katie Kneale - Senior Tax Manager, KPMG Isle of Man kkneale@kpmg.co.im
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atie Kneale, Senior Tax Manager at KPMG Isle of Man, considers the impact that recent changes to the taxation of companies investing in UK property will have for non-UK resident companies.
CONNECTING BUSINESSES
Chargeable gains Non-UK resident companies have not previously been subject to UK tax on the disposal of UK commercial property (provided it was held for investment purposes), whereas disposals of UK residential property by non-UK residents have, since 6 April 2015, been subject to NRCGT or, for property above a certain threshold and subject to a number of exemptions, since 6 April 2013, ATEDCGT. The interaction between NRCGT and ATED-CGT meant that companies were sometimes faced with two capital gains tax returns to file and potentially both NRCGT and ATED-CGT to pay (albeit in respect of different tranches of the taxable gain). From 1 April 2019, all UK property disposals made by non-UK resident companies (whether residential or commercial) are within the charge to UK corporation tax. A new charge on capital gains from the sale of certain property company shares (termed “indirect disposals” of property) has also been introduced. In conjunction with these changes, ATED-CGT has been abolished. Disposals of UK commercial investment property by non-UK resident companies will be subject to UK corporation tax to the extent gains are realised when compared with the 1 April 2019 value of the property (subject to any other computational rules being elected for). As such, property valuations may be required so as to ascertain the 1 April 2019 “base cost”.
UK rental income At present, profits from a UK property business generated by non-UK resident companies are subject to UK income tax at a rate of 20%. In general, the UK income tax rules in respect of the taxation of profits from a UK property business are less complex than the UK corporation tax rules applicable to the calculation of such profits. From 6 April 2020, non-UK resident companies holding UK property will be subject to UK corporation tax on their profits from a UK property business. The rate of corporation tax, which is currently 19%, is due to reduce to 17% from April 2020. HMRC have recently published guidance on registering a non-UK resident company for corporation tax and companies will need to calculate their UK rental profits in accordance with the UK’s corporation tax rules, and will need to consider, amongst other things, the following: n Losses generated after April 2020 will be subject to restrictions to the way in which they are utilised. However, where a company is part of a group, it may be eligible to claim or surrender losses by way of group loss relief. n Companies may be brought within the Quarterly Instalment Payment regime, broadly speaking where their taxable profits exceed £1.5m (divided by the number of 51% group companies). n The loan relationship and derivative contracts regimes. n Various administrative/return filing implications (for example the possible requirement to file accounts in iXBRL format). There is no doubt that many non-UK resident companies, used to dealing with the UK’s income tax rules, will find the transition to corporation tax onerous. If you require assistance dealing with this change, please contact a member of the KPMG Isle of Man tax team. We are here to help!
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opinion -feature
?? How income inequality affects our mental O health Drastic disparities of wealth are bad for rich and poor alike Words by: Gillian Tett (FT.com)
30
ver the past decade, a number of bodies have published thoughtprovoking data on mental health. Some of these reports have identified that levels of mental distress are rising across the western world and — more controversially — that there is a stark difference between nations. According to the World Health Organization, almost 25 per cent of the US population has suffered from mental stress, while in Australia, the UK, New Zealand and Canada the level hovers around 20 per cent. In Japan, the figure is below 10 per cent; so too in Germany, Spain and Italy — well below the US level. Why? An anthropologist might attribute this to different cultural concepts of individualism, happiness and self-expression. An economist might point to differing commercial incentives: in a country such as the US, where private sector companies make money by selling antidepressant drugs, there ON THE AGENDA...
“Almost 25 per cent of the US population has suffered from mental stress, while in Australia, the UK, New Zealand and Canada the level hovers around 20 per cent.”
are profits to be made by increasing the proportion of reported and self-reported people suffering from “stress”, “anxiety” or “depression”. If Richard Wilkinson and Kate Pickett, two London-based epidemiologists, are correct, there’s another explanation: income inequality. In 2009, they published a best-selling book, The Spirit Level, which argued that high income inequality in countries such as the US and the UK correlated with worse physical health, higher levels of violence and less productive economies. Wilkinson and Pickett have since extended this argument. Their most recent book, argues that unequal societies are not just more physically sick but are psychologically affected too. Their populations suffer more from issues ranging from chronic stress, anxiety and depression to bipolar disorder and addiction. Using WHO findings, along with a 2017 Lancet Psychiatry report that collected data from 27 separate studies, the authors show the correlation between mental health and income inequality, with Japan and the US occupying the opposite ends of the chart on both counts. They go on to show a high correlation between different national patterns of income inequality and problem gambling, childhood behavioural problems, bipolar disorder and even “self-enhancement bias” (exaggerating how important you are). The same goes for the CONNECTING BUSINESSES
correlation between income inequality and corporate advertising spend — a pattern that Wilkinson and Pickett attribute to greater consumerism in unequal countries such as the US, which they blame on status anxiety. The deterioration in mental health in unequal countries not only affects the poor, they argue, but the rich too (albeit to a much lower degree). “Despite unprecedented levels of physical comfort, we [in the Anglo-Saxon world] suffer a huge burden of unhappiness and mental illness,” they state, calling for new policies to reduce inequality in these countries. Some readers might roll their eyes at this. Correlation is not causation and one shortcoming in Wilkinson and Pickett’s arguments is that it is hard to be precise when measuring mental health. Not everyone would agree, say, that higher consumerism is a bad thing, or that status anxiety should be listed alongside depression and bipolar disorder. Caveats aside, however, it would be foolish to dismiss the authors’ arguments. This is far from the only book to highlight these issues in recent times. Indeed, a wave of titles has emerged from the political left and right of the debate, which illustrate the degree of mental pain, family fragmentation and communal stress that many Americans are experiencing today, particularly in poor communities. I’ve found it impossible to read the accounts in books such as Janesville, Evicted, Hillbilly Elegy and Coming Apart without feeling deeply sad and angry about the tragedies taking place in a country as rich as the US. It’s not just books. There are signs of a wider shift in the political zeitgeist. In recent decades, the American political discourse has tended to assume that income inequality is a relatively beneficial aspect of the American dream, insofar as it spurs competition, innovation and progress. Donald Trump appealed to the dispossessed working class not despite his vast wealth, but partly because of it: he presented it as a sign of success that should inspire others. But now a new conversation is developing, sparked by politicians such as Alexandria Ocasio-Cortez, the leftwing congresswoman from New York, who is among those calling for tax increases to help fight inequality. And, with the 2020 presidential election looming, the focus on this issue is likely to get more intense. Views on what (if anything) should be done to tackle the problem are, as ever, divided. The political right calls for stronger community ties and religious faith; the left seeks economic redistribution. If nothing else, The Inner Level serves as a useful reminder that it pays to put the issue in an international context; and to recognise that the inequality debate is about more than just money.
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opinion - Iom companies
Isle of Man companies mark Mental Health Awareness Week (May 13–19) TAKING A PRO-ACTIVE APPROACH TO MENTAL HEALTH
M
ental health and wellbeing are now considered of vital importance within the workplace. Recent studies have seen an increase, year on year, of mental health challenges in a variety of sectors, both public and private. Mental health problems are all too common in the workplace and it is the leading cause of sickness absence. A staggering 70 million work days are lost each year due to mental health problems in the UK, costing employers approximately £2.4 billion per year. Local audit & accountancy firm, KPMG, have chosen to take a pro-active approach to mental health prevention by incorporating the services of Londonbased Human Performance Consultancy, Pro-Noctis. Over the last 4 months, KPMG staff have enjoyed weekly 90-minute educational sessions covering a variety of topics ranging from positive psychology, organisational resilience, sleep hygiene, energy systems to meeting dynamics as well as having the opportunity for one-toone coaching sessions with Pro-Noctis’s performance coaches. The project was designed and researched alongside the firm’s HR Manager, Lynsey Harris, who commented, ‘The Pro-Noctis sessions have offered some simple and practical ways for
L-R Phil Quirk, Lynsey Harris and Russell Kelly
everyone to look after their mental health. With the stresses of modern life, we all face challenges from time to time. At KPMG, we’re keen to address this and we place a lot of emphasis on staff wellbeing.’ The success of the project was reflected with a noticeable improvement in the KPMG Global People Survey (GPS) in learning and development, with 83% of respondents stating they had access to learning and development which helped improve their knowledge and skills. KPMG’s Managing Partner on the Isle of Man, Russell Kelly, commented ‘Working with Phil and the team across our business has been very insightful and the feedback from staff has been
strong. Helping people to understand how their performance is impacted by state of mind and what drives certain types of behaviours have been extremely valuable to us.’ Pro-Noctis Co-Founder Phil Quirk said, ‘From our perspective the project has been an incredible success, and from a personal point of view it has been fantastic to work closely with everyone at KPMG over the 13 weeks the project spanned. We’ve been keen to highlight that making simple changes to how you live doesn’t need to cost a fortune or take up loads of time. Anyone can follow our advice. We’d encourage everyone to start today.’
Green light marks Mental Health Awareness Week
L
ighting of the dome at Old Mutual International’s landmark HQ building in Onchan was switched to green to mark Mental Health Awareness Week (May 13 – 19). During the week the company also hosted a workshop on stress identification and management delivered by a team from the Lisa Lowe Centre, and employees were encouraged to wear green ribbons to show their support for mental health awareness. Old Mutual International – which is one of the largest financial services employers on the Isle of Man with over 450 staff – is the international arm of Quilter plc. Mental
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Health Awareness Week activities have been taking place across Quilter plc. Peter Kenny, CEO at Old Mutual International, thanked the Lisa Lowe Centre team for taking the time to come and share practical advice with colleagues on how to identify and manage stress and added: “Mental Health Awareness Week is an opportunity for everyone in the business to talk about this very important issue. Activities here on the Island, and internationally across Quilter plc, are part of a long-term strategy to ensure everyone feels supported with their wellbeing. Last year Quilter plc signed a ‘Time to Change’ pledge
to demonstrate a commitment to reduce the stigma and silence around mental health in the workplace. We have been encouraging everyone to take 10 minutes to talk to colleagues. It doesn’t have to be specifically about mental health, it’s about encouraging people to find 10 minutes to chat, get to know a colleague better, or simply ask ‘are you ok?’ Creating opportunities for these one-to-one talks can start conversations that create connections which can make a big difference, which in some cases can be life changing. We’re creating an environment in which employees and the business can thrive.”
>>>
ON THE AGENDA...
Five tips to avoid burnout 1
Don’t be hard on yourself. There is no one right way to prevent burnout. It usually takes some time to develop a list of strategies and to try them out before you work out what is best for you and your lifestyle.
2
A crucial first step when preventing physical and emotional exhaustion is prioritising healthy eating, exercise, and better sleeping habits. Be intentional about scheduling time in your diary to do a physical activity at least once a week.
Sure launches mental health drop-in sessions
L
ocal telecoms company Sure is encouraging its employees to think about their mental health and wellbeing and has introduced drop-in sessions run by mental health first aiders. The sessions will take place weekly and are open to all employees to confidentially discuss any aspect of mental health with a qualified mental health first aider from Sure. Sure has 22 mental health first aiders among its workforce in the Channel Islands and Isle of Man and they have undergone specialist training to increase their awareness of mental health issues and address any queries or concerns their colleagues may have. They are equipped with the knowledge to signpost employees to relevant services if they want further guidance or advice. Sure is marked Mental Health Awareness Week (May 13 – 19), by
3
running a range of optional activities for employees, including an introduction to mindfulness, a group walk and sessions that provide tools for addressing mental health issues. Lucienne De La Mare, HR director at Sure, said: “Mental health problems can affect anyone at any time so we’ve introduced drop-in sessions to give our employees a safe space to discuss anything relating to mental health. “Sure employs more than 30 people in the Isle of Man and we have a duty of care to each of those employees. Starting the conversation about mental health is just one of the ways we work with our employees to provide a positive working environment for them that ultimately leads to an excellent customer experience.”
Don’t be afraid to set boundaries at work by clarifying expectations and responsibilities. Learn to say no. It’s impossible to be everything to everyone. Besides, saying ‘no’ means you can say ‘yes’ to the things that you want to do.
4
Get support. When you are overwhelmed or stressed there can be a natural tendency to disconnect from people and isolate yourself. Speaking to people you trust, and who care about you, can help you gain fresh perspective.
5
Perfectionism and burnout go hand in hand. We live in a world dominated by the pursuit of perfection and it is easy to translate this into our work life. It makes us too self critical when completing tasks. Write down what is most important to you to achieve — and get into the habit of prioritising those tasks. www.mentalhealth.org.uk
Across Quilter plc there’s also a ‘Thrive’ programme available to all employees which focuses on four key areas that can help anyone to improve their mental wellbeing, energy levels, and resilience – namely, physical health, emotional and mental wellbeing, social interaction, and financial health. CONNECTING BUSINESSES
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opinion - mental health awareness
Social networking and the increasing burden on
mental health Managing the effects of constant personal and professional use of social media is tricky
B
Words by: Darren Dodd (FT.com)
arely a week passes without another study raising concerns about our compulsive use of smartphones and social media.
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ON THE AGENDA...
“The flashing light on the phone can become so integral that we can feel discomfort without it”
CONNECTING BUSINESSES
Ofcom, the UK communications regulator, found that two-fifths of adults looked at their phones within five minutes of waking up — rising to almost two-thirds for those under 35. More than half said their devices interrupted face-to-face conversations with friends and family. The Pew Research Center, a US think-tank, reported that a quarter of American adults were “almost constantly” online. About half of respondents to the latest edition of a long-running UK survey from the consultancy Deloitte admitted they had a constant need to check their phone. So how is this affecting business life? There is now widespread acceptance that the burden of emails, which continue to flood into inboxes even after individuals have finished work, could have negative effects on mental health. Indeed, it was the mass adoption of email on mobiles that began the modern era of “technostress,” says Cary Cooper, professor of organisational psychology and health at Manchester Business School. Cooper co-chairs the National Forum for Health and Wellbeing at Work, which brings together large employers such as BT, BP and Shell with government, health and social media representatives to “reduce the stress levels and increase productivity of UK plc”. “Constantly checking our devices is causing people to be overloaded,” he says. “It diverts them away from their job, and engages them when they should be resting at night, at weekends, and they’re not interacting with their families as much.” Paul McLaren, a psychiatrist at the Priory Hospital in Kent, concurs. “The ability to access email from anywhere, from the toilet to the top of a mountain, makes it hard for people who struggle with boundaries. Weekend ‘down time’ and holidays get invaded by the incoming flow. The flashing light on the phone or incoming alert can become so integral to our sensory experience that we can feel discomfort without them.” Richard MacKinnon, an occupational psychologist and managing director of WorkLifePsych, which provides occupational psychology support, takes a similar view. “Executives I work with list email as one of their big stress points at work. They’re there to create and implement strategy and yet here they are, at eight, nine, 10 o’clock at night emptying their inbox, only for it to refill the next day.”
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opinion - mental health awareness
France has recognised the problem, introducing a law guaranteeing employees the right to “disconnect” after they leave the workplace. And at corporate level, some big German companies have made attempts to tackle the overload. Daimler automatically deletes employees’ emails while they are on vacation and Volkswagen blocks them out of hours — although they are in workers’ inbox when they return to work. Legislation is, however, not the answer, argues MacKinnon. “As soon as you create a law, the first thing people do is look for a loophole. It’s like whack-a-mole,” he says. Strict rules also prevent the flexibility that some workers prefer, says Cooper. Cooper’s forum has instead produced
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ON THE AGENDA...
guidelines to help companies instil a balance between wellbeing and the benefits of being connected. These include respecting colleagues’ rest-time, clear leadership from management in setting behavioural norms, discouraging “reply-all” emails, and regular reminders of the power of switching off through, for example, “noemail Fridays”. Change must come from the top, says David D’Souza, membership director for the Chartered Institute of Personnel and Development. He says: “Leaders need to be aware of the fact that responding to an email at 10 o’clock on a Saturday night sends out a clear message to the organisation: the most senior people here, the people who are most successful, are the ones that just don’t stop. That can have severe health ramifications.” McLaren adds: “Most employers will have policies which discourage the use of personal or company devices for personal use during work hours but, if the addiction is strong enough, then people will still do it. Most people will glance at text messages or Facebook during the working day, and the line between personal communication time and work time becomes blurred.” These blurred lines may be one reason that compulsive use of social media has yet to show up as a big issue for employers. Business worries have until now focused on the risks to a company’s reputation from a misjudged tweet or status update rather than an employee’s mental health. Although not yet considered to be as harmful as addictions to online gambling, gaming or pornography, concern is nevertheless growing about social media’s effect on our working lives. Susan Hepburn, a London-based therapist and addiction expert, says there has been a “significant rise in individuals coming to me regarding addictions to social media — especially over the past eight to 10 years. Some have even lost their job as a result.” The problem is almost certainly underreported. “Social media is so ingrained now in most people’s lives that they would probably not consider mentioning it,” says McLaren. But while tools such as Apple’s Screen Time feature — which allows users to set limits on how much time they spend on apps — acknowledge the problem of excessive use, MacKinnon and D’Souza think social media is unlikely to be responsible for falling productivity. “People using Facebook at their workstation is obviously a timedrainer but, historically, we all found ways to waste time at work,” says D’Souza. Hepburn, however, thinks that because social media usage is still below most companies’ radars, it could become a problem. “Many employers do not implement strict or clear rules regarding the use of social media at work and so with the absence of a threat or a severe consequence, many [employees] believe it is OK to have a CONNECTING BUSINESSES
“Historically, we all found ways to waste time at work”
quick glance at their social media channels. Unfortunately, this can then spiral into a more severe addiction.” Social media usage at work would be very difficult to control. Companies increasingly use the same tools for business, such as Twitter and Facebook, as their workers do for social reasons, and those in sectors such as marketing are actively encouraged to develop their profiles. But employers need to be alert to potential problems among their workers, says McLaren. “Look at productivity. Is their performance falling off? Are they doing what they need to? Are they realising their potential? Managers can see phone use and texting in open plan offices. Is someone distracted because they are getting ‘buzzed’ or ‘bleeped’ throughout the working day? Are they paying more attention to their phone than the work in front of them?” Companies should be explicit, he says. “Tell employees when to and when not to access email. Tell employees to protect their downtime. Make sure senior managers set an example. As with other mental health issues, it’s about promoting awareness and making sure that if employees get into difficulties then they can ask for help.” Hepburn suggests simple solutions including making sure employees have “offline periods throughout the day, whether through organised team meetings, group lunches or providing lunchtime activities such as yoga — to get employees to switch off completely and take a step back from the continual stream of online media.” However, the bigger issue is that work practices have yet to adjust to a new age, says Lesley Giles, director of the Work Foundation employment think-tank. “Technologies are such a disruptive force in workplaces. They’re flipping on the head the way we do certain things,” she says. “The challenge for businesses is that they really have to embrace that change and go with it because the boundaries are blurring between what is work and what isn’t work.” Both MacKinnon and Cooper think that if employers notice staff are using social media excessively, then work practices need to be examined. “It could be boredom, it could be anxiety, it could be uncertainty of what to do next, and it could simply be a feeling of being overwhelmed by workload,” says MacKinnon. “What’s making employees want to use social media during work time?” asks Cooper. “There is a reason for it. Maybe they’re not stretched, not properly managed, not given adequate objectives. So don’t blame the social media; try to unwrap why they’re doing it.”
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IoD - iom welcome
DEAR MEMBERS,
Welcome
to the 11th edition of Agenda.
I
am writing this introduction to the IoD section of Agenda overlooking Douglas Bay on a stunning spring evening. How lucky are we who live on this Jewel in the Irish Sea where we can run businesses efficiently and in close proximity with key stakeholders whilst enjoying the beauty of this Island!... As usual, it has been a busy quarter for the Institute, both here and in the UK. In March we held a CPD seminar at the Claremont on the Equality Act 2017. Members and guests were given the opportunity to hear from Dawn Kinnish, Equality Advisor to Isle of Man Government and Caren Pegg, Partner at Appleby, on Director’s Responsibilities in relation to the Equality Act 2017, specifically on the topics of Disability and Harassment in the workplace. The course was kindly sponsored by Appleby, and a lively Q&A session finished off the evening event. Then in April we said congratulations to Paul Kerruish (and Tiffany Kerruishin her supporting role) for winning the IoD North West & Isle of Man Director of the Year Awards 2019 for a Start-Up, specifically The Fynoderee Distillery. The award ceremony (attended by a record 300 members and guests) was held in the amazing Hilton Manchester Deansgate, and the evening was sponsored by Kuits Solicitors. Many said that Paul’s story about the making of a local Manx gin and vodka distillery was both unique and inspiring. It is the first time the Isle of Man partnered with the North West for this event, and what a fantastic opportunity it has been! Claire Ebrey MIoD and her team, including Mike Blackburn OBE, did a fantastic job pulling off such a professional, emotional and fun show. I felt really honoured to be part of the event, and I was humbled by the amount of talent and hard-working success stories that filled the room. I can confirm that there was a significant increase in Manx gin and vodka ordered on that day!... We all wish Paul every success at the IoD national awards in London in October 2019. Also in April, an excellent lunchtime seminar was held on Digital Crime by the London Institute of Banking and Finance, in partnership with the IoD Isle of Man Branch. The speakers included Colin Tansley, founder and MD of Intelect, and Jed Bibby, Director of Isle of Man Financial and Cyber Crime. Over 90 guests who attended left with a better understanding of the types of crimes and criminals that operate on the Internet. A key message was to properly train all employees as prevention is the best form of security. Last month we saw the launch of our very first Isle of Man IoD99 Roadshow event. “Start Up to Scale Up” offered entrepreneurs and new businesses an opportunity to question key industry figures. Barclays Eagle Lab provided a contemporary venue for a lively question and answer session. The panel, Carolyn Gelling (Isle of Man Office for The International Stock Exchange Group), Sandra Robertson MBA (Steer Alliance), Katie Nicholson (Bridge Angel Network) and Nick Preskey (Locate & Inward Investment ) covered areas such as launching your business, types of angel investors and available grants in order to make your business succeed. It was a great turnout, discussion and networking opportunity made possible by the support of TISE - The International Stock Exchangeand IoD99. Our next event will be held at the Engine House in Castletown. As you may recall, we recently partnered with the IoD North West to offer a wider variety of networking events and CPD courses at a discount. All of these can be found on the IoD website under Events, and of course they get tweeted about and shared on Facebook and LinkedIn as the IoD continues to move with the current trend of using social media channels to promote its activities. On a final note for this edition, I am pleased to announce that we have a new part-time Executive Officer Rachel McKenna who replaced Claire Veale after six years with the Institute. I would like to thank Claire for the fantastic support she gave the committee and local members for many years, and I wish Rachel a warm welcome to the IoD Isle of Man Branch. Do not hesitate to contact either Rachel or anyone from the Committee if you have any questions about an Institute that was awarded its Royal Charter as long ago as 1906! Lesh yeearreeyn share - with best wishes,
Jennifer Houghton Chairman IoD Isle of Man
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ON THE AGENDA...
iod-iom committee members
IoD - iom committee members
meet your institute of directors - isle of man IOd-iom committee members committee members
JENNIFER HOUGHTON
CHAIRMAN
PHAEDRA BIRD TREASURER
PAM WATSON SECRETARY
(Crowe Clark Whitehill LLC)
(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
ANNE MILLS
(SMP Partners)
Hospice Isle of Man
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/ carrental www.iod.com/regions
SALLY BOLTON (Corlett Bolton & Co)
ALICE MARTIN
(Isle of Man Government)
MARK WATERHOUSE (Isle of Man Financial Services Authority)
CONNECTING BUSINESSES
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iod-iom Spring Lunch
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ON THE AGENDA...
Spring Lunch
T
he IoD Isle of Man Branch held its annual Spring Lunch at the Claremont Hotel on Thursday 16th May. This exclusive event attracted nearly 100 members and guests, including His Excellency, the Lieutenant Governor Sir Richard Gozney, Minister Laurence Skelly and Peter Boxer, Executive Director of External Relations. The event was once again sponsored by Barclays, represented by Stuart Nelson and Phil O’Shea. The IoD Isle of Man Branch was delighted to have as guest speaker the Chief Minister, Hon Howard Quayle MHK. The Chief Minister delivered a very positive message on the current state of the business community. The focus of the presentation was ‘change’, and the challenges that change can present. Lunch guests were given an update on the Department for Enterprise Executive Agencies, details on incentives on how to increase employment with emphasis on diversity and confirmation that the government is dealing with the risk of a no-deal Brexit by keeping a contingency plan under review. “We work best when we work together” drew nods of agreement from many. The lunch ended with a raffle to support the local charity Diana Princess
of Wales Care at Home Trust (Hospice at Home). Both Ministers ended up winning a prize, the first one ever won by the Chief Minister! Special thanks to Barclays who agreed to match the charitable donations
pound for pound. A great event supported by many members! We look forward to welcoming you to our next Prestige Lunch later in the year.
Details of other IoD events can be found at: www.iod.com/events-community/regions/isle-of-man/events.
CONNECTING BUSINESSES
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iod-iom - member interview
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ON THE AGENDA...
Anne Mills “I Reveals Her “Greatest Decision” In Becoming Hospice Isle of Man Supremo A weekend in the Isle Of Man more than two years ago for Anne Mills was to change her working life which had already seen a long and award winning career in the NHS that included nursing both children and adults. Words Les Able Photos Liam Gilman CONNECTING BUSINESSES
used to come here for holidays as a child so the island held great memories and nostalgia for me,” says Anne who, as a result of that weekend, made one of the greatest decisions of her life; she successfully applied for the advertised job of chief executive officer for Hospice Isle of Man and took up the role two-and-a-half years ago. “I was looking for a career challenge and thought it would be a dream job to work in a place with such great childhood memories,” says Anne, who previously worked in a hospice near Glasgow. “I thought is this nostalgia gone mad but I made up my mind that this hospice had a wonderful feel about it so that was that. I knew where my predecessor had taken it and decided the next move was to move hospice into the digital space and get the message out that Hospice is about helping you to live to your fullest potential until you die. “We want to change perceptions and remind people that for most of them their natural end of life is a social phenomenon and does not have to be medically driven. My ambition is to have hospice influenced care wherever people need it together with carers, families and professional staff supporting one another in a societal way with health interventions only when needed. “Our building remains at the heart of all that we do, but as we look forward we will be focused on what people have told us that matters to them. This will involve developing innovative ways of continuing to extend our care beyond the building so that more people have more choice in how they live and where they receive end of life care when their time comes. “People are at their most vulnerable when they enter and leave the world and as mothers can have choices to have a home birth so should there be choices to die at home. This can be with the help of the Hospice at Home team along with community nurses and doctors. Anne adds: “It is important that as well as being the leaders in delivering palliative and end of life care, we are also the driving force behind the training and support that will enable others to practice good palliative and end of life care across the island achieving hospice influenced care for all who need it.” Anne is particularly proud of the Scholl Academic Centre launched in February and funded by the Scholl Foundation where she is leading world class research into the added value of integrating hospice care for patients and families through new ways of working. One of the first decisions Anne made on taking up her position was to create a covered terrace onto the gardens which can be used in almost all weathers and which was financed from a legacy left
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iod-iom - member interview
to the Hospice. One family told Anne recently, “It was lovely, as we knew we didn’t have long together, to all sit outside chatting and having a cup of tea.” Looking back to her own days of nursing children with cancer she says: “The art of nursing is in essence a spiritual thing and good camaraderie is what kept me going, that and talking to our beautiful border collie telling her all about the day’s events on our long walks together. It was a very happy time in my life but I witnessed great sadness too.” A memorable opportunity in her career was taking part in the Eisenhower People to People Exchange to China with a group of children’s cancer nurses from America and UK. It enabled her to observe and exchange experiences with nurse leaders in Beijing, Xian and Hong Kong. “We are
44
very lucky to live within a system that cares equitably, regardless of ability to pay.” When chief executive of Ardgowan Hospice she won the Chamber of Commerce Award 2014 and 2016 for Excellence in Customer Focus, For Customer Service Care and Compassion. Anne admits that it’s not a nine to five job and evenings and weekends can be taken up with fund raising events, currently she has 64 wallaby art sculptures to look after (have you seen them yet). “It can be late by the time I get home to Dalby some evenings and relax, this time of year walking and being mesmerised by the beautiful sunsets.” Her rock in life is her husband Ken who spends weekdays in Belfast where he is Professor of Experimental Haematology
and who returns home at weekends. Calum, the eldest of her three adult sons who has served in the war in Afghanistan, moved to the island shortly after his mum and lives in Douglas. Euan, her middle son, has recently returned from his world travels to live in Manchester where he is an emergency medicine doctor and her youngest, Finlay, who lives in Bristol is currently walking the Pacific Crest Trail. She has recently become a committee member of the Isle of Man branch of the Institute of Directors. “Being a member of a professional organisation is very important in my role, as CEO, working with volunteer governors requires the same responsibilities as directors in any corporate organisations. Membership of the IoD gives me professional and personal development opportunities with ON THE AGENDA...
FACT FILE REVELATIONS “The art of nursing is in essence a spiritual thing and good camaraderie is what kept me going, that and talking to our beautiful border collie telling her all about the day’s events on our long walks together. It was a very happy time in my life but I witnessed great sadness too.”
CONNECTING BUSINESSES
FAMILY? Married to Ken 40 years!!! Three sons Calum, Euan and Finlay all good Scottish names and gorgeous lads. BEST GADGET? My Dyson 100% suction 100% of the time essential when you have dogs! SPARE TIME ACTIVITIES (SPARE TIME WHAT’S THAT?) But I am really fond of a glass of Brunello De Montalcino, shopping and walking. FAVOURITE COLOUR? Blue. FAVOURITE MEAL? Too hard to answer as I just like food. WORST CHARACTER TRAIT? Couldn’t possibly share! PHOBIAS? Not really fond of snakes mind you I haven’t seen any in a while if ever out of a cage! FAVOURITE FILM OF ALL TIME? Mrs Doubtfire. MOST EMBARRASSING MOMENT? Turning up at a party in fancy dress to a party when it was clearly not “not quite a Bridget Jones moment but nearly” YOUR BEST QUALITY? Definitely my enthusiasm for life! GUILTY PLEASURE? OMG which one? Pickled Mussels. BIGGEST INSPIRATION? My mum, she saw the good in everyone! A PERFECT DAY? Out walking in the hills with my family. BEST PIECE OF ADVICE YOU’VE EVER HAD? Be true to yourself.
like-minded people.” Now in her third year, which will see a temporary move to Southlands in Port Erin while the Hospice Isle of Man building has a nine months refurbishment Anne says: “There is a unique culture in the Isle of Man and I’ve had to retune a bit and discover how to approach it. I’ve huge ambition and really want to set a stall out for the Isle of Man to be leaders of healthcare on small islands.” Looking forward to going on a fundraising trip to Nepal in October she says in her broad Scottish tones: “It’s a hugely demanding job, one of the toughest gigs I’ve had, but I’m enjoying every minute of it.” Closing she adds: “Hospice gloomy? No. There are sad moments but in the main a lot of happiness, peace and calm.”
WHAT DO YOU MOST DISLIKE? People that are clearly not sincere. IF YOU COULD GO BACK IN TIME, WHICH AGE WOULD YOU GO TO? Age 7 years and avoid that party where I caught Chicken Pox which led me to go into hospital not a good experience but I decided to become a children’s nurse to make it better for other children. THE CRAZIEST THING THAT EVER HAPPENED TO YOU ? Being born I think but the memory has faded! BIGGEST EXTRAVAGANCE? My Burberry Coat TOP OF YOUR BUCKET ‘TO DO’ LIST? I’m travelling to Nepal in October it’s pretty up there in the rankings. WHAT SONG/HYMN DO YOU WANT AT YOUR FUNERAL? Mr Blue Sky.
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iod-iom iod99 roadshow
IoD99 Roadshow
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n Thursday 25th April, the Isle of Man branch of the IoD launched its inaugural IoD99 Roadshow. The event entitled “Start Up to Scale Up” offered entrepreneurs and small business owners an opportunity to question key industry figures on their experience and expertise in assisting businesses that wish to grow. Barclays Eagle Lab provided a contemporary venue for a lively question and answer session. The panel, Carolyn Gelling (The International Stock Exchange), Sandra Robertson (Steer Alliance), Katie Nicholson (Bridge Angel Network) and Nick Preskey (Locate & Inward Investment, Department for Enterprise), chaired by Elissa Morris (Barclays Eagle Lab) and hosted by Mark Waterhouse (IoD), discussed areas such as setting up a new business with a robust business plan, establishing corporate governance practises early on and utilising available grants. Carolyn Gelling said “TISE was pleased to support and participate in this inaugural event for IoD99, which provided some valuable insights and guidance to those considering how they might grow and scale-up their businesses in the future. As an established stock exchange, with a responsive and cost effective incubator proposition for small to medium sized enterprises, we are very much committed to encouraging and supporting enterprise on the Isle of Man.” IoD99 membership retains the same ethos of the IoD, that of knowledge, guidance and support yet creates an accessible platform for those founders and entrepreneurs who are looking for the resources and support to ‘scale up’ and grow. Further information can be found www.iod.com/membership/iod-99 ON THE AGENDA...
Our next Roadshow will be in Castletown in July. Event details will be posted on the IoD website www.iod.com/events-community/regions/isle-of-man
CONNECTING BUSINESSES
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iod-iom awards
IoD North West and Isle of Man Director of the Year Awards The Isle of Man branch of the IoD celebrated with a win for local advocate and artisan gin distiller Paul Kerruish at the Director of the Year Awards in April.
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he Hilton Deansgate, Manchester played host to a spectacular evening. This was the first time in the event’s history that the Isle of Man had partnered with the North West. Island professionals were given an opportunity to compete with nominees from Cheshire, Cumbria, Lancashire, Manchester and Merseyside across 11 award categories with nominees from diverse business backgrounds. The award ceremony was attended by over 300 members, including business leaders, entrepreneurs, government and media representatives. The Director of the Year Awards is considered to be a celebration of leadership talent, success and achievement
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“I felt really honoured to be part of the event, and I was humbled by the amount of talent and hard working success stories that filled the room”.
and the IoD Isle of Man were delighted the Island could be represented by Paul Kerruish in the Director of the Year Award for ‘Start Up’. On reaction to being nominated Paul said “It was an incredible outcome and so exciting to be nominated for the North West Award – a great showcase for Fynoderee and the Isle of Man Food & Drink sector” Jennifer Houghton, Chair of the IoD Isle of Man was thrilled to attend the award ceremony, hosted by Claire Ebery Regional Director IoD North West with Chair, Mike Blackburn OBE. Jennifer said “I felt really honoured to be part of the event, and I was humbled by the amount of talent and hard working success stories that filled the room”. Paul was successful in his category, scooping the ‘Director of the Year – Start Up’, for The Fynoderee Distillery. Paul took to the stage in a Manx Tartan kilt, which proved to be a talking point for the evening! We asked Paul to sum up in three words his reaction to winning the award Fyn and Tonic!!!! The originals of the Fynoderee Gin are rooted in an ancient Isle of Man folklore tale. The ‘Kitty Kerruish and the Fynoderee’ story unfolds around the last juniper bush grown in the North of the Island. The emphasis on upholding tradition and culture are clearly visible in the passion of the Fynoderee team. Paul and his wife Tiffany, along with co founder and master distiller Gerard Macluskey, have built a truly inspiring local business. ON THE AGENDA...
We asked Paul about his background with the IoD and his use of the institutes services.
Fynoderee is focused on culture, tradition and heritage, your team are clearly passionate about your product – why is this so important to you? And how do you instil this in your product? We are as passionate about the Isle of Man as we are about the quality of our products and our unique Manx backstory is a big part of why people love our brand. Distilling is a craft that has centuries of history behind it and the synergy between our ingredients, our natural environment and the folklore of the places we go foraging greatly inspires us. It also makes good business sense, as these days consumers are increasingly looking for authenticity, local provenance and a reason behind their purchase. We were determined to create a premium Manx product range that captures elements of culture, tradition and heritage and a large part of that is achieved through our beautiful hand-drawn labels created by local artist Julia Ashby Smyth. We really wanted Fynoderee Manx Dry Gin to be a premium product that people would be proud to serve and gift to family, friends and customers and to this end we use only the best ingredients and the skills of our very experienced Master Distiller. What are the future plans for Fynoderee? Fynoderee is actively seeking new premises at the moment that will enable us to upscale our production as well as evolve into other product lines. We are developing a very interesting Manx Rum and have been carrying out some fascinating whisky trials (the first barrel of our Single Malt Manx Whisky was laid down in December 2018). This evolution in to aged spirits requires lots more space than we currently have in Jurby. We also hope that our new premises will provide suitable space to offer a vastly improved visitor experience for tours, tastings and a gin school. We are looking for a large space somewhere with that elusive “Fyn Factor”! Will you be wearing a kilt to the final? If selected for the Final I will most certainly be wearing my Manx kilt which features the Island’s Hunting Tartan. Being the only man in a skirt on stage in front of hundreds of very successful people in CONNECTING BUSINESSES
Manchester was amusing to say the least but seemed to get a good reaction!
law firm creates some challenges on my available time!
How actively involved are you with the IoD? I have been involved to a greater and lesser extent for a number of years after completing the Certificate of Company Direction Course. This was a very inspiring course but I have to say winning the award and attending the ceremony in Manchester has reinvigorated my desire to get more involved in the local branch activities, albeit running a fast-growing distillery and still managing a successful
What benefits do you feel you gain from being an IoD member? I find the local talks, online resources and the wide range of webinars very useful as well as the local networking of course!
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time out - business reads
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European elections: Five books that look at the future of the EU
ver the past 10 years, the EU has shown great resilience in surviving what are arguably its most acute crises since the founding Treaty of Rome in 1957. But neither the eurozone’s troubles nor the refugee and migrant question have been fully dealt with. Meanwhile, relations with the US, China and Russia are under strain. The question is whether the latest elections to the EU legislature will deliver a result that strengthens the bloc’s ability to address its challenges — or whether fresh turbulence awaits around the corner.
Here are five books that explain where Europe might be headed Alarums & Excursions: Improvising Politics on the European Stage by Luuk van Middelaar provides invaluable insights into how the EU tackled the eurozone, migration and Ukraine crises — and from a Dutch political thinker and historian who served in Brussels during the turmoil.
Counter-Revolution: Liberal Europe in Retreat by Jan Zielonka is a short but important book that poses a central question about today’s Europe: is the EU in trouble because its models of liberal democracy and welfare capitalism are no longer working?
Germany and the European Union: Europe’s Reluctant Hegemon? by Simon Bulmer and William E Paterson offers a reminder that no country is more crucial to the EU’s future than Germany. This is the most up-to-date and reliable book on how domestic German politics, law and culture shape Berlin’s approach to the EU.
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Euroscepticism and the Future of European Integration by Catherine E De Vries is a groundbreaking analysis of European public opinion that explains how distinctive national conditions account for varying levels of Euroscepticism across the EU.
After Europe by Ivan Krastev. The Bulgarian-born political scientist is among the most original thinkers about Europe’s future. Here he reflects on the impact of the refugee crisis and the shrinking importance of Europe in global politics. ON THE AGENDA...
Celebrating years of business Celebrating 65 65 years of business in the of Man in the IsleIsle of Man
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