AGENDA | Isle of Man | November 2012 | by Gallery Magazine

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ISLE OF MAN Issue 1

November/December 2012

Global Brands, CWC 5 Years On... Relocation, Relocation, Relocation?

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LAW - THE RETURN OF THE BEZZLE ISLAND INVESTORS - ISLE OF MAN INVESTORS HOLDING MORE CASH THE CHALLENGE OF CHANGE - WHAT IS CHANGE AND HOW DO WE DEAL WITH IT? PLUS - MY PHONE & I, EXPATS BY THE NUMBERS, LUXURY PROPERTY, MY 9-5

In the Agenda...

elcome to the first edition of Agenda, the new bimonthly Isle of Man business magazine. At Agenda, we aspire to perpetuate a superior business publication with quality news content and an engaging design. Dedicated to offshore business news and a-list events, Agenda will equip the Isle of Man business community and offshore HNWI residents with a minimum of 75% content in business and politics, luxury product features and deliver high-end property news. You can find a full list of local distribution locations in our media pack, which we will happily send you upon request. Agenda will also be provided to our online readership, as the magazine interests key figures in the Channel Islands and further afield.

KEY CONTACTS EDITORIAL & DESIGN Steve Redford DD : (+44) 7624 249249 steve@agenda.im

ADVERTISING SALES

In issue one, technological news is brought to us by Sure Cable and Wireless Communications, who are celebrating their fifth year in business on the Island. We also catch up with TVIM, the Island’s avant-garde news broadcasters and take a look at what’s going on in both business and politics in Jersey, Guernsey and a great many other offshore jurisdictions around the globe.

we have photography of an evening with Sir Ranulph Fiennes, the eClub Halloween Party and the celebration of Simon Nicholas’ appointment as Director for Audit and Advisory at KPMG. So, here’s our Agenda... What’s on yours? If you would like to explore what Agenda could do for you in 2013, please get in contact.

After pouring over our offshore news, take a flick through our A-List Events pages, where

Rachel Morris DD: (+44) 7624 209726 rachel@agenda.im

contents

CLIENT RELATIONS

In The News-IOM ................................................. .. 2

Jersey & Guernsey News ............................ 48

Laura Macgregor DD: (+44) 7624 249249 Laura@agenda.im

Appointments .......................................................... . 8

Abacus Promotes Island in London & Moscow .................................................................. 50

PUBLISHER

A-List Events .......................................................... 30

221 Ltd , Quay House, South Quay , Douglas Isle of Man, IM1 5AR

Regulation ............................................................. ... 34

Steve Redford, Publisher

Cable & Wireless Communications ................................................. 11

Isle of Man Investor ........................................... 36 The Online Knowledge .................................... 40 The Challenge of Change .............................. 42 Disclaimer: All rights reserved. Any form of reproduction of Agenda Isle of Man Magazine, in part or whole is strictly prohibited without the written consent of the publisher. Any views expressed by advertisers or contributors may not be those of the publisher. Unsolicited artwork, manuscripts and copy are accepted by Agenda Magazine, but the publisher cannot be held responsible for any loss or damage. All material, copy and artwork supplied is assumed to be copyright free unless otherwise advised.

In The News-EU, UK, Offshore, International ...................................................... 52 Relocation, Relocation ................................ 56 Expats By The Numbers .............................. 59 Relocation, The Voice of The People ..................................................................... 60

The Return of The Bezzle ............................... 44

Luxury Homes or Investment Properties ............................................................. 62

In Business-Director Opinions ................ .. 46

Time Out-My 9to5 ......................................... . 64

We Park, You Fly! The Easy Way to Park at the Airport Just turn up or call 827532 • www.speedypark.com Exclusive offer for Speedy Park clients Access to the Rendezvous Executive Lounge for just £8 per visit. RONALDSWAY AIRPORT • ISLE OF MAN November/December 2012

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In The News

Business Agenda

IN THE NEWS World leading ship Superintendents training course success

The Isle of Man recently welcomed 17 delegates from Nigeria, France, Libya, Philippines, Germany, Poland and the UK for the next Ship Superintendents’ Training Course, held at the Nunnery site of the Isle of Man College of Further and Higher Education.

Island firm in joint venture to Launch Science Experiments to International Space Station Isle of Man based Odyssey Moon Ltd. and Israeli based NSL Satellites Ltd. in partnership with NanoRacks LLC of the US, have announced that they will fly three different educational microgravity experiments to the International Space Station (ISS). The launch will take place on Sunday October 7th on board a SpaceX Falcon 9 rocket from Cape Canaveral. One experiment, which is being undertaken by Israeli students, will look at how cancer cells develop in microgravity and another will determine the direction of the sprouts/roots growth of radish seeds under microgravity. A third experiment will examine the hardening of an epoxy resin sample to test the characteristics of the mix in microgravity conditions.

Tim Craine, Director of Business Development, Department of Economic Development, who is a trustee of the International Institute of Space Commerce (IISC) said: ‘It is fantastic that Odyssey Moon Ltd. an Isle of Man based company, is involved in these important educational experiments and it is indeed another great example of how the Isle of Man is expanding its efforts to become a central location for the new space economy.’

The intensive nine day course, run by EMCS International Limited, is designed for technical, marine superintendents and maritime personnel and delivered by a team of professionals known to be the industry’s best. Although originally designed for newly appointed recruits to the position of Superintendent and seagoing Engineers and Deck Officers coming ashore, the training has evolved to provide an excellent foundation in all aspects of maritime operations. Topics covered range from Dry Docking, Quality Assurance, Environmental Issues, Reporting for Owners, Insurance, Commercial Knowledge, Legal Issues, Budgeting and Cost Controls, Major Damage Workshops, Emissions to Time and Safety Management and Ship Registration. For further information visit: www.emcs.co.im www.iomshipregistry.com www.whereyoucan.im/maritime

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Equiom showcase e-Gaming services in Barcelona

Financial advisers on course to meet new regulations

Equiom, the Isle of Man-based corporate service provider specialising in e-Gaming services, attending the European iGaming Congress and Expo (EiG) in October.

ISLE OF MAN-based Insurance Companies are on target to meet the looming changes to the way they do business with UK investors.

The Equiom e-Gaming team, represented this year by Kerry Tasker (e-Gaming Services Manager) and Aidan Davin (Client Services Manager), travelled to Barcelona for 3 days of learning and networking opportunities.

The assurances from the Manx Insurance Association (MIA) come after the results of a survey by Capital Financial Software controversially suggested more than half of all offshore investment and retirement products still failed to meet the new retail distribution review (RDR) regulations. The RDR regulations will come into force on December 31st 2012 and are aimed at making it easier for customers to ascertain what advice they are paying for along with both educational and capital requirements for UK Independent Financial Advisers.

Aidan Davin

EiG regularly attracts over 1,700 delegates, comprising of key decision-makers from within the industry who come together to discuss and debate the latest topical issues and scope out new business opportunities. Emphasis at this event is also provided for those starting out in the industry with the “EiG Start-up Launchpad”, where the newest start-ups can pitch for investors in their business ideas. These budding entrepreneurs are also a key attraction for the Equiom e-Gaming team, who are regularly sought out by these individuals at the very early stages in order to help their ideas become an operational business. Kerry Tasker commented; “The e-Gaming industry can be a complex and challenging place with ever-changing legislation and licensing procedures. When starting-out, the decision of which location is best for you to licence your business in can be daunting. This is where Equiom add value. We have proven capability with a 100% first time success rate for the management of a number of licence applications for a variety of e-Gaming operators and software providers.”

MIA Deputy Chairman, Gill Marples said: ‘MIA members have been working for some time to ensure that their products and services are RDR compliant in time for the regulatory deadline. ‘RDR is one of the largest changes faced by the UK financial services industry for some years and MIA members are aware of the need to offer support, where they are able, to IFAs during this change.’

Kerry continued; “We recognise the individual needs of each client and we work to guide and support them throughout the entire process, including advice on the most appropriate structure and facilitating meetings with key support businesses.”

A source close to the UK industry suggested that the changes required by offshore providers may be indeed be more easily catered for than many large onshore providers who are in a race to be ready in time.

Kerry Tasker

www.equiom.im

Itex achieves Offshore first Itex has become the first Offshore IT company to achieve the International Standards Accreditation ISAE3402. Alyson Hamilton Lacey, Managing Director, ITEX

The ISAE (International Standard for Assurance Engagements) is a globally recognised Standard giving formal assurance to a company’s control and operational processes. Commonly found within the asset management and investment sectors, ISEA3402 is now expanding its reach to the IT industry.

information strategy and its internal procedures relating specifically to data security, privacy, confidentiality and reporting. Alyson Hamilton Lacey, Managing Director of Itex Isle of Man explains: “Our Jersey colleagues have been working towards this accreditation for some time. This move was in response to requests from clients for such formal assurance. In order to obtain this assurance they have worked with PwC to embed all necessary processes, practises and reporting to guarantee asset protection.” Itex will be able to supply clients and their auditors with the Service Auditor’s Report hopefully negating the need for multiple audits. As part of the Accreditation, Itex will be audited on an on-going basis. www.itexoffshore.com

T he Accreditation is achieved following an intensive audit by a third party – in Itex’s case accounting firm PwC undertook a robust audit of the organisation’s

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Feature - tvim

More than a year in the making, 3FM and Greenlight Television created a provision that delivers not just news but coverage on sport, entertainment and community events.

A revolution has been set in motion within Isle of Man’s media industry - trailblazed by TVIM...

he media landscape is perpetually changing and evolving to meet the needs of today’s Island resident, conversant with a relentless flow of modern technology and opt-in delivery channels.

In October 2012, Cable & Wireless Communications (C&WC) presented Sure TV to the Island. C&WC are a substantial global business with extensive experience in delivering this type of service and champion TVIM’s strength as a new media outlet.

Convergence between computers and the television set, combined with mobile and Wi-Fi delivery has been embraced by TVIM, placing the service at the edge of a media metamorphosis. The consumption of Manx news is being redrafted as technology drives change in all areas of business, continuing to make costs associated with media delivery less prohibitive.

Mike Phillips, Head of Fixed and Data Services for Channel Island and Isle of Man at Cable & Wireless Communications, said: “Sure TV, as part of its feature rich offering, also keeps the community at the forefront of its mind with the delivery of ‘My Island’, providing local information and ‘My Island On Demand’ a local video on demand service. Sure is delighted to make its TV service available to a wide range of local content providers and believes the programmes created by MyTV.IM revolutionises news coverage in the region and is a key, truly local service, that will go from strength-tostrength.”

Ron Berry, MD at TVIM’s parent company, 3FM, said: “Local television has been aspired to on the Island for many years. We are very aware of the opportunities technology opens and TVIM embraces today’s communication devices with content delivery over a variety of mediums. It is fit for the future.” There has been an impending expectation that an Island media outlet would provide a local TV service for the delivery of news, because in spite of size, the Isle of Man is a nation proud of Manx regional diversity. More than a year in the making, 3FM and Greenlight Television created a provision that delivers not just news – but coverage on sport, entertainment and community events.

November/December 2012

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The packaged bulletin is accessible from 5pm daily, delivered via the MyTV.im website and offered free of charge to other Island media outlets. In the months ahead, the TVIM crew plan on making television programmes focused on Manx politics, entertainment and sport, spearheading new media enterprise on the Isle of Man. www.mytv.im

The Isle of Man’s on-demand television service with all the action, reaction and exclusive interviews...

local news • current affairs • sport

Now Daily available from 5pm at www.mytv.im and on SureTV

For advertising opportunities call Tony on 616333 November/December 2012

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In The News

Business Agenda

IN THE NEWS

ISLE OF MAN. WHERE YOU CAN

Isle of Man considers FATCA implications

Aircraft Registry named ‘best in world’ A survey of leading aviation lawyers from around the world, conducted by leading aviation publication ‘Corporate Jet Investor’, has voted the Isle of Man Aircraft Registry the “best aircraft registry in the world”. Votes were cast in four categories: Speed of service; customer service; value for money; and innovation.

The Isle of Man Government is currently reviewing its requirements relating to the Foreign Account Tax Compliance Act (FATCA), US legislation aiming to combat tax evasion by US persons holding accounts and other financial products or assets abroad. Under consideration is the possible nature of any inter-governmental agreement with the USA which may assist Foreign Financial Institutions (FFIs) in the Isle of Man. The requirements, which FATCA seeks to impose, will be considered in relation to current Manx legislation, such as data protection, and other international commitments to which the Island is bound. If considered necessary, any legislative or regulatory changes will be made after consultation with industry and the Government. Furthermore, Government will consult regularly with the business community to ensure that all views are considered.

it might fall under the definition in the proposed act as an FFI holding financial assets for others via trustee and nominee services in the ordinary course of business. As part of the process we have been evaluating, with regards to US persons, the risks and additional compliance requirements of FATCA.” “Feedback MSIOM has received, from the numerous parties it is involved with, highlighted different reactions to the proposed act, and identified the often considerable concerns some parties have in continuing to deal with US persons in an offshore environment. My advice is, time is short; don’t wait for FATCA to be implemented before evaluating the risks and analysing the resources required.” Visit: www.whereyoucan.im/FATCA for information on FATCA, including its requirements and implications.

Likewise, the finance industry in the Island is also taking steps to address FATCA. Danielle Kelly, Compliance Manager of Moore Stephens Isle of Man commented: “As an Isle of Man commercial organisation, MSIOM is making a careful examination of how

The Isle of Man Aircraft Registry appeared as one of the top three registries in all categories, coming out on top for speed of service and innovation.

New Chinese language section now online

In recognition of the growing number of visitors to the Where You Can website from China, a dedicated section in Mandarin Chinese has been established at: www. whereyoucan.im/china The section highlights the Isle of Man’s unique constitution and status in relation to the UK and EU and also offers information about the range of opportunities for Chinese businesses who may be looking to do business or invest in this region. The Isle of Man offers a range of high quality solutions for Chinese businesses and individuals ranging from European Import and Export management, capital markets, wealth management and asset structuring and e-business. Representatives of Chinese individuals and businesses are encouraged to contact Steven Beevers, Head of Special Projects, for the Department of Economic Development.

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November/December 2012

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whereyoucan.im Roadshows highlight Isle of Man Clean Tech

Reinforcing commitment to combating money laundering The Isle of Man Government has published a document underlining its policy of compliance with evolving international standards in tackling financial crime.

Building on the success of the TT Zero motorcycle race and recent growth in the Isle of Man’s clean tech sector, the Department of Economic Development is taking its clean tech offerings on the road. Beginning in Boston, USA in September and ending in Lincoln, UK in November, the events are an opportunity to learn more about the benefits of establishing a clean tech business in the Isle of Man, the latest electric vehicle technology advancements and an overview of clean tech/ sustainability. To find out more about the roadshow and to register to attend go to: www. cleantechroadshow.im

FIA 2012 brings boost for Manufacturing and Space sectors

The publication, ‘Commitment to Combating Money Laundering and the Financing of Terrorism and Proliferation’, is intended as a concise summary of the Island’s position for external audiences. It includes a short overview of the Isle of Man, a review of the various positive international evaluations of the Island, a clear statement of its commitment to international standards and co-operation. The publication also highlights that the Isle of Man has been one of the leading jurisdictions supporting the development of worldwide standards in respect of transparency and exchange of information relating to tax matters. organisation for all companies operating in the UK’s Aerospace, Defence, Security and Space sectors announced that it was establishing a regional office in the Isle of Man. The office will be managed by the Department’s Business Development Manager for Manufacturing and Space, Adrian Moore, with support from the Isle of Man Aerospace Cluster, the Department’s internal marketing team and Space Commerce consultants, ManSat.

The Isle of Man had plenty to shout about following the Farnborough Airshow 2012, the world’s leading aerospace trade show. As well as strong interest in the Isle of Man Aerospace Cluster and an excellent pipeline of leads generated, ADS, the premier trade

Isle of Man manufactured laser optics arrived on Mars Laser optics manufactured at the CVI Isle of Man site are on board NASA’s Mars Curiosity probe, that landed on Mars on August 6th, 2012.

The optics helped discover a Co2 based snowfall on Mars, which was the first time that extraterrestrial snowfall had been discovered.

Curiosity is being used to analyse the soil on the red planet looking for traces of water or other substances that would give indication of life on Mars.

As Dr. Helmut Kessler, Chief Technology Officer for Europe, IDEX Optics and Photonics, put it, “It would be nice to think that we have made a contribution, no matter how small, as it will mark a milestone in human history.”

CVI’s Isle of Man facility was also involved in the 2008 Mars Phoenix Lander project, where optics were used to investigate Mars’ atmosphere.

NASA/JPL-Caltech

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In The News

Appointments

Permanent Bank International appoints new Compliance Manager Permanent Bank International has appointed Mike Clay as Compliance Manager. Mike began his career in the finance sector in 1983 with Barclays and worked in various branch banking roles around Liverpool and Wirral before moving to the company’s Water Street Head Office in Liverpool in the late 1980s. He then worked in regional office administration and the corporate securities division within Barclays. He moved to the Isle of Man in 1993 when he was involved in the launch of Barclays’ offshore banking centre. Mike then joined Barclays International Premier Banking as a client relationship manager looking after sales and servicing for a portfolio of international clients. His last role with Barclays was within compliance and he worked in regulatory monitoring until he left the company in 2005. Mike then joined Close Bank (now Kleinwort Benson) as a Compliance Officer and held this role until 2011. Prior to joining Permanent Bank International, Mike worked on two shortterm contracts in compliance roles for AIB International Savings and Axa Wealth - both in the Isle of Man. Mike said: “Joining Permanent Bank International is a great opportunity for me to contribute to the ongoing development of the business. My role involves ensuring that the business expands in line with regulatory requirements, while retaining a client focused approach. The business has a very positive outlook and I am looking forward to the future with the team here.”

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ISLE OF MAN APPOINTS DIRECTOR OF FINANCIAL SERVICES

COUTTS ISLE OF MAN APPOINTS NEW DIRECTOR

Colin Kniveton, Chief Executive Officer of the Department of Economic Development, is pleased to announce the appointment of John Spellman to the role of Director of Financial Services.

Coutts is pleased to announce the appointment of David Batey, as Director, Coutts Isle of Man. David will be based in the Isle of Man and he will report to Paul Eva, Executive Director.

Commenting, Mr Kniveton said: ‘John has worked with the Department for a number of years in a special advisor role and going forward he will work with an increased focus on the Finance Sector to drive its development. He has wide experience across many financial services sub sectors and disciplines and latterly has worked with the Isle of Man Government on generating strategic opportunity for the industry.’

David will be responsible for leading the Wealth Management team in the Coutts Isle of Man office.

Mr Spellman has led several large financial services organisations in the UK and more recently has developed a number of successful businesses offshore. He is a qualified banker and accountant and has managed a leading UK life company. He also formerly held the position of Head of Isle of Man Finance in The Treasury, where he was responsible for the promotion and development of the financial services sector. John Spellman said:‘My ambition is to meet the future head on by focusing on promotional opportunities, helping to shape a competitive regulative and legislative environment, and working across Government and Regulators to create the right business opportunities for the Isle of Man. The Department will nurture the inherent entrepreneurial spirit and assist in creating the new business needed in a post Euro Crisis world.’

He joins Coutts having spent the last 28 years within the RBS Group. Since 2009, David has held the position of Regional Director for RBS Private Banking for London, North and East, which included responsibility for both the Drummonds and Child & Co brands. Prior to this, he was Private Banking Regional Director for the East region, and Private Banking Area Manager for Wales. Paul Eva, Executive Director, Coutts Crown Dependencies, said: “David brings with him an impressive track record of working with high net worth individuals across the UK. David’s significant wealth management experience will be invaluable as we look to develop our client base and achieve our ambitions for growth in the Crown Dependencies.”

ISLE OF MAN

B u s ine s s N ew s

V iew s

C omment

ISLE OF MAN November/December 2012

Issue 1

Global Brands, CWC 5 Years On.... Relocation, Relocation, Relocation?

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LAW - the return of the bezzle Island Investors - Isle of man Investors holding more cash The challenge of change - what is change and how do we deal with it? Plus - My phone & i, expats by the numbers, Luxury property, my 9-5

B u s ine s s N ew s

V iew s

C omment

ISLE OF MAN Issue 2

€

February/March 2013

Media Pack 2013

What’s on your

£ ¥ $

$ ¥ $

¥ $

€ €

Business Thinking.... Face Value?

€ $ €

€ £

LAW - the return of the bezzle Island Investors - Isle of man Investors holding more cash The challenge of change what is change and how do we deal with it? Plus - My phone & i, expats by the numbers, Luxury property, my 9-5

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Full details on advertising are available in our Media Pack: mediapack@agenda.im

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Sponsor Feature Section

C&W Communications Celebrate 5 Years on the Isle of Man The Five Year Forecast FIVE YEARS OF LEADERSHIP CORPORATE SOCIAL RESPONSIBILITY TELECOMS & TECHNOLOGY TRENDS GLOBAL BRANDS MY PHONE AND I TT SPONSOR

Cable & Wireless Communications

Celebrate 5 Years in the Isle of Man Cable & Wireless Communications’ (CWC) investment of £30m into building robust and reliable networks for the Isle of Man has helped the Island’s international competitiveness. As the company celebrates five years of operating in the Isle of Man, it has committed to supporting the Island with a strategy of continued investment in the economy and the Island’s infrastructure. The company has also pledged to continue its approach of being an active member of the community by sponsoring events as diverse as beach parties, skating, bowling and the TT through its consumer brand, Sure.

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CWC began operating in the Isle of Man in 2007, launching initially to corporate customers as Cable & Wireless Isle of Man and soon after to consumer customers as Sure. The company has now become a key player in the Isle of Man’s communications industry by providing networks that allow the Island to connect securely with the rest of the world and its resilient off-Island data networks, which use a combination of CWC cables and the Isle of Man’s own fibre undersea cable, allowing it to deliver bespoke technical solutions to a wide range of customers. ‘We believe Islanders deserve the best infrastructure, products and services at the best price,’ said Andy Bridson, CWC’s Chief Commercial Officer and Manx man. ‘In the last five years, Sure was the first telco to bring iPhones to the Island, the first to include UK numbers in mobile plans and the first to include unlimited mobile calls in plans. We have also driven down the cost of mobile ownership by 70% and the cost of broadband ownership by 40%.’ This value driven approach has been particularly appealing during the economic downturn.

ÂŁ30 Million Investment

Cost of fixed line phone calls down by 50%

cost of broadband ownership down by 40% cost of mobile ownership down by 70% The Isle of Manâ&#x20AC;&#x2122;s first Local TV Service

In the last five years, Sure was the first telco to bring iPhones to the Island, the first to include UK numbers in mobile plans and the first to include unlimited mobile calls in plans. We have also driven down the cost of mobile ownership by 70% and the cost of broadband ownership by 40%.

November/December 2012

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Cable & Wireless Communications

CWC Isle of Man pursues technological changes to provide a better customer experience across mobile and wired phones, TV, mobile internet, broadband and data in both business and the home.

November/December 2012

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Although it is a local company, CWC Isle of Man has the robust backing and support of Cable & Wireless Communications, which is listed on the FTSE 250. CWC, which is:

active in

Cable & Wireless Communications Celebrate 5 Years in the Isle of Man

While the prudent fiscal management by the Isle of Man’s government has ensured the Island has weathered the downturn well, there is little doubt that consumers and companies have looked at ways they can become more efficient. Mr Bridson tells us more: ‘The technical solutions we offer are usually bespoke to deliver our corporate customer’s strategic goals, and so if that company’s fortunes should change, then our scalable solutions can usually change with them. ‘Our aim is to help the Isle of Man take its rightful place on the international business stage and we believe that our inward investment leads to further investment. We are committed to technology and product development that will diversify the Isle of Man business landscape so that the Island is no longer reliant on its tax status to attract global companies to move here.’ Although it is a local company, CWC Isle of Man has the robust backing and support of Cable & Wireless Communications, which is listed on the FTSE 250. CWC, which is active in 38 countries and supplies 153 countries, has 10.7 million mobile customers, 1.7 million fixed line customers and 630,000 broadband customers. ‘CWC’s model is to take its global expertise and invest heavily in Island economies, networks, infrastructure and communities to deliver market leading communications services. ‘Being part of CWC’s Monaco & Islands division provides support from other jurisdictions including London and the Channel Islands but because we are completely autonomous, we are able to create and follow our own product, service and investment strategy that meets the needs of the Isle of Man.’ This strategy will ensure that the next five years will be as eventful as the last as CWC Isle of Man pursues technological changes to

provide a better customer experience across mobile and wired phones, TV, mobile internet, broadband and data in both business and the home. Mr Bridson added: ‘Innovation will continue to be our watchword as we look to the future. Some of the exciting projects being worked on are a move towards converged technologies which will allow customers to connect to local Wi-Fi when overseas to make calls and send texts using their Sure plans; partnering with local councils to provide Wi-Fi hotspots across the Island and delivering even more content through IPTV which will give Sure customers access to satellite and Freeview channels and local content through a set top box’. ‘All of this wouldn’t be possible without the very best staff and we know the key to our success lies in recruiting and retaining the highest calibre people. As our business grows and evolves, so we will continue to recruit locally. Sure and Cable & Wireless Isle of Man are proud of what has been achieved to date and we look forward to what the next five, 10 and 50 years bring,’ said Bridson

38 153 10.7 1.7 630, 000 countries

supplies

countries has

million mobile customers

has

million fixed line customers

and

broadband customers

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Cable & Wireless Communications

first teleco to bring iPhones to the Island

Years of Leadership Today, about 90% of the phones sold by Sure are smartphones, yet it was only five years ago that the most popular phone we sold was the solid and reliable, (but not that smart) Nokia E65!

JAMES HEWITT, RETAIL SALES MANAGER.

Keeping up with the ever-changing mobile phone market isn’t enough, it’s leading the market that matters and five years in the Isle of Man have proven Sure Cable & Wireless to be the Island’s market leader.

The E65’s popularity came at a time when still the most used functions on a phone were talk and text. The mobile Internet was just beginning to take off and although the E65 was a 3G capable handset, its WAP 2.0 Internet browser was so limited in its capabilities that for most users, their mobile Internet experience was limited to briefly checking the news and sports headlines. Fast forward to today, and the mobile Internet delivers a whole new experience. Smartphone browsers have virtually all the capabilities of those on the PC, websites are optimised for mobile use and the rise of the app has brought an entirely new range of functionality to the mobile phone. Nowadays, it’s not uncommon for the smartphone to be our main point of access to the Internet and much of this has been driven by social media. You can take a photo and share it directly with friends via Facebook, Tumblr or Twitter or you can chat with contacts on the other side of the world using Skype or Facetime. Smartphones have even made it easy to send emails whilst out and about, transforming the smartphone into an essential working tool. The rise of the smartphone over these past five years has also reshaped the landscape of the handset market. The E65 wasn’t just our most popular phone, its manufacturer, Nokia, was easily the most popular maker of mobile phones. In 2007, Nokia’s market share was about 40%, yet by the middle of this year, Samsung had overtaken Nokia and now fights it out with Apple for the mantle of most successful manufacturer. Other brands such as HTC and LG were hardly known back then

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The speed of the ever-changing mobile market means that it’s almost impossible to predict which handset brands will be popular or which technologies will be available in five years’ time. What we can predict is that Sure will continue to lead the market in the Isle of Man.

but today they produce popular smartphones which have helped them enter the ranks of the top five. The move to smartphones has been driven by access to broadband delivered via both 3G and Wi-Fi. The increased data speeds that these technologies deliver has boosted the popularity of mobile Internet usage and enabled Sure to reduce the cost of mobile data. When we launched in 2007, our standard pay monthly data allowance was 100kb and the out of bundle data charge was 15p per Mb. Today, there are no download limits, meaning our customers are free to use the Internet as much as they wish. If a Sure user does download more data than is provided for in their tariff bundle then the cost is just 4p per Mb, that’s ten times cheaper than Manx Telecom which, with prices of 42p per Mb, still charge more for data than Sure did five years ago.

Sure’s market knowledge enables us to innovate at every opportunity and over the next five years, we will continue to lead the market, delivering more whilst charging you less.

We knew that smartphones would become hugely popular and launched our Smart Plans as a result. We brought the first iPhones to the Island and will continue to use our industry knowledge and experience to bring you the best handsets as quickly as possible. Perhaps most importantly, we will continue to make sure you can use your smartphone without fear of unexpected charges and are committed to providing unlimited data whilst also creating innovative call plans that deliver affordable prices, such as including UK and Ireland mobiles within monthly bundles.

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Cable & Wireless Communications

CULTURE

Business

Relations

Community

Ethics

Professional

FINANCIAL

November/December 2012

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Company Social

STANDARDS 18

Recommendations

Employees

Policies

LAW

Responsibility Economic

Benefits

Corporate

ACTIONS

Awareness Values

Cable & Wireless Communications

A marketing discipline? Or critical to corporate success?

Corporate Social Responsibility Bob Dylan would probably be horrified to see his zeitgeist defining words associated with business culture, but it is clear that ‘the times they are a changin’ when it comes to Corporate behaviour as consumers become more aware of the personal impact that companies can have on a community.

Corporate Social Responsibility, in effect, are the publicly stated corporate values that a company defines itself by, and integrates into its business model. CSR has become as important as the products or services it sells. As markets become more homogenised, companies now understand that they can create a competitive advantage by building a social value proposition into the company.

Economists often refer to the ‘triple bottom line’; people, planet and profit. In order for a company to be successful in the twenty-first century, it needs to comply with the spirit of the law, ethical standards and international practises. In an age of social media, where large networks of like minded people worldwide can quickly be mobilised to react to corporate malpractice, operating as a good corporate citizen has now become much more important to maintain the bottom line for multi-national companies. Its importance and impact can equally be applied to a local domestic market, such as the Isle of Man. The Island is renowned worldwide as an international financial centre, and has recently begun to diversify into other markets such as e-gaming and space that see locally domiciled operations with worldwide target markets, it also has a number of companies that only target domestic consumers. Shoprite, a family owned operation that has traded on the Isle of Man for over 40 years, is one such company. Faced with competition from one of the world’s largest retailers, the Manx business has defined itself by the contribution it makes to the local community.

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Cable & Wireless Communications

The popular concept of Corporate Social Responsibility is often applied to the impact that global multi-national companies can have worldwide, but the reality for the Isle of Man is that charity begins at home.

Carol Glover, Shoprite’s Head of Strategy, explains: “Our competitors in food retailing have the commercial advantage that comes with large scale operations, but cannot deliver the same local impact that a Manx domiciled business can. It is almost a paradox that a small local business can contribute more to the local market than a large global one can.” Carol continued: “This is not only about tax contribution, where often company taxes are paid off-Island despite revenue being generated at source but also about a company’s ethos. At Shoprite, we have an active policy of supporting local suppliers over non-Manx-based operators. That means that money remains in the local economy and benefits all of the local citizens. Our ‘Corporate Social Responsibility’ is much more than simply a clever marketing device, it is actually about making a vital contribution to the Island.” This policy has been most recently been demonstrated to the local farming community, as Shoprite is now the only major food retailer, following EU derogation that still stocks locally reared red meat. Emphasising the contribution that a company makes to the local community also underpins a significant part of the marketing activity that telecommunications provider Sure carries out.

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The company, part of global telecommunications operator Cable & Wireless Communications, established a service on the Isle of Man as recently in 2007. Merely by setting up an operation in the Isle of Man as the company had already established itself as a ‘good corporate citizen’ with a positive brand image by introducing competition into the local domestic market, breaking up the existing monopoly and reducing prices for local consumers.

They provide not only financial assistance, but also developing a close working relationship with the Isle of Man TT Marshals Association and the event organisers, using their own infrastructure to help deliver the event.

Kate Hegarty, CWC Marketing Manager, explains the thinking behind the company’s marketing:

The breadth of activity that the company undertakes demonstrates the broad reach that the company operates in. As Kate Hegarty explains:

“Telecommunications is essentially a price, product and service driven market and we have to make sure that we continually offer our customers the best possible packages. However it isn’t the only reason that people choose us over our competitors. We have actively looked to become involved with the local community by creating events that bring the community together.”

“There aren’t many companies on the Isle of Man that are involved with pretty much the whole population but our programmes need to address virtually all social groups which is why we have such variety of sponsorships. It’s important for us as a company to reward the loyalty of our customers with tangible community benefits.”

Sure’s community programme has included both traditional sponsorship of sports teams and leagues, as well as activities such as the Sure Beach Parties and the creation of the Sure School Rewards Programme. The company is also a long-term supporter of the Island’s main sporting event, the TT Races.

As well as backing existing events, the company has helped with the creation of new facilities with long-term community benefits, such as the Sure Strike Bowling facility in the North of the Island.

“It’s important for us as a company to reward the loyalty of our customers with tangible community benefits.”

“Sure’s community programme has included both traditional sponsorship of sports teams and leagues, as well as activities such as the Sure Beach Parties.”

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Cable & Wireless Communications

The Five Year Forecast We have seen huge changes in communications technologies over the last five years: The switch from standard voice and text mobile phones to smartphones, the move towards social media and, in business, the increasing use of Voice over IP technology that reduces both costs and the need for multiple communications networks.

Mike Phillips, Head of Fixed and Data Services, Sure Cable & Wireless Communications

phones as home and work phones, using Wi-Fi access when in range of a Wi-Fi network and automatically switching to the mobile network when out and about. This makes things simpler, for instance you’ll only need one number instead of many but it will also significantly reduce the cost of using the phone. In the Isle of Man, Cable and Wireless Communications is set to lead the transition to convergence by offering much cheaper calls and texts whilst roaming. Our customers will be able to use their Sure Plan minutes and text bundles via Wi-Fi networks in the country they are travelling in, and so will be able to place calls via the Internet instead of incurring roaming charges. Locally, we are pioneering ‘Urban Wi-Fi’ by bringing wireless Internet access to all the major population areas in the Island, greatly improving the quality of local internet access on your phone. We’ll be doing this in conjunction with local councils to give residents and visitors alike the reliable, high-speed mobile internet experience they deserve, and will need, as cloud services become increasingly prevalent.

TV’s changing climate

As the speed of change continues to accelerate, the next five years promise to be very interesting! The Cloud on the horizon One technology that is already changing the way businesses and individuals access and store services and information is cloud technology. Over the next five years, we can expect to see the Cloud becoming the guiding principal driving the next generation of data networks. Whether you store photos, music and videos in iCloud or use the Cloud to run your business applications, the move away from privately owned networks in favour of the flexibility and lower costs offered by cloud technology is set to continue. The use of cloud technologies goes handin-hand with the growing use of tablets and smartphones. These will, according to some forecasters, make up the majority of computer sales by the end of 2013, pushing the PC into something of a decline and as we increasingly use the “computer in our pocket” for Internet access and voice communications, the move towards converged technologies is set to increase. Convergence means that we‘ll be able to use one device for making calls instead of having home, work and mobile phones. It means that we’ll be able to use our mobile

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One enormous change that we have seen has taken place in living rooms across the Island. Television, a technology that has remained largely untouched since the satellite TV revolution of the nineties, has moved from the current model dictating what programmes you can view and when, and has become an Internet-based TV service. IPTV, as internet TV is known, will give viewers unprecedented flexibility in choosing their viewing. A set-top box will provide access to IPTV content and will enable you to view the programmes you want whenever you want. As the rest of the world makes the transition to IPTV, the Isle of Man is at the forefront of the revolution since Sure launched its Sure TV service to customers in early October 2012. Sure TV will carry Freeview and premium channels as well as extra content that we have sourced from around the world.

urban WiFi networks

platforms offline access

outsource processes

online collaboration

internet TV

3rd party integration

online office online resources

shared calendars

It has also brought quality local TV to the Island: News from MYTV; features; ferry times and weather forecasts amongst the programming. The Cloud, convergence and IPTV are just a few of the developments we can expect to see over the next five years. There can be little doubt that there will also be many other unexpected new technologies appearing, technologies which will change the way we work, relax and socialise, giving us unprecedented flexibility in the way we run our lives and providing

online storage

access to information and services that were previously out of our reach. Among all the change you can expect from the five years ahead, one thing you can be certain of is that Cable and Wireless Communications will be here, continuing to invest in the Isle of Man to bring you the latest, most useful technologies as they become available.

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Cable & Wireless Communications

GLOBAL BRANDS The Isle of Man is building its reputation as a global player both in terms of attracting international brands to establish a presence here as well as supplying goods to customers that include NASA, Boeing and Rolls Royce. The government offering includes a competitive operating cost environment and a simple taxation regime, including zero rate corporate tax and a maximum tax liability of £120,000 per individual, an internationally recognised economic and business infrastructure and a high quality of life for its inhabitants. Attracting global business is a priority and there are some world leading brands in the Isle of Man. Now, Chief Minister Allan Bell has launched an initiative called ‘Global Friends’ that he hopes will promote a deeper understanding of the Isle of Man through the ‘international community’ that feels a strong affinity for the Island, and attract the attention of decision makers around the world.

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Cable and Wireless Communications is one of those global brands investing in the Isle of Man. This truly worldwide provider is active in 38 countries with robust and reliable connectivity to 153 countries. Andy Bridson, Chief Commercial Officer said: ‘Our model is to take our global expertise and invest heavily in Island economies, networks, infrastructure and communities. We have a history of steady ownership and longevity in the markets in which we operate. ‘We are completely committed to helping the Isle of Man take its rightful place on the international business stage. Our inward investment in the Island attracts other investment here and we are committed to technology and product development that will diversify the business landscape so we are no longer reliant on our tax status to attract global operators.’ The merger of one of the Island’s most respected firms of advocates, Dickinson Cruickshank, with international law firm Appleby in 2009 is another example of how global business can benefit the Isle of Man. Appleby’s arrival further cemented the Island’s standing as an international offshore centre of excellence. In the beauty contest against other offshore jurisdictions, the Isle of Man’s ‘open for business’ policy appears to be paying off.

Appleby (Isle of Man) LLC partner Nick Verardi agrees that many of the Island’s attractions. Its OECD standing, tax information and exchange agreements can be found in rival jurisdictions – indeed, as a group, Appleby has a presence in the Channel Islands as well as several other offshore jurisdictions - but says: ‘Where the Isle of Man differs is the physical space we have around us to grow our population and our workforce, a workforce that is less transient than in other jurisdictions. People settle their families here.

loudly. We may have lost the local name but we have gained an international footprint.’

budget for marketing the financial services industry ‘could be grown’, but says:

China has been of significant interest to the Isle of Man and, in April this year, Appleby opened an office in Shanghai to serve, in conjunction with its Hong Kong office, local and international clients in Asia. With access to the European VAT network and zero per cent corporate tax rates, the Island is now in the perfect position to offer unique services to China, says Appleby.

People are quick to blame the government for not pushing the Isle of Man harder., but the private sector should also take some responsibility.’

Mr Verardi added: ‘Many other jurisdictions have local restraints placed upon them, such as strong work permit regimes, whereas the Isle of Man really is open for business. You can buy property here. Once you have a work permit you can effectively remain here for life. Our very strong schools, the health services and our stability, both politically and socially, allow people to feel very settled and happy people benefit business.’

Another encouraging development for Appleby (Isle of Man) LLC has been the creation of its British Virgin Islands (BVI) legal team of seven, five of which are partners.

A settled workforce provides a degree of comfort to a global organisation, whilst the backing of a global concern brings more business to Manx shores. Verardi was made a partner of Dickinson Cruickshank in 2002 and says: ‘There’s always going to be a risk of losing a local identity, which is a shame. But the world we live in is global and the global brand speaks very, very

Together with the full support of Appleby’s well established practice in Tortola, BVI, the Isle of Man team is able to provide a range of legal services in a GMT time zone. As a group Appleby is the world’s largest provider of offshore legal, fiduciary and administration services and employs more than 120 partners and staff in the Isle of Man. The firm supports government-led initiatives and is dedicated to ‘staying local’ where possible to support local businesses. Verardi, a past chairman of the Isle of Man Chamber of Commerce, is supportive of government-led marketing campaigns, such as ‘Freedom to Flourish’. He does think the

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Cable & Wireless Communications

myPhone and

David Butterworth

William D Mummery

Managing Director| Skanco Business Systems Ltd.

Executive Director | Celton Manx Limited

1. What was your first phone? Tell us about it?

Sony CM-H333, commonly referred to as the ‘mars bar phone’ due to its size and shape.

My first was a fixed ‘In Car’ Motorola in 1989 - in a new Rover827, which was my first car on return to UK after ten years in Hong Kong. Even then I found it very valuable, though restricted to the car. After that, I had a Nokia with an ‘In Car’ kit as my first real ‘mobile’.

2. What phone do you use now? Blackberry 9800. 3. Do you use your phone for work? If so, what do you use it for? Yes, used for work, mainly calls and e-mails. 4. What is your favourite piece of technology? iPad 2. New, amazing piece of kit. 5. How do you think that mobile technology affects the way your industry conducts business? It makes doing business easier as long as you remember that we should not be contactable 24/7.

2. What phone do you use now? I use an iPhone 4S when ‘on Island’ – it’s great with e-mail and apps but a damned awful phone on 3G Networks, and the battery life is still a big issue. I also use a BlackBerry when roaming, as it handles data (e-mails) so much more efficiently. 3. Do you use your phone for work? If so, what do you use it for? Because I deal with the Far East, an eighthour time difference. This week I’m in the USA. My phone is on 24 hours a day, on either calls or e-mails. I couldn’t function without it, even though it can be intrusive at times. 4. What is your favourite piece of technology? Without doubt the iPad 3, it is brilliant. 5. How do you think that mobile technology affects the way your industry conducts business? Massively. The Global television distribution of sports (in particular Soccer) coupled with smartphone technology enables Soccer fans to wager on matches throughout 90 minutes. This ‘in running’ betting, across the industry now accounts for between 50 70% of revenues.

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Tim Craine

Ed Ogden

Ron Berry

Director of the DED’s Business Development Agency

Area Commercial Director | HSBC BANK PLC

Managing Director | 3FM Ltd.

1. What was your first phone? Tell us about it?

My first phone was a Clam Shell Samsung, which at the time I thought was the bee’s knees. However, looking back, the functionality was extremely basic compared to the handheld devices of today.

Motorola something. It was like carrying a brick with you, it weighed a tonne, and the battery needed charging everyday. That said, I was one of the first people to get one and it was definitely a talking point. My mum said she would never have one - BUT SHE HAS ONE NOW!

To be honest, I can’t remember what make it was (it may have been a Nokia), but I do know it was the size of a house brick! I resisted getting a mobile for ages, as I was wedded to my pager, it was less intrusive.

2. What phone do you use now? I now use an iPhone 4S. 3. Do you use your phone for work? If so, what do you use it for? Mainly for calls, SMS, but also for e-mail access. 4. What is your favourite piece of technology? My iPad 2, I am addicted to it! 5. How do you think that mobile technology affects the way your industry conducts business? It allows me to be connected 24/7/365, and helps me to manage my workload and stay in touch with whomever I need to.

2. What phone do you use now? BlackBerry. 3. Do you use your phone for work? If so, what do you use it for? Yes mainly for work. I e-mail, use a diary/ calendar, send texts, read voicemail and lastly, I use it as a phone! 4. What is your favourite piece of technology? My electronic diary, as it always with you and reading the many e-mails that I get each day. 5. How do you think that mobile technology affects the way your industry conducts business? You are always in contact with work/ customers/home, and it surprises me how many people I contact regularly, but never actually speak to.

2. What phone do you use now? I have two phones. One is a BlackBerry, which does exactly what I want it to do make and receive calls and e-mails. The other is a HTC, which is great when I want to play about with apps and catch-up on TV whilst on the move. 3. Do you use your phone for work? If so, what do you use it for? My BlackBerry is my work phone because, as I said, it is a no-nonsense device. It’s a real shame that BlackBerry went down the ‘playbook’ route with their tablet. I think that they missed a trick in not making it a device that was aimed at the business market. 4. What is your favourite piece of technology? I have to say that it is my converged desktop PC. It’s a device that does the lot in terms of communication and entertainment. 5. How do you think that mobile technology affects the way your industry conducts business? I suppose transistor radios were the first mobile devices that allowed people to access music on the move, so the radio industry has a long connection with mobile technology. These days mobile content delivery is sophisticated, high quality and global, so our industry needs to change business models to be fit for the future. Here at 3FM, we have embraced technology and have some great plans for the future.

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Cable & Wireless Communications

Sure adds to TT Races History since launch five years ago When John McGuinness set off down Bray Hill on Monday 4th June 2007 in the first Superbike Race, followed later in the day by Dave Molyneux in the Sidecar race, it not only marked the start of 100 years of the Isle of Man TT Races, but also heralded the introduction of competition into the Isle of Man’s telecommunications market.

Cable and Wireless Communications consumer brand, Sure, was the telecommunications sponsor of the Centenary TT Races as part of their launch marketing programme, and shortly after the 2007 TT, the company went live in providing and mobile services for the Isle of Man’s domestic and business market. Five years later, and all three parties are still going strong. Sure is now an established part of the Isle of Man’s infrastructure. The company has invested over £30million, building a strong, reliable local network that can connect robustly and securely to the rest of the world. That five-year period has seen Sure significantly drive down the price of Telecommunications services. Mobile and broadband services, critical in keeping up-todate with the TT action, have fallen in price by 70% and 40% respectively since Sure entered the market. McGuinness and Molyneux have also enjoyed great success over the same five year period. The Morecambe man now has 19 TT Race victories to his name following the 2012 meeting, extending his lap record to

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131.578mph since first breaking the 130mph barrier in 2007, while Manxman Molyneux, with passenger Patrick Farrance, has just won both Sure sponsored sidecar races, taking his overall total to sixteen. However, it’s fair to say that the landscape that the three operate in has also changed dramatically. The TT races now has a global profile with worldwide television deals, a corporate hospitality programme, high profile global brands as sponsors – all part of a commercial programme delivering increased revenue to offset the costs of running the event. The riders also now enjoy celebrity status with the hugely successful ‘TT3D: Closer to the Edge’ film propelling them onto the big screen and into the nation’s conscience. Increased press and online coverage worldwide and a number of high profile books including award winning Times Sports journalist Rick Broadbent’s latest tome ‘That Near-Death Thing’ have all raised the awareness of the characters behind the visors. Sure has also played a large role in the development of the races by using its technical expertise. Island-wide communications is

critical both to race fans and organisers and the company has invested significantly in the Sure network, which now reaches 99% of the population. It has been built using the most advanced technology available, which allows regular updates to improve the customer experience. Sure’s Chief Commercial Officer Andy Bridson commented: “There’s no doubt that the TT races provides additional challenges that we wouldn’t necessarily face in the rest of the year. The TT now attracts around 40,000 visitors throughout the fortnight and the large majority of these have communications requirements that test the network. However, this year we saw a 75% increase in the number of visiting consumers choosing the Sure network to roam which is testament to our improved user experience in key populated areas as well as the reliability of the network itself.” However, the company’s TT involvement doesn’t stop there. The Sure retail unit, which provides communications assistance to TT fans as well as hosting the Radio TT365 broadcasts, has become an established part of the paddock. This year the company also backed the creation of an official TT single ‘Limitless’ by local group ‘Full Moon Fallout’, with proceeds going to local music youth project ‘Soundcheck.’ Sure’s textline service, introduced in 2010, is also proving popular with fans, keeping them up to date with the latest race results as well as festival news and road closures.

Dave Molyneux, who is now personally backed by Sure in his TT efforts, commented: “When the name Sure first appeared at the TT I hadn’t heard much about them but they’ve now become an established part of the TT and I’m very grateful for the support that they’ve shown both for the sidecar class and also for me personally.” With Molyneux and McGuinness now both over forty years old and enjoying ‘veteran’ status at the TT Races, the question often being asked is when they plan to retire, but for Sure, celebrating their fifth birthday on the Isle of Man at this year’s TT, the story is only just beginning.

Sure has also played a large role in the development of the races by using its technical expertise. Island-wide communications is critical both to race fans and organisers and the company has invested significantly in the Sure network, which now reaches 99% of the population. November/December 2012

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“An Evening with Sir Ranulph Fiennes – The World’s Greatest Living Explorer” Hosted by The Sporting & Dining Club and sponsored by Isle of Man Post Office. AGENDA

A-LIST EVENTS

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Events - IOM

Friends and colleagues at KPMG Isle of Man joined Simon Nicholas at Artisan in Douglas on Thursday 4th October to raise a glass in celebration of his appointment to the position of Director for Audit and Advisory. Simon has been an Associate Director within KPMG Isle of Man’s Audit Division since 2010 and has over audit and advisory services to the firm’s financial services clients, specialising in the insurance and funds sectors.

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Come Hell or High Water More than eighty eGaming professionals braved torrential rain on Thursday 11th October to attend the eClub Halloween Party at the Courthouse, sponsored by Celton Manx. Guests from operators and service providers were greeted by a ghostly mist, scary clowns and complimentary food and drink at the networking event, which is held roughly five times each year.

AGENDA

A-LIST EVENTS

For regular updates and to get involved in the eClub, visit www.facebook.com/IsleofManeClub or join the group â&#x20AC;&#x2DC;Isle of Man eClubâ&#x20AC;&#x2122; on LinkedIn.

Mike Stanton (centre), Head of Business Development for event sponsors Celton Manx, with Russell Kelly, KPMG (left), and Richard Ebbutt, Continent 8 Technologies (right).

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The existence of a strong banking infrastructure and world class telecommunications, as well as law and accountancy services, has helped keep the Isle of Man at the top of its game across a range of industries. 34

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Regulation

Regulation E-gaming is a winning industry for the Isle of Man, thanks to pioneering and unique regulatory legislation that is designed to protect customers.

The gaming sector now accounts for some 10% of the Isle of Man’s GDP - and it is growing. It was recognition of the need to establish a strong regulatory environment that gave the Isle of Man the edge in the e-gaming industry. The Island was one of the first jurisdictions in the world to create legislation to regulate the activity of e-gaming companies. Executive director of Isle of Man-registered e-gaming company Celton Manx, Bill Mummery says effective regulatory legislation in the e-gaming industry was facilitated by the strong professional services in law and accountancy that the Island already had in place. Mr Mummery said: ‘Being first to market is often an advantage but it can carry an onerous burden. In the context of legislating for a totally new industry, we were pioneers. We had to create best practice. By 2005 we were already recognised as one of the premier jurisdictions for e-gaming.’ Mummery is a keen ambassador for the Island and says the existence of a strong banking infrastructure and world class telecommunications, as well as law and accountancy services, has helped keep the Isle of Man at the top of its game across a range of industries. Celton Manx was the first Manx company to be granted approval by the Island’s Gambling Supervision Commission to launch a live dealer online casino in 2009. It allowed the company to penetrate further into the Asian market, where players prefer to view the game in a casino environment with real dealers. Mr Mummery added: ‘One particular strength of the Isle of Man is its attractiveness to the Asian countries. We are out with the EU and very much on the radar for those Asian-focused companies that are looking for a tier 1 jurisdiction. We have demonstrated that we have high quality legislation that works to protect the consumer.’ Online gambling can be a contentious issue, which is why stringent regulation is crucial. Mr Mummery added: ‘My absolute strong view is that prohibition puts the populace at risk. We either prohibit or we tax and regulate. By prohibiting we are putting customers at risk by forcing them to go to a third rate jurisdiction.

Not a week goes by that we do not have a dialogue, in a positive and constructive way, with our regulators.’ In e-gaming, unique regulations provide that player funds are maintained separately from operators’ funds to protect the players money. The Isle of Man is recognised as a leading regulated offshore jurisdiction in sectors that include financial services, company registration, pensions and the registration of ships, yachts and private and corporate jets. The Manx ship and aircraft registers are acknowledged as among the best in the world.

ICM Aviation director Mark Byrne says: ‘We shall also be reflecting on the phenomenal growth of the Isle of Man’s Aircraft Register which at just five years old is already home to the world’s sixth largest business jet fleet. This rapid accent to prominence is in no small part down to the business friendly environment that has been created and developed by the Isle of Man Government. The environment it has created exemplifies what a business friendly environment means in practise.’

The high profile of the registry in the private aviation sector is clear from the high calibre speakers at June’s Isle of Man Aviation Conference, organised by ICM Aviation, part of the ICM group of companies, and supported by the Isle of Man Aircraft Registry. Almost 150 delegates have signed up from the UK, Europe and beyond. Chief Minister Allan Bell will be the keynote speaker. The general theme is the changes that are on the horizon for this growing industry.

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Investment

Risk-averse Isle of Man investors holding more cash Recent research conducted by Lloyds TSB Private Banking suggests private investors are responding to on-going volatility in financial markets by selling higher risk investments and holding more cash than at any time in the past three years.

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Local investors on the Isle of Man see cash investment and long-term portfolio diversification as a priority. Findings suggest that 30% of local investors increased cash holdings over the past six months as opposed to the 15% who decreased it.

Comparison of percentages held in different investment types, currently or in the last six months, by investors in the Isle of Man as compared with those worldwide. The bi-annual Investor Outlook Survey by Lloyds TSB Private Banking reveals that over a quarter of UK investors increased their cash allocation in the past six months, against only 14% who decreased it. This trend is set to continue with 19% of investors planning to up their cash exposure in the next six months, while only 11% plan a decrease.

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Investment

Risk-averse Isle of Man investors holding more cash

Proportions of investors increasing or decreasing their cash holdings.

Local market outlook over the next six months: The Island’s investors are largely in agreement that emerging markets are generally too risky.

The chart below shows that 47% of respondents worldwide have increased their cash exposure as opposed to an increase of 30% in the Isle of Man. The portion of global investors who have decreased their cash holdings is 18%. Of the 44% of Manx investors claiming a reduced confidence in markets over the last six months, 16% cited their reason as having a lack of confidence in the political steps being taken to assist economic recovery. However, 38% of respondents worldwide said they are willing to take risks because they still see opportunities in the financial markets, despite a bumpy ride in recent years. Isle of Man investors are more upbeat about commodities than any other asset class – 45% think they have a positive outlook, compared to only 22% who view their prospects as negative. Isle of Man investors are least positive about property, a type of investment that they have high exposure to – excluding their main residence it constitutes 17% of their investments, 51% of investors classify themselves as ‘risk averse’ compared to a 54% global average.

Clients surveyed in the Isle of Man noted that their main concerns about their investments for the next 12 months focused on issues surrounding Greece potentially leaving the Euro, increased interest rates, economic growth in the UK and inflation. Less than 20% of Manx investors surveyed claim that they were satisfied with the current performance of their savings and investments. Elsewhere in the world, emerging nations such as China and Brazil are believed to offer the highest potential returns for investors. China, India, Brazil, as well as the more developed UK, were selected as the most attractive World Financial Markets in which to invest. 57.8% worldwide feel that the outlook for the Eurozone is negative, 23 per cent feel the outlook for similar US asset markets is negative and 28% feel that UK stock markets will have a negative outlook; over the next six months. 49% of Manx respondents noted that they are concerned about the level of US debt.

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The World Financial Markets that offer the highest potential returns to investors as rated by Isle of Man investors.

Overall, the Lloyds TSB Private Banking research shows a divergence in investors’ views – with a majority remaining risk-averse, holding more cash and selecting relative ‘safe haven’ investments. However, there is a significant group that sees opportunity and value in current markets and has increased riskappetite after the heavy discounting of many risk assets.

Investors in the survey indicated the type of information source, or combination thereof, that they rely on for their investment decisions.

Commenting on the findings, Nicholas Boys Smith, Director, Lloyds TSB International Wealth, stated: “Whereas elsewhere in the UK investors appear to be shielding themselves from market volatility, those on the Island are now building upon what has been an extended term of caution and conservatism with increased cash investments and commodities purchases. Many have become very risk averse when it comes to any short-term, high return purchases and have instead chosen to secure their investments with fixed assets, fixed term deposits and premium bonds. This creates more balanced investment portfolios, which are more diverse and thus less susceptible to danger in what remains a tumultuous investment landscape for all.”

Notes: All figures, unless otherwise stated, are from a survey of 2,700 private investors from the UK, Channel Islands and 12 other countries around the world. The survey was conducted online by Freshminds and ICM in September 2012 on behalf of Lloyds TSB Private Banking. The previous Investor Outlook survey was conducted in January 2012.

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World Wide Web

The [online] Knowledge INTERESTING CREATIVE DATA WEBSITES

01.

London Datastore Data.london.gov.uk Governments around the globe are opening up their data from data.gov in the US, via Australia, the UK, New Zealand and France. One of the best and most useful is the London Datastore. Created by the Greater London Authority, it publishes thousands of datasets with emphasis on useful, live data, such as transport and economic numbers. Developers are using those figures to create interesting apps, such as Matthew Somerville’s live train map for the London Underground.

03. 02. 04.

Guardian Datablog Guardian.co.uk/data

LinkedIn Linkedin.com

The Guardian and its Datablog publishes raw data behind the news every day, and encourages readers to visualise and work with it. The site publishes its data using Google spreadsheets and Google Fusion Tables, and allows readers to search thousands of government datasets around the world.

It might be better known for its impact on the world of social media, but LinkedIn also has a hugely innovative approach to data. LinkedIn has made collating and using data a priority, with lead data scientists completely integrated into the commercial operation.

Information is Beautiful Informationisbeautiful.net

Data journalist and design whizz David McCandless’ ‘Information is Beautiful’ blog is a treasuretrove of cool visualisations and mash-ups. His work has also been published in a bestselling book of the same name.

November/December 2012

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05. 06.

Patrick Cain’s Map Blog Patrickcain.ca Canadian Patrick Cain is a ‘journalist who makes maps for the web’. Based in Toronto, Cain takes the city’s data and maps it – producing guides to everything from crime figures to World War I deaths and single parent families. A fan of open data, Cain has a record of demanding data from the city’s authorities using Freedom of Information laws.

Flowing Data Flowingdata.com

If someone, somewhere, is producing a great data visualisation or analysis, Nathan Yau’s blog will find it. Yau has an unerring ability to unearth the best data visualisations on the web. He also produces graphics, and is a regular poster to the Guardian Datastore Flickr group.

08. OWNI Owni.fr

Although a lot of the best data work is done in English, Paris-based OWNI is a collective of geeks and data freaks producing visualisations and apps that manage to be imaginative and innovative. The collective’s work on WikiLeaks – which allowed people to interrogate the data – won a 2010 Online Journalism Award for General Excellence.

07. Timetric Timetric.com

If you’re looking for time series economic data – and a nifty way of creating a sophisticated, embeddable graphic – this is the place to come. Timetric updates thousands of datasets every day and provides an easy-to-use interface that makes it very simple to create your own.

09.

Datamarket Datamarket.com This site combines an innovative data search function with bright and imaginative visualisations. It also allows you to create your own, download them and put them in your PowerPoint presentation or company report.

10.

Infochimps Infochimps.com/datasets

The big brains at Infochimps have come up with an innovative way to find, share and sell formatted data. Both users and the site’s own contributors collate and scrape datasets so that they’re easily accessible. With big plans for expansion and lots of intelligent developers onboard, it’s definitely one to watch.

November/December 2012

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Feature - Change

The Challenge of Change WORDS

Michelle P. Tonnesen

Change is in the air - can you sense it too? Inflation is down, employment is up, and who knows what the US presidential elections will bring for us all. What exactly is change and how do we deal with it - as companies and as human beings?

he nature and scale of change has become increasingly significant over the last 10 years – and so has the need for the ability to deliver change successfully in organisations. How is this impacting the key industries on the Island? In the e-gaming sector, the three main drivers for change are, generally speaking, the structure, the people and the technological systems. Most e-gaming companies – as most companies do – begin as small start-ups, and if Lady Luck is on their side, they develop into large corporations with hundreds of employees. However, for some of these companies, this development has happened with tremendous speed – which means the organisational structure and processes often struggle to keep step. But the people too – managers and employees alike – will have to change their mindset to reflect the internal and external changes.

November/December 2012

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The entrepreneurial spirit that has driven many of these companies to success is challenged by the need for a more corporate mindset as the organisation expands. Last but not least, technology is of the essence in this industry. If the user interface is not cutting-edge, a company will soon loose clients to their competitors. Software and platforms are not just the headaches of the IT departments – they are the key to competitive advantage. In the finance industry, the drivers for change have made newspaper headlines for years. The importance of legislation and compliance has been exacerbated by the downfall of several major financial institutions in the last decade. Strict requirements of the regulators impact all corners of the financial organisations – which also need to keep a competitive edge in a cut-throat environment of recession and consolidation. Even the public sector acknowledges that the time has come for change. The new “Agenda for Change” set out by the Chief Minister will cover reforms within the five areas of taxation and revenue; management of the economy; social policy; environment and infrastructure; as well as good government. The reforms announced are in line with the Isle of Man 2012-13 Budget, which emphasises expenditure cuts and reorganisation in order to sustain the government’s four-year rebalancing plan. All of which, will no doubt have significant impacts on the staff. As Gandhi rightly said: “we must become the change we want to see” – but what exactly do we see? People experience the forces for or against organisational change at two levels: • The organisational level - the business leader perspective • The individual level - the employee perspective Buying in to both these levels is critical. Support for a business change plan will not be sustained without a corresponding personal dimension. On the other hand, a company will not gain from people committed to personal change if there is no link to the business perspective. Study after study reports that organisations blame change project failure on resistance and lack of commitment by employees. While many acknowledge the fact that employee engagement is critical to the success of large-scale change projects, surprisingly few organisations are actually taking the steps to

ensure that employees are staunchly behind the initiative. For large-scale change to be successful, it invariably means changing mindsets and behaviours, not merely changing processes and systems. One of the keys to this process is the perception by employees of senior managementâ&#x20AC;&#x2122;s alignment with and commitment to the change programme. Therefore, the change must start at the top â&#x20AC;&#x201C; which often requires new leadership skills and behaviours.

and investment. Recognising this is an essential condition of success â&#x20AC;&#x201C; as is recognition of the cost of failure. To sum up the challenge of change in the words of the great Irish playwright George Bernard Shaw...

Progress is impossible without change, and those who cannot change their minds cannot change anything.

There are no silver bullets for successful change management. It does take time, effort

November/December 2012

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The return of

THE BEZZLE

November/December 2012

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Feature - Law

hose who read the Isle of Man press or follow the courts may have noticed that a number of alleged employer / employee frauds have been progressing through the courts in recent weeks, sometimes for quite significant amounts. It is possible that these criminal cases are merely the tip of the iceberg and it is likely that as we move further on from the global financial meltdown of 2008, we see more cases of fraud being brought to the courts as both companies and individuals uncover frauds and try and recover what JK Galbraith referred to as “the Bezzle”.

The Bezzle was a word invented by Galbraith to describe what he referred to as “the inventory of undiscovered fraud” – i.e. the amount of money of which companies and individuals (and governments) have been defrauded at any given time. After looking at previous stock market crashes and the events surrounding them, Galbraith came up with the theory that, in the First Act, when trading conditions are good, the Bezzle increases, because there is more money available to steal. When times are good, companies are less likely to discover frauds because they have more spare cash and are not keeping such a close watch on their books. Companies generating a profit often don’t question why their profits aren’t larger and as a result are less likely to go looking for frauds. They are also less inclined to chase fraudsters when they are discovered – unless the fraud is massive it is often simpler to try and make up the losses by increasing profits when trade is good. When the bubble bursts and times become harder (the Second Act), companies and individuals tighten their belts, take a closer look at their books and start to discover holes in cashflow or assets – signs of frauds that took place during the “good times”. Mergers and acquisitions of weakened companies result in detailed audits and due diligence which often uncovers hidden frauds. Companies and funds go bankrupt and liquidators undertake forensic audits and discover frauds.

Companies also begin to reassess whether recovering defrauded funds might be easier than trying to increase profits in difficult trading conditions. From anecdotal evidence, it appears possible that the Bezzle recovery is now gathering momentum and we are entering the second phase - companies which were either unaware of frauds or which may have been hesitant to take action to deal with known frauds are now starting to reassess the extent of their own Bezzle and have begun considering the legal possibilities of recovering it. In part this timing may be a function of the legal limitation periods provided for in the Limitation Act 1984, which requires that proceedings generally be taken within six years of the wrongdoing (although there is an exception in cases of concealment and fraud). We are now approaching the end of a six year period starting in November 2006. The “Financial Bubble” burst in 2007/2008 (depending on your viewpoint). Much of the fraudulent wrongdoing (a potential start date for the six year period) will have pre-dated the “burst”. If Galbraith was right, then there are likely to be significant numbers of as yet undisclosed frauds on the books of companies which have been discovered, but in respect of which the limitation deadline is now closing in and which have not yet become the subject of proceedings. Many of these frauds may be significant, with sums claimed in the many tens of millions of US dollars, arising out of the hey-day of the “funds bubble” which led investors to put their savings in what appear to have been no more than giant PONZI schemes – one calls to mind the Madoff scheme and others like it. The Isle of Man and other offshore jurisdictions, as the jurisdictions where numerous funds and other similar investment businesses were (and continue to be) based, may see a significant increase in the numbers of financial frauds litigated before both the criminal and civil courts as the limitation periods approach. Companies and individuals will be looking for advice on whether to pursue recovery of their own Bezzle before time runs out. The difficulty in advising clients who believe they may have been the victim of a fraud is that the outcome, in common with all litigation, can never be assured. Frauds are generally complex and costly to pursue at court and often fraudsters will have made significant attempts to judgment proof themselves by secreting assets abroad – especially when a significant period of time has elapsed. However, with the right legal advice and using specialist international asset tracing techniques, surprisingly good results can often be achieved even in very complex cases. The bottom line in respect of frauds is that the bigger the Bezzle, the greater the importance of giving recovery proceedings careful consideration.

Even if recovery proceedings are not, after careful consideration, pursued, companies owe it to themselves and their shareholders to at least properly consider recovery proceedings and take good advice.

Charles Coleman, Director

Charles Coleman is an advocate and a Director at specialist litigation advocates Gough Law. His contact details can be found on their website, at: www.goughlaw.im The above article is intended for general interest and is not intended to convey any legal advice.

November/December 2012

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Feature - Opinions

inBusiness

Director Opinions But the basic fact remains that the reason that the economies of the world are in recession is because there is less exchange of labour i.e. unemployment and under employment caused by a lack of confidence and demand.

Nathan Cafearo | Director | Bestpay.co.uk

November/December 2012

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Business Investment Nathan Cafearo | Director | Bestpay.co.uk

Private Finance or Bank Finance? One thing that really makes me want to kick the TV or punch the radio is when an interviewee utters the phrase “I can‘t grow my business because the banks won’t lend me any money”. Firstly, that’s a “can’t do” attitude that doesn’t sit well with me. But further to that, in my view, Bank finance should be an absolute last resort in most cases. You’re borrowing money at a relatively high rate of interest from an institution that has dreadful customer service, doesn’t understand your business and is solely tasked with recovering the money from you on time regardless of cashflow. The success of our business has come through partnerships with both other companies and with private investors. A private investor will lend you the finance that you need to start a business venture, expand an existing one or buy out a competitor. They’ll want to take a decent piece of the pie, but don’t be put off by this. It will undoubtedly cost you more in percentage terms than bank finance but you’ll now have a business partner who will provide invaluable experience and contacts to your company. We’ve all watched Dragon’s Den on BBC...So, if you haven’t before, consider whether you would give away 40% of your company to be able to work with one of those guys. If the answer is yes, and it should be, then have a think, look around, there are actually networks on the Isle of Man of private investors of all ages, mostly successful business people in their own rights, who may be willing to work with you. Believe me, you will never look back. For me, bank finance is an absolute last resort.

What’s your view on the world economy and how we could end this recession if you were chancellor? Ha-ha...well, I have strong views on the subject as a student of economics and politics, and I could probably fill and entire magazine with that.

World-renowned economists have different and sometimes polar views on economics. Keynes and Hayak for example, would have different view on how to fix the situation that we’re in. My view is that Keynes offers the best way out of the recession/depression, where Hayak probably offers the best way to avoid the recession in the first place. The following view, of mine, is based on the Keynesian view.

“In short, the way to fix this problem is threefold.” Firstly, we have to go right back to page one of the economics textbook. There is too much focus on money £’s, $’s and Euros’. Economics in its most basic terms is not about money, it’s about the exchange of labour from one person to another. As long as I do work for you and you do work for me then it really doesn’t matter how much I pay you and you pay me. Of course, that’s page one of the textbook and the modern world is far more complex. But the basic fact remains that the reason that the economies of the world are in recession is because there is less exchange of labour i.e. unemployment and under employment caused by a lack of confidence and demand. John Maynard Keynes said that the government should bury bottles in the ground and employ people to dig them up. Now that sounds a bit boring, but road building, infrastructure for manufacturing etc, would be an great investment on money borrowed at 1-2% by the UK Government, and carried out by private contractors. Give a transport contractor a stack of money and a plan for a new roadway and he’ll gladly empty the local job centre in a day. His new staff will pay tax and we’re back in the growth game.

That line has been crossed, causing huge structural deficits in most western countries. It’s going to be a very painful and unpopular process to go through. The public sector being doctors, nurses, police, teachers etc. But unfortunately “ye can ne change the laws of economics captain!” Look no further than the Soviet Union for an example of what an overbearing state will do for a country. Private company owners make their staff work harder and to tighter budgets than public sector companies and I’m afraid that’s just a fact. Thirdly, the “markets”, the “bond investors”, all these shadowy figures that we here about that want their money back with interest are going to have to take a hit. They’ve made an investment, it’s gone wrong, take the hit and let’s move on. The stronger world that will come out of it will be a far better place to make further investments anyway. Consider this: A pension fund invests heavily in government bonds, they want ever higher returns on the investments, the government can’t make the payments so they rein in capital contracts, companies lose business and lay off the very staff who make the contributions into the pension fund that we started with. Would the employee be better off taking a hit on their pension pot or losing their job because their pension fund manager contributed to strangling the economy? It’s a ludicrous state of affairs. Bond Investors (and that’s rich and poor alike) must take a hit to balance the countries books.

Secondly, we have to balance the public/ private sector imbalances. As the public sector is funded entirely by the private sector then it stands to reason that there is a balance point where the private sector can no longer support the public and welfare sectors.

Thanks for your views Nathan… And that’s the short version! In the next Agenda Magazine Nathan will share his view on….Do we really need to have an economy that grows all the time? An average family has a more comfortable life today than Monarchs of barely 300 years ago. Why do we get so depressed when the economy shrinks by 0.5%? Would you like to express Your Views in Agenda? E-mail myview@agenda.im

November/December 2012

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In The News

Jersey / Guernsey

NEWS Appleby Partner to represent Isle of Man at Jersey Trust Law Conference John Rimmer, Partner at Appleby (Isle of Man) LLC, recently gave an update on Isle of Man case law and legislative developments at the Jersey Institute of Law conference. John also joined Sir Michael Birt and Paolo Panico on a final round-table discussion chaired by Sir Philip Bailhache.

Fairbairn Private Bank becomes Nedbank Private Wealth

The conference, “Insights into Trust Law: The Channel Islands and beyond”, featured presentations by members of the judicial, practitioner and academic community in the Channel Islands and beyond on the topic of trusts law as well as what is currently happening in other jurisdictions, including the Isle of Man. Speaking before the event, John Rimmer commented: “I am delighted to join the panel at this year’s conference, along with my colleagues from Appleby’s Jersey office. Appleby remains the only international law firm able to offer advice in all three Crown Dependencies and it is a great opportunity for us to share this unique knowledge and insight.” He continued: “We are all experiencing similar challenges in these difficult times and I am sure that our discussions around these common issues will be positive and will serve to highlight opportunities for the Crown Dependencies to work together.”

Guernsey is set to take a ‘wait and see’ approach on the adoption of the recommendations following the UK’s Retail Distribution Review The Guernsey Financial Services Commission is proposing that the Island does not immediately follow the UK in adopting various measures proposed by the UK Financial Services Authority. It has said that it sees merit in enhancing transparency around commissions on investment products. The RDR examined longstanding problems in the UK retail investment sector, particularly around professional practise, qualifications, mis-selling, and selling on commission. The FSA proposes to replace commissions with fees, increase educational standards, and improve the clarity and accuracy with which firms describe their services to retail consumers. It is expected that RDR will be implemented in the UK from January 2013. A position paper on the issue is available on the commission’s website at www.gfsc.gg.

November/December 2012

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Multiple award-winning Fairbairn Private Bank has today announced it will be changing its name with immediate effect to Nedbank Private Wealth. Its Jersey-based Fairbairn Trust Limited, as well as its sister company, Fairbairn Trust Company in Guernsey, will become known as Nedgroup Trust. Together they form Nedbank Private Wealth’s international operations under the Nedbank Private Wealth brand. Greg Horton, Fairbairn Private Bank’s Managing Director, now the Managing Director of Nedbank Private Wealth Limited, said: “We are sad to say farewell to the Fairbairn brand, which has held an excellent reputation within the wealth management arena, but are flattered to be branded in line with our longstanding shareholder, Nedbank, with its prominence of size and the success it has achieved in the financial services marketplace.” Horton went on to say: “Johannesburg-based Nedbank is the fourth largest bank in Africa which is owned by the well-known and highly regarded FTSE 100 and Fortune 500 financial services group, Old Mutual plc.”

Nedbank’s current high net worth markets are serviced by BoE Private Clients (Board of Executors) in South Africa and by Fairbairn internationally. As part of Nedbank’s strategy, all these businesses are now aligned under the new Nedbank Private Wealth brand. Nedbank Private Wealth employs around 650 staff in six geographies and holds more than £7.5 billion assets under management and administration. Mr Horton said: “The Nedbank Group has been an outstanding supporter of our international operations and the new brand will benefit from the collective strength and reputation of our businesses and a heritage that dates back to 1834 through BoE Private Clients.” Commenting on the launch of Nedbank Private Wealth, Nedbank’s CEO, Mike Brown, said: “Under the new brand, Nedbank Private Wealth will provide international and South African clients with world class, seamless international wealth management. Fairbairn’s international businesses and BoE Private Clients display a commitment to put their clients’ needs at the centre of everything they do, and I am particularly pleased to confirm that this will continue under the new name.”

Equiom Group acquires Andium Trust Company Limited The Equiom Group has successfully completed the acquisition of Andium Trust Company Limited based in St. Helier Jersey.

Taxes on commercial business properties could be increased in Jersey The idea is being considered by the Treasury as it reviews new ways of taxing foreign companies. As part of a report into the way foreignowned, non-finance companies are taxed, the Treasury is reviewing the tax it receives through property. It is investigating whether commercial rates paid by foreign firms could be increased while keeping Jersey a competitive place for business. Senator Philip Ozouf, Jersey’s treasury minister, said all the options the Treasury was considering would create new problems. He said: “Extending the 10% or 20% [tax] band risks compromising compliance with the EU Code of Conduct, which in its turn could jeopardise tax neutrality - the mainstay of our financial services industry.” “We will continue to work with other Crown Dependencies, who are facing the same issue, and we will watch international developments.”

Crown Dependencies hold tri-lateral meeting

From Left to Right (Standing): Simon Voisin, Anton Swemmer, Sheila Dean and Jeremy Evans. From Left to Right (Seated): Stewart Walker & Larry Kearns.

The Equiom Group has successfully completed the acquisition of Andium Trust Company Limited based in St. Helier Jersey.

Trust Company in the Isle of Man, and now employs over 80 staff. Stewart Walker of Andium was previously a Partner in Ernst & Young Jersey, and that shared heritage, ethos and strong bond, coupled with a mutual ambition for growth and quality were major drivers in our decision to proceed with the acquisition.”

Andium is a well established fiduciary services provider managed by a strong team all of whom will be joining Equiom. Andium’s current board of Directors, Stewart Walker, Anton Swemmer and Simon Voisin will join Equiom’s Senior Management Team.

Sheila continued: “Stewart and his team bring with them a wealth of knowledge and experience in a variety of jurisdictions which will be a valuable addition to our existing team. I believe that the synergy and advantages created by the acquisition will lead to wider opportunities and enhance our service levels”.

Equiom’s Managing Director Sheila Dean commented: “A client service offering in the Channel Islands has been a key strategic objective for Equiom and we are confident that bringing Equiom and Andium together will create one of the largest independent providers of offshore services. Equiom was established over 30 years ago, originally as the Ernst & Young

Andium’s Managing Director Stewart Walker added: “Sheila and her team at Equiom have a very strong reputation within the fiduciary industry and we look forward to developing the business further and being a part of Equiom’s continued success.”

The Chief Ministers of Jersey, Guernsey and the Isle of Man have held their first formal meeting to discuss areas of mutual interest since all three jurisdictions held general elections. Jersey’s Chief Minister, Senator Ian Gorst, Guernsey’s Deputy Peter Harwood and the Hon Alan Bell MHK from the Isle of Man met at Gatwick airport on Thursday 25 October as part of the Islands’ ongoing commitment to greater cooperation and communication. Discussions focussed on the current economic situation and public sector reforms in each Crown Dependency. Politicians also discussed overseas aid. Jersey’s Chief Minister, Senator Ian Gorst, said: “Since the elections, there has been a real enthusiasm to engage with each other and work together in areas that are of benefit to each Island. I’m pleased that this has now been formalised with our first official meeting.” Guernsey’s Chief Minister, Deputy Peter Harwood, said: “Guernsey, Jersey, and the Isle of Man, whilst separate and indeed competing jurisdictions in certain areas, face common challenges where working together benefits taxpayers in all of our Islands. I am therefore delighted to have followed-up the bilateral meetings held earlier this year with Jersey and the Isle of Man with this opportunity to discuss matters of mutual interest.” It’s hoped the next meeting will be held in the New Year.

November/December 2012

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Business News

Abacus Promotes Island in London and Moscow

November/December 2012

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Financial Services

Abacus Managing Director discusses Isle of Man Funds at two leading conferences It’s been a busy October in the annual fund conference calendar for Paul Kneen, Managing Director of Abacus’ fund operations in the Isle of Man and Malta. Mr Kneen has recently returned from attending two significant events held in respective financial centres of the UK and Russia. In London, Mr Kneen attended the Alternative Fund Governance and Regulation seminar, of which Abacus was one of the sponsors, held at the Grosvenor House Hotel on Park Lane in Mayfair, where he discussed the results of a three-month study. The study measured the impact of regulation on alternative fund service providers and jurisdictions, with over 14,000 new regulatory measures being introduced globally in just 2011 alone. Results of the study have shown that emergent fund managers will focus on locating business in the well known, high profile jurisdictions where corporate governance is a key factor in attracting and retaining investors. The study also suggested that in future, fund managers will use a variety of different domiciles for different purposes, each best suited to the assets and the investors of a particular scheme. Mr Kneen said:‘Whilst offshore jurisdictions may not always be as well recognised for their continued efforts to ensure the highest standards of financial integrity, the Isle of Man is often held up as the example of a pragmatic and flexible domicile well able to stand up to the scrutiny of its peers. It is an ideal jurisdiction for start-up funds seeking a well regulated, professionally administered domicile’.

Paul Kneen, Managing Director of Abacus’ fund operations.

and family office fund and trust structures available on the Isle of Man. Mr Kneen commented that, ‘As a country with massive untapped natural resources combined with its recent moves toward a free market initiative, Russia has seen significant positive economic activity in the last few years and expects to see further wealth creation and asset expansion as a result. The Isle of Man is well placed to provide an international base for inward and outward investment flows which will be necessary to ensure the future development of Russia’s economic growth. With offices in the Isle of Man and Malta, Abacus has the experience and skills necessary to provide bespoke solutions, tailored for a global client base and looks forward to developing its international business alongside the expanding markets of the CIS’. Anyone wishing to find out more information in regard to the services which Abacus can provide, is invited to visit: www.abacusiom. com or telephone: +44 1624 689600.

In Moscow, Mr Kneen joined a delegation from the Isle of Man Funds Association to attend the Moscow International Financial Forum 2012, an event which included the Isle of Man Government’s Department of Economic Development and Isle of Man Funds Association amongst its sponsors. The forum brought together global business leaders of banks, asset management companies, family offices and high-net-worth Individuals to exchange ideas and views on the future servicing of investment flows into, and out of, the Commonwealth of Independent States (‘CIS’). During the forum, the Isle of Man stand was well attended with delegates showing significant interest in the Island’s financial services offering. Mr Kneen was also a speaker at the forum, providing the assembled delegates with an overview of high-net-worth

November/December 2012

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In The News

EU І UK І Offshore І International UK The Small Business Bank. Business boost or bust? The Liberal Democrats have announced plans for a new, state-backed bank to provide finance to small businesses. The announcement, made during the Liberal Democrat party conference, will form the new backbone of the government’s efforts to increase lending to SMEs. The problem of depressed lending has stuck in the coalition’s craw since it came to power, but Tory and Lib Dem politicians hope that the new initiative will help to get credit flowing again.

Olympics effect expected to lift UK out of recession George Osborne will receive a boost this month from official figures confirming that the Olympics effect helped to bounce Britain out of recession in the third quarter of 2012. City analysts believe the economy expanded between July and September, after shrinking for the previous three quarters in the longest double-dip recession since World War II.

The Treasury has already set aside £1 billion to help fund the bank, which business secretary Vince Cable said will be combined “with a larger private contribution.” The bank will be modelled on similar institutions already in existence abroad. It is thought that it could initially leverage a total of up to £10 billion to be lent to SMEs. The government intends that the new bank will tangibly increase small firms’ access to capital. Previous government initiatives of this sort have been criticised for ignoring the requirements of the very smallest firms, but it is these businesses that the coalition now hopes to reach. That would mark the official end of the recession and allow the chancellor to present a relatively upbeat picture of the economy in his autumn statement on 5 December, following news that unemployment has started to decline. The respected National Institute of Economic and Social Research has forecast a healthy thirdquarter growth rate of 0.8%. Osborne is likely to seize on the upturn as evidence that his policies are starting to bear fruit.

EU Financial transaction tax for 10 EU states The European Commission has backed plans from 10 countries to launch a financial transactions tax to help raise funds to tackle the debt crisis. The 10 countries include France, Germany, Italy and Spain. The nations want to push ahead with the tax after failing to win support from all members of the European Union. The UK has been especially vocal in its opposition to the tax, which it feels would hit the City of London particularly hard. The remaining countries that have signed up to the tax are Austria, Belgium, Greece, Portugal, Slovakia and Slovenia. “I am delighted to see that 10 member states have indicated their willingness to participate in a common financial transaction tax (FTT),” said Commission President Jose Manuel Barroso. “This tax can raise billions of euros of much-

November/December 2012

needed revenue for member states in these difficult times.” “This is about fairness - we need to ensure the costs of the crisis are shared by the financial sector instead of shouldered by ordinary citizens.” The EU failed to get agreement for a transactions tax from all 27 member states in June, but leaders from France, Germany, Italy and Spain all agreed at the time to push ahead with plans for the tax. A number of states have said they are not against the tax in principle, but would not agree to implement it unless it was adopted across all global financial centres. The idea is to impose a small charge on transactions of currencies, bonds and shares traded at banks and financial institutions. Although each charge would be small, the number of transactions made means the total revenues raised could be significant. The Commission has estimated such a “Robin Hood” tax could raise 57bn euros ($74bn; £46bn) a year, if it were applied across the entire EU.

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IN THE NEWS Bermuda Future bright For Bermuda as another insurer relocates Bermuda’s Minister for the Economy, Trade and Industry Patrice Minors has welcomed an announcement from Bermuda-based MS Frontier that it plans to move its sister company, Mitsui Sumitomo Reinsurance Limited, from Dublin, Ireland, to Bermuda - the second such an announcement within a month. This latest announcement follows the news late last month that QBE, an Australian-based global insurance and reinsurance company has decided to move its wholly-owned captive reinsurer, Equator Reinsurances Ltd. from Ireland to Bermuda. Combined with major new investments announced recently by the Green Family, which provides scholarships to Bermudians and business services firm LINK Bermuda. Minors said that business is showing “confidence in our economic future”.

Cayman Islands 10-year work permits granted Managing directors, vice presidents, chief executives, directors, managers, finance and insurances bosses can all now apply for 10year work permits following the publication in the government gazette of the regulations to accompany the recent amendments to the immigration law. Prior to the change in legislation, employers had to reapply for permits for their top level employees after five years. The change is designed to give those in the financial sector in particular a level of certainty about their ability to remain in Cayman, and it is hoped this will encourage more companies to set up shop here. The new regulations also set out a new list of business activity or jobs that do not require a work permit if the person is coming for 10 days or less.

Spain Bankia execs must hand back bonuses Now, here’s a clawback – 72 senior bankers at Spain’s Bankia have been ordered to repay bonuses which were ‘earned’ in 2011. Bankia is to tell them to return the money in response to a petition from the European commission, which says they should not have been awarded bonuses just weeks before the bank admitted it needed €23bn in bailout money.

BVI Simmonds upbeat about white paper, says BVI stands to benefit Recently appointed Minister for Overseas Territories, Mark Simmonds is upbeat about a White Paper that was produced by the UK Government earlier in the year, which he said will foster greater partnership between the UK Government and that of the BVI. He said the White paper has three main objectives: “The first (objective) is for the UK to build stronger links with the BVI and other Overseas Territories both in economic and trade terms, help create jobs and economic development and economic growth here in the BVI and also in other important areas like sustainability of the environment,” Simmonds said. He added that the second area relates to working together for good governance, good financial management and economic planning. The third area identified by Simmonds is: “Getting support from the UK where it is required and where it fits in and is in line with BVI government priorities and so help in building government’s capacity”. The new Minister for Overseas Territories is impressed with the work done by Premier Dr. Orlando Smith and his team to ensure the BVI maintains prudent financial management. He said he has visited the BVI before and when he came before he was extremely pleased with what he saw and the people he met and the ambitions people have for the future of the BVI.

Japan Isle of Man Minister EddieTeare meets UK Chancellor George Osborne in Tokyo

Despite Bankia’s lurch into nationalisation this summer, most of the executives are still employed at the bank – making it easier to recoup the money.

Germany

TREASURY Minister, Eddie Teare highlighted the Island’s contribution to the global economy as the world’s finance ministers met in Tokyo at the 2012 meetings of the World Bank, International Monetary Fund (IMF) and Commonwealth Finance Ministers.

German consumer confidence at five-year high

During the event, Mr Teare met UK Chancellor George Osborne, who arrived in Tokyo after his address at the Conservative Party autumn conference.

German consumer confidence has hit its highest level since the financial crisis began.

Mr Teare said: ‘I held positive and productive discussions with Mr Osborne. I was able to reaffirm the Isle of Man’s vital role as a provider of financial flows to UK and international markets in terms of liquidity, listed companies and investment. ‘I believe the UK and Isle of Man benefit from each other’s success and I outlined ways of strengthening our working relationships, in particular with the City and North West business community.’ Mr Teare added: ‘In line with some of the aspirations outlined in the Chief Minister’s “Agenda for Change” we must continue to raise the Isle of Man’s international profile and continue to work with other countries. The World Bank and IMF events in Tokyo provided a unique opportunity to engage with the world’s finance leaders and to position the Isle of Man on the international stage.’

While Spain’s jobless rate is at its highest in at least 36 years, the picture in Germany is rather rosier.

This is based on the monthly consumer sentiment index compiled by GfK, which rose unexpectedly to 6.3, up from 6.1 a month ago. That shows Germans are more upbeat about November’s prospects than for any month since October 2007 – when the credit crunch began. Those surveyed are also more willing to spend than a month ago, and also more bullish about their income expectations. Galling news for those in the periphery. But it could be good news generally, if German consumers can help drag the eurozone forwards.

America The US economy grew by 2% in the third quarter of 2012 The pickup in spending by consumers, along with a burst of defence orders and a stronger housing market, helped the economy expand at an annual rate of 2% in the third quarter. A slightly better pace than had been anticipated, according to government data released on the 26 October. In the previous quarter, economic growth had dipped to a rate of just 1.3%.

Feature - Bridge

Bridging the Gap Capital Treasury Services recently launched Bridge, their new online cash investment and payment service, tailored expressly to the needs of clients holding a Capital Liquidity Account. Since becoming one of the Isle of Man’s first international investment services providers to be licensed by the Financial Services Commission to conduct payment service business they developed Bridge, an internet payment and cash management system. Designed to complement their existing suite of treasury management solutions and being solely internet-based, this new offering bridges the gap between cash-based investment accounts and the requirement to pay balances away, anywhere in the world, quickly, cost-effectively and efficiently. The aptly named Bridge allows Capital Liquidity Account holders to manage their funds online. At the core of the system is a facility which provides clients swift access to domestic payment mechanisms in foreign jurisdictions, thereby eliminating the need for third party clearing house intervention. The technology at the heart of the solution is the ‘Cumulus’ virtual payment system developed by International Financial Systems in London and sold and supported on the Island by Skanco. Treasury Services Manager Craig Dalton project managed the evolution of Cumulus into a tailored solution that exactly meets the needs of CTS and its customers, which took true dedication and commitment to develop and refine.

He engaged with existing clients and facilitated successful client trials which resulted in extremely positive feedback creating a completely flexible and intuitive system. Terry Day, Managing Director of IFS said, ‘Virtual payment and money transmission requirements are rapidly growing as part of our business. CTS has been a demanding project but also a very rewarding one when you see the system working and integrating seamlessly into their existing infrastructure. This success is in no small part due to the dedication of Craig and his team. We welcome CTS as a customer and look forward to further customers on the Isle of Man.’

This fantastic offering reinforces Capital Treasury Services’ position as a highly competitive player in the industry... In today’s global economy, organisations need to be financially agile and responsive, wherever their business takes them, Bridge helps make this possible by enabling businesses to access and control cash quickly and efficiently around the world. The CTS specialist team works closely with clients to develop a secure, cost-effective solution to satisfy their overseas investment and payment needs. The development of Bridge was facilitated by local corporate IT service provider Skanco Business Systems. Managing Director David Butterworth commented, ‘I am pleased we were able to play our part in facilitating the relationship between IFS and Capital Treasury Services.

Capital Treasury Services

November/December 2012

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Born out of the success of the Capital Liquidity Account, uniting this acclaimed investment product with Bridge, a sophisticated secure online system for streamlining cash management processes, with no third-party involvement attracts fewer charges, making this an extremely costeffective solution. The use of new technology results in a highly efficient product that meets the needs of an extremely demanding payments market - by using Bridge clients do not have to spend time on maintenance, thus reducing costs, because CTS hosts the software. Clients do not have to install any upgrades, as they are dealt with immediately and centrally by CTS. More importantly, clients benefit from the security of dealing with CTS, a committed, dedicated and trusted partner. CTS Managing Director John Cookson said, ‘This latest development in our range of treasury services brings an added dimension to our client proposition. In providing this dynamic online solution for streamlining payment processes we continue to display our entrepreneurial flair for maximising efficiency, providing clients greater control over their cash assets and offering heightened convenience and wider choice.’

Although not agents for all the payment channels listed we are able to transact business through them via relationship banking

“ A bridge is designed to span obstacles for the purposes of providing safe passage” 54

Between them, they have come up with a truly innovative and powerful software platform that is sure to attract significant interest in the industry. I wish them all the best in moving forwards with this impressive product.’

Bridge Bridge

committed dedicated trusted

one complete solution Bridge helps you connect with partners worldwide. Multi-currency payments from a single Capital Liquidity Account with faster straight through processing

W: www.capital-iom.com/bridge T : +44 (0) 1624 654299 F : +44 (0) 1624 654291 E : info@capital-cts.com

Bridge Bridge

Capital Treasury Services Limited is a member of the Capital International Group Capital Treasury Services Limited is licensed by the Isle of Man Financial Supervision Commission Registered Address: Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG

Winner 2010 Company of the Year

Capital International Group Isle of Man Newspapers

awards for

November/December 2012 excellence www.agenda.im CTS - Bridge Advertorial - V1.02-06.12

Feature - IOM

So how do you go about moving to a small Island in the Irish Sea without losing your mind? Here are some tips based on the experiences of myself and a handful of fellow expats, which I hope will contribute to easing yourself and your family into the Manx life and community.

Keep an open mind

RELOCATION RELOCATION

This really is the golden rule and the key to a successful relocation. If you approach this – and any other life-changing event for that matter – with the attitude that it is all going to be a terrible disaster, it probably will be. It may sound banal, and I am not suggesting to “don’t worry, be happy”, as there will most likely be some tears along the way, but if you keep an open mind and engage in the adventure this new opportunity has led you to, you are more likely to gain positive experiences from it. And believe me, I am normally the glass half-empty type – just ask my husband. But in this instance I made the conscious decision of keeping an open mind and just going with the flow, which really has stood me in good stead.

Find a home – not just accommodation WORDS

We are chameleons, and our partialities and prejudices change place with an easy and blessed facility, and we are soon wonted to the change and happy in it. Mark Twain

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Michelle P. Tonnesen

elocating to the Isle of Man can feel like a daunting challenge and a significant cultural change, depending on where you are moving from.

Moving in general is frequently cited as one of the most stressful life changes (after the death of a loved one, divorce or illness). While the reasons for moving can be positive - such as the purchase of a house or a job promotion - settling into a new home and connecting to a new environment are almost always chaotic and stressful. If you, like my family and I, have made or are about to make this move from a big city like London, you will probably find it even more overwhelming. Prejudice and preconceptions are ample about life on small Islands, and they all add to building mental barriers, blocking your way to settling in successfully. Yes, you will be giving up the ability to find everything you need, anytime you need it, just on your doorstep. But you will gain immediate access to fresh air, beautiful nature, zero commute, helpful locals – and then of course there is the small matter of the obvious tax benefits which we do not really talk about, but I thought I would slip it in anyway – all contributing to a quality of life which it is hard to find anywhere else in Northern Europe.

The next crucial step to a successful relocation is setting up a comfortable base where you can settle in and from which you can start to explore your new environment step-by-step. Building a nest gives you a sense of security in the midst of all the changes surrounding you. Unfortunately, the reality is often that you may struggle to find the perfect home straight away, and you end up in temporary accommodation of some sorts. It is not ideal, but you can still make it work – especially if you know a more permanent setting awaits you. Just do not underestimate how important it is for your settling-in process that your house really feels like your home.

Get out there and make some friends A social network will help you settle in faster than anything else on this list of tips. But starting one from scratch can be a terrifying prospect. Unlike children, who generally engage in play with others unbiased and with ease, the older we get the more socially inhibited and prejudiced we seem to become. Admittedly, it can feel a bit like dating: Establishing initial contact; gauging if there is chemistry and enough common ground to sustain a relationship; exchanging contact details; and then the actual, nerve-racking “first date” outside your usual common frame of reference. But unless you have made a conscious decision of going through life as the Lone Ranger, you just have to overcome your insecurities and get out there.

Bikeworldtravel / Shutterstock.com

RELOCATION RELOCATION

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Feature - IOM

First port of call for most people is the professional network, that is, the people you meet at your work place. If your profession is a stay-at-home mum, you have the advantage of your child(ren) being your access pass to a wide range of social activities. If you do not have a job, there is still a plethora of other ways to meet people and even discover job opportunities, if you are interested. Charities, sports activities, training courses and business networks – there are plenty of avenues to go down in your pursuit of like-minded people to spend your time with. From my experience, locals – both Manx and expats – are very open, friendly and willing to help you out in any way they can. So just get out there!

Keep busy – explore and enjoy your new surroundings Not only is the Island a nature lover’s paradise, there is also a wealth of cultural and historical experiences waiting on your new doorstep. OK, I concede it may not be of the scale and mindblowing quality you may experience elsewhere. But the Island has surprisingly much to offer. Personally, I love putting on a frock and having a good night out, so for me the many charity events and black tie balls have proven an excellent pastime, as well as an opportunity to give back to the local community. Furthermore, it has been a great way of building my network both socially and professionally. In addition to the obvious motorsport related events, which the Island is renowned for, there is a long tradition for acting, singing and dancing. This means there is usually something to see at the local theatre and mostly of excellent quality – which I have to admit, was surprising coming from London, the hot spot of musicals. Then, of course, there is a long list of outdoors and indoors sports and adventure activities – and even more spiritual endeavours – to partake in if these are what your heart and body desire. A key rule is: Do not let the weather get you down. No, it is not the Caribbean or the Channel Islands, but you sort of knew that when you decided to move here, so there really is no point complaining or getting depressed about it (although, I admit I am guilty of both on a regular basis!). But when we do occasionally get a bright sunny day, the Island is truly one of the most beautiful places on earth and then you just have to hurry up and make the most of it. Alternatively, make sure you have the right gear for venturing outdoors, come rain or shine.

Discover the joys of online shopping This is not London, Paris or Monte Carlo (as some well-meaning friends mistakenly led me to believe when we were making our relocation decision!). So let me just manage your expectations right now: The number and variety of retail outlets are few; and if you like a good shopping spree or enjoy cooking with extraordinary ingredients, you will get frustrated from time to time in your endeavour to fulfil your needs. The good news is: We live in the 21st century and the Island has some of the best technical infrastructure in the world. So hit your laptop, start googling and the world will soon become your oyster. Some companies even ship for free; some companies do not ship to the Island at all – but I guess, you cannot win them all. A number of services you will eventually have to source locally. Discovering the right takeaway place, hairdresser, beautician or dentist for you in your new environment can take ages. Adding to the challenge of being the new kid on the block is the fact that many local businesses cannot be found online. Word of mouth will get you a long way, but other than that I am afraid it is just a case of trial and error – especially as these things tend to be very subjective. But look at the bright side: It is a small Island with limited options, so your search process will not take long!

Accept the local culture You do not have to embrace it or even like it. But you do have to get a basic understanding of it and not always try to change it, if you want to make your life easier. I do not have the knowledge, intention or available space to take you through the A-Z of Manx culture. The limited observations I will share with you may be stereotypical, but so are most initial cultural observations, as what you are basically trying to do as a newcomer is to make sense of the new world around you, including “the others” as opposed to yourself. As time goes by, you will build on your initial perceptions and (hopefully) form a more nuanced view of your host culture. One of the first Manx proverbs I came across was traa-dy-liooar which literally means “time enough”, and it seems to encapsulate the general Manx approach to life. It definitely helped me make sense of why a lot of the time I called somewhere to enquire about a service, it would take several days to return my call – let alone to actually deliver the service when requested. My initial reaction was that locals sure seem to have all the time in the world! Another local saying down the same lines goes: Myr smoo siyr, smoo cuinrail – which translates to “the greater hurry, the greater hindrance”. According to “Folklore of the Isle of Man” written by A.W. Moore in 1891, this

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Manx proverb illustrates that one of the chief characteristics of Manxmen is caution. My personal interpretation, however, is that the way of life here is just generally slower with all the benefits and disadvantages this may entail. From my experience, no one intends to provide you with poor service – there is just less sense of urgency than in other places in the world. So just lean back and enjoy the ride!

Get off the Island I clearly remember our very helpful relocation agent (get one to help you too if you can!) stating this several times during our first visit to the Island, leaving me thinking “You really aren’t selling this very well!” But she did have a valid point. No matter how many benefits I and other helpful souls may list to you, this is a small Island – both geographically and population wise. As mentioned, this means supply is limited of retail, cultural, gastronomic and social stimulation. And if you are anything like me and would like more than a handful of hot summer days, you do need to travel elsewhere once in a while. But somehow this also makes you appreciate the Island so much more when you are back on it again. Before you go off thinking that I have been commissioned by ‘Visit Isle of Man’ to write this article, let me just clarify that my motivation has purely been to share my experiences in the hope of helping others understand and adapt to life on the Island. I hope you will come to enjoy it as much as I have found myself doing – if not immediately, then eventually… Good luck – or as they say in Manx: Aigh vie!

About the author Michelle P. Tonnesen is originally from Denmark, but has lived five years in London before relocating to the Isle of Man with her family in 2011. Prior to this she has also lived in Brussels and the Middle East. She is an independent business consultant specialising in change management, communication and corporate training. After moving to the Island, she has chosen to explore creative writing as well and is currently working on her first novel, alongside writing articles for various media. She has a Master’s Degree in International Business and Communication with a focus on Intercultural Management and has studied at London School of Journalism.

of retired expats who moved to Australia, New Zealand or Canada say returning to the UK is totally out of their minds.

of expats who leave the UK to work for a number of companies in more than one country in the world intend to return at some point.

18%

increase in the numbers of expats working in China and Singapore in the past five years.

11%

decrease in the numbers of expats working in the USA in the past five years.

Here are some interesting statistics about people leaving the UK to work or retire overseas.

of people tend to use Skype to stay in touch with friends and family.

34%

is the percentage increase in the number of people working on temporary assignments overseas over the past five years.

No.

Thailand is the best country for overall quality of life.

Sources: The HSBC Expat Explorer, The Natwest IPB Quality of Life Study and The Centre of Future Studies

of expats who wish to live and work overseas move to English speaking countries.

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Feature - The Voice

RELOCATION RELOCATION

the voice of the people WORDS

Michelle P. Tonnesen

Name:

Sara Stine Bauerlund

Name:

Theo Fleurbaay

Nationality: Danish

Nationality:

Dutch

Occupation: Founder and Director of ManxDining. im – a dynamic website for placing table bookings and take away orders online at the Island’s restaurants

Occupation: Hotelier

How long have you lived on the Isle of Man for? 14 years. What brought you to the Island? I wanted to do something different after selling my marketing company in Holland. What do you think are the top three benefits of living here? It is a great place to raise your family, as it is safe and has good schools. The taxes are low and generally there is less “red tape”. It is a relaxed environment with a good quality of life. What do you think are the three main downsides of life on the Island? There is no “Hinterland”, that is, the geographical and social scope of the Island is limited. It can be a bit small and quiet – especially in the winter months. The Island lacks certain facilities that you are used to in Europe, for example in terms of cultural experiences. Name one major cultural difference between your home country and the Isle of Man: Popping in for a coffee at a friend’s house unannounced. Here, it seems we have to plan a meeting in a coffee shop – although I am grateful for the many coffee shops in town nowadays, as they were lacking a few years ago!

How long have you lived on the Isle of Man for? Two years. What brought you to the Island? My partner suggested to me that we should move here to try a more relaxed way of life after living in Copenhagen and London for so long. They are both cities with very busy lifestyles. On top of that I wanted to start my own company, and through our many visits to the Isle of Man we discovered the wealth of opportunities the Island has to offer start-up companies. What do you think are the top three benefits of living here? A more relaxed way of life. The nature and the Island’s history – especially the parts related to Denmark. How friendly and helpful the local people and government were when I started my business – and they still are! What do you think are the three main downsides of life on the Island? No fashion! This means a lot more internet shopping and no more window shopping – which is really hard for me as I worked with fashion and PR for over 15 years! It is much more expensive to travel abroad from the Island, compared to being based in London for example. I miss the warm summer evenings that I am used to from Denmark and London. Name one major cultural difference between your home country and the Isle of Man: I still have not got used to how much and how often people drink alcohol here. Don’t get me wrong; the Vikings of Denmark are no novices when it comes to alcohol consumption, but it is usually more limited to the weekends.

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Name:

Julia Wild

Nationality: British/French Occupation: Editor for GraphicDesign.com

Name:

Kirsti Penzes

Nationality: Australian Occupation: A primary school teacher for 15 years. Currently a stay-at-home mum

How long have you lived on the Isle of Man for? Just over two years.

How long have you lived on the Isle of Man for? Just over a year.

What brought you to the Island? My husband got a job offer here, so we relocated from Guatemala (where he is from).

What brought you to the Island? My husband’s work brought us here from Sweden, where we lived for five years.

What do you think are the top three benefits of living here? The way of life – everything is easy to get to (no traffic or one hour commutes).

What do you think are the top three benefits of living here? The beauty and diversity of the nature: from vast, solitary rock beaches to barren mountains, quaint coastal villages and lush river glens. The glens and beaches are absolutely gorgeous and great for adventurous children to go exploring – and there are plenty of outdoor activities for the adults too.

The people – everyone is super friendly. The safety – I feel so safe here. Having moved from Guatemala (one of the most dangerous countries in the world) where in most places it is simply not safe to walk the streets, the Isle of Man is quite a contrast – in a very positive way! What do you think are the three main downsides of life on the Island? The weather. Getting on and off the Island (it is expensive!). There are only a handful of good restaurants. Name one major cultural difference between your home country and the Isle of Man: To be honest, there is not much of a cultural difference between England and the Isle of Man. However, I do think the Island is a friendlier place. People say “hello” to you; your neighbours make an effort – ours even gave us a welcome card when we moved into our new house! One peculiarity is that people on the Island tend to think everything is “far”. A 20 minutes drive from Douglas to Ramsey is “far”, whereas in England this is nothing!

It feels very safe here – I can pop out to the local shop and not even lock up all the windows and doors of our house. For a small Island there is a lot of effort made to involve the community, including music festivals, art exhibitions, agricultural and food shows – and lots of summer activities for the kids. What do you think are the three main downsides of life on the Island? Although I believe the Island follows the Swedish philosophy of “no such thing as bad weather, just bad clothing”, the weather can get you down. You can feel isolated at times. You do need to get off the Island for some big city culture – and a bit of sun. Thank goodness for the Internet and online shopping, because there is limited choice on the Island. If you want a unique clothing style, gourmet food or even to lead a healthy lifestyle, it can be challenging. Name one major cultural difference between your home country and the Isle of Man: Apart from the weather, I think the Island’s culture is fairly similar to that of Australia. However, the lifestyle here is very different to Sweden, where focus is on healthy foods as opposed to all the processed foods readily available in the UK in general. Furthermore, childcare is very affordable in Sweden, as they support mothers going back to the workforce and give fathers one year paid parental leave too. That said, there are lots of great activities on the Island for stay-at-home parents and their children.

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Property - IOM

Luxury Homes or Investment Properties

Modena View І Dreemskerry Maughold І Price £1,995,000

‘Modena View’ is an exceptional property in one of the Island’s premier beauty spots. Boasting unparalleled 180 degree views over Maughold Head and out to sea, the property enjoys 3 ½ acres of unspoilt countryside and has been built to an exacting standard. 6000 square foot internal space is perfect for everything from the large living room through to a superb Apartment / Studio with sunken bedroom accessed through a dedicated entrance. And what would all that beautiful space be without a fully-furnished collection of the highest standard? Three large garages with an upper-roof decked area is available, ideal for entertainment or relaxation; and of course a large parking area for guests. As you would expect, ‘Modena View’ is not only fully secured with an electric-gated entrance and private drive, but also the latest in alarm technology; providing peace of mind when your home or away. View the full specification at www.modenalifestyles.com

November/December 2012

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The Isle of Man... The offshore location where you get more for your £, $, €, ...

Modena House І Outskirts of Douglas І Price £4,750,000

Modena House has been designed as a contemporary paradise, ideal for individuals to relax in privacy and seclusion and also as an entertainment arena for those great social gatherings with family and friends. The mansion house is Located in the capital of the Island, Douglas. It was constructed in 2006 for the current owner and is sat in approximately 2 acres of parkland and surrounded by protected trees. Modena House offers over 15000 square foot of exceptional internal living and entertainment space. The home has a central theme to the artwork with the artist commissioned to compliment many rooms throughout the property. The house was designed to a strict brief of allowing as much natural light as possible to flood through the internal space of the property. Additional outdoor features include decked entertainment areas with a profusion of outdoor furniture, dining tables and daybeds. A private jacuzzi hot tub with dedicated lounging area, large manicured lawns with gardener’s tractor and sufficient guest parking for even the most flamboyant of entertainers. View the full specification at www.modenalifestyles.com Enquiries Tel: (+44) 7624 481254 І E-mail info@modenalifestyles.com

November/December 2012

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Time Out

David Buck І Manx 2

My to

5 9

My role is the overall day-to-day management, but I also keep an eye on revenue and look at ways to generate more business or implement decisions that need to be taken. When we introduce new routes, these have to be very closely monitored, certainly the new route to Oxford and onwards to Jersey launched earlier this year has been well received.

David Buck is the Managing Director at Manx 2.com How does a normal day start?

There’s no such thing as a normal day in the aviation industry and each day could potentially have a different start time. However, if there’s no early requirement, I’ll get up at 7.30am. As a family, we all sit down together to have breakfast, and we’ll talk about everything and nothing. I have two children with my Hungarian wife Csilla, a daughter (aged 13) and a son (aged 11). My good lady is very much into healthy eating and so that dictates what we can, and cannot, have for breakfast. For me, it’s normally orange juice and Oatflakes sprinkled with a mixture of various healthy things. The only time I get a traditional English breakfast is when I stay in a hotel! How do you get to work? I drive to work, living on an Island means that even though it only takes 20 minutes, I still perceive it as a long journey. In the car, I’ll normally play a favourite CD while thinking through the day ahead – currently it’s Clockwork Angels from Rush, but it could be Vangelis, Yes, Al di Meola, Dream Theater or Symphony X. At the office… I can be at work from 6.30am onwards, but will usually aim to be in at around 8.30am. I share an office with the people who manage the schedule, the revenue manager and, when he is not out visiting suppliers, our quality manager. We discuss any issues and have general conversations about how the day has begun, the number of people choosing to use the service and if there has been any delays. If I want to know what is going on it is important to be where the so-called action is taking place. That way I keep on top of what is actually happening in the business and can react quickly to any changes that may need to be made.

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Having previously worked in airline operations, I’m enjoying my wider role and during the day I may deal with suppliers, visit other airports, be required for photo shoots or radio interviews, and answer a host of different enquiries. No one day is the same. I’m lucky that Noel (Hayes), our Chairman, has put together such a great team. There are only 12 of us and so everyone has an important part to play. It also means we may be required to do something outside of our normal role, which adds to one’s understanding and appreciation of other people’s contribution to the success of the organisation.

When the working day is over... I try to get home by 5.30pm, but in reality the working day is never over. I am available 24/7 and there will normally be some work to do once I have left the office, although I try not to let it impact too much on family life. Now they’re getting older, and receiving more homework, I don’t get to spend as much time with the children as I’d like, but we do try and watch a little TV together before they go to bed. At the moment, they are into watching Marx Brothers movies, and it’s a real pleasure to hear them laughing so much. We all enjoy music, so at various times in the evening the house will be full of the sound of the piano, the flute or the guitar…. Which I play dreadfully! Living on the Isle of Man has many benefits, including access to a host of evening and weekend sporting activities, and we all enjoy playing table tennis, indoor football and badminton. You’ll notice these are all indoor sports, as we all know the Island is not always associated with fine weather! That said, it’s a beautiful place and so, when the weekend comes, my wife puts on her ‘being healthy’ hat and we’ll all go for a walk in the stunning Manx countryside.

Wireless ting a communications infrastructure that connects the Isle of Man to th We’ve spent £30m crea e world. You could say we’ve broadened your horizons.

Cable

Call us on 692222 or email us at iombusiness@surecw.com www.cwc.com

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