Annual Report 2012

Annual Report 2012

Jersey | British Virgin Islands | New Zealand | Singapore | Switzerland | United Arab Emirates

Annual Report 2012

Contents Performance highlights

2

Chairman’s statement

4

CEO’s strategic review

6

Financial summary

8

Group overview

9

The way we work

12

Supporting our community

16

The environment

17

Board of directors

18

Contact details

24

Fiduciary Family Office Wills & Probate Succession Planning Employee Solutions Funds Advisory Media & Sports Corporate Solutions

Preserving and enhancing wealth.

Hawksford is a successful, independent wealth structuring company specialising in preserving and enhancing wealth.

Our clients range from small and large corporates to ultra high net worth individuals. We focus on providing top quality service and have the expertise, experience and resources to create and manage structures that withstand the challenges of today’s demanding global environment.

Annual Report 2012

Performance highlights BUSINESS ACQUIRED

AWARDS

WE WON

TRUSTCORP JERSEY LIMITED

IN 2012

ÂŁ Society of Trust and Estate Practitioners (STEP) Owner-Managed Trust Company of the Year 2012/13 Private Client Practitioner Top 25 Trust Company

19.7 MILLION

Best International Marketing Chartered Institute of Marketing (CIM) Jersey 2012

SNAP SHOT

2

Focus on service: Completed the second client and adviser insight research programme.

Improved business processes and implemented a new client administration system.

%

28

160 NUMBER OF STAFF

REVENUE INCREASE 2012

2012 REVENUE

JERSEY BRITISH VIRGIN ISLANDS NEW ZEALAND SINGAPORE SWITZERLAND UNITED ARAB EMIRATES

3

Annual Report 2012

A year of growth After nearly two years at Hawksford there are several things that strike me about the business: its focus on continually improving client service, its drive to build a sustainable business for the future and, above all, the commitment of the staff.

This is the second annual report Hawksford has produced and I am very pleased to present it to you. We want to share our strategy, performance and achievements and give a sense of our culture and the way we work. This is not common practice in our industry, but our commitment to openness and transparency is something we firmly believe in.

Philip Taylor Chairman T: +44 (0) 1534 740000 E: philip.taylor@hawksford.com

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My time as chairman has been one of continued progress. In January 2012 we acquired Trustcorp Jersey Limited, which brought with it excellent clients and experienced staff. We continued to focus on improving client service and added several people to the board, enhancing the mix of skills and strengthening our management.

The board members continued to work as one team, focusing on the business strategy and achieving our shared goals.

Our performance Regulatory changes and economic uncertainty continue to affect our market, and in order to prosper we must be quick to adapt. We have strengthened our team, improved our brand profile and invested in enhancing our processes and systems.

I am delighted that we have increased our revenue by 28% this year, demonstrating a very strong performance in a difficult market.

Looking ahead I am excited about the year ahead as we have more positive change to come. We are moving into our next phase of growth, which will place more focus on our international offering, expanding our team in the Middle East and opening an office in the Far East to provide our clients with more choice.

To build on our success we are seeking strategic acquisitions with firms we believe will complement and enhance our business. Since the end of the year we are delighted to have completed the acquisition of Key Trust Company Limited, which enhances the Hawksford offering and adds to the strength of the team. We also continue to work on achieving organic growth. While it is important to continue on our path of growth in order to thrive, we will strive to maintain the high quality service levels we pride ourselves on.

Our performance in 2012 was the result of the hard work and dedication of everyone in Hawksford.

Our people are at the core of our business, responsible for delivering our business plans, providing positive client experiences and building our strong reputation. I am proud to be associated with a forward-thinking team that is so focused on providing excellent client service, and I would like to thank everyone for their efforts and contributions. I would also like to thank our clients, our advisers and our partners, Dunedin, for their continued support.

Philip Taylor Chairman

5

Annual Report 2012

Focusing on client 2012 was a year of positive changes for Hawksford. We acquired a new business, Trustcorp Jersey Limited, with excellent clients and highly skilled staff. We have also placed further emphasis on developing our internal processes and systems to enable us to work more efficiently and improve the service we provide. This has all paid off as we performed well, meeting our financial targets.

Listening to our clients We acted upon the client insight research from 2011, increasing our contact with clients and introducing a quarterly newsletter, Hawk-i, which provides topical articles from Hawksford staff and external contributors, as well as updates about our business. Our second round of research took place towards the end of 2012, inviting clients and advisers to tell us what we do well and where we can still improve. The results were very positive and we’re working on making further enhancements to our service, based on what our clients and their representatives told us.

The results of our survey also showed that the Hawksford brand is now much more widely known in the private client community and has a

6

very strong reputation. This is due to increased media coverage in 2012 and our award successes, as well as our renewed focus on client service and the strength and depth of our experienced team.

Strategy Looking to the year ahead we will continue to grow our business organically, and a business development director (Matt Haynes) was appointed in 2012 to help us achieve this. Having a dedicated business development director allows the client directors to spend more time on what is really important: leading efficient, client-focused teams and providing excellent service.

We are also considering strategic acquisitions, however our motivation isn’t about growing to be the biggest

– we will only acquire top quality businesses with excellent credentials and skilled staff who will complement our existing team to the benefit of all clients.

Our focus for 2013 remains very strongly on service and our clients will always be at the heart of our strategy.

Extending our reach Our consistent objective is to offer clients choice – a choice of services and a choice of jurisdictions. With this in mind we are continuing with our plans to open an office in the Far East, a region with excellent growth prospects. We will not however rush this as we need to ensure we choose the right opportunity. We have been carefully looking at a number of options and hope to establish our Far

service East presence by quarter three of 2013. Other jurisdictions, which will enhance our depth and breadth of service and provide increased client choice, are also being reviewed.

Improving our IT and systems Towards the end of 2012, following a successful period of trialling and testing, we successfully implemented our new client administration, accounting and workflow system to the business, enabling us to work more effectively and efficiently. In 2013, we will build on this investment and continue to improve our systems, making further enhancements focused on delivering consistent and added-value services to our increasing client portfolio.

Outlook 2013 will bring more positive changes for Hawksford as we continue to build a strong, sustainable, client-focused business. Our clear and constant focus is on ensuring that we do not lose sight of what matters most: providing high quality, personal service for all of our clients.

Peter Murley Chief Executive Officer

Investing in our people We will continue to focus on developing our staff in 2013 and beyond. We are committed to the provision of training, management development and career progression in order to attract and retain the best people and ensure we have a robust succession plan.

Peter Murley Chief Executive Officer T: +44 (0) 1534 740132 E: peter.murley@hawksford.com

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Annual Report 2012

Financial summary We performed well in 2012 and met our financial targets.

Revenue increased by 28% from 2011 to £19.7 million, thanks to a combination of acquiring Trustcorp Jersey Limited and organic growth.

David Skinner Finance Director T: +44 (0) 1534 740168 E: david.skinner@hawksford.com

£ £ £

13.9 MILLION

£

14.6 MILLION

15.4

19.7 MILLION REVENUE

MILLION REVENUE

REVENUE

REVENUE

120 STAFF

2009 8

160

160

STAFF

STAFF

2011

2012

122 STAFF

2010

Group overview JERSEY

SWITZERLAND

UNITED ARAB EMIRATES

BRITISH VIRGIN ISLANDS

SINGAPORE

NEW ZEALAND

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Annual Report 2012

Group overview (CONTINUED) Our people are our most valuable assets The key to our success rests on the calibre of our people. We have a team of over 160 including accountants, lawyers and trust professionals. Our client facing teams offer a wide range of solutions and are supported by a business focused group services team who provide expertise in human resources, business enablement, marketing, business development, risk, governance and compliance.

We are proud of our highly skilled, experienced and client-focused team, and profiles of all of our people can be found on the Hawksford website.

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Our business is split into distinct service lines, which are summarised as follows:

Fiduciary

Dedicated to preserving and enhancing wealth for the benefit of future generations.

Family Office

Leaders in the management, protection and administration of family wealth.

Wills & Probate

Experienced advisers in the preparation of wills and role of executor in all areas of international probate administration.

Succession Planning

Specialist providers of succession planning solutions, including wealth preservation and distribution of family wealth.

Employee Solutions

Experts in providing long term employee incentives and succession planning.

Funds

Trusted fund administration services targeted at private equity, real estate or other types of investment funds.

Advisory

Experienced in understanding clients’ needs, ensuring they receive the best specialist advice.

Media & Sport

Leading providers of specialist services to sports and entertainment professionals for the complete management of their wealth.

Corporate Solutions

Experts in providing administration services to corporate clients ranging from boutique businesses to multi-national companies across all sectors of industry.

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Annual Report 2012

The way we work Corporate governance

Kerry Osmand Michael Powell

At Hawksford we operate a traditional set up in our corporate governance.

The holding company, Hawksford Holdings Limited, is placed at the top of the structure and the following individuals are directors: Julian Hayden Peter Murley Michael Powell David Skinner Philip Taylor David Williams (Jan 2013) The operating company, Hawksford Trust Company Jersey Limited (HTCJL), sits directly under the holding company. The directors of this company are: Charlotte Brambilla Timothy Cartwright Julian Hayden

David Skinner Philip Taylor HTCJL is the ‘affiliate leader’ of the regulated group of Hawksford companies. Hawksford is licenced to conduct trust company and funds business and is regulated by the Jersey Financial Services Commission.

The board of directors conducts board meetings on 10 occasions during a normal financial year. The roles of chairman and chief executive are separate and fulfilled by Philip Taylor and Peter Murley respectively.

Although the board of directors reserves all the usual major decisions for their approval, the following committees have been set up and operate to terms of reference approved by the board of directors:

Matt Haynes

Risk Committee

James Howe (Jan 2013)

Audit Committee

Peter Murley

Remuneration Committee

Ian Murphy

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Steven Robinson

These committees regularly communicate their business conducted and decisions made to the board of directors.

Hawksford Trust Services Cyprus Limited is the holding company for our businesses based outside of Jersey. The directors of this company are: Peter Murley David Skinner Timothy Urquhart The regulated entities within the Hawksford Group are subject to an annual external audit, which is conducted by locally approved auditors. The accounts and declarations from the directors are required to be filed with the Regulator (the Jersey Financial Services Commission) within four months of the financial year end.

Regulated businesses in Jersey are required to have all ‘principal’ and ‘key’ persons (directors and officers) approved by the Regulator prior to taking up their appointments. Key individuals must be senior in position and employed by the company.

The key individuals of HTCJL are: Money Laundering Reporting Officer – David Skinner Money Laundering Compliance Officer – Ian Murphy Compliance Officer – Ian Murphy The board of directors has ultimate responsibility for corporate governance within Hawksford.

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Annual Report 2012

The way we work Risk management Everyone at Hawksford is encouraged to manage risk, with the Risk, Governance and Compliance team having oversight. The team comprises 12 individuals who ensure conformity to the requirements of the legislative framework in operation within Jersey. They report any material findings to the board of directors.

Hawksford operates within the principles of the Codes of Practice issued by the Regulator, which requires that at least two thirds of all client facing employees are professionally qualified to undertake regulated activities. All relevant individuals must complete at least 25 hours of continual professional development (CPD) on an annual basis.

We conduct annual business risk assessments (BRAs) and document the risks associated with the conduct of its business within a corporate risk matrix. Each risk is assessed for probability and impact.

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We have policies, procedures and contingency plans in order to mitigate material risks.

The company is required to identify and put in place procedures to combat money laundering and the financing of terrorism. We therefore have a separate anti-money laundering matrix to identify and mitigate the risks associated with this.

Our risk management is monitored by applying operational reviews, which include: File reviews Monitoring transactions Periodic reporting Training for all client facing employees Internal and external audits Development and implementation of policies and procedures Risk rating of clients Record retention Client profiling All of our new business is subject to prior approval from the Risk Committee. Client teams are not

permitted to approve their own business.

The ultimate responsibility for risk management lies with the board of directors.

Staff development At Hawksford we pride ourselves on investing in our people and developing their careers. We have strong knowledge and experience within our business and we place great value on sharing this to develop practical business skills in our people.

We currently have 25 members of staff studying towards professional qualifications, and we have been recognised by the Institute of Chartered Accountants in England and Wales as an approved training provider.

In 2012, following a full training and learning needs analysis in 2011, we worked in collaboration with two external training providers to offer a management development and an essential business skills programme.

These included 52 training sessions covering 18 different topics. In addition, we held 82 in-house CPD

(CONTINUED) sessions covering a wide range of technical topics.

Providing good learning opportunities is essential to ensure that our staff achieve their personal aspirations.

It helps to increase staff engagement and, most importantly, benefits our clients.

Thinking beyond tomorrow Thinking beyond tomorrow is our shared ethos and therefore a fundamental part of our business.

It encourages our people to think differently for our clients and to plan structures that will not only meet their present short-term objectives, but be flexible enough to meet the needs of future generations. We have been working with some clients for many years, across multiple generations, and we strive to deliver insight and exceptional service.

Thinking beyond tomorrow is more than a positioning statement; it clearly outlines our business philosophy and reflects our people’s long-term commitment to our clients.

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Annual Report 2012

Corporate social res Supporting our community We enjoy giving back to our community and support a number of charities and initiatives. In 2012 these included sponsoring Jersey Learning Disabilities Football to enable them to train indoors during the winter, sponsoring the Jersey Cheshire Home golf day, supporting the Brighter Futures Fathers’ Club which supports families in need, arranging Jersey’s Suit Amnesty to help homeless jobseekers find work, supplying a local football team with a new kit and working in partnership with a local school to provide them with opportunities to learn valuable new skills.

Brig hte rF

15s der un team

Sponsorsh ip o fG r

ball Club’s k Foot it f e l or vil th u o

e

16

Jersey Coll ege with p i fo sh r r e

rls Gi

Pa rtn

These photographs give a flavour of the support we have provided.

ers’ C Fath s ure ut

sponsibility The financial services industry has a relatively low environmental impact compared to many other industries.

However, we believe that this environmental footprint can still be reduced and are committed to finding ways to achieve this.

Energy

We have an environmental policy, which covers five key areas of our operations:

Procurement

Waste Water

ersey’s hom ing J ele p l e ss H b -

ay lf d go

work nto ki ac

e

ll urre tD ta

Jersey Cheshir eH the f o om p hi

Transport

Suit A mn es ty

day ou

Spo nso rs

Club - A

The environment

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Annual Report 2012

Experienced, trusted board of directors Philip Taylor

Peter Murley

Chairman

Chief Executive Officer

E: philip.taylor@hawksford.com

E: peter.murley@hawksford.com

Philip is a former senior partner of PwC Channel Islands and head of PwC’s global assurance inspection programme.

Peter is a highly experienced executive who focuses on people-centric operations, client relationships, business strategy, business transformation management and change implementation. He has undertaken various senior roles in HR, Customer Service, Operations and IT in the Banking, Insurance, Telecommunications, Travel and Media sectors, acting as thought leader, project director, consultant and board director for a range of major blue-chip organisations across the world.

He has over 30 years’ experience in the finance industry, having worked for PwC in London, Johannesburg and the Channel Islands. Philip became a partner of the firm in 1985. During his time as senior partner the business grew substantially, securing its position as the leading firm of accountants in the Channel Islands.

Philip is chairman of the States of Jersey Treasury Advisory Panel, chairman of the Jersey International Business School and a director of Royal Bank of Scotland International and of City Merchants High Yield Trust Ltd. Philip is also a member of the Conduct Committee of the UK Financial Reporting Council and of its Accountancy and Actuarial Discipline Board. He was a founder member of the Jersey Financial Services Advisory Board and a was Commissioner at the Jersey Financial Services Commission from 2009 to 2012.

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Peter was one of five founder directors of first direct, vice president, Customer Service and Systems for Telewest Communications and has also been associated with various high-profile new business start-ups including ITV Digital, GO Fly Airlines (now easyJet), Energis and O2. Outside of the UK he has worked with a wide range of organisations including RGS Insurance in Russia, KPN Mobile, Holland, Saudi Arabian Airlines and du Telecommunications in Dubai.

Peter is a member of the Hawksford Group board and a director of the Swiss business, Hawksford LSS GmbH.

Charlotte Brambilla

Tim Cartwright

Director

Director

E: charlotte.Brambilla@hawksford.com

E: tim.cartwright@hawksford.com

Charlotte joined Hawksford as a client director after leaving Mourant Ozannes where she was a senior associate in its International Private Client team.

Charlotte has 11 years’ experience in private wealth and has practised in the past as a lawyer at Hogan Lovells in its pension department and at Carey Olsen where she was a senior associate in its Fiduciary Law Group.

Tim has helped clients and their advisers for over 25 years with the preservation and enhancement of their wealth.

A member of the Middle Temple, Charlotte was admitted to the English Bar in 2000 and as an Advocate of the Royal Court of Jersey in 2009. Charlotte is a graduate of Cambridge University and completed her Common Practice Examination at the College of Law and her Bar Vocational Course at the Inns of Court School of Law. At Hawksford Charlotte uses her trust law expertise to advise clients on a wide range of fiduciary services.

She specialises in employee remuneration structures and private wealth structures and has wide experience of dealing with trusts involved in litigation. She also manages a large administration team who are all focused on providing excellent service for their clients.

Tim is a full member of STEP and also holds the DTEP Diploma from the Institute of Financial Services. He is a member of the Institute of Directors and holds the Diploma in Company Direction from the IoD. Tim sits on the board of examiners at Highlands College, Jersey for the Certificate of Offshore Administration.

Tim is a member of the Hawksford Group board and is one of the members that took part in the management buyout from Rathbone Brothers plc in October 2008.

Tim is part of the executive team that heads up Hawksford Advisory and Hawksford Wills & Probate.

He has spearheaded the development of new business and relationships within the Family Office and Employee Solutions area in the Middle East, which culminated in the opening of Hawksford’s Dubai branch office in the summer of 2011.

He is also involved in the development of Hawksford’s Swiss office based in Zurich, operating under the name of Hawksford LSS GmbH.

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Annual Report 2012

Experienced, trusted board of directors Julian Hayden

Matt Haynes

Director

Business Development Director

E: julian.hayden@hawksford.com

E: matt.haynes@hawksford.com

Julian has more than 25 years’ experience in estate and succession planning and specialises in trusts and alternative structures.

Matt has over six years’ experience in the offshore finance industry. As business development director for Hawksford his responsibilities include driving business development activity across the group and playing an active role in the development of relationships with both clients and intermediaries.

Julian qualified as a solicitor with Withers and then practised in London. For a number of years he was a partner at Manches & Co and then moved to Jersey in 1997. Julian has been with Hawksford since 2002.

Julian has extensive expertise and knowledge in providing fiduciary services to a wide range of clients including high net worth entrepreneurs and families with significant international business interests. He provides sensible advice on all issues of private wealth and wealth planning and has particular expertise in family governance, estate planning and succession planning, protecting a family’s wealth for the benefit of future generations.

Julian is part of the executive team that heads up Hawksford Succession Planning, Hawksford Advisory and Hawksford Family Office. He is a member of the Hawksford Group board.

He is a member of the Society of Trust and Estate Practitioners (STEP).

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Matt joined Hawksford in 2012 from Ogier where he had business development responsibility for private wealth and a number of corporate areas. Prior to this he was head of business development at Barclays Wealth Structuring.

(CONTINUED) James Howe

Ian Murphy

Director

Risk, Governance & Compliance Director

E: james.howe@hawksford.com

E: ian.murphy@hawksford.com

James has been working within the offshore fiduciary services sector for more than 20 years.

Ian has over 25 years’ commercial experience in the FMCG industry where he held a number of senior management and director positions. He has also gained over 10 years’ experience in the finance industry, predominately in a regulatory environment.

After qualifying as an associate of the Chartered Institute of Bankers in 1992 he also became a member of the Society of Trust and Estate Practitioners in 1996.

In his role as client service director, he administers the fiduciary structures for both real estate and investment assets. He also has specific responsibilities for clients in the Middle East and visits the region frequently.

Having recently stepped down as a member of the Jersey Chartered Secretaries Council after a term of six years, Ian currently sits on the Jersey Financial Services Commission’s AML/CFT steering group.

Day to day his main responsibilities include Group wide risk, corporate governance, compliance and regulatory liaison.

Ian is a qualified chartered secretary and has a masters degree in Corporate Governance.

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Annual Report 2012

Experienced, trusted board of directors Kerry Osmand

Michael Powell

E: kerry.osmand@hawksford.com

E: michael.powell@hawksford.com

In addition to her professional qualifications, Kerry has a Masters in Personnel and Development and is a Fellow of the Chartered Institute of Personnel and Development. Kerry is also a member of the Institute of Management and is a qualified specialist paralegal in UK Employment Law.

Over the last 25 years, Michael has established himself as an expert in the provision of fiduciary services and works closely with clients, their advisers and intermediaries.

HR Director

Kerry heads up Hawksford’s Human Resources function and her role involves the delivery of the HR strategy as well as being involved in the general HR activities of the team.

Director

A qualified trust practitioner and lawyer, Michael has extensive expertise in establishing, administering and advising clients on a wide range of specialist solutions that include Managed Trust Companies, Family Office services and UK Tax planning. He specialises in advising families on their often complex situations, as well as advising and implementing solutions for the young aspirant wealthy and working with ultra-high net worth and non resident Indian clients.

Michael is part of the executive team that heads up Hawksford Family Office and Hawksford Contentious Trusts.

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(CONTINUED) Steve Robinson

David Skinner

E: steve.robinson@hawksford.com

E: david.skinner@hawksford.com

Steve has worked in the finance industry for more than 15 years and holds qualifications with both the Society of Trust and Estate Practitioners and the Institute of Chartered Secretaries and Administrators.

David is finance director at Hawksford and is also head of client accounting.

Director

Steve focuses on structuring assets for wealthy individuals and their families. He builds long-term relationships with his clients and their advisers to ensure they receive the highest level of service. Many of his clients have come from an entrepreneurial, media or sporting background and he has significant experience in dealing with both private and business related issues.

Steve specialises in the formation and administration of estate and succession planning structures for these clients, the provision of concierge services that provide an end-to-end solution for clients, as well as employee benefit trusts for private and public companies.

Finance Director

He is a chartered accountant and a graduate of Bristol university where he read Law. He has more than 20 years’ experience as a finance director and has held a wide variety of directorships in the financial services sector. He has been involved in private equity deals since 1990.

David has extensive expertise in the fields of investments, private equity transactions and commercial strategy. David is a member of the Hawksford Group board having joined the business in February 2009.

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Annual Report 2012

Contact details

Jersey Head Office Hawksford Group Hawksford House 15 Esplanade St Helier Jersey JE1 1RB T: +44 (0) 1534 740000

Switzerland

For details of our representative offices please speak to one of our directors.

www.hawksford.com

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Hawksford LSS GmbH Talacker 50 Z端rich 8001 Switzerland T: +41 (0) 43 500 3870

United Arab Emirates

Hawksford Group (and Hawksford International) are the Registered Business Names of Hawksford Trust Company Jersey Limited which is regulated by the Jersey Financial Services Commission.

Hawksford PO Box 340505, Unit 1307 JBC 5, Jumeirah Lakes Towers Dubai, United Arab Emirates T: +971 (4) 420 3375

Fiduciary

Preserving and enhancing your wealth

Family Office

Managing family wealth

Wills & Probate

Ensuring peace of mind

Succession Planning

Planning for future generations

Employee Solutions

Helping your business grow

Funds

Trusted fund administration

Advisory

Specialised advice tailored to you

Media & Sports

Confidential advice, specialist solutions

Corporate Solutions

Provision of bespoke administration services

www.hawksford.com