September/Autumn 2019

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SEPTEMBER 2019 £ FREE

BRAND VOICE KPMG - Get Serious About Cyber

IoD - Isle of man Member interview - Sandra Robertson

FEATURE Britain’s Economy braced for Brexit ‘Shock’

CONNECTING BUSINESSES

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CONNECTING BUSINESSES

THE B WORD

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here’s nothing the business world hates more than uncertainty, and let’s face it, Brexit, as it hangs in the balance, is very bad for business. Andrew Neil predicts; “The Autumn of 2019 is destined to be one of the most intriguing and significant in British politics for at least a generation.” Intriguing it certainly is, as it bears an uncanny resemblance to a soap opera; rife with betrayals and plot twists, villains and cliff hangers but where does that leave your business? What happens when the credits roll and you are left on the outside with nothing to look forward to but a chaotic lack of continuity.

Our feature on page 36 investigates how prepared the UK and the EU are for a no-deal Brexit, and what the impact will be for each on the issues of; data flow, financial services, customs, transport and fisheries. David Allen’s (FT) article, “Once Britain is out of the EU, it is out”, aims to highlight the finality of a potential departure and how it will relegate Britain to a “third country.” He says, “The departure will change the legal position absolutely.

The EU Treaties will cease to apply, and as a matter of international law, the UK will no longer be a member state.” Chris Giles’s (FT) views in his article (page 34), “On the Brink,” echo the sentiment that a slide in sterling and a rise in unemployment will, not surprisingly, leave Britain in a very precarious position, “Business investment has been weak across the world, but it is particularly poor in the UK, with companies reluctant to commit to capital spending amid Brexit uncertainty.”

“Crash out,” “no deal,” “no confidence”; these are all phrases we have become accustomed to hearing in recent months; the language of Brexit is not a lyrical one! Language and tone are so vital for communication and clarity in business but what does your tone say about you? We examine the unspoken message that lies behind an email auto reply on page 10.

An individual’s “out of office,” may be a lot more telling than they realise.

Another classic area for misinterpretation is the office meeting. Tim Harford (FT) alludes to this on page 14 in his article, “Learn to love meetings by making them better,” when he states that in the kaleidoscopic spectrum of meetings, some are necessary to: transfer information, allow for discussion/ resolution, make decisions etc. But it is ultimately the lack of clarity surrounding a meeting’s purpose that can cause the most friction. He says; “Nothing undermines a meeting more than a lack of agreement as to why it’s happening”.

Someone who certainly wastes no time in “Stonehenge” meetings is Sandra Robinson who left the corporate world behind her 18 months ago to launch, “Steer Alliance Ltd.” The aim is to provide a business confidant’s service to high net worth entrepreneurs and private clients, “Helping to turn their visions into reality.” Robinson emphasises the role of networking and the importance of word of mouth exchanges in business life because, “who you know is why networking is so important.”

Steve Redford Publisher

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CONTENTS UPDATE

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WELCOME

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LEARN TO LOVE MEETINGS

BY MAKING THEM BETTER

BUSINESS NEWS

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NOTHING SAYS BIG-HEAD LIKE A GRANDIOSE EMAIL AUTO-REPLY

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18

HOW A LISTING CAN HELP SCALE YOUR BUSINESS

RELOCATION INTERNATIONAL EXPATRIATES

11 TREK CHALLENGE FOR KPMG MANAGER

27

BRAND VOICE

20

CELEBRATES 120 YEARS OF COMMERCE ON THE ISLE OF MAN

ESTERA RECEIVES STEP PLATINUM EMPLOYER ACCREDITATION

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GET SERIOUS ABOUT CYBER: PROTECTING THE CROWN JEWELS

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ON THE AGENDA...

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PWC ENSURES KEY TOPICS ARE ON YOUR BOARDROOM AGENDA

APPOINTMENTS

30

MOVERS & SHAKERS

SPECIAL FEATURE

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COMMITTEE MEMBERS

SUMMER SOCIAL

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‘SOUNDING BOARD’ SANDRA HELPS TO TURN THE VISIONS OF HIGH NET WORTH ENTREPRENEURS INTO REALITY

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ONCE BRITAIN IS OUT OF THE EU, IT IS OUT

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ON THE BRINK: BRITAIN’S ECONOMY BRACED FOR BREXIT ‘SHOCK’

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NO-DEAL BREXIT: HOW PREPARED ARE THE EU AND UK?

IOD - IOM

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WELCOME

CONNECTING BUSINESSES

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IOD ISLE OF MAN ON THE ROAD ISLE OF MAN DIRECTOR IS SHORTLISTED FOR NATIONAL BUSINESS AWARD 5

update news

Supporting economic growth is Chamber gala dinner theme

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upporting economic growth will be the theme of the Isle of Man Chamber of Commerce gala dinner later this month.

It will be a chance to look ahead at Chamber’s aims and plans for initiatives to support economic growth, and to reflect on the successes achieved by the Island’s leading business network over the past 12 months. Those successes include the launch of the Business Connex service (a joint initiative between Chamber and the Department for Enterprise); a range of initiatives to make Chamber even more open and accessible including the introduction of open forums; the launch of the Knowledge Connex mentoring and knowledge sharing platform; and increasing Chamber membership and representation of new businesses by offering free membership for start-ups.

The gala dinner will be at the Villa Marina on September 20. For full details, including how to buy tickets, go to the ‘Events’ section of www.iomchamber.org. im

Guest of honour and presenter will be renowned after dinner speaker Graham Davies, aka ‘The Presentation Coach’. The former barrister was born at the Jane Crookall Maternity Home and educated at King William’s College, before going on to become President of The Cambridge Union. He is now the go-to expert in the UK for senior executives, celebrities and politicians who need to present better under pressure.

The gala dinner will take place two days after Chamber’s AGM which will see Caren Pegg officially appointed as Chamber’s President. She was appointed as Acting President in April this year following the decision by the then President Chris Allen to step down a few months before the end of his two year term in office due to work commitments.

Caren, a partner in the Dispute Resolution Department at Appleby Isle of Man, became Chamber’s Vice-President in September 2017 and immediately prior to that was Chair of the organisation’s Employment and Skills Committee.

World first Manx Telecom tech powers new UK mobile network Audacious network endorsed by Ben Cohen MBE

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orld-first technology developed by Manx Telecom in the Isle of Man is powering the launch of a new mobile network which is the first of its kind in the UK. The Audacious network, which launched recently, uses the world’s first medically certified technology to personalise mobile calls based on the user’s unique hearing profile. It provides a solution for users with a range of hearing needs, but also has the potential to help those who struggle with sound quality on their mobile and find phone calls stressful.

Audacious is endorsed by Ben Cohen MBE, the former England rugby union international and 2003 world cup winner, who experiences hearing loss. He said: “I’ve never let my hearing loss hold me back, whether playing sport at an international level or learning to ballroom dance. The one thing I find hard though is missing out on interactions with loved ones. I travel a lot and while text or email are great you can’t beat hearing the sound of someone’s voice. Audacious is a game changer as it means I can hear about my children’s day wherever I am.”

The launch of Audacious follows

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the success of MT clearSound which was launched here on the Island last year. Manx Telecom’s pay monthly mobile customers were the first in the world to use the technology behind Audacious when MT clearSound was launched last September. The MT clearSound story goes back to 2012 when Goshawk Communications’ founder, Matthew Turner contacted University of Cambridge’s Emeritus Professor Brian Moore who developed the first algorithms to measure someone’s hearing loss over the telephone using a mobile network. Matthew is also the founder of Audacious. He has suffered moderate to severe hearing loss since birth and made it his personal mission to develop the technology that could tailor phone calls to individual hearing loss or needs and so empower people to have better, clearer conversations.

For more information about Audacious visit www.audacious.co.uk ON THE AGENDA...

CAPITAL INTERNATIONAL RECEIVES PROVISIONAL BANKING LICENCE

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IB Limited, part of the Capital International Group, an Isle of Man headquartered company has been awarded a provisional class 1(2) banking licence. The licence is the first class 1(2) to be issued on the Isle of Man under the Alternative Banking Regime.

The bank is not yet able to open its doors to new business but has a 12 month period under the framework to move to an unconditional licence at which point it will be able to open accounts and take deposits.

In 2016 the Isle of Man introduced the Alternative Banking Regime (ABR) following consultation and industry collaboration, to widen the scope for new banking opportunities for the Isle of Man, bringing benefits to sectors that require banking facilities. The class 1(2) licence precludes retail customers, so CIB Limited will only be able to offer services to qualifying corporate clients and individuals with liquid assets in excess of £500,000. Class 1(2) licenceholders are not members of the Isle of Man depositor compensation scheme.

Greg Ellison, Chief Executive Officer of Capital International Group, commented: “The provision of core banking services to businesses in the Isle of Man and further afield has been hit hard by some of the traditional banks de-risking and reducing their appetite to provide banking to offshore centres in the past ten years. Coupled with the Isle of Man’s Alternative Banking Regime, this has created a great opportunity for Capital International to build a new digital bank aimed at qualifying corporate clients and high net worth individuals.

We have been working hard for the past couple of years on building the foundations for the bank and have been engaged closely with the Financial Services Authority and with support from the Department for Enterprise we’ve built the business model around the needs of our target clients, particularly CSPs and professional services firms.

The bank will use leading edge technology backed by a local management team and pragmatic decision making to bring banking back to business.

We still have a lot of work to do before we can open the bank, but we are delighted to be the first company to be awarded the class 1(2) provisional licence and we look forward to an exciting future ahead.”

Agenda banner.pdf 2 20/02/2019 15:50:11

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T: +44 (0) 1624 631710 E: enquiries@khtlimited.com W: knoxhousetrust.com

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Knox House Trust Limited is licensed by the Isle of Man Financial Services Authority and registered in the Isle of Man. Company No: 125720C. CONNECTING BUSINESSES

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update news

KPMG named a Leader in Global Cyber Security

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PMG has been named by Forrester Research as a leader among global cyber security consulting providers, also receiving one of the highest scores of any vendor evaluated in the `Current Offering’ category.

“KPMG stands out with clear, concise, executivelevel engagement abilities,” wrote the report’s authors in The Forrester Wave™: Global Cybersecurity Consulting Providers, Q2 2019. The report also noted how KPMG’s “executive engagement … helps security leaders understand the next crisis, not just the current one.”

The report also gave KPMG the highest possible scores in the criteria of business acumen; security strategy consulting capabilities; and governance, risk & compliance capabilities.

According to the Forrester report, KPMG consistently advances three messages: “1) Cyber security helps businesses grow; 2) Cyber security problems now require multidisciplinary expertise; and 3) Cyber security protects core business functions.”

The report continues that “KPMG doesn’t just say those things in its marketing; it infuses those themes into its cyber security services portfolio.”

Bryan Beesley, Advisory Senior Manager at KPMG Isle of Man, commented, “This is exceptional news and reassuring to receive third party recognition such as this. The research confirms what we have already been saying – that cyber security needs to be top of mind for leaders, both locally on the island and globally”.

The report reprint is available to download from https://reprints.forrester.com/#/assets/2/667/ RES146436/reports

Double Award Hope for KHT for Citywealth IFC Awards Knox House Trust shortlisted again for prestigious Citywealth IFC Awards in two categories.

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nox House Trust (KHT) is delighted to announce that it has been shortlisted in two major categories of Citywealth’s International Financial Centre (IFC) Awards 2020. The categories are: ‘Trust Company of the Year – Isle of Man’ and ‘Family Office of the Year’.

Now in their ninth year, the awards were established to highlight the excellence of advisers and managers in the private wealth sector in the major international financial centres. Winners are recognised for their achievement, innovation, expertise and service.

KHT Managing Director, Anthony Page, commented on the shortlist nominations: “We are delighted to be recognised for these awards once again.

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I am extremely proud of the hard work, dedication and expertise of our team at KHT. As a relatively small firm, we place great emphasis on building relations and pride ourselves on delivering a personal and professional service. To be shortlisted for the third consecutive year (Trust Company of the Year – Isle of Man) and second time consecutively (Family Office of the Year) is a fantastic achievement in itself.”

The winners will be announced at a prestigious awards ceremony to be held in January 2020 in London. The shortlist is based on submissions, judges’ recommendations and editorial research. As part of the final judging process to decide the winners, there is an online open vote for clients and industry peers which is now open until the 25th November 2019. If you would like to support Knox House Trust with their nominations at the IFC Awards, you can: www.leaderslist.co.uk/leaderslist/knoxhouse-trust ON THE AGENDA...

Celebrating 65 years of business in the Isle of Man

Accounting

Audit

Acq ui s i ti on & D i s p os a l

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update - feature

s y a s g n i h t No big-head iose d n a r g a like to-reply email au

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By Emma Jacobs (FT)

Do you like it straight and functional? Or do you prefer something with a bit of pizzazz, a power stance — something bold? Maybe the humblebrag’s your style? Sly self-effacement wrapping up a big fat boast.

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I

am talking about the out-of-office email message. They say you can tell a lot about a person by the company they keep — to which I’d add, examine their email auto-reply.

Some dispense with the OOO entirely — freelancers, for example, who are desperate for income (fair enough). Then there’s the self-important. They’re the ones at the poolside, frantically sending emails fretting that everyone will realise they’re entirely replaceable, a mundane version of the magician’s sleight of hand.

In the past few years, people have tried to inject a bit of personality into their OOOs. Why write they’re on holiday when they could paint a picture? They might be enjoying the turquoise seas of the Mediterranean perhaps, or an ultra-marathon in the Mojave desert, or a silent fasting retreat in Pyongyang. It is a laudable move away from the cult of busyness, but perhaps a step too far.

“Oh, good for you,” the recipient will think, liquid jealousy coursing through their veins. “I’d buy you an Aperol Spritz at the five-star hotel bar, except I can’t.

Because I’m stuck here in this airless office doing the work of 20 holidaying colleagues!”

Then there are the complicated instructions outlining who to deal with in the sender’s absence. The message is clear: “I am important, I do the job of 10 Stakhanovites. While I’m away, you can contact all the various people who will be covering different aspects of my job.

They’ll all be here, the underlings toiling away.” Typically, such emails end with, “If you really must, text me.” Code for: I’m invaluable aren’t I? Some people are so laissez-faire they don’t even read their OOO. Like the colleague who forgot to change the message from her previous holiday.

“I am away,” she replied in July, “and will respond to my messages in the new year”. Another recent auto-reply informed me that upon the sender’s return, they “will have hundreds of emails” so it would be best to get back in touch later. My initial reaction was, “Hundreds? Try thousands, mate!” — in effect, humble-bragging to myself.

There’s no way such emails look good — either you appear self-important or, by contrast, pitifully unimportant.

Another gambit is announcing you plan to delete all your emails on your return. This is bold but also overweening.

Far easier, do what everyone else does — bin them on the sly. Or, better still, ignore them. After all, one person’s carefully maintained “inbox zero” is another’s waste of time.

Far worse than the holiday auto-reply is the one announcing the sender is speaking at the Big Fromage summit, or working on a book. By the way, they add, as an afterthought, have you seen my Ted Talk?

You can watch it at this link. Outstripping even these are the ones who set an OOO while they are in a meeting. It is the ultimate swagger — nothing says big-head like announcing you will be uncontactable for an hour. Leaving aside the fact that someone, somehow will figure out how to get hold of you, everyone knows that people in meetings spend half the time furtively checking their phones under the table.

But my favourite statement OOO is supremely simple. It reads: “I am no longer checking my email regularly and may not be able to reply to your letter.” This must be the ultimate power move, but one only a few can get away with. For the sender has transcended the medium so completely that they can no longer tell the difference between an email and a letter.

Or perhaps the implication is that if you’re so frustrated by the lack of email response you’ll be moved to put pen to paper. You shouldn’t bother. Snail or email, they’re not interested.

ON THE AGENDA...

capital-iom.com

INVESTMENT SPECIALISTS Managing risk to drive performance.

Call +44 (0) 1624 654 200 or Email info@capital-iom.com to find out more.

Create tomorrow... Start today.

Regulated activities are carried out on behalf of Capital International Group by its licensed member companies.

Capital International Limited, CIB Limited, Capital Treasury Services Limited and Capital Financial Markets Limited are all licensed by the Isle of Man Financial Services Authority. Capital International Limited is a member of the London Stock Exchange.

Registered Address: Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG. CILSA Investments (PTY) Ltd (FSP No. 44894) and CILSA Solutions (PTY) Ltd (FSP No. 6650), t/a Capital International SA are licenced by the Financial Sector Conduct Authority in South Africa as Financial Service Providers. Registered Address: Office NG101A, Great Westerford, 240 Main Road, Rondebosch 7700, South Africa. All subsidiary companies across both jurisdictions are represented under the Capital International Group brand.

update - KPMG isle of man

TREK CHALLENGE

FOR KPMG MANAGER

E

laine McCormack is Risk Consulting Senior Manager at KPMG and works in the firm’s Athol Street office advising on risk, regulatory and compliance services. But in her spare time, she’s been donning her walking boots and packing her rucksack to prepare for a trek of a lifetime, joining the Isle of Man Junior Achievement group to tackle a 10 day trek in Vietnam later in the year. She shares her story so far…

Tell us a little about the trek?

There are 17 of us travelling over from the Isle of Man at the end of October to take part in the 10-day Pu Luong trek through some of the untouched parts of Vietnam. The group also includes Simon Nicholas, a Partner here at the Isle of Man office, so it will be nice to have a familiar face in the group. We’re walking up to 8-9 hours a day, and during the evenings we will be staying in local village homes, learning about the Vietnamese culture.

What’s motivated you to do this?

Vietnam has been on my travel bucket list for some time, but I’ve never quite got round to fitting it in. When I saw that Junior Achievement (JA) were organising a charity trek there, it seemed like a great way for me to experience some of the less

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touristy parts of Vietnam, whilst raising money for a very valuable local charity. I got the email invite the same morning I learnt of the untimely passing of a former colleague of mine, and figured that life is too short, so why not? By the following morning I had signed up.

I’ve been volunteering with JA for the last couple of years, delivering some of their classroom programmes in schools which has been great fun. The trek provides a great opportunity to help raise funds so that JA can continue the great work they do.

How have you prepared for the trip, both physically and mentally?

It’s all been a bit of a whirlwind for me as I only signed up at the last minute, when someone else unfortunately had to drop out, so I’m still trying to fully prepare. I’d be lying if I said that I wasn’t a bit apprehensive initially, however, I’ve had amazing encouragement and support from my family, friends and colleagues. They’ve been accompanying me on some of my practice walks, giving me advice on kit and nutrition, and listening to me drone on endlessly about the trek - I think I’ve become a bit of a trek bore!

I don’t know whether you’re ever really fully prepared for something like this, but I’m a fairly organised person, so I’m enjoying the challenge so far.

ON THE AGENDA...

What obstacles have you had to overcome so far?

Finding the right kit (and breaking it in) has been a big one for me. When you’re going to be walking a long way, you want to be sure that you test it out as much as possible beforehand and are as comfortable as you can be.

Are you on a strict training regime?

Fairly strict. I’m following a trekking training schedule that was produced by the British Heart Foundation and takes you through a day-by day suggested exercise plan for the three months leading up to the trek. I’m doing a variety of different activities besides walking, like spin classes, pilates, swimming and running, so it’s not repetitive. The amount of time varies each day (and the schedule includes some rest days too), but increases the closer you get to the event.

I don’t know whether you’re ever really fully prepared for something like this, but I’m a fairly organised person, so I’m enjoying the challenge so far.

What’s the hardest thing you’ve done so far as part of your training?

For me, it’s been hard to learn to walk in trekking boots and carrying weight on my back, as I’m not used to it. We will be carrying our water, food and other supplies on our backs each day, so it’s important to be able to manage this – particularly when going uphill.

Where have you been during your training?

We’re lucky we live on an island that provides us so many opportunities for great off-road training over undulating ground, similar to the type of ground we’ll be walking in Vietnam, albeit the weather is a bit different! As well as doing gym classes, I’ve done a lot of walks through some of the island’s plantations, the Millennium Way, and up and down Snaefell, and no doubt will be doing lots more over the next few weeks. Am also trying to walk to and from work a couple of times a week, sometimes in my trekking gear, which probably looks a bit strange along Athol Street first thing in the morning!

What do you think will be your biggest challenge on the trek?

I think not being able to keep in touch with my family and friends will be a real challenge for me, as there will be no Wi-Fi or phone signal. I’m so used to them being there or at the end of the phone when I’m having a challenging day, but I know my fellow trekkers will be in the same position and I’m sure the camaraderie we build between us over the trek will help us all through any tough times.

On the other hand, I’m really looking forward to having a good excuse not to answer emails for 10 days!

CONNECTING BUSINESSES

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update - workplace feature

Learn to love meetings by making them

better

By Tim Harford (FT)

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rely on Google Calendar to tell me where I am supposed to be, when and with whom. When the service collapsed for an afternoon last month, it felt like a teachable moment. For a few seconds, I panicked. Then, I realised that with all the meetings gone, I was free to do some real work.

I know I’m not the only person who loves to hate meetings. , a book by David Pearl, skewers the “Wagner meeting” (of epic length), the “mushroom meeting” (appears suddenly, multiplies rapidly) and the “Stonehenge meeting” (it’s been a fixture for ages but nobody knows why).

Yet Mr Pearl also acknowledges that ineffectual meetings often suit us. Boring meetings make us feel interesting by comparison. Long meetings pass the time.

Indecisive meetings postpone painful choices.

Meetings frustrate when they reveal painful disparities in power. For

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subordinates, meetings are often the things that get in the way of doing their job. For the person with the power — the manager — meetings are the job. The manager can even offload the scheduling on to her secretary. No wonder some staff feel resentful of meetings while their managers are oblivious.

That said, the relentless democracy of a meeting where everybody must be heard is a kind of torture in its own right.

Never-ending consultations are a good way to ensure that nothing ever happens and nobody has to take responsibility.

Oscar Wilde never said that socialism “would take too many evenings” but if he’d met UK Labour leader Jeremy Corbyn, he surely would have.

Some meetings are to transfer information, some to allow discussion and some to reach a decision or resolve a problem. There are committee meetings that exist to satisfy some rule or

regulation. I am on such a committee, and find it useful as a reminder not to sign up for any other committees.

Then there are the meetings that exist purely for the sake of meeting. Don’t dismiss them; there’s nothing wrong with consenting adults enjoying a coffee break together. There doesn’t always need to be a reason.

But nothing undermines a meeting more than a lack of agreement as to why it’s happening. I know a school that invites parents in for curriculum meetings. The teachers think they’re explaining their approach to the parents; the parents are under the misapprehension they’re being asked for their input. Nobody goes away happy.

Yet despite all the well-justified complaints, there are many situations in which there’s simply no substitute for a meeting. For quickly co-ordinating a shared task, it’s perfect. A few minutes ON THE AGENDA...

A persistent myth is that “brainstorming” — the unfiltered, no-wrong-answers, bellowing out of ideas — is a reliable route to innovative brilliance

The “Stonehenge meeting” (it’s been a fixture for ages but nobody knows why).

CONNECTING BUSINESSES

is often sufficient. “Agile” working methods call for a “scrum” in which team members briskly report what they did yesterday, what they’re going to do today and if there’s anything stopping them. A newspaper’s morning editorial conference serves a similar purpose, without the funky terminology.

Or perhaps the meeting is a workshop designed to produce ideas. Some people will assert that meetings are creativity killers, and “a camel is a horse designed by committee”. But this is absurd. We’ve all been in conversations where one idea sparks another. And while an individual can write a novel or paint a portrait, solo creativity is no way to produce nuclear fusion or a new antibiotic. In a world full of specialists, complex projects require collaboration. Meetings can and do generate ideas that no individual could have conceived alone.

They do not do so automatically,

however. A persistent myth is that “brainstorming” — the unfiltered, no-wrong-answers, bellowing out of ideas — is a reliable route to innovative brilliance. Psychologist Keith Sawyer, the author of Group Genius, points out that there are many reasons to doubt this. In brainstorming, individuals distract each other, groups fixate on particular topics and some people use the opportunity to stop thinking entirely.

Twelve people generate more ideas if they work separately than if they brainstorm together.

The meeting serves a far more important creative purpose when it is time to criticise, evaluate and combine those ideas. Charlan Nemeth, a psychologist at UC Berkeley and author of , has found that groups come up with more ideas — and, importantly, better ideas — when they are invited to debate and dissent. It may even be worth breaking the meeting into subgroups with the express purpose of developing competing ideas. “Do not criticise” is a handy rule for new grandparents; it’s not a good approach for innovators.

In a daily scrum, everyone arrives with a brisk update and leaves with a crisp to-do list. In a creative workshop, everyone arrives with a boxful of ideas, ready to discard some and weave the rest together.

There’s a big difference between the two types of meeting, but there’s also a clear common thread: people come prepared, have a reason to work together and finish the meeting with a clear sense of what comes next.

A good meeting is a good meeting less because of what happens at the time, but because of what came before — and most importantly, what comes after.

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update - company profile

Now, for tomorrow Baker Tilly Isle of Man, founded in 1979, is one of the largest providers of accounting, audit and assurance, fiduciary and retirement solutions services in the Isle of Man. Baker Tilly Isle of Man LLC is a member firm of the Institute of Chartered Accountants in England and Wales.

Audit, Assurance, Accounting and Book Keeping, Tax Compliance and Planning, VAT management and Payroll.

We are a leading firm of Chartered Accountants and business advisors providing a full range of auditing and general practice accounting services to a diverse portfolio of local and international clients. The services offered include, but are not limited to,

Baker Tilly Isle of Man Fiduciaries Limited provides all other services and is licensed by the Isle of Man Financial Services Authority as a company and trust service provider. It is also registered as a professional retirement benefits scheme administrator.

Baker Tilly Isle of Man really is very well placed to handle all financial and fiduciary aspects to any individual or company looking for a service provider here on the Isle of Man. Since I joined the company 14 years ago, we’ve grown into an outfit of 50 plus staff that have the technical expertise and know how to handle almost any type of query.

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The company provides a wide range of company, trust, pension administration and advisory services, as well as all aspects of luxury asset management, and are therefore well placed in understanding most industries and associated regulatory compliance requirements.

Speaking about the services provided, Chris Quinn, Associate of Baker Tilly Isle of Man LLC said:

pictured: Chris Quinn

ON THE AGENDA...

David Shefford, Head of Business Development at Baker Tilly Isle of Man went on to explain:

pictured: David Shefford

The Firm’s membership of Baker Tilly International (a top 10 global network) allows us to, where necessary, draw on industry specific experience of other member firms.

This network gives us significant global reach, in addition to our substantial national presence, and we can collaborate with skills and resources to help our clients grow locally, nationally and internationally.

Our services at Baker Tilly include:

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Audit and Assurance

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Retirement Solutions

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Accountancy and Book keeping

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Tax Compliance and Tax Planning

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Advisory Services

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Trusts and Companies

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Fiduciary Services

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Yacht and Aircraft Registration

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Luxury Asset Management

If you would like any further information please contact either:

Chris Quinn

David Shefford

chris.quinn@bakertillyiom.com

david.shefford@bakertillyiom.com

t: +44 (0)1624 693900 f: +44 (0)1624 693901 e: info@bakertillyiom.com Licensed by the Isle of Man Financial Services Authority

www.bakertilly.im

Baker Tilly Isle of Man Fiduciaries Limited and Baker Tilly Isle of Man LLC, both trading as Baker Tilly Isle of Man, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities.

CONNECTING BUSINESSES

17

update - company profile

Relocation International Expatriates

Now, more than ever, foreign nationals are seeking to immigrate to the Isle of Man 18

ON THE AGENDA...

I

n recent years the Isle of Man has become a popular location for international expatriates to settle, including those from outside the EEA. Companies and employers hoping to hire the very best talent, need savvy and experienced immigration counsel to navigate the maze of everchanging immigration law and policy.

However, people rarely have access to get to know the actual process of applying for Isle of Man immigration status from overseas, especially considering the island’s unique political position (self-governing Crown Dependency).

The island does not have embassies or diplomatic offices around the world, instead it shares with British Embassies and their diplomatic offices, and the mechanism itself sometimes generates obscurity for those applying for Isle of Man visas from their home countries.

“We always strive to achieve a mechanism to smooth overseas applicant’s adjacent visa application

CONNECTING BUSINESSES

process. The island has been more popular than ever in terms of attracting overseas talents, but there’s a significant gap from they receiving a job offer to the time they actually get granted the visa.” Said: Ted Fang, Business Development Manager, Counton Global Mobility Solutions.

“We want to present and spread out this awareness to illustrate the maddening network of rules and regulations for applicants to remain in the UK and the island must navigate.”

“Also, Immigration is very much a cash ATM, it costs money to make an application for leave to remain, it costs to make an application for entry clearance. A lot of the interactions with the visa-related government at the moment costs money.

An application for any sort of immigration status is now incredibly expensive. It will cost you thousands of pounds to appeal a decision made by the Home Office, or on the island, by the Cabinet Office. And there is virtually no legal aid available, in which it becomes more essential for applicants to get things right in the very beginning.”

Combining experience in a broad range of immigration issues, including family law, business immigration, as well as reputations for providing top-notch, concierge-level service to discriminating clients around the globe, Counton Global Mobility Solutions is uniquely positioned to confront the challenges of today.

We provide professional immigration advice for those who need help with getting permission to stay in the UK and Isle of Man. We help both individuals and companies with most things to do with immigration. With extensive experience, we act for national and international corporates, in addition to individuals on matters incl. commercial migration, sponsor licensing, family migration, work relocation etc.

Our priority is always our clients.

We put their individual needs first and understand the value of building relationships based on mutual trust and understanding. We bring commitment, commercial awareness and legal focus to our service. We are recognised for our integrity, accuracy, and personalised services directing you through this complex area of law.

Although we are not a large firm, our expertise, dedication and skill allow us to tackle even the most challenging work.

If you get more people coming in, it creates demand for things as well, it helps to grow the economy. It’s not slicing it off a pie, it is about growing the pie so there’s more available for everybody.

Our Immigration Law Services We provide immigration law advice

to corporate clients, business owners and entrepreneurs across all areas of immigration law. Our business clients value our comprehensive offering, and our proactive approach to immigration issues including: n Tier 1 (Investor) Visa n Tier 1 (Entrepreneur) Visa n Tier 2 (General) Visa n Tier 5 Visa nS ponsor licensing, Home Office audits, suspensions and revocations nR ight to work checks and employer’s penalties n Business Migrant Our personal immigration service is comprehensive and aims to provide individuals and families with clear and practical guidance on all immigration issues. n Visitors n Family migration n EU Migration n British citizenship n UK ancestry n Workers and students n Migrant Workers We understand how complex immigration matters may seem to our clients, which is why we always strive to make the process as straightforward as it can be. Our niche practice allows us to provide bespoke advice and focus intently on each and every one of our client’s cases.

Ted Fang

Business Development Manager

nC ounton GMS European House 22-24 Victoria Street Douglas IM1 2LE

Email: ted.fang@countongms.com Direct Line: +44 (0)333320 8006

19

Brand voice - Appleby

celebrates

120 yearsof

commerce on the Isle of Man

20

Bermuda Major Reginald Appleby established law practice.

1890’s

Bailhache & Bailhache, Bois & Bois Jersey, and Dickinson Cruickshank Isle of Man, Established.

1890’s

our History

1890’s

Bermuda Appleby merges with Dudley Spurling to become Appleby & Spurling.

1938

1930’s

T

he firm, which has offices in ten jurisdictions, will celebrate its 120th anniversary of commerce on the Isle of Man this October. To add further cause for celebration, this year also marks 10 years since they merged with Dickinson Cruikshank, creating Appleby Isle of Man. Dickinson Cruickshank was the largest and one of the longest established firms of advocates on the Isle of Man. Founded in 1899, it became one of the dominant law firms on the island, with legal expertise in all areas including commercial, property, private client and dispute resolution.

In 1899 the High-Bailiff of Ramsey, Mr James Murray Cruickshank, joined the old-established law firm in Athol-street (named after William Dickinson, who was originally admitted to the Manx bar in 1869) which at different times over the next forty years was known as Adams and Dickinson; Dickinson and Kneen; Dickinson, Cruickshank and Co before finally settling on the name Dickinson Cruickshank.

ON THE AGENDA...

Cayman Hunter & Hunter opens.

1965

Cayman Clifton Hunter begins practising law (1945).

1940’s

Bermuda Appleby & Spurling merges with William Kempe to become Appleby Spurling & kempe (1949).

1940’s

1940’s

Isle of Man Dickinson Cruickshank merges with Morris Maddrell (1999).

1990’s

Jersey Perrier Labesse opens.

1950

1950’s

Hong Kong Appleby Spurling & Kempe opens (1990).

1990’s

Guernsey Appleby Spurling & Kempe opens Fiduciary business.

1979

1960’s

Jersey Bois Labesse merges with Bailhache & Bailhache to form Bailhache Labesse (1994).

1990’s

Jersey Perrier Labesse merges with Bois & Bois to form Bois Labesse.

1984

1970’s

1980’s

1990’s

Our Isle of Man Partners

MARK HOLLIGON

KYLE SUTHERLAND

CAREN PEGG

JUAN THORNLEY

PARTNER

PARTNER

FAYE MOFFETT MANAGING PARTNER

PARTNER

CONNECTING BUSINESSES

PARTNER

21

BRAND VOICE - Appleby BVI Appleby Spurling Hunter opens.

2005

London Hunter & Hunter opens.

2002

Cayman Appleby Spurling & Kempe merges with Hunter & Hunter to become Appleby Spurling hunter.

2004

our History

Mauritius Appleby Mauritius opens.

2007

Jersey Appleby Spurling hunter merges with Bailhache Labesse to form Appleby.

2006

2000’s

Our Isle of Man Partners

CLAIRE MILNE

GARRY MANLEY

TOM BROOK

CHRIS COPE

PARTNER

PARTNER

22

PARTNER

PARTNER

The firm has seen a great number of significant Manx legal figures rise through its ranks, including the late former Deemster Jack Corrin, who was a former partner.

Faye Moffett, Isle of Man Managing Partner says “120 years in business is a huge accomplishment and demonstrates how far the company has come. The business has developed significantly over the years, including adopting and implementing a number of community initiatives; amazing to be able to give something back to the community that has supported us for years. We are very proud to have such a fantastic team who make the business what it is and continue to deliver exceptional service to our clients”.

Appleby are actively committed to their local, through a range of projects and sponsorships. For Appleby, corporate social responsibility is more than a channel for promoting a brand. It’s about engaging colleagues and building strong relationships with local community groups to contribute to and support the ON THE AGENDA...

Seychelles Appleby Seychelles opens.

2009

Isle of Man Appleby merges with Dickinson Cruickshank and becomes Appleby IOM. 2009

Appleby completes MBO of it’s global fiduciary business.

2015

Guernsey Appleby Guernsey opens law firm.

2010

China Appleby Shanghai opens.

2012

Appleby launches Appleby Global Services.

2019

2010’s

communities in which they operate.

The Appleby Charitable Foundation was established in 2012 and donates over £12,000 each year to local charities and community events. As well as dealing with external requests for funding, it is also used to support employees in raising funds for their chosen charities. Recent charitable contributions include donating books to the Children’s Ward at Nobles Hospital, donating funds to Isle of Man Athletics to reward their hard working volunteers and donating funds to Have a Heart Foundation so they can produce potentially lifesaving instructive book marks.

In 2012 the firm also partnered with Junior Achievement to launch the Appleby Academy programme, which is aimed at helping upper sixth form students in the Isle of Man to develop key business skills, by offering a work placement within the firm. Preparation for the 2019/20 Appleby Academy programme will start at the beginning of the new school term.

This significant anniversary will be celebrated by Appleby with clients and colleagues later in the year.

CONNECTING BUSINESSES

CHARLES DAVIES PARTNER

SIMON HARDING PARTNER

Is a full service law firm providing comprehensive, expert advice and services across corporate, dispute resolution, property, regulatory and private client and trusts practice areas and work with clients to achieve practical solutions whether from a single location or across multiple jurisdictions. www.applebyglobal.com 23

brand voice - KPMG isle of man

Get serious about cyber:

Protecting the crown jewels

Like it or not, insurance organisations are moving into the cross-hairs of the nefarious. They know what insurance decision-makers and regulators have understood for years: that insurance organisations hold some of the world’s most valuable data.

24

ON THE AGENDA...

D

epending on the line of business, insurers tend to possess not just personally identifiable information, they also have access to information that is deeply personal to the customer such as health records, financial histories, driving records, family histories and credit information. This information is highly sought after and valuable to the thieves and they want it all.

A risk not worth taking At the same time, the risks associated with a data breach are also rising for insurers. It’s not just the costs — everything from conducting the investigation through to preparing the legal defence — it’s also the disruption that a cyberattack can cause as systems are shut down, investigations are conducted and processes are updated and business activities are restored.

The reputational impacts of an attack can also be significant. Customers expect their insurers to not only protect their insured assets but also their data. Any erosion of this trust can quickly lead customers to change insurance providers.

And the chances of them coming back are slim.

The moving target If the cyber risk would remain static, most insurers would have no problem shutting the door on the hackers and ensuring compliance. But the reality is that the methods and vectors propogating the cyber risks are continuously changing and evolving. Try as we might to eliminate new vulnerabilities, the criminals are always one step ahead. Some may simply be bored individuals looking for some excitement. But, more often than not, the criminals are very sophisticated, dedicated and (at times) well-funded criminals. There is no ‘getting ahead’ of the threat.

It’s not just the risks that keep changing. It’s also the expectations.

Indeed, with every large-scale and public cyber breach, customer expectations for cybersecurity evolve. What was considered a ‘good enough’ response last year is likely to be lambasted for being ‘not enough’ today. Companies are expected to learn from the last attack, regardless of whether their organisation or industry was involved.

Taking off the blinkers Our experience and our data suggest that some insurance decision-makers may not be fully aware of the risks that their organisations face. According to a recent survey of insurance CEOs conducted

by KPMG International last year, just 49 percent of respondents believe that their organisation may be vulnerable to a cyberattack. This is dangerous thinking; CONNECTING BUSINESSES

46 percent of those reading this article know that they are not prepared for a cyberattack

every organisation — no matter the size or the scope — is vulnerable to cyberattack.

What is perhaps more worrying is that just 54 percent of insurance CEOs believe their organisation is ‘fully prepared’ for a future cyberattack. Even assuming that CEOs are fully aware of the risks they face (and our conversations suggest that they are not), this data insinuates that many insurers recognise they are woefully behind in their cyber planning and preparation.

Filling the biggest holes The good news is that there are a number of actions that insurers can take to dramatically reduce their cyber risk and enhance their overall preparedness.

One obvious action is to improve access controls across the enterprise.

Indeed, a significant number of the cyberattacks we have witnessed over the past decade have largely focused on stealing (or phishing) employees’ access credentials and using them to gain entry into various systems (with the ultimate goal of achieving a level of administrative or ‘super user’ status that would enable them to loot data and change permissions at will). Strengthening access controls both inside the enterprise and across relevant third parties would help eliminate a significant percentage of potential attack vectors.

The other obvious action tends to centre around poor systems and software management. In fact, many of the more virulent attacks take advantage of ‘known vulnerabilities’ — identified gaps in software security that (for the most part) could be eradicated by simply downloading the latest security and software patches.

Embedding cyber risk While these actions may help eliminate the vast majority of the cyber risks now facing insurers, our view suggests that more must be done to ensure that organisations are fully prepared for the next attack.

For example, insurers should be focusing on embedding a level of cyber awareness into their risk and organisational culture. Every employee must understand the risks and buy into the need for greater vigilance. In part, this is about moving from a ‘penalise’ approach to employee awareness towards a ‘promote’ approach where employees are rewarded for demonstrating compliance and initiative.

Get serious about cyber That insurance CEOs and decisionmakers may be becoming fatigued by the continuously evolving cyber risk is understandable. But it is no excuse.

Given the regulatory direction of travel over the past few years, it is becoming increasingly clear that it will be the organisation’s executives that will be held to account if customer data is stolen or if systems are rendered inoperable by a cyber attacker. The onus is on the board and the executive team to ensure that preparedness is high.

So if you’re not fully prepared for a cyberattack — and 46 percent of those reading this article know that they are not — it’s time to get serious about cybersecurity.

By Bryan Beesley Advisory Senior Manager

25

BRand VOICE - TISE

How a listing can help scale your business

By Carolyn Gelling, Head of Isle of Man Office, The International Stock Exchange Group

Carolyn Gelling, Head of the Isle of Man Office at The International Stock Exchange Group (TISEG), explores the funding options for growing businesses and the role that a stock exchange listing can play.

B

usinesses of all sizes need capital to grow.

There are various forms of financing available but certain types are more appropriate and accessible for different businesses depending on the stage of their lifecycle.

Forms of finance Start-up businesses often find that angel investment helps them develop in the initial phase but the largest source of funding for growing businesses historically has been bank finance. It is often the complaint of Small to Mediumsized Enterprises (SMEs) that bank finance is not as forthcoming as it might be and in particular, that this has dried up even further since the financial crisis of 2008.

Alternative sources of financing, such as crowdfunding and peer to peer lending, are increasingly playing a part but the sector remains nascent, with a relatively small average deal size and often more significant funding is required to really take a company to the next level. Venture capital and private equity can play a role, especially in providing greater levels of funding, but business owners and management teams need to be cognisant of the potential change of control and possible impact upon company culture which may result from these forms of investment.

Capital markets The capital markets can provide that funding on a much more significant scale, without necessarily a loss of control, but the cost and complexity associated with listing on a stock exchange means that a flotation is often seen as the preserve of larger companies.

However, The International Stock Exchange (TISE), from its presence in the Isle of Man, provides a more appropriate offering for a wider range of companies and their owners should consider how

26

accessing capital markets at an earlier stage could help to grow their business.

A stock exchange listing is still unlikely to be appropriate for a pure start-up but, as we have been discussing at recent IoD events locally, TISE does make it more viable for businesses as they scale up. This is particularly relevant for those companies with very ambitious growth plans and who may wish to start their journey as a listed company at an earlier stage. By doing so, any future transition to another exchange should be less burdensome than a new listing at a later stage in a company’s lifecycle. Indeed, as other sources of capital are often used in combination, so the capital markets may complement the other forms of funding which businesses are already accessing.

Attracting investors This earlier stage access to the capital markets enables businesses to bridge the potential funding gap by making available a previously untapped source of finance.

Some investors can only invest, or have to invest a certain proportion of assets, in listed products. Many institutional investors, such as pension funds and insurance companies, are mandated in this way because a listed company must adhere to specified standards of transparency and governance and there is liquidity through secondary market trading.

TISE: making it possible TISE offers the benefits of listing on a stock exchange which has a business established since 1998 and more than 2,500 listed securities with a total market value of more than £300 billion but where the offering is tailored to meet the needs of growing businesses.

For example, our proportionate requirement include the company being worth at least £1 million, and typically, the Exchange fees will equate to £12,000 in year one (for admission and the first annual fee) and £6,000 each year during the life of the listing.

There will be other professional adviser fees as well, however the total package TISE offers is less in comparison to traditional exchanges and therefore attractive for a wider range of companies because it allows an earlier point of listing.

The Listing Process Companies wishing to list and to continue to be listed must adhere to the listing rules of a stock exchange and at

TISE this is carried out in conjunction with a listing sponsor, which must be appointed at all times. The sponsor is responsible for helping the company with the listing application process and assist the company in meeting its continuing obligations post listing.

Ultimately, upon admission and ongoing while listed, the company must provide sufficient information, financial or otherwise, so that market participants, such as investors, are fully informed of all material factors which might affect their interests.

Conclusion The governance and transparency of being listed and the market in the shares which this provides is attractive to many investors and with TISE making listing viable at an earlier stage, it unlocks a potential new source of funding for companies which can play its part in helping companies to scale.

Carolyn Gelling is Head of the Isle of Man Office of The International Stock Exchange Group.

Address: Merchants House, 24 North Quay, Douglas, Isle of Man, IM1 4LE Phone: +44 (0) 1624 675907 Twitter: @tisegroup Email: carolyn.gelling@tisegroup.com Web: www.tisegroup.com

Carolyn Gelling

Head of Isle of Man Office

ON THE AGENDA...

BRand VOICE - estera

ESTERA

RECEIVES

STEP PLATINUM EMPLOYER

ACCREDITATION

E

stera, a leading, global fiduciary provider, has received Platinum Employer Partner Accreditation from STEP, the highest of three accreditation levels awarded under STEP’s Employer Partnership Programme.

STEP is the leading global professional association for practitioners who

Ella Pinnock Client and Operations Director Estera CONNECTING BUSINESSES

specialise in family inheritance and succession planning. Receiving the STEP Platinum Partner Accreditation demonstrates that Estera champions professional development from the very top and offers a clearly-defined development pathway as well as best-inclass support for career progression.

Ella Pinnock Client and Operations Director at Estera in the Isle of Man, commented “We are extremely proud to have been recognised for our professionalism, expertise and experience in providing our clients with the best advice about potentially complex matters at sometimes difficult times.”

“It is excellent to be recognised for our thorough training and development programme which allows our team to reach the highest level of expertise.

At Estera, we offer the very best opportunities and support to our people, as this accreditation confirms. Providing service excellence is key to our business and we are proud to uphold the highest standards when it comes to career progression, training, and support.”

Trent Weber, Senior Manager, Employer Partnerships at STEP said “We are delighted to welcome Estera as our latest Platinum Employer Partner.

Achieving this accreditation is testament to the strength of the policies, practices and structures that Estera has in place to support its entire service offering and shows that the organisation offers best practice in professional development,

benchmarked against industry quality standards.”

“Estera has been accredited across all its 11 offices globally, having submitted a comprehensive application to substantiate its robust learning and development provision.”

Amy Coole, Branch Chair of STEP Isle of Man said “This is fantastic news for Estera. STEP Isle of Man organise monthly training and educational events for those working in the fiduciary sector, supporting the professional development that companies like Estera put in place for their employees.”

“STEP Isle of Man’s Annual Conference takes place on 24th October at the Comis Mount Murray Hotel and a representative of the STEP Employer Partnership Programme will be in attendance, should anyone be interested in learning more about the partnership programme.”

STEP members help families plan for their futures, from drafting a will to advising on issues concerning international families, protection of the vulnerable, family businesses and philanthropic giving. Full STEP members, known as TEPs, are internationally recognised as experts in their field, with proven qualifications and experience.

Estera provides trust management and administration services including foundations, managed trust companies, personal pensions, private trust companies, trust formation and administration and has over 550 professionals in 11 jurisdictions. Estera’s multi-jurisdictional reach allows its directors to provide solutions which are tailored to clients’ global needs, no matter where they are located.

27

BRand VOICE - PWC

PWC Ensures key topics are on your boardroom agenda

F

rom Brexit and building trust to substance and upskilling, a wide-ranging debate ensued on an array of topics as PwC Isle of Man hosted the latest event in its Boardroom Agenda programme.

Designed to keep Executive and Non-Executive Directors up to date on topical board issues, as well as help them respond to the challenges they face, it was held at the Wentworth Suite at the Comis Mount Murray Golf Club in Santon.

After guests were welcomed by Nick Halsall, Partner at PwC Isle of Man, Audit Director James Gumbley presented a detailed overview of IFRS 16 – the International Financial Reporting Standard which became effective at the start of the year.

He outlined key changes to accounting and how boards need to be aware and ready to address the potential implications, including redefined financial metrics and other implementation challenges and judgements.

Tax Partner Kevin Cowley also took

28

to the floor to provide an update on EU substance requirements.

The legislation, introduced as a result of EU pressure aimed at countering the diversion of profits to low tax jurisdictions, requires Isle of Man companies with income from certain specific sectors to have adequate substance in the Island.

It has sparked good news for the Island with its immediate removal from an EU blacklist.

Kevin explained how a recent visit by the OECD (Organisation for Economic Cooperation and Development) confirmed that ‘the domestic framework is in line with the OECD standard’ and so ‘the Isle of Man tax system is not harmful in that regard’.

The audience was also told what is likely to happen next and what information firms should expect to report going forward.

One of the highlights of the morning was a poll of guests on Brexit by Tax Director Phil Morris.

Asked what they think will happen on October 31, 42 per cent of those

assembled said they expect the UK to leave the European Union without a deal, compared to: n Leave the EU with some form of deal (29 per cent) n Be in the middle of a general election (20 per cent) n Still be in the EU (nine per cent).

Furthermore, when asked what impact leaving without a deal would have on the Isle of Man, 46 and a half per cent said it would open up new and exciting opportunities.

Twenty three per cent of those questioned in the poll suggested a no-deal would impact the VAT revenue sharing agreement.

Asked tongue-in-cheek, what would happen first, 70 per cent said the UK will deliver some form of Brexit before Douglas Promenade is fully re-opened!

Back to more serious matters, Audit Partner Ferran Munoz-Lopez was the next guest speaker as he addressed the importance of building trust and sustaining it for business success.

He explained how, in a time of significant economic, political and technological change, the expectations of organisations are shifting rapidly and the audit profession is under great scrutiny.

Ferran said building and maintaining confidence was critical in underpinning confidence and trust in business and the capital markets and that adaptation was key to increase audit quality.

He referred to a recent PwC UK survey, ‘The Future of Audit’, which concluded ON THE AGENDA...

‘It was enjoyable to tackle a variety of topical challenges and engage with the audience in such a relaxed yet stimulating way.’

L-R: Ferran Munoz-Lopez, Phil Morris, Steve Billinghurst, Nick Halsall, James Gumbley and Kevin Cowley

current audit practices fail to meet the needs of investors and the wider community.

Among the findings, the survey found that while both the investment community (68 per cent) and business leaders (80 per cent) think today’s statutory audit serves the needs of companies, under half (41 per cent) of the investment community and 68 per cent of the businesses surveyed feel the audit meets the needs of investors.

However, just a third (32 per cent) of investors and only half (52 per cent) of businesses believe audit is effective at meeting the needs of wider stakeholders, such as employees, customers and suppliers.

The survey also found a broad consensus on the desire for more insight and clarity in the audit about the future risks a company faces. The position was CONNECTING BUSINESSES

less clear cut on issues such as forecasted performance metrics and corporate culture, ethics and behaviour, while there was broadbacking for strengthening the quality of reporting by bringing a company’s internal controls within the scope of the audit.

Outlining opportunities for change, Ferran highlighted expanding reporting and assurance to cover critical performance measures and rolling out new technologies to improve the effectiveness of audits.

‘At PwC, we are working hard to ensure that the quality of our own audits continues to improve and have put in place a substantial programme of measures to support this. The audit needs to evolve and a more fundamental review of the entire corporate reporting system is required to ensure stakeholders can have

confidence in the information they need for decision making,’ he added.

Digital upskilling was the title of the final presentation of the event, delivered

by Advisory Director Steve Billinghurst.

He spoke of the imperative for action as organisations are challenged to deliver increased productivity with workers worried about their futures and concerned that automation will take jobs away.

The 2017 PwC ‘Workforce of the Future’ Survey showed that workers are willing to upskill with 74 per cent of those questioned ready to learn new skills or retrain to remain employable in the future.

Steve explained how PwC is working with businesses and Government bodies on the Island and in the UK to help workers, whose jobs are impacted, succeed in new or transformed roles.

It was also shown how enhancing the digital fitness of staff and shifting towards a more digital culture can bring tangible benefits to organisations.

Steve concluded by updating on how work is progressing at the Island’s newly formed Blockchain Office, where he heads up regulation.

Designed to grow and strategically develop the blockchain sector, Steve works with key figures to assess the global regulatory landscape and pursue the evolution of local legislation and regulation.

Nick Halsall concluded: ‘I’m sure this was a compelling event for everyone who attended. The role of Executive and Non-Executive Directors is challenging and board roles are being played out in an enhanced media spotlight adding to both the pressures of the role and to reputational risk.

‘It was enjoyable to tackle a variety of topical challenges and engage with the audience in such a relaxed yet stimulating way.’

To find out more and sign up to attend future events please go to: www.pwc.com/ im/boardroomagenda

29

appointments - movers & shakers

Peregrine appoints new director, Martin Hall I

ndependent corporate and trust services provider Peregrine Corporate Services Limited (“Peregrine”) is delighted to announced the appointment of Martin Hall to its board of directors.

Martin, who joined the firm in August, is responsible for the day to day operations of the company, managing client relationships and seeking opportunities to develop new business.

“It’s an exciting time to have joined the Peregrine team,” enthused Martin. “I have been made to feel really welcome and I already feel part of the Peregrine family. I’m looking forward to working with the other board members and supporting the company’s ambitious and innovative growth strategy.”

In 2006, Martin became STEP qualified after studying the Trust and Estate Practitioners’ professional qualification. When he has a chance to relax, Martin spends a lot of time road cycling and as a keen cyclist, he acts as Chairman of Isle of Man Cycling and his own cycling club, Manx Viking Wheelers.

“We are pleased to welcome Martin to the board of directors,” said Basil Bielich, director at Peregrine.

“Martin has a wealth of experience across both the public and private sectors which will enable him to provide significant contribution to the Peregrine board. My co-directors and I are confident that Martin will help shape the future of Peregrine and we are delighted that he has chosen to join the Peregrine board.”

30

ON THE AGENDA...

CAINS STRENGTHENS LITIGATION TEAM WITH RETURN OF DIRECTOR L

eading Isle of Man commercial law firm Cains has strengthened its award-winning litigation and dispute resolution department following the reappointment of Lindsey Bermingham as director.

A prominent figure in the legal sector, Lindsey, has more than 20 years’ professional experience in both the public and private sector and first joined Cains’ litigation department in 2007 until her departure in 2016, when she took up position as the first Director of the Island’s Financial Intelligence Unit (FIU).

She was responsible for the management and development of the FIU, which plays a leading role in protecting the integrity of the Island’s financial system. Work carried out by the FIU assists the overall drive to disrupt criminal activity, secure prosecutions and confiscate the proceeds of crime and during her role Lindsey led the FIU’s response to the recommendations in the Island’s 2016 Moneyval Mutual Evaluation Report. She was also a member of the Committee of the Egmont Group, a united body of 164 financial intelligence units from around the world.

With a wealth of knowledge and experience in commercial litigation, Lindsey’s initial focus will be assisting to lead the team on regulatory matters including advising on anti-money laundering and white-collar crimes for both local and international clients.

Commenting on her appointment, Lindsey said: “I am delighted to have re-joined Cains’ hugely successful litigation department and to be re-appointed as a director. It is an exciting time for Cains and I very much look forward to contributing to the firm’s continued growth story.

I thoroughly enjoyed my time with the Isle of Man Government and I am looking forward to using the knowledge and experience I have gained to assist the team in continuing to service world leading clients.”

Peter Clucas, Managing Director at Cains and Head of the Litigation Department, said: “We are really pleased to welcome Lindsey back to Cains and the litigation department.

Her experience gained whilst working at the Financial Intelligence

CONNECTING BUSINESSES

Unit has added an extra dimension to her already broad spectrum of expertise, coupled with her proven track record, ensures we have the depth and breadth of experience across the team to deliver the highest standards of service to our clients in the Isle of Man and worldwide. I look forward to working with her again.”

Future focused

n As part of its continued commitment to support and develop in-house talent, Cains has also recently appointed Holly McGarrigle as Trainee Advocate. n As part of her role, Holly will begin her articles initially within the company’s leading corporate department and is scheduled to complete the Manx Bar exams next year.

Lindsey Bermingham

n Holly attended Ballakermeen High School before attending the University of Liverpool, graduating in 2017 with a Law with Business LLB (Hons) undergraduate degree. n After graduating, Holly attended BPP Law School Liverpool to attain her postgraduate diploma in Legal Practice before returning to the Island. n Holly said of her appointment: “I am delighted to have been offered this incredible opportunity to train as an advocate at Cains, one of the Island’s top commercial firms. The experience and expertise of the team will provide me with an invaluable amount of knowledge at the beginning of my legal career.”

Holly McGarrigle

31

special feature - brexit

Once Britain is out of the EU, it is out

The delusion of retrospective legislation on Brexit is dangerous

By David Allen Green (FT.COM)

32

ON THE AGENDA...

T

he United Kingdom will leave the EU by automatic operation of law on October 31 2019, unless something dramatic happens.

Given the current fluid and erratic nature of British politics there is a chance that such an intervention will happen, and that exit is postponed again or the withdrawal process is even then revoked.

But if the UK does leave the EU on that date, the departure will change the legal position absolutely. The EU treaties will cease to apply and, as a matter of international law, the UK will no longer be a member state. Membership of the EU is binary, and the UK will be on the outside.

This matters, as it means Britain will be a “third country�. Article 50 will no longer be relevant. The fast-track route for an agreement that rests on Article 50 will be gone.

Any deal between the UK and EU would have to follow the far more cumbersome process for external relationship and trade agreements, even if terms are similar or identical to the current draft agreement.

Some commentators seem not to realise that departure has this drastic effect. Vernon Bogdanor, a professor of politics, has suggested there could be some clever retrospective legislation that the UK parliament could pass deftly to yank the UK back into the EU. Such a wheeze is impossible in law. Parliament can pass what legislation it likes after the departure, but rejoining the EU (or pretending by a legal fiction that the UK has never left) is beyond its competence. A divorcee cannot just wish a decree absolute away. The legal situation fundamentally changes a moment after departure.

Once out, the only way the UK can rejoin the EU is by applying under Article 49 (a provision that may become as well known as Article 50). In theory, such an application can be expedited, if there is unanimous political will. But it would normally take years and would not necessarily succeed.

Even if the UK could rejoin, there is little or no chance the current advantageous rebates and opt-outs will resume.

Those who want to avoid Brexit on October 31 cannot therefore rely on retrospective legal gimmickry. An extension (or revocation) has to be in place before the deadline. Those who want the UK to leave on that date (either without a deal or with an amended deal) know this. That is why Prime Minister Boris Johnson’s team is now so

strident: this is the one last heave, and then the UK will be irreversibly out.

There is no easy way to prevent such a departure. There are practical political impediments to a government of national unity coming in and requesting an extension, even if the current administration loses a vote of no confidence.

If the government does not change, there are significant procedural issues that could prevent a majority in parliament from passing primary legislation in time to mandate an extension (or revocation).

There may well be a majority of members of parliament against no deal, but that does not matter unless the majority can be converted into effective action.

The next two months could have more significance for the eventual shape of any Brexit, if it happens at all, than the entire period from the referendum to date.

And it appears that it will, in effect, be shaped by a procedural battle of wits between the two Dominics: senior government adviser Dominic Cummings and the MP and former attorneygeneral Dominic Grieve.

The former is urging a rush to leave before exit can be delayed by parliament; the latter will ensure that parliament has the widest possible role. What happens depends on who of these will be the dom Dom. Like a legalistic penalty shootout, Brexit now depends on something as slight as an almost-random technical process. But that is all that is left. The debate on policy substance, to the extent that there has been any debate at all, has had little effect. Reality has impinged only to delay a need to make the final decision, not remove it. There is no time for a general election before 31 October, still less for a second referendum. Better methods of making the ultimate decision on Brexit have not worked or have not been tried: frantic scribbles on parliamentary order papers may be the only option.

But still the finality of a potential departure is not fully recognised. The airlock door will slam shut on the astronaut and there is no easy way back into the spacecraft.

This brutal finality is written into the Treaty on the European Union itself, the highest form of EU law which neither inconvenience nor wishful thinking can gainsay. All those with power in UK politics appear to have the decisions of their political lifetimes to make.

The United Kingdom will leave the EU by automatic operation of law on October 31 2019, unless something dramatic happens.

CONNECTING BUSINESSES

33

special feature - brexitxit

W

ith Boris Johnson insisting the UK will leave the EU with or without a deal on the scheduled departure date of October 31, Britain is braced for a potentially large economic shock.

The prime minister said last month that Brexit was a “massive economic opportunity”, but most independent economists and the Bank of England forecast it will have negative consequences for the economy.

Mark Carney, BoE governor, said in August that a no-deal Brexit would be an “instantaneous shock”, adding: “You actually have businesses that are no longer economic.”

As MPs opposed to the UK crashing out of the EU without an agreement prepare to try to stop Mr Johnson pursuing a no-deal Brexit, the Financial Times outlines the current state of play with the economy.

Economic growth The UK has lagged peers since the Brexit vote Gross domestic product, rebased (Q2 2016 = 100) 108 US

106 Eurozone UK

104 Brexit referendum

102 100 98 96

On the brink: Britain’s economy braced for Brexit ‘shock’

By Chris Giles (FT.COM)

34

2014

2015

2016

2017

2018

2019

Source: Refinitiv/FT

The UK economy shrank in the second quarter for the first time in almost seven years. Gross domestic product fell 0.2 per cent in the three months to June.

The economy has gyrated with Brexit this year — in the first quarter output was boosted by British manufacturing companies ramping up production to supply overseas customers because of fears of border disruption after a no-deal Brexit on March 29, the UK’s original date to leave the EU. Second-quarter output was depressed partly by carmakers shutting down their plants in April because they had anticipated Brexit-related turbulence after March 29.

More worrying is the near stagnation of the dominant services sector, with weakness apparent in business services and finance.

Sterling The pound has been on a downward trajectory Sterling trade-weighted index (Jan 2005 = 100) 96 Brexit referendum

90

Fears of a no-deal Brexit prompt further fall

85 80 75 70

2014

2015

2016

2017

2018

2019

Source: Bank of England

ON THE AGENDA...

Sterling fell 10 per cent following the 2016 Brexit referendum and was then relatively stable against the currencies of the UK’s trading partners.

But since May, the pound has been sliding again, reflecting the increased chances of a no-deal Brexit after Theresa May announced plans to quit as prime minister and Mr Johnson raised the prospect of the UK leaving the EU without an agreement.

With sterling down more than 7 per cent since early May, the currency markets’ verdict is that a no-deal Brexit would be a shock to UK competitiveness that requires a weaker pound.

Lower sterling makes UK exports more competitive, but if the depreciations of 2008 and 2016 are any guide, the main effect will be a stoking of inflation.

Business investment Companies are increasingly unwilling to spend

Companies have been busy hiring people. Unemployment is close to a 45-year low at 3.9 per cent, with policymakers persistently surprised by how many new jobs the economy can create.

The chart shows the relationship between the unemployment rate and regular pay growth from 2001 onward. It highlights how falling unemployment is raising pressure on employers to increase wages, but the economy now delivers lower earnings growth for any level of joblessness than it previously did.

This reflects the persistent weakness in UK productivity, which restrains the ability of employers to increase pay. However, with wage growth edging close to 4 per cent, household incomes will continue to rise.

Consumers Recent uptick in confidence follows a period of decline Uk consumer confidence indicator: European Comission index, net balance, more minus less confident (%)

Real business investment (peak in GDP in Q1 2008 = 100)

2

160

0 -2

140 Range at same stage in previous recessions and recoveries*

In previous economic cycles, investment has always picked up

-6

100

2010

2011

-8

120 Real business investment since 2008

2008 2009

-4

2012

2013

2014

2015

2016

2017

2018

2019

* Recessions beginning in 1973, 1975, 1980 and 1990 Source: Bank of England/FT

Business investment has been weak across the world, but it is particularly poor in the UK, with companies reluctant to commit to capital spending amid Brexit uncertainty.

Growth in investment — in areas such as transport equipment, machinery and IT, and buildings and infrastructure — has stalled just at the point in the economic cycle it would normally increase rapidly.

Business investment fell throughout 2018, and a brief uptick in the first quarter of this year was followed by decline in the second quarter.

But Brexit is far from the only concern for companies, with global trade tensions also weighing on investment decisions.

-10 -12 Jan 2014

Jan 2015

Jan 2016

Jan 2017

Jan 2018

Jan 2019

Source: Refinitiv/FT

Consumers are less confident than they were in 2015, but they have propped up the economy over the past three years and there are some signs of a renewed spring in their step. Retail sales grew 0.5 per cent in the three months to July.

The closely watched survey of consumer confidence produced

by GfK has repeatedly shown households much happier about their own finances and prospects than their perception about the wider economy.

The one notable black spot is car sales, highlighting how consumers are holding back from big ticket purchases. New car sales for July were at their lowest level since 2012, according to the Society of Motor Manufacturers and Traders.

Productivity growth Official forecasts have been far too optimistic UK productivity (Output per hour, Q1 2009 = 100)

115

Successive OBR forecasts Actual

110 105

Labour market One notable bright spot for the economy

100

Unemployment rate and regular pay growth, 2001-2019 (%)

95

5

Regular pay growth

4

Declining pay growth, rising unemployment

Q2 2019 Q1 2001

Unemployment rate peaked Q4 2011

2 2014-2017

1

0 3

Declining unemployment, rising pay growth

4

5

6

Unemployment rate Source: Bank of England/FT

CONNECTING BUSINESSES

2000

2005

2010

2015

2020 2022

Source: Office for Budget Responsibility/FT

2001-2013

2018 -2019

3

90

7

8

With the employment rate at a record level, future economic growth depends heavily on securing more output from every worker.

But productivity growth has persistently disappointed since the financial crisis. The average annual growth rate in output per hour worked has been just 0.2 per cent for the past 11 years.

The BoE predicts it will rise to 0.9 per cent, but factors including the high employment rate and baby boomers starting to retire mean the central bank expects the economy’s potential growth rate will reduce from 1.7 per cent over the past four years to 1.4 per cent in the future.

Fixing the productivity crisis is the big economic challenge ahead.

35

special feature - brexit

No-deal Brexit: how prepared are the EU and UK?

U

K prime minister Boris Johnson has ordered ministers and officials in his new government to “turbo-charge” preparations for a no-deal Brexit, unnerving currency markets and businesses — and leaving EU leaders wondering if he is bluffing. So far £5.2bn has ben set aside for all Brexit funding.

Should the UK crash out in two months’ time, EU officials calculate a chaotic exit would bring UK negotiators back to Brussels from November 1 to try to secure some continuity for businesses.

Here we consider where the biggest impact from a no-deal Brexit could be felt.

Britain as if it were still a member state.

There are a handful of these “adequacy” arrangements between the EU and third countries, but Brussels officials have warned it could take “years” for it to be concluded.

VERDICT: Both the UK and the EU face equal damage.

Data Flows

Financial services

Vast volumes of personal digital data from EU and UK citizens are transferred by businesses and public sector bodies across the English Channel every day.

Under a no-deal exit, the legality of these data flows will be under question, having an impact on businesses including tech groups, healthcare companies or any services that deal with EU customers.

The disruption to data flows would be a significant barrier to trade and, in the worst cases, could force British companies to halt their European operations.

A system of contractual clauses offered

by Brussels, allowing non-EU companies to carry out data transfers in compliance with European law, could offer a fallback.

Large businesses with big legal departments that have anticipated a crash exit may well have already signed up to such alternative measures. But the CBI, the UK employers’ group, has warned that small and medium-sized enterprises have little awareness of what a hard Brexit means for them and the contingencies available.

In the longer term, the UK says it wants to sign an agreement on data flows with the EU that would effectively treat

36

After a no-deal Brexit, the UK’s lucrative financial services sector would lose “passporting” rights that allow Britishbased companies to operate in the EU’s single market.

The prospect of mass disruption of the market after a hard Brexit means financial services is one of the few areas where regulators such as the European Central Bank and Bank of England have been cooperating on risk before Britain’s expected exit.

While companies have been left with most of the burden of preparing for no deal, Brussels has taken important contingency steps.

These include temporary access to clearing houses operating in the UK that will end in March 2020, 18 months for central securities depositories that settle trades and a six-month window to allow contractual changes to over-the-counter derivatives.

Financial services groups also face thornier logistical issues on exit day itself.

October 31 falls on a Thursday, which means UK companies would face the difficult logistical exercise of switching the systems they use to report transactions

midweek — although many EU countries enjoy a public holiday on November 1.

In the longer term, with or without a divorce deal, the City of London will be striving to gain limited market access rights under an EU system known as “equivalence” after Brexit. This is granted to non-EU companies if the European Commission decides that the country’s financial regulations are just as tough as those of Brussels.

But even if agreed, the financial sector will not enjoy the depth of market access it enjoyed while the UK was a member state — and equivalence can be withdrawn by the commission at short notice.

VERDICT: A key part of the UK economy faces significant disruption.

Customs

Britain would fall out of the EU’s customs union under a no-deal Brexit, meaning UK companies would have to fill in customs declarations, change labels on food products and get health checks for exports containing animal products.

A UK communications campaign has been launched to inform companies about what they need to do to prepare.

But British businesses have criticised the UK government over a lack of information on how to prepare for the cliff edge, for example on issues such as dealing with new tariff changes or how customs checks would function on the Irish border. There is currently an invisible frontier between north and south, but a nodeal exit would be likely to mean border infrastructure returning to the island.

ON THE AGENDA...

Sam Lowe, senior research fellow at the Centre for European Reform, said companies had failed to prepare because they did not believe a crash exit was realistic.

“So far the whole strategy required companies to sign up to things and engage, but they haven’t been doing it enough,” he added.

Many businesses, for example, have failed to sign up for “exporter numbers” that allow companies to continue importing and exporting after Brexit.

Earlier this year, the UK government wrote to 145,000 companies that trade with the EU to get them to sign up for a system that would allow them to simplify customs declarations and delay import duty payments. According to Robert Hardy, a customs expert from logistics firm Oakland Invicta, only about 10,000 companies have applied.

On the EU side, Brussels has kept its customs contingency measures deliberately sparse. The commission has passed legislation allowing time adjustments on customs declarations, but provides no special waivers for Britain’s busy roll-on roll-off ports, which are among the most widely used and cheapest methods of transporting goods between the UK and EU. Member states at the frontline of the EU’s new trading borders, such as the Netherlands, Belgium and France, have been recruiting trained customs officials to deal with the additional red tape.

VERDICT: The UK is likely to be disproportionately hit by disruption.

Transport While the transport sector has always

been hopeful of a deal, those operating across borders, such as airlines and Getlink, the Eurotunnel operator, have prepared for a no-deal scenario to minimise disruption.

Airlines will be able to continue operations but it will not be business as usual. The commission has passed two legal acts allowing airlines to fly point-topoint between the UK and European cities.

These basic flying rights, which will be matched by the UK, last until March 2020.

But flight operators will not be able to fly on to other EU destinations, or take new passengers to a non-UK destination.

The six-month measures provide a short window for the EU and UK to negotiate a future air deal but new arrangements are unclear.

Airlines such as Ryanair, EasyJet and IAG, the parent company of British CONNECTING BUSINESSES

Airways, also need to meet the EU’s airline ownership and control rules, which require majority ownership by EU nationals.

Getlink’s Eurotunnel services, which transport 20m passengers, 2.6m cars and 1.6m trucks each year between the UK and continental Europe, will also continue to run. Getlink spent €15m, in advance of the first no-deal Brexit date of March 29, for the installation of new infrastructure.

Eurostar expects to maintain its train services, saying it has worked closely with France and Belgium to avoid disruption and made arrangements to ensure the necessary operating licences, safety certifications and driver registrations are in place.

UK truckers, the lifeblood of goods trade with the EU, will be granted temporary haulage rights to ensure “basic connectivity” to help minimise disruption and queues at ports such as Calais. The measures will stay in place until the end of 2019 but will restrict UK trucks to limited deliveries in the EU. VERDICT: Both sides will face temporary disruption.

Fisheries

After a no-deal Brexit, the UK will fall out of the union’s common fisheries policy, meaning EU vessels will no longer be granted access to British fishing waters.

Since vessels from other EU members catch far more fish in UK waters than British fishermen take from theirs, fisheries is one of the few areas where the EU could bear the brunt of no deal.

The EU estimates that activity worth €585m is carried out by European vessels in British waters, with Belgian fleets dependent on the UK for 50 per cent of their entire landings.

However, few parts of the UK economy are more vulnerable to border disruption than the UK’s seafood export sector, which relies on rapid delivery to ensure its products are fresh when they reach European markets.

More than £1.3bn of the nearly £1.89bn in total UK seafood exports in 2017 went to the EU — £727m to France and Spain alone.

Many UK fishermen hope to benefit from the new limits EU vessels would face in UK waters. However, the UK fleet would not have capacity to immediately take advantage and any such reallocation would certainly be fiercely contested in future trade deal negotiations.

Under its minimal contingency planning, the commission has passed emergency laws that would allow EU fishermen to get compensation “in the

£200m

Reported amount Barclays bank has spent on Brexit preparations Source: CBI

4/10

UK-based small and medium enterprises that trade internationally and have no contingency plans for Brexit Source: CBI

£585m

Estimated value of EU countries’ fishing activity in UK waters Source: EU

By: Mehreen Khan, Jim Pickard and Janina Conboye (FT.COM)

event of a sudden closure of UK waters to EU fishing vessels”. Brussels has also said the EU will give UK fishermen access to EU waters until the end of 2019 if the rights are reciprocated.

VERDICT: EU stands to lose more than UK.

37

IoD - iom welcome

DEAR MEMBERS,

Welcome

to the 12th edition of Agenda.

T

he IoD Isle of Man branch has had an engaging few weeks over the summer months thanks to the efforts of our Members, our Committee and Rachel McKenna. Rachel has settled in nicely as our new EO, tackling the many challenges of meeting member expectations with humour and patience.

The local IoD branch kept up with a busy schedule of Company Direction Courses, CPD classes and several events, such as our Annual Members Meeting where Mark Lewin, CEO of DfE, gave an update on what the department has been focusing on. Another event held in May, the Spring Prestige Lunch sponsored by Barclays, was attended by nearly 100 members and guests who listened to the Chief Minister Hon Howard Quayle MHK deliver a positive message on the current status of the business community.

A second leg of our IoD Roadshow sponsored by TISE was held at the Engine House in Castletown. Panellists Eric Evenson, Carolyn Gelling and Kristan McDonald drew a healthy crowd from a surprisingly diverse mix of members and guests from eight countries to share their experiences of board experience, leadership and entrepreneurship.

Other events included the quarterly Ladies Lunch at Thai Thai where Linda Radcliffe, CEO for Onchan Commissioners, spoke about her role in current projects. And in August we held our annual IoD Summer Social on the top floor of 1886. Thanks to the continued support of our branch sponsor HSBC we were able to offer the free event as an opportunity to network with business leaders in an informal setting.

I am pleased to once again announce that the Isle of Man ranks #1 in member engagement (30%) and member retention (80%) within the IoD. Thank you for your support! It is only because of YOU, our amazing group of local talent, that this has been achieved. Our Royal Charter does have four elements: better directors, better economy, better business and better service. But at the core of this mission is its membership…who we are, what we stand for, and how we support and share our knowledge and experience. So well done to all of you for helping us achieve these milestones. A new media partnership with 3FM should help carry our messages to the wider business community.

On a final note, good corporate governance does include succession planning. I would therefore welcome applications for the Deputy Chair position as my three-year tenure will be up in May 2020. The IoD is entering an exciting period of reviewing our Value Proposition and looking at decentralisation options, while maintaining its USP of director education and support. We truly have the ability to shape our future on the Isle of Man, at a national and even international level. If you want to be part of this opportunity please contact either Rachel or myself.

I will always make time for a Swedish fika at the Claremont!

Lesh yeearreeyn share - with best wishes,

Jennifer Houghton Chairman Institute of Directors - Isle of Man

38

ON THE AGENDA...

iod-iom committee members IoD - iom committee members

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

JENNIFER HOUGHTON

CHAIRMAN

DAWN WEBB TREASURER

PAM WATSON SECRETARY

(Dawn Webb Advisory Limited)

(Lloyds Bank International)

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

Isle of Man Member Benefits QUICK LOOK

CLIVE PARRISH

DEB BYRON

CLAIRE MILNE

(CDP Associates)

(Hansard International)

(Appleby)

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

JADE ZORAB

PHAEDRA BIRD

(SMP Partners)

(Crowe Clark Whitehill LLC)

PETER REID

(Lloyds Bank International)

Additional Benefits for all members

n Access to our local HQ

and Business Hub and locations throughout the UK

n IoD Car Rental, provided

by Hertz www.iod.com/ carrental www.iod.com/regions

SALLY BOLTON (Corlett Bolton & Co)

ALICE MARTIN

(Isle of Man Government)

MARK WATERHOUSE (Isle of Man Financial Services Authority)

ANNE MILLS

Hospice Isle of Man

CONNECTING BUSINESSES

SUE PRESKEY Financial Services Consultant

39

iod-iom summer social

40

ON THE AGENDA...

Institute of Directors - isle of man Summer Social

O

n Thursday 15th August, the IoD Isle of Man branch held their Summer Social at 1886 Bar, Grill & Cocktail Lounge.

1886 provided an ideal central location for this informal, fun and relaxed event.

Chair, Jennifer Houghton said a few words, emphasising the aims of the IoD and how the Isle of Man branch was striving to uphold the importance of leadership training, governance and connectivity.

The recent connection with Ron Berry and 3FM was also highlighted which will give the Isle of Man branch an opportunity to provide national media coverage of relevant press releases and topical news to IoD members and the business community on a regular basis.

Thanks were also expressed to HSBC for their continued support and branch sponsorship. The Committee were delighted that HSBC could be represented by Jaime Amoedo and fellow senior colleagues on the evening.

The member only event was well attended, giving members a great opportunity to connect with the business community, form new connections and share experiences with other professionals. 1886 was a popular choice with members pleased to see a new versatile venue doing well on the Island.

Overall it was a great atmosphere, with lots of laughs over the evening. It is the type of networking event the IoD Isle of Man Branch plans to continue to thank members for their on-going support and attendance.

Photos credit: Švoirreybarronphotography

CONNECTING BUSINESSES

41

iod-iom - member interview

‘SOUNDING BOARD’ Words by Les Able Photos by Matt Mosur

42

SANDRA HELPS TO TURN THE VISIONS OF HIGH NET WORTH ENTREPRENEURS INTO REALITY ON THE AGENDA...

“N

o regrets,” is the unequivocal response from Sandra Robertson who 18 months ago left the corporate world behind her and launched Steer Alliance Ltd to provide a ‘business confidante’ service to high net worth entrepreneurs and private clients, helping to turn their visions into reality.

“My approach is that I need to know everything, down to the smallest detail. Yes, I can be outspoken and will justify what I’m saying and if a client doesn’t like it I will go with their decision. Relationships are key and If I feel the relationship is not going to work then I will say so at the start and not take on a client. It’s important to be honest and I don’t shy away from making a difficult decision nor the challenge that goes with it .”

CONNECTING BUSINESSES

“I’m not a coach nor a business consultant,” emphasises Sandra, who also has an advisory role with the Department of Enterprise and its start-up and growth clients who are obtaining grant assistance.

All in all, she has a total of some 50 clients, stretching into Ireland and the UK. “The majority come through word of mouth and networking,” she adds. “I’m a sounding board to assist with strategy development and the implementation of those strategies for growth, managing disposals and acquisitions etc; private clients include an Irish restaurant chain, a law firm, car booster seats company, financial services group and personal speaker profiles etc. I refine a strategy and then implement it, implementation and monitoring is then crucial.”

Sandra believes networking to be all important and admits the Institute of Directors and its ‘ladies lunches’ plays a key role in her business life. “When I first joined the IoD 15 years ago it was dominated by men, hence was then often seen as something of an old boys’ club, that’s no more. Now the membership is younger with as many women as men.

“I know a considerable number of women in business here in the island who hold significant positions with companies, we know and support each other. There are now more opportunities for women to become non-executive directors, but those jobs are invariably not advertised, it’s still by word of mouth and who you know is why networking is so important.”

As a woman who has held high profile roles in the corporate world she adds: “While there may be a perceived glass ceiling it may be some women hold themselves back due to their lack of confidence or self-doubt. When women set up in business there is no glass ceiling to break and entrepreneurs generally share information and help each other out.”

A vivacious 50, Sandra was born in Dublin and started working within the life assurance industry in the city. One weekend, however, she ventured over to the Isle of Man and the result was that in January 1998 she took up a position with a life insurance company as head of administration. Six years later she joined Charterhouse Group International (CGI) as group director of operations and then went on to become managing director of CGI’s Freelance Professional Services.

One word which she regularly uses in describing her career is “challenge” and this was all apparent in leading the company through changes in strategy and in 2009 Sandra was appointed group CEO. “This was at a time when the group was experiencing some difficult challenges,” she declares. “During my time at Charterhouse I had experience of product development, operations and sales strategies, company acquisition and disposal, new product development,

43

iod-iom - member interview

“I know a considerable number of women in business here in the island who hold significant positions with companies, we know and support each other. There are now more opportunities for women to become nonexecutive directors, but those jobs are invariably not advertised, it’s still by word of mouth and who you know is why networking is so important.”

44

ON THE AGENDA...

setting up an outsourcing company, process review for client companies and financial management of a large group.”

Come 2010 another “challenge” beckoned, Sandra began working with the Knox group of companies, working directly with the founder to develop and implement (‘implement’ and ‘implementation’ are key words for her) a growth strategy for taking the group forward. This saw her working on developing the existing businesses and the setting up of a number of the new businesses, eventually becoming deputy chairman of the group.

She has also had responsibility for the private office and development of the business interests for Scottish entrepreneur Baroness Mone of Mayfair OBE. As part of this Sandra led the project which developed the sales and marketing for the world’s first commercial development to be sold using bitcoin. A life peeress, Baroness Mone created the lingerie company Ultimo which she sold in 2014. Her partner is Isle of Man-based billionaire Doug Barrowman.

In 2014 Sandra took a year out on maternity leave and her daughter Faye is now four-and-a-half years old. She returned in 2016 but had already decided that as a mother she wanted to be in control of her working life. “Faye comes first,” says Sandra. “I wanted the flexibility to bring up my daughter and continue working but I needed to be in control of my working week.

“There was no way I was going to be leaving Faye at a nursery at 8.am and either I or my husband Peter picking her up at 6.pm. I recognise that some parents have no alternative, but I had a choice in working for myself. I didn’t want to do part-time work in other companies. I have no regrets at the decision I made.

“Yes, it’s all about getting the work/ life balance right and that can be hard work. It’s a matter of constantly spinning the plates. I now work more hours in the evening than ever before so realise I haven’t got that work/life balance totally right yet but will be doing so, much to my husband’s relief! My mother died seven years ago but we go over to Dublin every month to see my Dad and so Faye can also see two of her cousins which is important as I want her to know her family.

“Most of my private clients are on skype so with technology as it is I can be anywhere and in contact when necessary, I share an office in Douglas so I can also see clients there. When it comes to clients it’s important they are prepared to take the challenge I give them and at the same time give me a challenge as well. Clients are generally on a retainer basis, I work with them over a period of time on the implementation.”

Sandra readily admits she is a control freak. “My approach is that I need to know everything, down to the smallest CONNECTING BUSINESSES

FACT FILE REVELATIONS FAMILY? Married to Peter for almost 18 years and we have a daughter Faye who is four-and-a-half years old and a 17-yearold cat called Sally. The rest of our family is in Ireland and the UK. SPARE TIME ACTIVITIES? This has changed quite a bit in last few years since the arrival of Faye. Now it is visiting the Wildlife park, building sandcastles, or sliding down slides in dragon’s castle. I also go back to Dublin at least once a month to see my family with Faye and any other time it’s relaxing or catching up with friends.

FAVOURITE COLOUR? All shades of green, although no surprise really being Irish.

FAVOURITE MEAL? French onion soup, fillet steak with creamed spinach and fries, followed if there is any room left by something chocolatey and a large glass of red wine.

WORST CHARACTER TRAIT? Control freak. I like to plan, organise and know every detail of what’s happening and not just at work. As my Dad likes to say, I would try to organise two flies walking up a wall given a chance to.

PHOBIAS? Dentist without a doubt – I can’t even walk in the door without my knees shaking.

FAVOURITE FILM OF ALL TIME? I love all suspense thrillers where you’re kept guessing or on edge of seat. Any of the Bourne Identity films with Matt Damon.

MOST EMBARRASSING MOMENT? A few of them have been within the walls of a dentist’s surgery and when either the fright, or flight mode, kick in.

YOUR BEST QUALITY? I’m definitely a glass half-full person with a positive/

can do attitude. In business this has served me well over the years in terms of managing large teams successfully and in bringing challenging projects to a successful conclusion. I’m a straight talker who cuts through the noise and isn’t afraid to challenge the status quo.

GUILTY PLEASURE? Chocolate and handbags.

BIGGEST INSPIRATION? I take inspiration from my family, friends and people I meet, especially entrepreneurs, learning what has made them a success or got them through challenges.

A PERFECT DAY? A sunny day on the ski slopes with Peter and Faye, followed by a snowball fight, some sledging and a nice family meal. We’ve skied for a long time, but Faye had her first lessons last year so I can’t wait for us all to ski together this year.

BEST PIECE OF ADVICE YOU’VE EVER HAD? Always listen to your gut instinct and it generally hasn’t let me down yet.

WHAT DO YOU MOST DISLIKE? I’ve no time for bullies, bullshitters and backstabbers.

THE CRAZIEST THING THAT EVER HAPPENED TO YOU? Being water cannoned by an American aircraft carrier for sailing a catamaran too close.

BIGGEST EXTRAVAGANCE? Unfortunately has to be my collection of handbags.

TOP OF YOUR BUCKET ‘TO DO’ LIST? Kennedy Space Centre and Florida, Iceland to stay in an Ice hotel, Alaska, and back to Sydney. Well, it is rather a large bucket.

detail. Yes, I can be outspoken and will justify what I’m saying and if a client doesn’t like it I will go with their decision.

Relationships are key and If I feel the relationship is not going to work then I will say so at the start and not take on a client.

It’s important to be honest and I don’t shy away from making a difficult decision nor the challenge that goes with it .”

Home is in Laxey and when it comes to Sandra’s weak spot it’s a passion for handbags, but not any old handbags. “They are ‘nice handbags’, yes they cost a fair amount but are my only extravagance.” As for justification? “They are an investment,” she laughs.

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iod-iom iod99 roadshow

IoD Isle of Man on the Road Photo credit ©voirreybarronphotography

T

he IoD Isle of Man branch hosted the second of the IoD Roadshow events at the Engine House, Castletown on Wednesday 3rdJuly.

The key topic for discussion was growth, moving the focus from start–up to taking that next step and building your business. A lively question and answer session covered areas such as the importance of culture and ‘backoffice’ environment in enabling you to confidently scale the business and the initial process to list on a stock exchange.

We were once again delighted to be joined by Carolyn Gelling (The International Stock Exchange) and two new faces to the Roadshow, Eric Evenson (Co-Owner of The Engine House, and serial entrepreneur) and Kristan McDonald (Chief Operating Officer MTG, Vice President Chamber and Member of Digital Isle of Man). The event was hosted

by Mark Waterhouse (IoD Isle of Man) and chaired by Katie Nicholson.

All panel members gave an insightful and valuable input, taking questions from the audience and even having the occasional debate amongst the panel!

Mrs Gelling said “It was fantastic to be able to build on our successful first event by moving on through to the next stage of the journey of an entrepreneur to cover the ‘scale up’ phase, while also reaching a new audience. It was great

46

ON THE AGENDA...

to have an interactive discussion and the variety of speakers meant that we were really able to touch on the different ingredients which are required to help a business scale and how business owners can prepare for future phases, such as a listing. We were delighted to support IoD in providing another informative event to local businesses and entrepreneurs on the island.”

The informal evening was well attended, and delegates enjoyed the ambience of The Engine House whilst gaining knowledge from key industry figures.

Chair of the IoD Isle of Man branch Jennifer Houghton stated ‘‘I felt honoured to be part of an event that highlighted our Island business talent and entrepreneurship.”

Thanks to TISE for their kind sponsorship, IoD99 and The Engine House.

The Isle of Man branch of the IoD Is kindly supported by HSBC. Photos credit: ©voirreybarronphotography

CONNECTING BUSINESSES

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iod-iom iod99 roadshow

‘‘I felt honoured to be part of an event that highlighted our Island business talent and entrepreneurship.”

Chair of the IoD Isle of Man branch Jennifer Houghton

Please monitor the website sites for updates on our next Roadshow - www.iod.com/events-community/regions/isle-of-man

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ON THE AGENDA...

iod-iom news

ISLE OF MAN DIRECTOR IS SHORTLISTED FOR NATIONAL BUSINESS AWARD

I

sle of Man based Paul Kerruish from the Fynoderee Distillery is set to compete on the national stage this October at the 2019 Institute of Directors ‘Director of the Year’ Awards.

The glittering event, which this year is being hosted by veteran broadcaster Sir Trevor McDonald OBE will see business leaders from throughout the UK, go head to head in categories including Family Business Director of the Year and Young Director of the Year. Paul is shortlisted for the Start-Up Director of the Year award.

Representing the very best of north west talent, ten inspirational leaders have been shortlisted following their individual wins at the regional awards ceremony in April.

Other finalists include Steve Park of Warrington & Co for the Public Sector Director of the Year award and Stockportbased Donald Moore of Rowlinson Knitwear.

The Director of the Year national final takes place on Friday 18th October at The Brewery, London from 1.00pm. With over 100 high-achieving finalists heralding from businesses and organisations from Aberdeen to Lincolnshire and beyond, the event will celebrate the very best in leadership.

Claire Ebrey Regional Director for the North West and Isle of Man said: “We could not be prouder of Paul, who deservedly won at our regional awards ceremony back in April. We have every CONNECTING BUSINESSES

to show the rest of the UK how we are pioneering best practice, even in these challenging times.

“We wish all of our finalists the very best of luck!”

The full winners in list format were:

Corporate Social Responsibility Donald Moore, Rowlinson Knitwear Family Business sponsored by Crowe - James Timpson OBE, Timpson Group Inclusivity - Debbie Francis, Direct Rail Services Ltd Innovation sponsored by All Work & Social - Dr Maurizio Bragagni MBA, Tratos Ltd International sponsored by DIT Marnie Millard OBE, Nichols PLC Non-Executive - Matthew White, The University Caterers Organisation Ltd Public Sector - Steve Park, Warrington & Co. Small-Medium Business sponsored

by Forza - Donald Moore, Rowlinson Knitwear Start-Up sponsored by ACCA - Paul Kerruish, The Fynoderee Distillery Third Sector sponsored by Salford Business School - Maura Jackson, BACKUP North West Young - Andrew Avanessian, AppLearn

confidence that he will be bringing back an accolade from October’s national final.

“The annual IoD Director of the Year awards give us such a great opportunity to publicly acknowledge the diverse achievements of our entrepreneurial and inspiring business leaders here in the North West. It also gives us a platform

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iod-iom events

IoD Isle of Man Autumn Lunch with Sasha Wiggins

DATE: 24th October 2019 TIME: 11:45am – 2:00pm LOCATION: The Claremont Hotel PRICE: Early bird £30 (Inclusive of VAT)

member/non member

We are delighted to invite you to attend our Autumn Lunch with guest speaker Sasha Wiggins. Our Prestige Lunch events are kindly sponsored by Barclays. www.iod.com/events-community/ events/event-details/ eventdateid/15899

IoD Isle of Man Robotics Seminar with John Graydon

IoD Isle of Man | Wine Tasting at Wine Down

TIME: Registration from 5:30pm – 7pm

Douglas PRICE: £48 (Inclusive of VAT) members/ non members

DATE: TBC September 2019

LOCATION: The Claremont Hotel PRICE: Members FOC, Non members £10

per person

www.iod.com/events-community/ regions/isle-of-man/events

DATE: 3rd October 2019 TIME: Registration from 7:00pm – late LOCATION: Wine Down, Duke Street,

www.iod.com/events-community/ events/event-details/ eventdateid/15880

IoD Isle of Man Dining Club with Daphne Caine MHK DATE: 3rd October 2019 TIME: 7:30pm – 10:30pm LOCATION: The Claremont Hotel PRICE: £40 (Inclusive VAT) member/non

member

www.iod.com/events-community/ events/event-details/eventdateid/15783

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ON THE AGENDA...

Raising standards together since 2010 10 years ago, we launched our eGaming Summit series to shape the future of the industry.

With collective intent to prevent harm, drive best practice, promote diversity and encourage innovation, from the Board right down to the front line, we believe that we can raise standards together.

Find out more at the 10th Isle of Man eGaming Summit on 3 October 2019.

Anticipate tomorrow.

Deliver today.

Find out more eGaming@kpmg.co.im

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