Agenda | July - August | 2014 by Gallery Magazine

ISLE OF MAN BUSINESS

NEWS

EVENTS

Issue 7

COMMENTS

July/August 2014

Digital Currencies QTR 1 Offshore Reports COUTTS BANK INVESTMENT OUTLOOK COUNTING HOUSE - TEL AVIV FORUM BUSINESS BUZZWORDS PLUS - IN THE NEWS, MOVERS & SHAKERS, DEAR LUCY, MODERN GENTLEMEN 2014

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RL360 Insurance Company Limited. Registered Offi ce: RL360 House, Cooil Road, Douglas, Isle of Man IM2 2SP, British Isles. RL360 Insurance Company Limited is authorised by the Isle of Man Government Insurance and Pensions Authority. Registered in the Isle of Man Number 053002C. A Member of the Association of International Life Offi ces.

On the Agenda... 4

KEY CONTACTS EDITORIAL & DESIGN Steve Redford DD: (+44) 7624 249249 steve@gallery.co.im SUB SECTORS MAIN MOVERS, Q1 2014

DEAL TYPES BY VOLUME, Q1 2014

ADVERTISING SALES

Increase on previous quarter (USDmil)

Target Sub-sector

Bev Lawley DD: (+44) 7624 415096 Bev@gallery.co.im Retail trade

+7,662

Information Services

+3,811

Publishing

+3,268

Film, TV & Music

+1,672

Chemical Manufacturing

+1,340

350

Total deals

250

BVI

7,401

Cayman Islands

8,673

Planned IPO

buy-out

Joint-venture Merger Management

150

buy-out Management

100

buy-in

Deal value (mil USD) 20,228

IPO Share buy back Institutional

Laura Macgregor DD: (+44) 7624 249249 Laura@gallery.co.im Bermuda

Minority stake Acquisition

CONTENTS

200

CLIENT RELATIONS ACQUIRER COUNTRIES BY VALUE, Q1 2014 Country (acquirer)

Key

572

300

In The News ..................................................... 5

Appleby Qtr 1 Offshore Reports ......... 17

Movers & Shakers ......................................... .8

Coutts Investment Outlook .................. 18

Mauritius

Deal Value (mil USD)

Disclaimer: All rights reserved. Any form of reproduction of VALUE RANGE Q4, 2013 & Q1, 2014 Agenda prohibited Guernsey Isle of Man Magazine, in part 970or whole is strictly without the written consent of the publisher. Any views expressed Hong Kong 12,097 by advertisers or contributors may not be those of the publisher. Unsolicited artwork,manuscriptsand copyareacceptedbyAgenda Isle of Man 498 Key Magazine, but the publisher cannot be held responsible for any loss 1bn+ orJersey damage. All material, copy and 1,191 artwork supplied is assumed to 750-1000 be copyright free unless otherwise advised. 500-750 1,337

Seychelles

Isle of Man & Digital Currencies ...... 10

Business Buzzwords...................................20

Counting House - Tel Aviv Forum.12

Dear Lucy...........................................................22

Wilkins TT A-List Event .......................... 14

Modern Gentlemen.....................................24

250-500 100-250

All deals

Less than 100

51,996

TARGET COUNTRIES BY VOLUME AND VALUE, Q1 2014 British Virgin Islands

Isle of Man

107

8,316

1,673

Cayman Islands

Guernsey

20 BUSINESS

Hong Kong

164

20,687

1,932

13,670

Appleby location

Location

Bermuda

KEY

Cayman Islands

Jersey

10,613

5,632

Seychelles

No. of deals

Aggregate deal value (mil USD)

Cayman Islands No. of deals

164 20,687

Location

164 20,687

Mauritius

Aggregate deal value (mil USD)

331

24 Mobile Banking

WORDS Management consultant Marcus Halberstram ILLUSTRATION Will Bertram

119

BECAUSE QUALITY MATTERS

A Recipe For Relocation

8 OFFSHORE JURISDICTIONS

GOAL Offshore Legal, Fiduciary and Administration Services Bermuda

British Virgin Islands

Cayman Islands

Guernsey

Hong Kong

applebyglobal.com Isle of Man

Jersey

London

Mauritius

Seychelles

Shanghai

Zurich

IN THE NEWS

Appleby Isle of Man Partner Joins Expert Panel In New York

Bermuda, the British Virgin Islands and the Cayman Islands. He explained: ‘The symposium is an opportunity to hear expert discussion of topical legal issues affecting the offshore funds industry. This year, we looked at legal issues that emerge when a fund becomes illiquid and the parties are in a scramble to put themselves in the best position. ‘When a fund becomes illiquid it can find that its assets cannot be sold at all or can only be sold on a forced sale basis. Practical solutions can run into legal obstacles and readiness to wind up distressed funds differs between jurisdictions. This session explored possible solutions and their legal implications and explained where approaches differ from one jurisdiction to another.’ Mark added: ‘Appleby’s unparalleled presence in multiple offshore jurisdictions makes it ideally placed to offer expert insight into issues like this, where complications can arise because of differing legal, regulatory and professional demands during cross border insolvencies. Drawing on expertise from across our international network of offices, this symposium was a valuable opportunity to discuss many of the potential issues with our guests.’

A litigation symposium in New York was a valuable opportunity to discuss the legal considerations of managing an illiquid fund to an audience of US accountants, attorneys and fund managers, according to Mark Holligon, a Partner in the Litigation and Insolvency Practice at Appleby Isle of Man. Mark was part of a discussion panel featuring experts from across the offshore jurisdictions at the symposium, held at the Harvard Club in Manhattan. Mark represented the Isle of Man on the panel, which included fellow Appleby Partners from

Moderator for the panel discussion was Christopher Meyering, Chief Legal Officer of Sciens Capital Management, an independent alternative investment management firm with experience of multiple jurisdictions and major financial centres. Mark was joined on the panel by Peter McMaster QC (Cayman), Andrew Bolton (Cayman), John Wasty (Bermuda) and Andrew Willins (BVI).

Publication of New Revenue Recognition Standard Just the Beginning, says KPMG The International Accounting Standards Board and the U.S. Financial Accounting Standards Board recently published a new joint standard on revenue recognition. This replaces most of the detailed guidance on revenue recognition that currently exists under U.S. GAAP and IFRS. Simon Nicholas, Director at KPMG Isle of Man, commented: “Publishing a joint standard on revenue recognition is a major achievement for the standard setters, but for companies the real work is just beginning.” The new standard comes over five years after the standard setters published the first version of their joint revenue proposals. Mr Nicholas continued: “The long project timescales have caused many companies to postpone thinking about how they will be impacted. It’s natural that some have taken a ‘believe it when I see it’ approach to news that accounting requirements are about to change. But now it’s here, we have a new standard on one of the most important financial reporting metrics – revenue – and it will apply to almost all companies reporting under IFRS and U.S. GAAP.” The new requirements will affect different companies in different ways. Mr Nicholas explained: “Companies that sell products and services in a bundle, or those engaged in major projects – for example, in the telecom, software, engineering, construction and real estate industries – could see significant changes to the timing of revenue recognition. For others, it will be more a case of ‘business as usual’. All Isle of Man companies

need to assess the extent of the impact so that they can address the wider business implications, including communications with investors and analysts.” Some aspects of the new standard will affect all companies. Mr Nicholas continued: “The new disclosure requirements are extensive and might require changes to systems and processes to collect the necessary data – even if there is no change to the headline numbers in the financial statements.” The new standard takes effect in January 2017, although IFRS preparers can choose to apply it earlier. Jamil Khatri, KPMG’s global head of Accounting Advisory Services, concluded: “While the effective date may seem a long way off, decisions need to be made soon – namely, when and how to transition to the new standard. An early decision will allow companies to develop an efficient implementation plan and inform their key stakeholders.”

Nedbank Private Wealth Retains Gold Standard Nedbank Private Wealth recently had good reason to celebrate when it heard it had not only been reaccredited with the prestigious Gold status from Investors in People (IIP), but had also achieved an almost perfect score against the Framework, which determines areas of people management excellence within a business. Gold is the highest level of accreditation awarded and places the company in the top 7% of IIP accredited organisations across the UK. The IIP assessment stated: “Nedbank Private Wealth’s achievement in retaining and building further on its Gold Investors in People status is exceptional and it is a tremendous achievement for Nedbank Private Wealth to meet virtually the entire Investors in People Framework.” This was the fourth successful review since the bank was first awarded the Investors in People Standard in 2002. The assessment took place over two days in its offices in the Isle of Man, Jersey and London, and included interviews with staff as well as various reviews of the bank’s systems and processes. In addition, the IIP report added: “It was very positive to see that existing approaches have been sustained, further developed and improved, which is often a challenge for organisations, especially when they are already Gold status. Nedbank Private Wealth makes sustainability look effortless through the gradual enhancement of existing initiatives.” Lynn Kelly, senior training executive at Nedbank Private Wealth, said: “Our retention of Gold and the observations of the assessors reinforce the power of collaboration around our business and the amazing efforts of our staff who continually seek to improve and further develop our business.

PokerStars Sells to Amaya

“We are delighted to retain IIP Gold as it provides an independent, strong endorsement that a continued focus on the needs of our staff directly results in a top performing business for our clients. We continue to promote the Investors in People values in our pursuit of high quality service levels, innovation and client satisfaction.” Launched in 1991, Investors in People is owned and managed by the UK Commission for Employment and Skills, an executive non-departmental public body of the Department for Business, Innovation and Skills. Over the last 20 years plus, Investors in People has helped more than 100,000 businesses around the world improve, using their accreditation framework to boost working culture, increase employee engagement and encourage gamechanging leadership. This is a deal no one expected and the aftermath is likely to be felt for some time in the industry. PokerStars has been a blockbuster company that has taken market leads in all the territories where it trades except France where it is number two. This is a highly efficient company. Amaya is a relative minnow by comparison and in January 2014 they were unable to get into the GBGC index of the top 50 gambling companies by market capitalisation. They were then number 52. If the deal gets shareholder approval and goes through on September 30th they will be in the top 20, probably the fourteenth largest gambling company in the world. Party Gaming Plc., when it listed on the London Stock Exchange in June 2005 made it into the FTSE 100 with a market cap higher than British Airways. Party merged with Bwin to make one of the largest gambling companies but today that market cap has almost halved to US$1.55bn. Big mergers do not always lead to great commercial successes. Companies that top our index have drifted lower in the past. Whereas OPAP topped the chart in 2009, for example, they are now down to 15th place. International Game Technology was number two in 2008 and 2009; now they occupy the 20th slot. The success of Amaya will now depend on three things. First is whether it can manage PokerStars as well as the founders Mark and Isai Scheinberg. The father and son team were driven to make Poker Stars the number one company, will that same drive now exist at Amaya and the PokerStars team?

IN THE NEWS

Creechurch Capital scoops Best in Class for Boutique Wealth Management Services Creechurch Capital has been awarded ‘Best in Class for Boutique Wealth Management Services’ in the prestigious Professional Adviser International Fund & Product Awards 2014. Taking home the same title at the awards in 2013, Creechurch Capital was not to be knocked off the top spot this year and impressed the judges with its absolute commitment to service and vision to deliver a personalised, agile model to meet the needs of its clients. The Professional Adviser awards celebrate organisations that are at the cutting edge of delivering financial products and services internationally and each company is judged on its involvement at local and international level, future growth prospects and commitment to new initiatives.

Speaking of the award win, John Greenwood, CEO at Creechurch Capital said: “Receiving this accolade is testament to the hard work and unwavering dedication of the Creechurch team who have worked to deliver a truly bespoke service to each of our clients. Our ambition of becoming a truly boutique and personalised investment manager would not be possible if wedid not have such a high-calibre team who share the same values”. Commenting on those achieving success in this year's awards, chair of the judging panel, Deborah Benn said: "This year was probably the most closely fought set of awards ever. The quality of entries was particularly high; which meant the judges had a real task on their hands in terms of coming up with outright winners. It was interesting to see how entrants are coping with competitive pressures and tackling the continued evolution of the regulatory environment and we will no doubt see what effect new strategies will have on business propositions over the coming year.

Investment in Food Park will boost economy The final phase of a food park being built in Peel would provide a further valuable boost to the economy, Tynwald will be told this month. Phil Gawne MHK, Minister for Environment, Food and Agriculture (DEFA), will seek the Court’s approval to spend £915,000 to complete a project begun in 2010. DEFA and the Department for Economic Development (DED) are creating the centre of excellence for the food production industry in Mill Road Yard. This third phase would bring the final cost of the planned work to £2.9 million. Phase one was approved by Tynwald in spring 2012 and is up and running. Phase two was given the go-ahead in May 2013 and construction will be completed in July. Seventy jobs have already been created at the Park and it has been estimated that, once it’s complete, this number will rise to 125. Phase three would create three new vacant plots that would house 1,220 square metres of industrial units and would see utilities and roads in the already occupied southern half of the Park improved, Minister Gawne said. The land is owned by the Department. The economy would receive a considerable boost from the final phase of the park, Minister Gawne said.

‘By providing a centre of excellence for the food production industry, the opportunity exists to maximise the industry’s contribution to the Isle of Man’s economy,’ he said. The DED – which has identified the development of the Food Park as a key priority – has awarded grants to companies expanding on the site and there is already keen interest from producers in occupying phase three, Minister Gawne said. Work to complete the park would create 416 man weeks of labour, worth an estimated £290,000, which it is anticipated will solely be paid to Manx workers. The new units themselves could generate more than £1 million of work for the construction industry. Private sector development of the plots created in phase two is already planned. ‘This long term commitment to the Food Park and the investment by the Government into the project will reap dividends for the industry,’ said the Minister.

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APPOINTMENTS

NEW TRAINEE AT CAINS Law firm Cains has expanded its corporate department capacity with the appointment of Adam Clark as a trainee advocate. Adam, 26, graduated from the University of Aberdeen with honours and completed his post graduate Diploma in Professional Legal Practice at Robert Gordon University where he passed with Merit. While at Robert Gordon University he represented Scotland in the International Negotiation Competition, hosted in Orange County, California. He was also awarded a Student Contribution and Involvement Award. “I’m thrilled to be working with a law firm as well respected as Cains and look forward to a successful legal career in the Isle of Man,” said Adam. Cains director Richard Vanderplank said: “It is a pleasure to welcome Adam as a trainee and I am confident that he will make a valuable contribution to Cains.”

POST OFFICE APPOINTS TENDER AND CONTRACTS MANAGER Isle of Man Post Office is delighted to announce the appointment of Linda Dunwell to the position of Tender and Contracts Manager, within the Commercial Team. Linda’s appointment comes as part of the Isle of Man Post Office’s business development strategy to increase revenues via tendering opportunities and its business presence with customers on the Island and in the UK. Linda brings the business a range of commercial and technical skills, gained from experience in government, criminal justice and private sector organisations.

MARK CHARTERS APPOINTED CHIEF EXECUTIVE OF DEPARTMENT OF HEALTH AND SOCIAL CARE The Minister for Health and Social Care, Howard Quayle MHK, has today announced the appointment of Mark Charters as Chief Executive of the Department of Health and Social Care. Mr Charters has wide-ranging experience in leadership roles within the UK public sector, particularly in housing and social care services for adults, children and families having worked at Director-level in Southampton, Northamptonshire and most recently in the London Borough of Bexley.

ABACUS APPOINT BUSINESS DEVELOPMENT DIRECTOR Abacus Financial Services Group (‘AFSG’) has appointed a new Business Development Director as part of their continued strategy to drive new business and to develop and promote their service offering in both existing and new emerging markets. Based in the Isle of Man and Malta, AFSG has appointed David Stevenson as Business Development Director, with a view to maximising their business potential in the ever competitive financial services sector, particularly in respect of the funds and pensions industries.

An award-winning boutique

Isle of Man moves to control digital currencies

he Department of Economic Development announced in June that the Isle of Man intends to take specific actions aimed at helping protect businesses and customers utilising digital currencies and provide an environment for high-quality businesses in this rapidly emerging field who wish to operate here. The Department’s Director of E-Business Development Peter Greenhill stated: “The Isle of Man recognises both the risks and opportunities presented by digital and virtual currencies. We are conscious of issues that have surrounded these activities but also can identify serious and credible entrants to the market wishing to explore this innovative technology. Therefore, the government has instructed the relevant departments and statutory bodies to ensure there is a regime that promotes both business opportunities but also applies appropriate anti-money laundering requirements.

Our stance is intended to welcome those who can meet the necessary standards, while also preserving the Island’s good reputation as a financial centre. We will work with Isle of Man Financial Supervision Commission, Department of Home Affairs and industry to ensure a fair and appropriate regime is implemented. This is not at this stage expected to embrace a full prudential suite of requirements, so consumers will need to be aware of this when making their decisions. While it will take a period of time to instigate, it is a clear demonstration of the Isle of Man’s commitment to keep abreast with market developments but also maintain its international responsibilities. We anticipate that this market will develop and change rapidly and, as a result, we will keep market changes under review and with a view to considering future regulatory regimes as required. Of course, if any business were to undertake activities that are regulated

under existing regulations, we will expect them to comply fully.’ The previous Minister for Economic Development John Shimmin MHK commented “I welcome this move to create a framework for the regulation of digital currencies. The Isle of Man is synonymous not only with innovation, but for a regulatory environment that is both effective and pragmatic. With this announcement the Isle of Man reinforces its status as a jurisdiction that welcomes well-controlled and compliant businesses while sending a clear message to those who would seek to operate outside the law that we are open for good business only. We will work with the business community in the coming months to ensure that a proportionate and appropriate regime is implemented that meets international standards. We anticipate other jurisdictions will follow

DIGITAL CURRENCIES

Isle of Man moves to control digital currencies

Questions and Answers - Digital Currencies What is the Isle of Man doing? We are looking to recognise digital currencies as a property, rather than a currency, and apply the appropriate antimoney laundering controls that one would expect of a responsible jurisdiction. To ignore the problem of such potential criminal activity is to be negligent of the risks. Aren’t digital currencies associated with crime and money laundering? There have been a number of instances where digital currencies have been used to facilitate money laundering or have been the subject of other criminal activity. The Isle of Man recognises the risks as well as the potential of this recent innovation. As a responsible international partner, we want to ensure that crime is kept out of the Isle of Man and that can only be achieved by ensuring the appropriate anti-money laundering protections exist. Why is the Isle of Man introducing antimoney laundering controls? We are receiving enquiries from all over the world. These are primarily from very credible start-up businesses who want to operate in a controlled manner in a well-respected jurisdiction. Other, less well-funded start-ups are looking to find any home for their business. Currently the proposed activities in digital currencies fall outside of anti-money laundering legislation and other forms of regulation and this poses both risks and opportunities. The absence of regulation leaves a window where business could trade from the Isle of Man yet undertake business practices which are at odds with the Island’s stance on anti-money laundering and crime. We do not feel that this is acceptable or responsible. Why isn’t the Isle of Man introducing a full prudential regulatory regime if it is concerned? Industry innovation is moving at a tremendous pace and introducing a full regulatory regime at this time would be both costly and may well be out of date before the rules are enacted. Further, international standards or restrictions may be introduced as the market develops. Given the relatively small size of the industry (in comparison with main stream finance sector) we have decided to consider a proportionate antimoney laundering regime which can be implemented in a timely manner, protects the Isle of Man’s reputation and fights crime.

Is the Isle of Man regulating digital currencies?

financial services licence but they will be registered to conduct designated business.

No, it is intending to include crypto & digital currencies under the Proceeds of Crime Act 2008 and the Designated Business (Registration and Oversight) Bill 2014 to ensure that the activities undertaken are subject to the antimoney laundering legislation. The same registration and oversight regime that will be applicable to other designated businesses will then apply to digital currency businesses.

Will banks on the Isle of Man take business from these new start-up businesses involved with digital currencies?

What are the standards that the Isle of Man is looking to introduce? The anti-money laundering registration and oversight regime will ultimately mean that a business in this area will need to register with the Financial Supervision Commission and submit to appropriate reviews to ensure that the business is compliant with the anti-money laundering requirements, is well-managed and is run by appropriately skilled and knowledgeable people. What will the regime look like? To a large degree the anti-money laundering requirements are already enshrined in legislation. The Financial Supervision Commission will review the necessary activity to determine whether that legislation has been applied appropriately and proportionately by the business concerned in line with a riskbased approach. When will the rules start to apply? There will be two stages. First there will be the inclusion of digital currency activity in Schedule 4 of the Proceeds of Crime Act 2008, which will occur later in 2014. The effect of this will be that such businesses will need to comply with the Anti-Money Laundering Code. Second will be the inclusion of digital currency activity in the Designated Business (Registration and Oversight) Bill 2014 which is still subject to Tynwald approval and subsequent Royal Assent. It is expected that the Bill will be enacted during the first half of 2015. When enacted digital currency businesses will be required to register with the Financial Supervision Commission who will become responsible for oversight of their antimoney laundering compliance.

Interested companies should approach local banks to discuss their specific requirements. Can existing businesses accept payments now in digital currencies? Companies need to take their own advice on this matter. What is vital to the Isle of Man is that the consumer is protected at all times. Is VAT chargeable on the Isle of Man on payments made with digital currencies? The IoM is in a customs union with the UK and therefore the UK rules apply in respect of VAT. The UK has already ruled that the activities of mining a digital currency, exchanging it or charging for related transactions will not be subject to VAT. This is in line with Article 135(1)(d) of the EU VAT Directive. What would the benefits be to the Isle of Man economy of accepting these businesses? The Isle of Man recognises innovation in the Financial Services and e-Business sectors and is therefore keen to welcome legitimate Digital Currency businesses provided that they adhere to appropriate controls. These businesses will bring jobs and income to the Island and create enhanced career opportunities. Would any placement of digital currencies into an exchange registered on the Isle of Man be protected as it is with a deposit in a bank? No, the placement of Digital Currency into an exchange is not a deposit, and the deposit protection scheme does not apply. Therefore, consumer discretion should be exercised due to the risk of loss or failure of the businesses. Will minimum standards be set for the security systems that these exchanges implement? No, but as international standards are developing this may be added into any regime in the future.

Will companies actually be given a licence to operate by the Financial Supervision Commission? No, designated businesses registered under the Designated Business (Registration and Oversight) Bill 2014 will not obtain a

FORUM - TEL AVIV

Global

Lottery Messenger Following the recent Global Lottery Messenger Forum in Tel Aviv, Israel, organised by local payment processing services consultancy, Counting House, Paul Davis (Managing Director) gives an overview of the conference and the topics discussed.

The Lottery Messenger industry has been around for nearly two decades, yet ask 100 people on the street what it is and maybe, if you’re lucky, one might know. But that doesn’t make it insignificant, or irrelevant, because today it’s on the edge of rapid growth.

PAUL DAVIES, MANAGING DIRECTOR, COUNTING HOUSE

ow many times have you seen national lottery winners on TV being presented with huge cheques for 50 million, 120 million, and more? At this level, the currency doesn’t matter; it’s a lot of money. Yet these lotteries generally only sell to residents of their respective countries. The UK National Lottery is only open to UK residents. So if you don’t live in the country of the lottery offering the big jackpot prize, you’re “disadvantaged”. You can’t buy a ticket, so you can’t win. Enter the Lottery Messenger industry. Over the last few years, a number of online operations have been emerging, enabling you to remotely purchase national lottery tickets online. You live in country A and can suddenly buy tickets to the National Lottery of country B, and have an equal chance of winning the jackpot, as does “Mr Smith” who lives in country B. The word “Messenger” is the big clue. These online businesses allow you to buy tickets, at a small premium (so, a GBP 2 ticket would cost you, say, GBP 4) and the Lottery Messenger company will send its own agents to buy lottery tickets from standard retail outlets. The agents might be standing behind Mr Smith in the queue at Tesco! As to justifying the premium, well there’s the cost of the agents to fund, but far more. There’s a whole operation behind this business. Tickets need to be scanned, linked with the buyer, and copies emailed to the buyer before the draw to demonstrate the tickets were actually purchased, etc. And anyway, if two quid is too much extra to pay to try and win the mega jackpot, your next best alternative is flying to country A yourself just to buy a ticket at the airport, before flying back. Over the last two or three years, a number of new Lottery Messenger operators have been born and we, Counting House, as a key payment processor to the industry, can objectively see the industry’s growth because, quite simply, we process the payments and see the real numbers. But the story far from ends there. A few new operators entering the market will only grow the industry relatively slowly. Two other key factors are about to change. Firstly, by the end of 2014 we’ll see many operators

offering business to business (B2B) solutions, enabling entrepreneurs that want to enter the industry to rapidly enter the market without the need for them to develop their own platforms, or to hire their own agents, or scan the tickets themselves. It means that as long as you have online marketing skills, and a respectable marketing budget, you’ll soon be able to have your own business up and running in a few weeks. Secondly, and as importantly, ask anyone and everyone in the industry about regulation and they all answer the same: “It’s inevitable; we’re just not sure of the timing”. Both of the above factors are following the same path that the online gaming, the binary options and Forex industries have followed, and are the best indicators yet that the Lottery Messenger industry is ripe for accelerated growth. “Working with so many Lottery Messenger companies, we were in the privileged position of seeing the trends”, commented Stuart Ballan, Head of Middle East at Counting House. “We understood that if we could bring the industry together for the first time, we could actually change the industry for the good.” It was on this basis, and in partnership with the Isle of Man Government, that 80 delegates, representing 30 brands, including the largest in the industry, travelled from 16 countries to attend the Global Lottery Messenger Forum at the Hilton Hotel, Tel-Aviv, on 20th May 2014. Following an official welcome by The Hon Leonard Singer, MHK, the agenda balanced diverse presentations and a compelling industry panel consisting of senior representatives of the Lottery Messenger industry, with powerful and informative presentations from Peter Greenhill, (CEO, e-Gaming Development), Nedbank, Continent 8 Technologies, SMP Partners, ILS Fiduciaries, and the emerging Lottery Export Association; all from the Isle of Man.

Over the last two or three years, a number of new Lottery Messenger operators have been born and we, Counting House, as a key payment processor to the industry, can objectively see the industry’s growth because, quite simply, we process the payments and see the real numbers.

Yet the event was far more than formalities. “The networking before, during and after the conference was key”, continued Mr Ballan. “We’ve already seen new cooperations and businesses formed as a result of GLMF 2014”. In addition, to the business model where agents purchase tickets, the industry has seen an explosion with the introduction of the “insurance model”. Instead of buying lottery tickets, it’s possible to take out an insurance policy against a jackpot win, using the national lotteries as the “random number generator” for what are effectively gambling operations, and as such operate under such a licence. Matt Butcher, from PIMS-SCA, one of the companies that insures against jackpot wins, captivated the GLMF audience by explaining the intricacies of how such insurance works. Looking towards the medium-term, it will be interesting to see if the insurance model becomes the dominant solution. After all, it doesn’t usually involve the purchase of tickets and therefore has lower operating costs and a higher margin. Yet it’s the National Lotteries themselves that could have the biggest impact on the Lottery Messenger industry. Currently, few of them offer online digital sales of lottery tickets. But they’re working on it. If National Lotteries would ever allow the online purchase of tickets from customers in remote countries, it would create huge cross

border cannibalisation and as such seems very unlikely. If that’s true, the Lottery Messenger industry, together with its B2B expansion and imminent regulation, should be unstoppable. For the second time in five months, the Isle of Man was ahead of the “others” in proactively joining Counting House in Israel to educate an emerging market on the need for, and value of, regulation and, as importantly, how and why the industry should choose the Isle of Man to meet future licensing needs, strengthened by the “one stop shop” offered by the complimentary service providers. “Both Counting House and the Isle of Man are extremely pro-active”, continued Mr Ballan. “With Counting House having permanent representation on both the Island and in Israel, we have a vehicle; a channel, for promoting the Isle of Man’s value in Israel. We did it successfully in December 2013, again in May 2014, and we’ve already identified a number of relevant industries for future conferences in Israel over the next year and beyond. The cooperation of the Isle of Man + Counting House working together is a text book example of “one + one = three.”

AGENDA

Wilkins Jeweller TT Event Wilkins the Jeweller, Strand Street, opened its doors to customers, bikers and the public for a special evening of watches, motorbikes and champagne. Charley Boorman, the Norton racing team and CEO, and Giles English, owner of Bremont watches, were all in attendance and chatted to customers and enthusiasts throughout the evening.

A-LIST EVENTS

“Incomparably better than other banks”* AND IN THE TOP 10% OF UK BUSINESSES FOR CLIENT SATISFACTION*

Our holistic approach and range of banking, investment and fiduciary solutions are tailored to client needs, and we always put our clients first - which is why our clients say we’re better than other banks. To find out how we can meet your wealth management needs, visit our website at www.nedbankprivatewealth.com or call us on 01624 645000.

U N I T E D

K I N G D O M

I S L E

O F

M A N

J E R S E Y

U N I T E D

A R A B

E M I R A T E S

S O U T H

A F R I C A

Nedbank Private Wealth is a registered trade name of Nedbank Private Wealth Limited. Nedbank Private Wealth Limited is licensed by the Isle of Man Financial Supervision Commission. Registered office: St Mary’s Court 20 Hill Street Douglas Isle of Man. Nedgroup Trust (Jersey) Limited is regulated by the Jersey Financial Services Commission. * Client quote and results from a client satisfaction survey undertaken in 2013 by The Leadership Factor, the UK’s leading customer survey specialist.

FIRST QTR DEALS APPOINTMENTS

Significant growth in merger and acquisition deals for Isle of Man First Quarter 2014 Deal Value Up 762% The Isle of Man has seen further growth in the volume and value of mergers and acquisitions according to the latest research by leading offshore legal, fiduciary and administration services provider Appleby.

Man, where average deal size is up more than five-fold from this time last year.

In the first three months of the year, there was consistent growth across the offshore jurisdictions, and the Isle of Man saw its total deal value increase 762% compared with the first quarter of 2013.

Overall, there were 572 offshore deals in Q1 2014, down from the previous quarter but busier than the first quarter of 2013, which saw 528 deals. Though there were fewer deals, deal value came in at USD62.9bn-up 14% on the previous quarter and marking the fifth consecutive quarter for cumulative deal value growth.

The details are contained in the latest edition of Offshore-i, an Appleby report that provides data and insight on merger and acquisition activity in the major offshore financial centres. The report shows total offshore deal value increased by 79% in the first quarter of 2014, compared with the same period in 2013, reaching its highest level since the end of 2012. The publication focuses on transactions announced during the first quarter of 2014, a period which observed a considerable uptick in deal size. Considering the first quarter of the year is historically the quietest for deal making, the findings indicate that an active 2014 could be ahead. Partner and Global Head of Corporate & Commercial Cameron Adderley said: “The most significant conclusion to be drawn from the quarter’s figures is that we’ve turned a corner away from a difficult five years following the global financial crisis.

Offshore values increase

This quarter’s average deal size of US110m is the highest in the past seven years, aside from the anomalous final quarter of 2012 when a single USD56bn transaction caused average deal values to spike. Additionally, total deal value in Q1 2014 has been topped only twice since the beginning of 2008.

Key themes of Q1 2014 across jurisdictions: • There were 15 deals worth in excess of USD1bn this quarter, including five worth more than USD2bn, and these big deals spanned a wide range of sectors. • Financial services and insurance continues to be the most active sector, while retail, construction, and media and publishing also feature heavily.

“The number of deals in Q1 2014 was down compared to the previous quarter as expected, but total deal value and average deal size were up, setting the stage for a busy 2014.”

• The largest type of deal by both volume and value was minority stake transactions, which make up almost half of deal value this quarter.

The report says that, as a jurisdiction, the Isle of Man had a busy first quarter in 2014, with 29 deals for a total deal value of USD1.7bn. In addition to the significant growth compared to the first quarter of last year, these numbers represent a 4% increase in the number of deals and a 9% increase in deal value over the impressive figures posted in the previous quarter. The jurisdiction’s average deal size grew to USD58m in the first quarter of this year, up from USD55m in the previous quarter and just USD9m from the first quarter of 2013.

• There were 34 IPOs announced in the quarter worth a total of USD11.7bn. In the past decade, that cumulative value has only been topped on five occasions. Additionally, this quarter’s average IPO of USD345m has only been beaten once in the last decade.

While the report’s primary focus is on deals involving an offshore target, it also found that the Isle of Man had a positive story to tell in deals with an offshore company acting as acquirer. The jurisdiction had 16 acquirer deals in Q1 2014 worth a combined USD500m, a jump of 220% in terms of volume and 960% in terms of value against the same quarter last year. Simon Harding, a partner in the Corporate & Commercial department at Appleby (Isle of Man) LLC, said: “Average deal size across all offshore jurisdictions this quarter is among the highest we have recorded in the past seven years, a trend we are also seeing in Isle of

“Taken as a whole, this is the clearest sign yet of a new depth to the market, as investors become ever-more willing to put money to work on larger transactions.”

• The total value of deals involving an offshore acquirer was USD52bn. Only two quarters in the past four years have seen more money being invested by businesses incorporated offshore. Five of the 10 largest acquirer deals involved Bermuda-based businesses. • In this quarter, the offshore region trailed only North America, Western Europe and the Far East and Central Asia in terms of deal value. More money was spent offshore than was spent in Eastern Europe, which includes Russia, and Oceania, which includes Australia, combined.

SUB SECTORS MAIN MOVERS, Q1 2014 Target Sub-sector

DEAL TYPES BY VOLUME, Q1 2014

Increase on previous quarter (USDmil)

Retail trade

+7,662

Information Services

+3,811

Publishing

+3,268

Film, TV & Music

+1,672

Chemical Manufacturing

+1,340

350

Total deals

Key Minority stake Acquisition IPO Planned IPO Share buy back Institutional buy-out Joint-venture Merger Management buy-out Management buy-in

572

300

250

200

150

ACQUIRER COUNTRIES BY VALUE, Q1 2014 100

Country (acquirer)

Deal value (mil USD)

Bermuda

20,228

BVI

7,401

Cayman Islands

8,673

Guernsey

VALUE RANGE Q4, 2013 & Q1, 2014

970 12,097

Isle of Man

498

Jersey

1,191

Mauritius

1,337

Seychelles

All deals

Key 1bn+ 750-1000 500-750 250-500 100-250 Less than 100

Deal Value (mil USD)

Hong Kong

51,996

TARGET COUNTRIES BY VOLUME AND VALUE, Q1 2014 British Virgin Islands

Isle of Man

107

8,316

1,673

Cayman Islands

Guernsey

164

20,687

1,932

13,670

Bermuda

KEY

Hong Kong

Jersey

10,613

5,632

Seychelles

No. of deals

2 77

Location

Agg

Cayman Islands No. of deals

164 20,687

Mauritius

Aggregate deal value (mil USD)

331

GLOBAL GROWTH

In this year’s Coutts Mid –Year Investment Outlook

David Batey sets out the reasons for our

vigilant optimism

Playing it safe can be risky We believe that the recovery in global growth remains on track, which supports our ‘vigilant optimism’ for markets around the world. However, as we survey the investment landscape for the rest of this year and beyond, we note that ‘safe haven’ or defensive assets can become so expensive when they’re in strong demand (such as government bonds in the aftermath of the financial crisis) that you end up at risk of losing money. Conversely, assets perceived to be risky (such as equities) can become cheap enough to offer attractive returns. Following the 2008 financial crisis, many investors shunned risk and preferred lower yielding but safer assets such as high-quality government bonds. However, we believe that diversifying across asset classes and opportunities is often a better way to limit losses.

Search for quality yield Weak global growth, lacklustre share markets, low inflation and geopolitical tensions made bonds the safe asset of choice during the first half of 2014. This pushed up bond prices. With bond yields (which move inversely to price) now very low, investors have little to cushion returns should prices fall, which increases the risk of holding bonds. We believe the prospects for bond returns remain challenging for the next couple of years. We are generally underweight bonds and express this primarily through our positions in government and investment-grade bonds. Within the government sector we prefer Europe, in particular the smaller “peripheral” markets, where improving fundamentals and the European Central Bank finally easing monetary policy make bonds attractive, even after a substantial rally. However, European government bonds now look less appealing than dollar and sterling corporate bonds with a similar risk rating. The strong performance of investmentgrade bonds – an area we have long favoured – now provides an opportunity

to reallocate from this sector to more attractively valued and higher-yielding markets. One such market in which we’ve maintained our modest positioning is highyield debt. After their strong rally at low volatility (high risk-adjusted return), there could be reasons to be cautious about high-yield bonds, although we expect them to continue to outperform government bonds on a risk-adjusted basis. Another higher-yielding market we believe still offers attractive opportunities is emerging debt. We prefer to allocate risk selectively to some higher-quality Asian corporate credits and emerging debt markets which offer yields that are attractive relative to their risk. These are primarily dollar-denominated sovereign and investment-grade bonds. We believe such a diversified allocation of bonds, offering high yields relative to their credit rating, will deliver sound returns.

Still positive on equities Our belief in a recovery in global growth underpins our continued preference for equities over bonds, although last year’s strong equity returns have made valuations more challenging and performance has been lacklustre so far this year. The US market is generally seen as the most efficient and diversified in the world.

With the US currently also the engine of global growth, this may seem the safest place to put your money within a risky asset class. But you have to pay more for US equities relative to other developed markets, and these higher valuations mean that on a risk-adjusted basis there may be better value in markets perceived as riskier. Much the same is true of German equities, where valuations now also look less attractive. This makes some seemingly riskier markets more appealing on a riskadjusted basis. We believe the best equity opportunities are still found in Europe, particularly peripheral markets such as Spain and Italy, and Asia, which is benefiting from a more stable China as it transitions to lower, but more sustainable, growth.

Long-term value of dividends Growing dividends have been a fundamental attraction of investing in equities through all kinds of markets. Dividend yields are currently particularly appealing given low and falling bond yields, and with interest rates looking set to stay below the rate of inflation for a while yet. Although inflation is now falling and interest rates in the US and UK look likely to head higher next year, we expect dividend yields to continue beating bond yields for a while yet.

We have a positive view on high-dividend equities in general, but UK dividends are currently particularly attractive â&#x20AC;&#x201C; yielding an inflation-busting 3.4%, while 10-year UK government bonds yield a relatively meagre 2.6%.

For further information about becoming a Coutts client in the Isle of Man, contact David Batey.

Dividends are also much more resilient than capital values and have fallen less during periods of crisis. The largest peakto-trough fall for the FTSE 350 dividend yield since 1970 was 30% in 2008, whereas prices fell 62% in 1972. Many UK companies are sitting on large cash piles, some of which they are likely to continue returning to shareholders in the form of dividends or share buybacks. And the ratio of earnings to dividends (â&#x20AC;&#x153;dividend coverâ&#x20AC;?) remains above average, suggesting room for further growth.

David Batey Director, Coutts Isle of Man. Royal Bank House, 2 Victoria Street, Douglas, Isle of Man IM99 1DU 01624 646410 Tel: E-mail: david.batey@coutts.com www.coutts.com

BUSINESS BUZZWORDS

STARTER FOR TEN:

Why the business buzzword is a thing of beauty A great man once said “if the business world is a club sandwich, then communication is its mayonnaise”. This is a maxim you can live by, although I wish he’d been clearer about whether bacon represents middle management and if lettuce is human resources. You can’t always count on the same sandwich being on the menu in the global business environment, but one thing you can be sure of is that the best way to communicate with staff, clients and customers alike is through the new international language of the buzzword. Along with its brothers, the confusing acronym (KYC; TIM WOODS; BDSA) and the meaningless metaphor, the buzzword has exploded out of the box and gone viral on a global scale. It’s a new paradigm for the corporate knowledge base that will soon replace old fashionedlanguage - that legacy system with its outdated last-gen reliance on concepts like “meaning” and “subtlety.” The buzzword is bleeding-edge, bespoke and best-of-breed - we’re already in linguistic beast mode and that’s before we’re even halfway through the alphabet. If you’re a change champion with effciency in your DNA, then I’ve no doubt I’m preaching to the choir. We aren’t just singing from the same hymn sheet, we photocopied the hymn sheet, locked the doors and handed it out at a team meeting before anybody had a chance to come and investigate why the building was on fire. That’s why it breaks my heart when any organisation isn’t on the same page - I care so much I cry myself to sleep when failing to secure buy-in from one-change resistant stakeholder results in a beautiful project being kicked into the long grass. If a passion for communications is your core competency, then you’ll recognise a lot of what I’m saying. If not, why not run a few of these learnings up the flagpole and see which way the wind’s blowing?

Shoot leaves and eat: why the buzzword is above the rules of language

Some people use language as a way of describing ideas, actions and physical objects. This is fine if you’re writing poetry or designing a bridge, but William Shakespeare or Isambard Kingdom Brunel were probably never tasked with lifting morale following an especially tense Q2 compliance audit. Shakespeare wrote most of his plays himself, and therefore had no need to inspire his team to give 110%, 24/7, 365. Also, Excel wasn’t even invented then. No, these guys were strictly focussed on the low-hanging fruit, so they never learned how what a game-changer it can be to arbitrarily mis-use words to make a situation sound more complicated or critical than it really is. Suddenly turn a noun into a verb

and you’re already thinking outside the box; use five words when one will do and you’ve filled up the empty spaces in somebody’s brain with your total commitment to the vision. Action this, task that, impact those - if you bend the laws of language people will soon understand that you’re like a tiger in the jungle, a shark in the ocean - an apex predator. If you stop moving goalposts you die, and the law of the jungle is upskill or go hungry. WE AREN’T JUST SINGING FROM THE SAME HYMN SHEET, WE PHOTOCOPIED THE HYMN SHEET, LOCKED THE DOORS AND HANDED IT OUT AT A TEAM MEETING BEFORE ANYBODY HAD A CHANCE TO GET COFFEE OR INVESTIGATE WHY THE BUILDING WAS ON FIRE. Buzzwords add action and excitement to everyday life Using language to describe things accurately is all well and good, but sometimes you need to motivate people in a way that facts and objectivity just can’t deliver. That’s when a skill-set full of buzzwords and colourful, inappropriate metaphors is your secret weapon. Want more detailed analysis of the figures? Boring! Tell people you want to ‘drill down’ and you make them think those productivity stats are a rich seam of resources hidden deep beneath the earth. Money is always in a pot. Don’t tell people things, cascade them. Don’t give people a reason to do something, incentivise them. Don’t tell them what you want, give them a steer. I promise you, making language sound constantly exciting doesn’t just energise your people going forward, it forces them to internalise your mental language of success. It’s how great organisations become world-class, and also how Charles Manson inspired his followers to kill all those people in the 60s. Jargon: Because everybody likes to think they’re dealing with an expert. I cut my teeth in marketing, and if there’s one thing I understand it’s that making clients think you know what you’re talking about is more important than actual knowledge. People love to feel like another person has everything under control, something understood by all great leaders, like Steve Jobs, Donald Trump and Pol Pot. This is just as important when addressing your sta , as a boss should be like a doctor or scientist

in that people will respect you more if they never quite understand exactly what you’re talking about. It’s also far quicker to master the language of corporate doublespeak than it is to become a real expert in anything. You don’t get to the top by being an expert in anything other than getting to the top. I think Bruce Lee said that, although it could just as easily have been Rusty Lee or Dave Lee Travis. Finding solutions identifies problems. As a corporate consultant, I do a lot of good in the world by helping people perceive problems that without me they never would have realised existed. Sometimes this is inefficiencies in a supply chain, sometimes it’s not enough managers and too many people being paid to work rather than think. Language is important here, because until you have modern-sounding jargon to describe a problem it might as well not exist. Likewise, if you haven’t got the right language to describe the future you want, it might never happen. Very zen. I’ll leave it up to you how to leverage this particular advice, but a wise man once said “death is only in the mind. I call it end-of-play”. Every sentence must inspire the people around you If we all had blue-sky thinking in our skillset then the world would run like clockwork. There would be no silos to break down, and all ducks would already be in a row. it sounds like paradise. Unfortunately we live in the real world, a world where not everybody is a team player. You can either give up, and accept that your total dedication to mission sets you apart from the common man, or you can be an evangelist and try and take the people with you, like Jesus of Nazareth or Tom Cruise. You just need to understand that every opportunity to communicate is also one to motivate, and that inspirational posters, “thought for the day” e-mails and daily team pep talks are just one part of a 360 degree, holistic approach to the total inspiration of your co-workers. If you ever see anybody flagging in their commitment, and you’ve already gone down the HR route, chain them up in the basement over the weekend with the annual business plan PowerPoint on loop. By the time you get back online the following Monday, to touch base and give them some quality face-time, they’ll be as happy to see you as a dog you’ve just let out of a hot car. At the end of the day, there’s no I in “freedom”

BUSINESS

WORDS Management consultant Marcus Halberstram ILLUSTRATION Will Bertram BECAUSE QUALITY MATTERS

119

DEAR LUCY

advice

Dear Lucy your business agony aunt

“Smart or shabby?” In my office some people are relaxed about dress and others not so, and I am eager to create the right impression. It is my first week in a job working in a team of two and report to a boss (B1) who reports to his boss (B2). My team mate is shabbily dressed. B1 is quite informal (think Steve Jobs), while B2, who reports to the CFO, is always impeccably dressed. Should I dress well (like B2) and risk alienating B1 and my team mate? Or should I dress like B1 and risk not making a good impression on B2, who could be instrumental in providing me with future growth opportunities? Financial services employee, male, 30

Lucy’s answer... I assume that for at least two-and-a-half decades you have been successfully dressing yourself and so it might seem odd that after all that time you are floored by the simple question of what to wear to work. Yet your confusion does not surprise me at all – dressing for a new job is one of the toughest sartorial challenges there is. Where there used to be rules, now there is none, meaning that each of us has to make it up afresh every morning. This is a subject on which an awful lot of nonsense is talked. The first bit of nonsense is to say it does not matter if you wear gardening clothes to the office so long as you are doing the job well. Actually it matters a lot. When you are new everyone is making up their minds about you, and one of the quickest ways is to give you the once-over. It only doesn’t matter if you are excessively brilliant – or if you are the boss. But even then you can’t escape the tyranny of clothes. Jobs’ black polo necks and Zuckerberg’s hoodie are so much part of our images of them that if the latter started wearing suits, it would trend on Twitter in seconds. The second bit of nonsense is that you should be yourself and wear whatever you are comfortable in. Again, rubbish. I’m comfortable in my dressing gown and slippers – but that does not mean I wear them to work. True, it is not a good idea to wear something actively uncomfortable – trousers so tight you can’t sit down – but I dare say you know that already. You are quite right to think the issue is political. If I were you I would assess the range of what everyone else is wearing and position yourself at the top quartile on the scale from scruffy to smart. That way you don’t make your outfits a topic of conversation, but you look better than most. You say you are worried that if you look too smart your team mates will think you are toadying to senior management. The trick is to look distinctly smarter than B1, but not as smart as B2. Fortunately, men’s wardrobes lend themselves well to such a compromise position: a sports jacket, trousers, nice shirt and no tie.

“I’m worried about my unimpressive job title” I’m looking for a new job, but fear that my unimpressive title may be holding me back. I am a senior compliance manager in a big bank but my title is merely “controller”. Other people in my bank who do less senior jobs have much grander-sounding titles. For instance, “head of corporate liquidity management” is a role far junior to mine – a cash management function running a team of two. I’m afraid that with a title like “controller” my CV won’t be considered for senior compliance positions, despite my good legal knowledge and the hard work I’ve put in. I feel that, in times like these, hiring managers don’t read the fine print of a CV and mine will go straight in the bin. Controller, female, 36

Lucy’s answer... In Thomas the Tank Engine, the classic children’s book, the much feared, top-hatted man who runs the railway has a title rather like yours. He is called the Fat Controller – the prefix “Fat” added less to signify the size of his empire than the size of his girth. Every four-year-old reading these stories knows that a controller is someone who controls. In other words, he is the boss. Six decades after the Rev Audrey wrote these books, adults have become less confident about what a controller is – let alone a vice-president or a managing director. There is now an inverse relationship between how senior a job is and how fancy the title. Inflation is most rampant at the low to middle areas (where it is cheaper than a pay rise) but at the top, titles are the same as they always were. “Chairman” still means chairman and “president” still means president. If everyone could be relied upon to be sensible, your plain title would be an advantage. The trouble is recruiters can’t be relied on to be sensible. The initial weeding is likely to be done by head-hunters and as most of them like to call themselves “senior executive search consultants”, one feels little confidence. Much as it pains me to say it, you should do what everyone else does and present your CV in the language of self-importance. Look at the wording in the job ad, and make sure your own wording mirrors it. Write that you are a senior whatever-you fancy, putting the word “controller” in brackets afterwards. And just in case you feel tempted to go to your boss and ask for a grander title: don’t. Not only would that be demeaning, it would be advertising the fact that you’ve had enough and want out.

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MODERN GENTLEMEN

Credentials for the

Modern Gentleman 24

in 2014

WORDS

LES ABLE

Gentlemanliness is apparently Britain’s most enduring export but what makes a modern day gentleman? Once upon a time a time the image was of tweed jackets, corduroy trousers, gentlemen’s clubs, cravat wearing smoothies and all too often alcohol soaked bigots.

n an attempt to check out his image and required credentials in 2014 Country Life magazine has launched its Gentleman of the Year Awards on how to identify a Modern Gentleman from a non gent. “A gentleman can still be discerned by his manners,” says Sarah Jarvis, marketing and PR manager with Sure. “Above all, if he is polite, thinks of himself after others and is genuinely pleasant to everyone, that would definitely make him a Modern Gentleman. I think a warm smile, good eye contact and a firm handshake will always be a gentlemanly thing.” She adds: “Manners suggests someone who thinks of the impact his actions have on others, like holding the door open for men and women alike and not chewing with his mouth open. While being clean and smelling nice, even if wearing a football shirt, is always a gentlemanly thing. I do draw the line at tattoos, I’m sure they are something a gentleman would never sport.” So the Modern Gentleman needs to heed good manners which, according to a recent guide to etiquette, underlines the fact they are definitely back in fashion. William Hanson, author of The Bluffer’s Guide to Etiquette believes the recession has done wonders for society’s manners. “When we suffer economically, we tend to focus on the parts of our lives that don’t cost money, like personal development. In the selfish boom years we’re greedy, it’s more ‘me, me, me’.” An interesting definition on what makes a gentleman comes from author Jilly Cooper, who will help judge the awards. He is someone, she says, who drives you home after he has been to bed with you while Joan Collins declares that a gentleman “never tells”.

To most women the Modern Gentleman is now very much a family man. “When we look at some of the popular male role models such as David Beckham, Brad Pitt and Gary Barlow, men that women find attractive and men aspire to be like, the common denominator is that undoubtedly they are family men,” says Gillian Christian, senior associate with law firm Cains. “Certainly, they all dress well and are immaculately turned out, but it’s the respect they clearly have for their family which sets them apart. It’s something that’s become an increasingly important aspect of a celebrity’s public image. Gone are the days of the ‘bad boy’ era.”

“Maybe I’m too old to talk about modern gentlemen but I would say a gentleman shouldn’t have pierced body parts and tattoos, so that would count Beckham out,” says Isle of Man-based retired businessman and entrepreneur Peter Verstage. “There is the apocryphal story of the man who asks the Lord where the toilets are and is told, ‘go down the corridor and turn right, you’ll see a door marked ‘Gentlemen’ but don’t let that deter you.” A Modern Gentleman definitely doesn’t: •

Flash his cash

•

Talk to women’s chests

•

Get drunk and incapable

•

Be rude to waiters

•

Indulge in public displays of affection

•

Roar from the school touchline

•

Be slow to pick up the bill/get a round

•

Be greedy

•

Look bored

•

Be humourlessly opinionated

For women an overriding expectation of their modern gent is that he will share the load 50/50 at home and is a role for the younger man that is newly aspirational. Les Able is head of PR and Media Relations at Home Strategic.

According to Country Life editor Mark Hedges a Modern Gentleman will text but never tweet, that’s seen as vulgar and showing off, nor would he be seen shirtless in public, for example: Simon Cowell, definitely doesn’t eat in the street, may be drunk but never disorderly. He’s at ease in any situation, always puts others at ease and is a considerate lover, making love on his elbows!