Inspired 2013 by Isle of Man Department for Enterprise

ECONOMICALLY COMPETITIVE INTERNATIONALLY RESPECTED Space eGaming

Manufacturing

ICT Aviation

ISLE OF MAN. WHERE YOU CAN DISCOVER THE NEW STANDARD IN INTERNATIONAL BUSINESS CENTRES

Leading the way... Maritime

Clean Tech

Tourism

How transparency and robust regulation are helping Finance to build the Isle of Man’s international reputation

O F F I C I A L P U B L I C AT I O N O F T H E D E PA R T M E N T O F E C O N O M I C D E V E LO P M E N T 2013

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inspired 2013 Contents

Welcome 03 Chief Minister Hon Allan Bell MHK Introduction 05 Hon John Shimmin MHK, Minister for the Department of Economic Development A home for business

Living the Island life

Sporting excellence The Island’s leading sportsmen and sportswomen

12 Stand and deliver John Spellman, Director of Financial Services, looks Stand and deliver – John Spellman, Director of Financial Services, looks at how the Isle of Man Government intends to adapt to future economic trends Promoting the Isle of Man - a unified approach www.whereyoucan.com, the focal point of inward investment

Lifestyle – Fast track to that perfect work/life balance 16 Profile on Courtenay Heading, Advisor, Biomed Inward Investment, Department of Economic Development Case study – Planet Software Ltd

China – The Isle of Man Proposition Steven Beevers, Department of Economic Development Head of Special Projects

‘No man is an Island’ Isle of Man Bankers Association

Big enough to count and small enough to care Creechurch Capital

IMGold – a hallmark of trust, integrity and security

What a good decision Thomas Miller Investment (Isle of Man) Ltd

Manx Insurance Association David Kneeshaw, Chairman

A jewel in the Irish Sea for captives Gaynor Brough, Chairman, Isle of Man Captive Association

Who should you trust? Paul Hotchkiss, Chairman, Society of Trust and Estate Practitioners, Isle of Man branch

An introduction to foundations on the Isle of Man John Rimmer, Partner, Appleby

Relocating to the Isle of Man, a practical guide Michelle Murphy, Relocation Options

Isle of Man Chamber of Commerce Jane Dellar, Chief Executive

Moving forward with confidence 33 Nick Boon and Sandra Georgeson, Directors of the Isle of Man Association of Corporate Service Providers The concept of clustering Adrian Moore, founder and Chairman of the Isle of Man Aerospace Cluster

Stroma Group – building sustainability

Komatti – inspired by the TT

Information and communications technology and economic growth

Skanco – always seeing the bigger picture

Manx Telecom – excellence in e-Business

Registering intellectual property in the Isle of Man Andrew Cardwell, Tax Director, Abacus Trust Company Ltd

Kreston International brand launches on the Isle of Man

Setting up and running an e-Gaming business in the Isle of Man Ray Davies, e-Gaming Development Manager, Department of Economic Development

inspired 2013 Contents

Corporate social responsibility – who should be interested? Bill Mummery, Executive Director, Celton Manx

Keep calm and carry on licensing! Tina Rawlinson, Director, Cavendish Trust

Educational reforms and assessment in the 21st Century Joss Buchanan, Vice Principal-Academic, King William’s College

Are you making the right business connections?

Continent 8 continues to invest in Isle of Man

Online Regional Travel Group

Riva Financial Systems

Golfing on the Isle of Man

Lifestyle – Owzat! Bowled over by Island life profile on David Smith, Marketing Director, Manx Telecom

Case study – Integrated Capabilities Ltd

Bernhard Schulte Shipmanagement (Isle of Man) Ltd 58 Isle of Man Yachting & Aviation not all “plane sailing”! 60 Steve Cain, VAT Director, Equiom

inspired 2013

Isle of Man residential property market Shane Magee, Chairman, Chrystals estate agents

Sure – building new connections Andy Bridson, CCO, Sure

Case study – isis digital Ltd

Ian Rowley: +44 (0)1624 696552 • ianrowley@manninmedia.co.im

Manx Telecom – first for innovation and investment

Cleared for take-off The Private Jet Company’s Business Aviation Centre and Executive Terminal opens for business

Edited/designed by Mainstream Marketing & Communications. Printed by Mannin Media. © Mainstream Media Limited 2013.

B-localiom.com relocation services

Wi-Manx – network and hosting solutions

Lifestyle – The Isle of Man, a champion in sport and business profile on Roger Raatgever, CEO, Microgaming

Editorial:

Richard Allen: +44 (0)1624 678001 • richard@mmc.co.im

Advertising:

Produced in conjunction with and on behalf of the Isle of Man Government Department of Economic Development by:

& www.mmc.co.im

www.manninmedia.co.im

Welcome Chief Minister Hon Allan Bell MHK

Welcome to the latest edition of Inspired

Our world-class regulatory environment,

– a magazine which showcases the

which is recognised by the G20, OECD,

Isle of Man as a leading international

IMF and other global bodies, is just

business centre and home to a number of

one of the many attractions of doing

flourishing niche sectors.

business in the Isle of Man.

I hope the contents of this publication

We can provide a stable political system,

provide a useful insight into the success

a strong economic development

and diversity of our economy and, indeed,

ethos, highly developed business

inspire you to strengthen your personal

infrastructure and an educated and

and professional links with the Island.

committed workforce. The quality of life

As Chief Minister, the task of stimulating

on offer in the Isle of Man is also to be

further growth is at the very heart of my

commended, with beautiful countryside,

vision for the Isle of Man and I will continue

a very low crime rate and good public

to be an active and vocal champion of the

services.

Manx economy. Recent developments have, I believe, enhanced the Isle of Man’s reputation as a responsible and forward-thinking member of the global community, and underlined our determination to grow the economy in a sustainable way. We recognised at an early stage that the nature of tax cooperation is changing and that automatic exchange is becoming the global standard. The Island already shares

For our part, Government will endeavour to remain supportive, approachable and flexible in order to create a responsive and business-focused environment. Together the public and private sectors will continue to build on the Island’s reputation for innovation, enterprise and professionalism in order to create new opportunities with our United Kingdom and international trading partners.

tax information automatically under the EU

There are plenty of reasons to be

Savings Directive and has announced that

optimistic about the future, with the

it will do so on a wider basis with the USA

financial services industry, the backbone

and UK.

of our recent success, continuing to

We have also agreed to engage with a

perform strongly alongside a range

pilot form of multilateral tax information

of key sectors such as e-Gaming,

exchange being progressed by the G5 –

aerospace engineering and shipping.

UK, France, Germany, Italy and Spain.

To move forward in these times of

By demonstrating international leadership

change, we must continue to be

and responding positively to this evolving

positive, celebrate success and invest in

agenda, the Isle of Man has sought to give

our future with confidence – a message

the business community confidence about

that is echoed throughout the pages of

our direction of travel.

this magazine.

Chief Minister Hon Allan Bell MHK

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Introduction Hon John Shimmin MHK, Minister, Department of Economic Development

The Isle of Man is a leading international

One of the most important aspects of this

business centre with a growing reputation

support is the strong relationships that

for innovation, professionalism and a long

exist between Government and industry.

standing policy of positive engagement

Ministers and senior Government officials

with global standards.

are easily accessible which means

We have enjoyed over 25 years of sustained economic growth. This strong performance has been underpinned by the increasingly diverse nature of the Islandâ&#x20AC;&#x2122;s economy. As Inspired demonstrates the Isle of Man hosts a range of successful business sectors, some of which are among the best in the world. Within these sectors, Isle of Manbased companies are succeeding in the

that innovative ideas can be heard and acted upon when necessary. The Isle of Man also offers an excellent quality of life for both residents and newcomers, characterised by low crime rates, highquality public services and a strong sense of community. This is complemented by our tourism sector which supports a leisure infrastructure that can be enjoyed by all.

global marketplace because they operate

I hope you will feel truly inspired after

in an entrepreneurial and business-

reading this publication and get a sense of

friendly environment. These companies

what makes the Isle of Man such a great

serve a global blue chip client base

place to do business and a place where

in industries ranging from established

you can achieve anything you wish.

sectors such as financial services, shipping and aerospace manufacturing to emerging sectors such as Biomed, e-Gaming, ICT and aviation services. The Isle of Man Government works hard to provide the support and assistance to allow business to thrive. As well as a successful and diversified economy with a modern infrastructure and business environment, we offer a proactive and collaborative regulatory regime and a simple direct taxation system. As part of a unique Customs and VAT arrangement with the UK we also offer access to EU markets for manufactured goods which is making the Island a very attractive proposition as a trading hub for companies, especially in the emerging economies, to export in to Europe.

Minister Hon John Shimmin MHK

06 inspired

A Home for business

What do you look for when choosing a location for your business? Access to markets, superfast communications and IT infrastructure, a skilled workforce, the potential to maximise profits? Or maybe you need a place with an impressive international reputation, somewhere that offers ongoing business support and an excellent standard of living for you and your employees?

Easy access to London, Europe and beyond

Well connected...

Located in

Birmingham

the Irish Sea,

Blackpool

equidistant

Dublin

from England, Scotland, Wales

Sea and Air Links: Belfast

Gloucester

and Ireland,

Liverpool

If you’re thinking that actually you’d quite

the Isle of Man

London City

like all of those, then welcome to the Isle

is only a short

London Gatwick

of Man!

hop away from

London Luton

Like many people, you have most probably heard of the Island in connection with low taxes. And while that is certainly true – corporation tax is 0% for example – this self-governing Crown Dependency at the geographical heart of the British Isles offers such a great deal more.

A stable economy Despite the turmoil in world economies in recent years, the Isle of Man has been able to boast over 25 years of economic growth as a result of its steady but progressive fiscal strategy. It is this long-term stability which has encouraged the development of a wide variety of business sectors in addition to the Island’s world-renowned financial services industry. These include e-Business and gaming, aircraft and ship registration, superyacht services, film production and space commerce. (Did you know the Isle of Man is considered the fourth most likely nation to send a person to the moon?) There are also thriving clean tech, bio-tech, high tech manufacturing and local food production sectors.

many major UK cities, enabling easy onward access to Europe

Manchester Newcastle Oxford

and the rest of the world. The Island is currently served by five airlines flying throughought the UK, including major gateways such as London City, London Gatwick and Manchester. The excellent transport links also include a year-round daily passenger and freight ferry connection to north west England and fast craft services in the summer to Liverpool, Dublin and Belfast.

State of the art telecommunications But the connections don’t end there. Multi-million pound investments in telecommunications and power supplies mean the Isle of Man has an enviable position as a worldclass telecoms provider allowing businesses to communicate effectively and efficiently across the globe. With reliable and robust infrastructure and

the development of cutting edge technologies (it was the first nation in the world to launch a 3.5G mobile broadband service), the Island is proving to be a magnet for e-Businesses who also appreciate the sophisticated data and internet hosting facilities available. Businesses and residents alike are able to enjoy 100% broadband availability with up to 40Mbps downstream and up to 2Mps upstream.

International recognition and respect Indeed, part of the Isle of Man’s success is due to its acknowledgement of the need to operate at the highest standards to ensure long term sustainability and maintain its reputation for quality. The Island has been at the forefront in responding to increased international regulatory demands, placing consumer

07 Breakdown of the Island’s Economy by Industry Sector – %

protection and good governance at the

flourish in the Island and businesses are

Add to the mix a fine selection of

heart of Manx legislation. (As a British

regularly asked for feedback on issues

restaurants, shops and a vibrant arts

Crown Dependency, the Isle of Man sets

and development of future strategy. For

scene plus excellent sporting facilities,

its own laws and taxes although due to

those looking for financial support, there is

miles of countryside and spectacular

its longstanding historical, cultural and

a Financial Assistance Scheme available

coastline, and you’ll find the Isle of Man

economic ties with the United Kingdom,

to help both new and existing qualifying

combines the best of modern life with its

the legal system itself is similar.)

businesses who can demonstrate

own unique cultural identity drawn from

Businesses value the Manx Government’s

sustainable growth enabling job and

Celtic and Viking tradition.

pragmatic approach which has led to the

wealth creation.

Island earning a well-respected reputation overseas. In particular, the Island is proud

A place to prosper

A place where both businesses and individuals alike can thrive.

to be recognised on the OECD ‘white

The Island currently has an economically

list’ for tax transparent jurisdictions and

active workforce of more than 44,000.

is credited by the IMF, FATF, EU Code of

There are no residency qualifications

Conduct and other international bodies as

and individuals enjoy a standard rate of

• Welcoming Government

meeting its international obligations.

tax of 10% with a higher rate of 20% and

• Consumer Protection

generous personal allowances. There

• Internationally responsible and cooperative jurisdiction

Isle of M

• Welcomin

Isle of Man – Key advantages

A welcome and a helping hand

is also a £120,000 tax cap on personal

The Manx Government also takes an

income for the current tax year 2013-2014.

• Proactive & collaborative regulatory regime

active role in welcoming new businesses

On a personal level, aside from the

to start up or relocate to the Isle of Man

many attractions for business, the Isle

• Simple taxation regime for individuals and companies

and has Business Development Managers across all sectors on hand to help with advice and provide useful introductions.

of Man offers a very desirable quality of life. Excellent healthcare, a high standard of education and low crime rates

• A scheme of financial assistance for financial services companies looking to establish an operation in the Isle of Man • World-class telecoms network

Creating successful positive relationships

means it provides a safe and peaceful

• Internationally orientated service expertise and global client base

between the private and public sectors is

environment, ideal for bringing up families

• Quality of life

vital to ensuring industries can grow and

and enjoying downtime.

• Consume

• Internatio cooperat

• Proactive regulator

• Simple ta and comp

• A scheme financial establish

• World-cla

• Internatio expertise

08 inspired

Living the Island life...

If all you know about the Isle of Man is

geographical variety. Surrounded by the

respected independent public school,

Manx cats, kippers and the TT motorcycle

Irish Sea, the climate is cushioned from

King William’s College, offering day and

races, there’s a lot to learn! Sitting proud

extremes of heat and cold and is mild and

boarding co-educational studies with

and defiantly independent in the middle

temperate.

the International Baccalaureate as an alternative to traditional A-Levels. Private

of the Irish Sea, the Isle of Man is above all a land of contrasts. While its rolling

Excellent essentials

green hills and rugged coastline give the

In terms of the basic essentials for a high

impression of rural tranquillity, the Island is equally at home hosting one of the biggest motorsport festivals in the world. A thriving interest in traditional Manx heritage and culture sits happily with a buzzing contemporary arts scene and an adrenalin-junkie’s assortment of outdoor activities. Church teas, village fetes and agricultural shows are just as well attended as the best restaurants and top name high street retail outlets.

standard of living – healthcare, education and safety – the Isle of Man is wellblessed. The system of healthcare is very similar to that provided by the NHS in the

85,000 population enjoys an area more than four times the size of Jersey, for example, including a central hill and valley region and around 100 miles of coastline. Often described as a mini British Isles in itself, the Island has become a popular location for film productions because of its

the Island’s schools go on to university, a higher number than in England.

opportunity to study locally at the Island’s

UK region. A newly-built £112m 312-bed

College of Further and Higher Education

main hospital (Noble’s) was opened on

which offers both vocational training and

the outskirts of Douglas in 2003, providing

academic courses. It is an associate

a comprehensive range of surgical

college of the University of Chester and

and medical facilities in light and airy

offers Engineering and Art honours

dental and pharmacy services are readily

than you might think. The Isle of Man’s

aged 3 to 11. Over 50% of students from

you would expect in a comparable-sized

At 33 miles long by 13 miles wide, the

similar jurisdictions, there is more room

College junior school for boys and girls

Higher education students have the

contemporary surroundings. It includes

small space although compared to

The Buchan School which is King William’s

UK but with a wider range of services than

Room to breathe Isle of Man packs a lot into a relatively

primary education is also available through

a purpose built private wing. GP, optical, available throughout the Island.

degrees through Liverpool John Moores University. As befits a nation with a burgeoning space industry, it also delivers part of the Space Management MBA accredited by the International Space

Education, education, education

University in Strasbourg!

Education on the Isle of Man has long

Safe and secure

been recognised as an area of excellence and there are 33 primary schools and 5 secondary schools which benefit from an ongoing programme of investment, especially in ICT. These are complemented by a well-

The Isle of Man is widely acknowledged as one of the safest places to live in the British Isles and the low crime rate has consistently fallen further in recent years. In addition, detection rates are generally higher when compared to the British Isles

Relaxed and relaxing

and Channel Islands. Policing on the

soccer to swimming. The National Sports

Island is split into community, international

Centre in Douglas hosts impressive

and inter-agency teams and there is a

indoor and outdoor facilities including

keen focus on engaging with the public

a championship short course pool and

fascinating heritage to explore courtesy

and crime prevention.

athletics track and field arena. Just next

of thousands of years of Viking and Celtic

For less active types, there is a wealth of

door is a floodlit 3,000 seater stadium with

Out and about

history. Increasingly popular pastimes

a 3g synthetic pitch. There are also nine

such geocaching or stargazing (the Isle

One of the obvious benefits of the Island

golf courses, more than one for each day

of Man has dark sky status), a gentle

is that it is easy to get around, served by

of the week!

a comprehensive road network as well

Add flourishing amateur dramatics and

as some more unusual transportation

music, and arts clubs of every type, and

networks like steam and electric railways

there need never be a dull moment. On

and horse drawn trams in the summer.

top of home grown entertainment, the

This means that commutes are invariably

Island regularly welcomes performances

short – even travelling from the far north or

by world-class musicians and actors at the

which can all be washed down with a

south into the capital Douglas rarely takes

Erin Arts Centre, Gaiety Theatre and Villa

glass of locally brewed beer or spirits.

more than half an hour giving residents

Marina venues.

an enviable amount of free time outside working hours.

Children in particular are encouraged to participate in both the arts and sport and

stroll through the Island’s many glens, or just simple afternoons on the beach. Foodies will appreciate a wide range of Manx specialist producers and artisans (including those world famous kippers!)

With such a wide variety of things to do, the Isle of Man really has something for everyone – and there is even extra time

This is just as well, because the Island has

the Island boasts more than its fair share

a host of sporting and leisure activities to

of success stories (world champion cyclist

keep you occupied. With sea and land

Mark Cavendish MBE, Olympic gold

bank holidays than the UK with TT Senior

readily to hand, sports range from sailing

medallist Peter Kennaugh and actress

Race Day in June and the national Tynwald

to cycling, martial arts to motocross,

Sam Barks being recent examples).

Day in early July!

to enjoy them. The Island has two more

10 inspired

Sporting excellence For an Island of only 80,000 people

the road in the next few years. He was

Aaron Cook is the world number two

the Isle of Man produces far more than

part of a world record breaking team

ranked Taekwondo star who moved to

its fair share of World, Olympic and

pursuit squad which also won World

the Isle of Man in 2012. He has won

Commonwealth champions in a range

Championship gold and has also raced in

the British title and was twice crowned

of sports. Our competitive success is

the Tour de France.’.

European champion. The 21-year-old

symbolic of the Island’s ‘can do’ attitude and provides inspiration which extends far beyond the sporting arena.

Zoe Gillings is Britain’s number one Olympic snowboard athlete and has competed at the 2006 and 2010

Mark Cavendish MBE, aka ‘The Manx

Winter Olympics and voted Isle of Man

Missile’, is regarded as the greatest

Sportswoman of the Year in 2012. She

sprinter in the history of the Tour de

also carried the London 2012 Olympic

France with 23 stage wins at the time of

torch during its visit to the Isle of Man.

writing. He’s the most prolific winner of his

was the youngest Taekwondo player to represent Great Britain in the Olympics when he finished fifth at the 2008 Games in Beijing. Below: Mark Cavendish MBE winning the 2013 British National Road Race title in Glasgow.

generation including World Championship wins on the road and track and a Commonwealth gold at the 2006 Games in Melbourne – not to mention nearly 100 wins as a professional road racer. Off-road motorcyclist David Knight MBE has twice been crowned World Enduro Champion and British Enduro Champion six times. ‘Knighter’ finished third in the X Games World Series event in Brazil and was awarded an MBE in 2011 for his services to motorsport. The Isle of Man is famous around the world for the TT Races which are regarded as one of the toughest and most dramatic motorbike events. It’s run on the 37.25 mile Mountain Course on public roads – and the fastest Manxman ever to lap the circuit is Conor Cummins. He also holds the record for the fastest lap from a standing start, averaging over 131mph. His courageous comeback to racing following a 160mph crash at the 2010 TT won him fans around the world and he’s become a respected ambassador for his sport and the Island. Team Sky pro cyclist Peter Kennaugh MBE won gold with Team GB on the track at the London 2012 Olympics and is tipped for even greater success on

London 2012 Olympic team pursuit gold medallist Peter Kennaugh MBE

11 00

Above and right: Olympic snowboarder Zoe Gillings

Left: David Knight MBE, twice World Enduro Champion

12 inspired

Stand and deliver In a world gripped by austerity, increasing regulation and fiscal uncertainty, how can the Isle of Man buck the trend and provide an opportunity for entrepreneurs to flourish - while still allowing traditional business sectors to thrive? John Spellman, Director of Financial Services, looks at future economic trends and how the Isle of Man Government intends to adapt. When Harold Macmillan announced

on effects on the current balance of power

declining tourist trade in the 1970s and

“You’ve never had it so good”, he may not

and the potential for future growth.

80s, the Isle of Man famously reinvented

have realised that his remark would apply

Access to, and use of, natural resources

itself as an offshore financial centre.

equally to the 1980s and 1990s as well as

will continue to be a critical factor in

Although hugely successful and still the

the 1950s.

the future. As these dwindle, costs will

major contributor to the Manx economy,

The final two decades of the 20th century,

escalate forcing the development of more

the financial services sector has itself

with their drive for excess and rampant

cost efficient methods of consumption

already gone through several iterations

consumer consumption, fuelled growth

and alternatives. Travel will become less

in response to competitive challenge and

in a number of western economies. That

prevalent and reliance on telecoms more

changing attitudes and in the past decade

growth began to stall in the shifting

crucial.

there has been significant investment in

political word of the 21st century before

Another trend, already steamrollering

diversifying the economy into other areas .

being completely flattened by the financial

ahead in some quarters, is the move

The Isle of Man is now seen as a well-

crisis of 2007 and 2008.

towards increasing regulation. Following

respected international finance centre with

The resulting economic quagmire has

the financial fall-out of recent years, and

burgeoning manufacturing, clean tech,

seen major nations struggling to get to

the need to protect national budgets,

space, aviation and e-Business sectors.

grips with unprecedented levels of debt

governments have been spurred to create

The Department of Economic

and some lesser economies taking truly

new regulatory bodies and tighter rules.

Development’s project, Vision 2020, sets

drastic measures to stay afloat. Austerity

This is running hand in hand with a shift

out the path for the Island’s future strategic

is the watchword of current times, with

in public sentiment that is demanding

direction. It aims to articulate the best

cuts, more cuts and restructuring the focus

businesses act more ethically and

options for the Isle of Man as we head

for governments who are desperately

transparently.

towards the end of the current decade

trying to balance their books.

Against this context, and while many

and beyond, using insights from public

Ahead the future in general is still looking

governments try to cut rather than trade

and private enterprise to inform decision-

somewhat grim. There remains a great

their way out of recession, the Isle of

making along the way.

deal of uncertainty and instability in the

Man’s vision for the future appears

While still a work in progress, there are

world both economically and politically.

startlingly positive. This is partly through

already some key pointers emerging. For

Many people believe the full impact of the

starting at a slight advantage - although

example, in the existing financial services

banking crisis has yet to unfold and there

buffeted by the tough financial times

market, increasing regulation across

are more bad news stories to emerge.

the Isle of Man has enjoyed 28 years of

banking, funds and insurance sectors,

There is also concern that the wealthy face

unbroken economic growth. It is also

coupled with the drive for transparency

being “taxed to death” to fund the growing

because the Island recognises that where

and fairness, will see changes to current

requirements of social welfare and an

there is threat there is also opportunity

operating models. Financial players will

increasingly disenfranchised youth.

and, to put it in Darwinian terms, it will

need to consider how they cater for the

be those who can adapt who will be

different needs of retail, corporate and

successful and survive.

sophisticated high net worth investors and

to continue amid the perception of

It is part of the Island’s DNA to adapt and

where there is an opportunity to specialise

increasing inequality and the threat of

be versatile; indeed it is illustrated best by

or develop niche products and services.

rising unemployment. This is set against

the motto which accompanies the Island’s

While interest rates and returns in general

a backdrop of political discontent in many

Three Legs emblem: “Whithersoever you

remain low, wealthy investors will want to

emerging economies that may have knock

throw me, I will stand”. In the face of a

look at alternative options such as crowd

Straitened times have led to social unrest in some regions which is likely

and FATCA as well as extend its taxation agreements with other countries around the globe. A low tax environment will remain critical for attracting business and entrepreneurs. The growing need for reliable and mobile communications across all businesses, as well as education and entertainment, mean the devices of the future will all need electricity. Major investment by the Isle of Man Government has given the Island its own robust and independent power supplies and telecommunications on the Island are world-class. This is attracting e-Business and high tech start ups which in turn will create a thriving intellectual property sector. One of the challenges for the Isle of Man will be to supply the skilled workforce required for these changes. The Island’s education service already has an excellent reputation for its high standards and this may be enhanced by offering a choice of academic or vocational pathways and embracing languages, sciences and technical disciplines such as physics and robotics as well as ICT. No matter what the final recommendations John Spellman

of the Vision 2020 report, there is already a keen recognition that the industries of yesterday don’t necessarily build the future

funding, payday lending and private

support services, has also attracted the

ventures.

interest of China and other Far Eastern

The focus on tax-planning is likely to switch

nations offering huge potential for import/

to future-planning with safety of funds

export business and turnkey solutions.

the prime consideration. Administrative

Fortunately the Isle of Man has the

and use its low tax environment to help

efficiency, global solutions and expert

advantage of being able to move quickly

people build additional wealth and create

professional advice will become much

and competitively. With its own legislative

jobs.

more important in the future world.

powers, a pragmatic approach can be

Work on developing the Island’s growing

Meanwhile the professional services

taken. Appropriate and proportionate

reputation as a well-respected international

sector is likely to move towards supporting

legislation is preferred to a blanket “one

centre, coupled with maintaining relative

business relocations and start-ups and,

size fits all” regime.

financial stability, will put the Isle of Man

with its easy access to Europe, help

To maintain its well-respected reputation,

in a prime position to take advantage of

reposition the Isle of Man as “near shore”

the Island needs to continue to apply

changing trends – and take far-sighted

rather than “off shore”. The ability to offer

world-class standards and be part of

businesses and individuals with it.

a European gateway, as well as all the

evolving regulation such as Solvency II

www.whereyoucan.com/finance

of tomorrow – and that adaptation is vital to keep ahead in an ever-changing world. The Isle of Man needs to continue to be an attractive proposition for entrepreneurs

14 inspired

Promoting the Isle of Man – a unified approach In 2012 the www.whereyoucan.com website became the focal point for inward investment to the Isle of Man, and a showcase for local businesses. Its launch signalled the start of a unified approach to promoting the Island as an international business centre with the website acting as the hub of an integrated range of marketing activities including a common set of factsheets, digital marketing activities, presentation templates and programme of attendance at relevant exhibitions. An example of this integrated approach was at the Isle of Man Newspapers’ Awards for Excellence in November 2012 at which Heather Smallwood, Head of Marketing at the Department of Economic Development, received the Marketing and PR Effectiveness Award on behalf of the Department of Economic Development for the ‘Isle of Man. Where You Can’ initiative. The awards ceremony was attended by representatives from a wide range of leading on-Island businesses, as well as many influential figures from off-Island. Department of Economic Development used the opportunity to promote the Financial Times special edition about the Isle of Man using a live webcast of the awards ceremony on www.whereyoucan.com which was supported by leaflets about ‘Where You Can’ for all guests at the ceremony, and distributed with copies of the FT supplement. Department of Economic Development was also shortlisted in the UK, in the Public Sector – Other Services category at the 2012 CIM (Chartered Institute of Marketing) Marketing Excellence Awards.

Heather Smallwood (left) pictured receiving the award from Helen Summerscales of award sponsors Isle of Man PR and Advertising

ahead is upon positioning the Isle of Man

the Farnborough International Airshow

with industry worldwide. In the 12 months

which showcased the Island’s aerospace,

following the launch, the Department of

space and aviation sectors. The Island’s

Economic Development has consolidated

aviation sector was also the focus of

the ‘Isle of Man. Where You Can’ initiative

Department of Economic Development’s

which continues to highlight our unique

presentation at the Middle East Business

selling points, products, solutions and

Aviation Conference. The Island’s financial

services across a wide range of sectors.

sector was promoted heavily too, with a

Feedback has been overwhelmingly

presence at the British Insurance Brokers’

positive. Corporate service providers,

Association Conference and Exhibition,

for example, benefit because they

Captives Live, Moscow Financial

now have presentations and exhibition

Innovation Forum, Eurohedge, and

materials which can be used at trade

Emerging Manager Forum.

missions, and there is a growing list of

To understand more about ‘Isle of

subscribers to the ‘Isle of Man. Where You Can’ newsletter which is integrated with Department of Economic Development’s exhibition programme. In the past year the Department has promoted ‘Isle of Man. Where You Can’ at the ICE London and EIG Barcelona e-Gaming expos; the Monaco Yacht Show at which the Department of Economic Development

With this integrated marketing initiative

promoted the Isle of Man Ship Registry

now well established, the focus in the year

and yacht management businesses; and

Man. Where You Can’ businesses are encouraged to visit the website, sign up for the regular business newsletter and refer on to clients and contacts where appropriate. The website includes details of resources available to businesses promoting the Isle of Man, including presentation materials, factsheets, brochures and newsletters. www.whereyoucan.com

• Stable economy – over 25 years of economic growth

ISLE OF MAN. WHERE YOU CAN

• Effective relationship between public and private sectors • Competitive tax regime

DISCOVER THE

• World-class regulatory environment

NEW STANDARD

• Advanced telecoms and power infrastructure

IN INTERNATIONAL BUSINESS CENTRES

• World-class professional services • Strong, direct links to the City of London • Excellent quality of life

Department of Economic Development St George’s Court, Upper Church Street Douglas, Isle of Man IM1 1EX, British Isles Tel: + 44 (0)1624 686400 (General Enquiries)

www.whereyoucan.com

inspired 00 inspired

2013

Lifestyle Fast track to that perfect work/life balance Courtenay Heading, Advisor, BioMed Inward Investment, Department of Economic Development, Isle of Man Government Every June the Isle of Man echoes to the roar of world class motorbike racers tearing around the legendary TT Mountain Course at speeds of up to 200mph. After the final chequered flag has been waved, and almost before the last drops of Champagne have fallen on the crowd below the winner’s podium, the public roads used for the races are reopened and life returns to its usual tranquillity. It’s quite a contrast, but one which suits Courtenay Heading perfectly. The Isle of Man Government’s Advisor for BioMed Inward Investment grew up in Sussex and lived and worked in the UK and USA before moving to the Island in 2007. He is one of many Island residents who came here first for business reasons, but ended up making it their home after realising it

Courtenay Heading

provided the ideal environment to achieve the near perfect work/life balance. The Isle of Man TT played a key role in Courtenay’s decision to move here. “I first visited the Island in 1991 to watch the TT, I had been a motorcyclist and a fan of motorbike racing all my life but it wasn’t until I saw the event live that I truly appreciated what makes it unique.” In 2004 he met Bladon Jets’ Chairman Paul Barrett while on a flight to the USA and learned about the company’s groundbreaking technology and how the TT connection shaped its development.

breakthrough which, when combined with

boardroom. The working week is much

Barrett’s patent process and business

more flexible – working from home is more

background, led to the founding of Bladon

common, and when it is necessary to go

Jets. The company is headquartered

into the office the commuting time is short

on the Island and currently developing

no matter where you live on the Island. But

micro-turbines and recuperator technology

it has a hard-working business culture too,

alongside their partners Jaguar Land Rover and their parent Company Tata, particularly for applications in the energy market in India. So convinced was

and there’s an accessible ‘can do’ attitude right across Government, regulators, and the private sector.”

Courtenay about the technology, and the

In his experience of talking to inward

passion of the Bladon Jets’ team, that he

investors, the benefits that the Island

became a shareholder.

offers in terms of work/life balance are a big attraction. With spectacular scenery

Barrett raced at the Manx Grand Prix

In 2007 Courtenay and his wife decided

motorcycle races in the 1980s against

they loved the Isle of Man so much that

and long summer evenings it’s possible

Chris Bladon. When Paul won the Classic

they moved from their home in England.

to leave the office behind and within an

Junior Manx race in 1983, it was brothers

“Business in the Isle of Man is much more

hour be walking in the hills or on the water

Chris and Paul Bladon who’d prepared

relaxed than anywhere else I’ve worked

sailing or kayaking. Or, in Courtenay’s

his bike. The Bladon brothers are brilliant

before. Meetings are much more likely to

case, motorcycling. After all, this is the

inventors too and made the technical

be held in a café over a coffee than in a

home of motorcycle road racing.

00 17

Case study

The Isle of Man. Where you can… really make it happen – and quickly Planet Software Ltd Investor Nader Pour was meticulous in

but it was much quicker to respond to

solutions. “With cloud technology and

his search for the best location for a new

my enquiries. The Government were very

the fantastic IT infrastructure in the Isle of

business start-up idea he had – and the

prompt in getting back to me and along

Man, there are great prospects to build

Isle of Man soon rose to the top of his

with the excellent infrastructure that gave

successful host companies,” says Nader.

list. Nader was looking for a place to set

me a lot of reassurance.”

up a software support and development company which could support other businesses with their IT requirements, particularly in the US market.

Managing Director Rob Jeffries

The company was promptly formed in

acknowledges there is a huge potential

March 2012 and began trading in July.

for the business to expand and is busy

One of its earliest and biggest clients is

with an intensive training programme for

Jupiter Systems which offers a leading

his new recruits. “All our staff are local

“I began by looking at all the resources

veterinary practice management platform.

residents,” he says. “Many are learning

available in locations around the world,

Planet Software now supports system

new skills which add value to the local

but particularly those that could offer

users via email and telephone assistance

labour market. In addition, we are not

government help and financial assistance

from its office in Douglas. Jupiter Systems

competing with anyone on the Island

to start-ups” says Nader. “Strong

already accounts for the system of choice

and all our revenue is new revenue to the

infrastructure was also key as I needed

for 300 veterinary practices in the UK but

Isle of Man so it good news for the local

good connectivity and hosting capability

it is planning to move into the US market

economy as well as Planet Software.”

for the business.”

which Planet Software will also support.

After researching countries as diverse as the Bahamas, India and Poland, Nader short-listed the Isle of Man and one other jurisdiction - but there were two outstanding factors that led to his choice

The size of this market is staggering – in the Greater Los Angeles area alone there are 4,700 veterinary practices, which is several hundred more than in the whole of the UK!

of the Island. “I found that not only did the

Further into the future Planet Software sees

Isle of Man have better financial incentives

more opportunity for providing hosting

18 inspired

China – The Isle of Man proposition Steven Beevers, Department of Economic Development Head of Special Projects

The Department of Economic

and customs clearance from a well-

Development’s strategy for developing

positioned trading base in the centre of t

business in China has identified effective

he British Isles and on the doorstep

ways of accessing the growing Chinese

of Europe.

economy with the aim of helping reinforce

In the next three to five years, the

the geographic diversification in the

European Union (EU) will be implementing

Island’s own economy. The positioning

a free trade arrangements between the

and acceptance in China of the Isle

member states of the Customs Union (CU)

of Man as a reputable international

and the countries of the European Free

business centre is partly dependent upon

Trade Association (EFTA), strengthening

building relations at government level to

existing trade relations and creating new

demonstrate economic benefits of the Isle

opportunities for co-operation. To aid

of Man’s EU import/export capabilities.

this growth in China, the Department

The facilitation of bilateral trade can also

of Economic Development now has a

dispel any negative preconceptions

representative in China, who is helping

associated with the perception that the

to cultivate and target companies,

Island may be ‘just another offshore

entrepreneurs and creating networking

centre’. Central to the Isle of Man offer

opportunities to build awareness of the

Hong Kong is an important market for

is our established Entry Processing

Island. We have also built Mandarin

Chinese Initial Public Offers (IPOs) and the

Unit (EPU) - which given our efficient

webpages and resources adjacent to our

Isle of Man can help foreign companies

Customs and VAT office - provides us

Isle of Man Where You Can website to

list overseas on the Hong Kong Stock

with a distinguished standard of customer

support our communications. In January,

Exchange since 2010 when we gained

service compared to our competitors.

the first of several businesses being

acceptance there. However, the Island‘s

The UK’s Treaty of Accession to the EU

cultivated by the Isle of Man Country

track record is best illustrated by the

ensures our free trade access for goods

Strategy Team confirmed their intention to

number of companies it has on London’s

and agricultural products produced or

set up a subsidiary business on the Island

AIM market. Presently such market

supplied by the Isle of Man, and our

to manage exports from China.

activity is quiet, but may present some

tax neutrality benefits those seeking an

The Department of Economic

opportunities in the future.

attractive base for operations. In addition,

Development’s visit to China in November

the Island has a wealth of financial and

2012 highlighted the possibility of working

Beijing is the pre-eminent and established

professional services, helping facilitate

with a broader network like government

trade into the EU and the option of virtual

and chamber bodies in Shanghai and

‘turnkey’ solutions for import/export

Guangzhou, which may help the Isle of

administration.

Man to draw on SME manufacturing and

By establishing this type of business in

exportation membership opportunities

the Isle of Man, the Island may ultimately

from those areas. There have already

grow into a European sales base, which

been a number of Chinese delegations of

sits well with the Chinese ‘Going Global’

entrepreneurs who have been attracted to

policy. In addition, such business and

visit the Isle of Man.

its shareholders may well use the Island

In April 2013 a mini trade mission - headed

for other well-established propositions,

by Economic Development Minister John

such as listing on stock markets, wealth

Shimmin – was undertaken. Isle of Man

management or asset structuring (subject

industry attendees who participated in the

to the legality of capital movements

trade visit to China were able to showcase

and any necessary approvals in China).

one or more propositions to sell which they

Importantly, the Isle of Man is within the EU

have already established as being a ‘good

to support the Island’s glowing future.

indirect tax area, allowing market access

fit’ with Chinese opportunities.

www.whereyoucan.com/china

Steven Beevers

centre in China for a diverse range of commerce and head offices, but Shanghai is key for financial services, banking and technology exportation and other cities like Guangzhou and Shenzhen are also key centres of activity such as manufacturing for export. Improving our business relations with China will help us to fight for a share in the world’s fastestgrowing consumer and B2B markets. The Department of Economic Development is already playing its part in the improvement of business relations with China which could emphatically become linked to the success of Manx businesses and growth

Finance – Banking

‘No Man is an Island’ has resonance for banking on the Island ‘No Man is an Island’ is a phrase which,

account tax compliance and disclosure

according to Mark Waterhouse, CEO

agreements are testament to the Isle of

of Zurich Bank International and also

Man’s eagerness to play a leading role

President of the Isle of Man Bankers

and work collectively with our international

Association, has important resonance for

partners to remain at the forefront

the Isle of Man. He believes this famous

of evolving world wide compliance

opening line from a quotation from English

standards. This approach is not only

poet John Donne, precisely sums up the

appreciated by the international finance

approach taken by the Isle of Man and is

community but also by the international

the underlying reason for its continuing

parents of the banks and other financial

economic success.

operations based in the Island.”

Waterhouse explains: “On both a national

“The Island’s status as a highly regarded

and international level the quotation is

international financial centre ensures

apt for the Isle of Man. The Isle of Man’s

that the banks operating here and their

Government has always believed that

depositors are guaranteed a secure

success will only be received through

environment with state of the art financial

open government and by working

services on offer. As a well developed

collectively with its business community

jurisdiction with a stable political and

and public to ensure appropriate support and services are provided in a timely manner. A perfect example of this is the Isle of Man Financial Services Partnership Committee which meets monthly. Led by the government’s Department of Economic Development it is attended by all the heads of the respective finance trade associations, including; banking, fiduciaries, life, funds, pensions, captives and professional services. These meetings ensure there is collaboration between government and the various business sectors and a joined up approach to delivering strategy that has not only driven and delivered recent economic successes, despite a very tough economic climate,

economic base, the Island enjoys the key assets of trust and reputation. It provides a secure base from which to operate, and its standards of regulation are enforced to the highest of international standards, including being on the OECD’s ‘white list’.” Isle of Man banks offer a comprehensive range of banking services, products and expertise both nationally and internationally. Their services to a global client base cover all areas of investment strategy and money management including core business areas of wealth management, investment management services, deposits, lending and trust solutions.

Mark Waterhouse

The Isle of Man Bankers Association is the trade association of the banking industry in the Isle of Man, and its current membership is drawn from across the full spectrum of banks on the Island including clearing banks, building societies, private banks and trust banking operations. The Association upholds the common interest of its members in their relationships with the Isle of Man Government and other business and professional associations and aims to further develop and preserve the good reputation of the Isle of Man as an international banking and financial centre. “The Isle of Man is a secure well regulated environment with industry and commerce fully supported by government,” says Waterhouse. “We have the expertise here and we are extremely innovative with

but importantly will continue to deliver

Banks on the Island not only support the

new products and services and we are

success in the future.”

growth and diversification of other sectors

capable of evolving to meet ever changing

At an international level, Waterhouse

in the Island but ultimately benefit from

challenges. All this sets us apart from

their success as additional service needs

other international financial centres making

understood the requirement to work

are generated.

us a unique place for banking as well as to

closely with its near neighbours in the

Waterhouse says that Isle of Man banks

do business.”

UK and with governments and regulatory

are ideally placed to understand and

www.iomba.org.im

bodies elsewhere in the world to ensure it

respond to changing needs and firmly

remain at the forefront of international tax

believes that focusing on quality of service

compliance and transparency. He adds:

is fundamental to good relationships and

“Recent discussions with the USA and

ensuring standards of service are as high

the UK on the implementation of foreign

as possible.

says that the Isle of Man has always

20 inspired

Finance – Fund Management

Big enough to count and small enough to care the best of both for an increasingly global business world

Douglas-based Creechurch Capital is a boutique discretionary fund manager and it works with private and institutional clients operating under three brands; Creechurch Capital (institutional), Creechurch Private Wealth and Creechurch Advisory Services. CEO, John Greenwood has successfully steered the fast-growing firm through its first twoand-a-half years of business from the historic Knox House building. Creechurch embodies his personal vision of providing clients with a truly boutique and personalised investment manager yet it has a network of clients and partners across the globe creating enviable reach and gravitas. The Isle of Man is widely renowned for its

our assets under management to a level

There’s no getting away from the fact

position as a leading international centre

which has led to us increasing our Isle of

that the effect of market volatility has

for financial services. As an industry this

Man team to three times the headcount it

posed an exceptionally challenging period

accounts for a large proportion of the

was at this time last year.

in the past few years. With interest rates

island’s economy. While the Isle of Man continues to diversify into different sectors to complement this, financial services firms also need to differentiate their offering to ensure we continue our firm foothold as a world-class hub in an increasingly competitive business environment. This has never been more apparent than in the case of Creechurch Capital. The firm is strategically placed to develop our offisland client-base and in turn attract more interest and business to the Isle of Man. It also allows us to bring the best products and services to residents of the island, which is testament to our commitment to our roots. The common thread throughout all of our Creechurch brands is the fact they are built upon a comprehensive understanding of each client’s financial position, aims, objectives and appetite for risk. It is that intuition for the client’s needs which has inspired our continued innovation and has allowed us to grow

A particular success story of diversifying our business was the launch of Creechurch Private Wealth last year. This typifies a personalised face-to-

also at historic lows, responsiveness is critical to addressing this in order to maximise the opportunities that this environment presents.

face accessible service combined with

Creechurch Private Wealth’s service is

world-class expertise and investment

extremely agile, responding quickly and

management.

in tune with agreed client parameters,

Creechurch Private Wealth is our dedicated private client service. Its existence was borne out of a demand from discerning clients who are looking for a service as individual as they are. Through our experienced team we work with our clients as their needs evolve. In today’s market, the choice of investments and asset classes is vast. When combined with managing risk and tax planning, it’s easy to see how this can cause unnecessary stress. Creechurch Private Wealth reduces this stress of complicated decision-making, as it constantly considers a client’s

making it a highly efficient and effective way to manage their assets. Its commitment to active asset allocation means that investment decisions are based upon experience, quantitative techniques and qualitative interpretation, and portfolios are never left to languish. Although we provide a truly personalised approach we find it useful to offer clients a series of model investment options that may either provide the exact solution or at least the starting point from which this can be reached. As always we use our personal approach to ensure the final answer, whichever it is, is the correct one.

options and engages specialist advisers

By offering a truly personalised approach,

when appropriate.

Creechurch Private Wealth’s portfolio

managers act intuitively and work unwaveringly to help clients towards achieving their specific investment goals in an increasingly complex and diverse environment. Our latest brand, Creechurch Advisory Services, is our flexible consultancy solution. Formed to deliver the benefits of our unique position, we draw upon our comprehensive understanding of asset classes and economic overview combined with access to industryleading providers. With the key strengths of independence and flexibility and in conjunction with quality partners, we introduce solutions that are perfectly matched to investment requirements and desired returns. As a business, we’re now half way through our five-year plan, and we’ve exceeded all of our initial expectations. As a business with a truly global footprint, we will remain true to our boutique approach and culture. We have evolved into a financial services business the island can be proud of as we continue to fly the Manx flag across the world. Working hard to meet the expectations of clients is key to our business and can only serve to enhance the Island’s already outstanding reputation as an international business centre to be reckoned with. Creechurch Private Wealth and Creechurch Advisory Services are divisions of Creechurch Capital Limited which is licensed by the Isle of Man Financial Supervision Commission.

John Greenwood, CEO, Creechurch Capital

22 inspired

Finance – Investments

IMGold – a hallmark of trust, integrity and security

Bullion dealers IMGold make buying, selling and owning gold and other precious metals as simple as using a bank. But there’s a crucial difference and a significant advantage for clients in that unlike a bank the precious metal held in IMGold’s vaults is individually identified and allocated to each client. In banking the business has legal ownership of money deposited by clients – but at IMGold the client’s legal entitlement to the ownership of their bullion is absolute. No liquidator, administrator or creditor could ever claim ownership. This is a crucial advantage for clients in that they actually own their bullion and it always remains their property. Trading in gold or silver can be done online, on the phone and – uniquely to IMGold – there is the option for clients to physically collect their precious

IMGold’s subterranean vaults have

well-diversified portfolio of assets. It is a

metal if required.

security systems that equal or exceed

unique commodity because of the role

industry standards and are electronically

it has played for centuries as a universal

protected and monitored by G4S. The

currency with 20% of the world’s gold

inventory of each vault is fully insured and

being part of the financial strategic reserve

regularly audited. IMGold’s core values

of leading nations. IMGold was founded in

of integrity, security, and trust are also

response to the increased demand from

reflected in its board and consultancy

clients to provide an easy and secure way

team which includes former regulators,

to own bullion. We offer a professional,

bank directors, security specialists, and

cost-effective bullion trading service to all

experts from the World Gold Council.

our clients, whether large or small. Clients

In essence, IMGold is a cost-effective ‘one stop shop’ for bullion trading and storage providing a service which, up until the company was launched in 2012, had only been available to banks and bullion dealers. Private and professional clients can buy and sell precious metals with the very highest standards of secure storage in former bank premises right in

can own any amount from 1kg upwards

the heart of Douglas – the Island’s capital.

Andy Baker, IMGold Corporate

There is also the added reassurance that

Development Manager says that the

IMGold is based in the Isle of Man which

company’s clients are typically high net

has a long history as a secure, stable and

worth and ultra high net worth individuals

Through IMGold, clients can buy gold

well-regulated jurisdiction which combine

and their wealth managers. He added:

which has been a consistently reliable

to make it a safe haven for wealth – all of

“IMGold has been setup due to demand

store of wealth throughout history.

which were significant considerations in

from its stakeholders requiring a storage

IMGold is another example of the Isle of

the decision to locate the business on the

facility for their gold holding. Gold is,

Man playing its role as an innovator in

Island.

and always will be, an integral part of a

protecting private wealth.

and each bar purchased remains the client’s property until they decide to sell.”

INTEGRITY INTEGRITY IS IS OUR OUR HALLMARK HALMARK IMGold are bullion dealers and operators of secure vault storage facilities. We supply and store newly minted, investment grade bullion and help private and professional clients buy and sell precious metals, and offer secure bullion storage.

IMGold is based in the secure, politically and economically stable Isle of Man and we deal with allocated bullion only. This means ownership and legal title always remain with the depositor – all bars are certificated, uniquely identifiable and remain your property.

Metals have been an effective store of wealth for thousands of years and long-established patterns show that holding gold:

Dealing with IMGold is designed to be as simple as dealing with your bank and we provide:

• stabilises portfolios • provides protection from inflation • has proved an effective long-term strategy There are many ways to buy into ownership of gold but only one has stood the test of time and that’s ownership of the physical metal.

• an easy way to buy, store and sell gold bullion • fully insured vault facilities • security systems that match or exceed industry standards For more information on IMGold call +44 (0) 1624 888 888 or email enquiries@imgold.com

Victoria Street • Douglas | Tel: +44 (0) 1624 888 888 | www.IMGold.com

24 inspired

Finance – Investments

What a good decision...

Thomas Miller Investment, part of the 128 year old Thomas Miller Group, has gone from strength to strength since opening its Isle of Man office in 1988. Tom Richards, Head of Private Investment Management (Offshore) for Thomas Miller Investment, looks back over 25 years and eyes opportunities for growth in the future. We originally came to the Island as we

Investment’s growth and recent new hires

recognised that the Isle of Man with its

have boosted an already strong team of

history as a politically stable jurisdiction,

portfolio managers. The team specialise

geographical proximity to the UK and

in working closely with clients and their

reputation as an adaptable well regulated

advisors to provide effective offshore

international business centre would

investment management services. Our

offer Thomas Miller Investment the ideal

unique heritage and expertise extends to

platform on which we could grow. A

an investment process that emphasises

secondary but nonetheless vital factor

active portfolio management, exploiting

was the pool of highly trained investment

opportunities at the asset allocation and

professionals available on the Island.

stock or fund selection levels, whilst

We believe that this remains the case some 25 years later and we have valued

maintaining a strong focus on managing overall portfolio risk and volatility.

and benefited from the Island’s support

The Isle of Man is a hub for international

for our business, which has grown and

business and Thomas Miller Investment’s

prospered. Thomas Miller’s traditional

client bank is a testimony to this with

culture and values have survived and

clients spread across all five major

proved themselves throughout many

continents. International investment

economic cycles and our reputation for

exposure, multi-currency portfolios,

conservative investment management

effective reporting and close client

finds strong expression in all our

relationships have been key drivers for

operations today.

success. We provide a focused, specialist

From our office in the heart of Douglas’

investment service for corporate service

business district we manage assets for

providers, lawyers, tax advisers and

private clients, charities and pension

financial advisors.

funds as well as acting as one of seven investment managers to the Isle of Man government, a mandate that was awarded in 2011. When combined with Thomas Miller’s investment operations in London and Edinburgh the total funds under management within the group now exceeds £2.6bn.

Team GB Cycling hopeful Jake Kelly, centre, with Ian Jarrett, Chairman of Thomas Miller Investment (Isle of Man) Ltd, and Laura Bellwood, Marketing Manager at Thomas Miller Investment (Isle of Man) Ltd

Thomas Miller firmly believes that businesses have a responsibility to make positive contributions to the communities in which they operate. Our recent initiatives have included supporting Team GB Cycling hopeful Jake Kelly, wheelchair athlete Darren Kennish, and a number of charitable causes through staff fund

The offshore private client business

raisers. Thomas Miller has also supported

has been central to Thomas Miller

the valuable work carried out by The

Children’s Centre throughout 2012 and 2013 and is for the fourth year running one of the proud sponsors of the Isle of Man Newspapers Awards for Excellence. Here’s to another 25 years of success!

26 inspired

Finance – Insurance

Manx Insurance Association David Kneeshaw, Chairman Manx Insurance Association and Chief Executive Royal London 360°

Manx Insurance Association Member Companies:

Once again the life sector has proven to be the largest contributor to the Isle of Man’s GDP. Not only that, we remain a key employer providing approximately 5% of the Island’s jobs. The life sector is made up of important and large institutions

AXA Isle of Man

which form part of the backbone of the

Canada Life International

Island’s economy.

Friends Provident International Steven Beevers

What do these companies do? In the main

Global Life Assurance

they provide solutions to help people

Hansard International

preserve wealth, accumulate wealth and

HPB Assurance

protect families. This is done through a

Integra Life International

variety of offshore bonds, savings plans

Isle of Man Assurance

and life assurance. The market is typically

LCL International

divided into the UK, the traditional home of offshore bonds, and the developing world. In recent times the single premium offshore market has struggled and any growth has come from outside Europe. Recent sales statistics confirm that trend continuing into 2013. In part the lack of sales growth can be attributed in the UK to

Nordea Life & Pensions David Kneeshaw

Association. The aim is to promote the industry, look to raise standards, and work with the regulators and Government to ensure a professional approach in a changing world.

the after effects of the 2008 crash and the

And it’s an interesting time for the MIA with

onset in 2013 of RDR. It is too early to tell

new regulations and capital requirements

whether UK sales will pick up appreciably

looming on the horizon.

during the year.

With all of the above going on there’s a

If the outlook in the UK has been gloomy

danger we could focus only on the issues

then there is more optimism overseas –

and overlook the positives. But there are

where the market continues to develop

many positives, not least the growing

– particularly in the Far East and Middle

appetite in the developing world for

East. For these markets the Isle of Man

financial solutions to savings needs. Isle

insurers continue to be the leading

of Man companies are at the forefront of

providers and the good reputation of the Island contributes to our success.

these developments and as they continue to thrive so too will they continue to

Closer to home the insurers work together

contribute in a major way to the Island’s

under the auspices of the Manx Insurance

economy.

Royal London 360° Royal Skandia Life Assurance Scottish Widows Zurich International Life

A jewel in the Irish Sea for captives Gaynor Brough, Chairman, Isle of Man Captive Association (IOMCA), outlines the advantages of an Isle of Man domicile for captives

The Isle of Man is considered to be

provided with a range and choice of

something of a jewel in the crown of the

captive manager that delivers credibility

captive insurance world. Indeed, it would

and service to the highest professional

be true to say that it is now shining more

standards. The Isle of Man captive sector

brightly than it has for many years. This is

prides itself on its ability to service large

because the Isle of Man has developed

and complex captives and the sector’s

an attractive business proposition based

workforce is highly qualified and stable.

on its fiscal, legal and regulatory benefits

Many large UK Corporates own captives

combined with the Island’s ease of access

domiciled in the Isle of Man and the

to London City and Gatwick airports, being

Island has the appropriate pedigree for

merely an hour away by air. This makes

successfully transacting such business.

the Island attractive to captive owners and

Its justifiable strap line is “we manage

captive managers alike who wish to meet

large and complex captives”.

regulators (IPA) and professional advisors with speed and ease on a regular basis.

The Isle of Man is a renowned international insurance centre. In addition to its captive

The captive sector is an important

insurance sector, it is a major hub for life

contributor to the Island’s core

companies. The insurance sector on Island

financial services sector. IOMCA is the

traces its origins back to the 1970s and has

representative body of the industry

developed a strong track record in client

and has a membership in excess of 40

quality since then. Assets under management

members comprising captive managers,

for the insurance sector are in excess of £56

banks, legal and accountancy firms.

billion and annual gross written premiums

Continued promotion of the sector is a

are approximately £10 billion. The insurance

key priority for IOMCA and during 2013

industry is a major employer within the

they will be exhibiting at key international

Island’s finance sector and there are in

events such as BIBA, AIRMIC and FERMA.

excess of 2,000 full time employees.

In 2012, IOMCA produced its own country strategy and has developed action plans in connection with the targeting of UK, South African and Asia Pacific companies.

A particular strength is the sheer diversity of the industry on the Island. Captive insurance business is an integral part of that diverse insurance industry, which also

World leading captive managers such as

includes life assurance and international

AON, Marsh and Willis have a presence on

pensions sectors. The Island’s

the Island. In addition several independent

insurance industry has a versatile profile

captive managers are located in the Island

comprising in excess of 225 licensed

such as Castletown Insurance services,

entities, including insurers, insurance

Isle of Man Assurance, Thomas Miller

management companies and insurance

and West Corporation. This diversity

intermediaries and over 1,400 authorised

ensures captive owners continue to be

pension schemes.

Gaynor Brough

28 inspired

Finance – Trusts

Who should you trust? Paul Hotchkiss, Chairman, Society of Trust and Estate Practitioners, Isle of Man Branch Trusts are created for a multitude of reasons: succession, tax, asset protection and wealth preservation. However, before you create a trust you need to take stock and understand all the ramifications. Take advice Advice needs to cover a multitude of areas including what a trust is and how it can assist you, tax position, personal circumstances (including financial), personal and family current and future needs and future aspirations. A good adviser will cover all of these areas and more and explain the advantages and disadvantages of a trust. Get the drafting right You may be presented with a draft trust deed. Ask your trustee to explain all the clauses in it. You need to fully understand them, leave ‘no stone unturned’, determine what you want to achieve, and take time doing this. It is worth considering taking separate and independent legal advice to make sure the trust deed is fit for your purposes and meets your current and future needs.

Take tax advice regularly You need to understand your own, the beneficiaries and the trustees’ tax position. Such advice needs to be taken at the outset. Tax laws change constantly and the laws in relation to trusts are generally complex. You should also expect the trustees to take such advice periodically: circumstances change and it is foolish to avoid taking advice simply to save costs: it may end up costing you more. Expect to pay on-going legal costs As a trust relationship evolves, changes may need to be made to the terms of the trust deed. Beneficiaries may be added, excluded, new trusts formed, and wholly owned companies established. These actions need to be carried out properly and appropriate legal advice sought where necessary. Expect your trustee to do this: very often standard template documents are used and whilst these fit some circumstances they do not fit all. Keep in touch

Paul Hotchkiss

what trustees will be required to do, what they will charge their time for and how they work. Finally, ask: do you really need a trust and do you need one now? Sometimes you can be persuaded that the creation of a trust is the right thing to do. However, be careful: a good advisor should be able to elucidate the advantages and disadvantages of creating

A trustee is not just for Christmas. Whilst most trust deeds enable someone (usually the settlor) to remove or replace trustees, this is to be avoided: it can be expensive and sometimes onerous. Most trusts have lengthy or unlimited lifetimes but you will not be around for ever. You need to be comfortable with who you chose and what happens when your point of contact or trustee is no longer employed.

Communicate with your trustees regularly. Sometimes in an effort to keep costs down some settlors or beneficiaries avoid regular contact. This can often have the opposite effect. If trustees are not informed about the whereabouts and status of the settlor or beneficiaries they cannot necessarily make informed decisions or administer the trust correctly. For example, the simple fact of a beneficiary moving from one jurisdiction to another may trigger reporting responsibilities and the necessity for tax advice or legal advice.

Make your wishes clear

Expect to pay the trustees

serve many purposes. If you wish to create

It is not only the legal drafting of the trust deed you need to get right. Trustees need guidance as to how you wish the trust to be administered in the future and this guidance comes in the form of a nonbinding letter of wishes. You need to make sure you express your wishes clearly, and if necessary review and the letter regularly - circumstances can change.

Establishing and running a trust correctly will cost money. It is important not to lose sight of this. Relationships between the settlors (or beneficiaries) and trustees often turn sour over costs, therefore, before you chose your trustee or decide to create a trust, get an idea of how much the annual running costs are likely to be. As part of this exercise understand precisely

a trust, the Isle of Man is an excellent

Choose your trustee well

a trust now or in the future and present you with a balanced view. Ask lots of questions and expect clear answers. Timing of trust establishment can sometimes be critical. There are many possibilities – trusts created during your life time, pilot trusts or Will trusts – all will have their good and bad points depending on your own and the beneficiaries’ status and circumstances. Conclusion Trusts can be very useful, flexible and can

jurisdiction in which to do this. There are a number of excellent trust lawyers, tax advisers and fiduciary companies who will be more than willing to assist you. If you wish to contact the Isle of Man Branch of the Society of Trust and Estate Practitioners, please call +44 (0)1624 872140 or email admin@stepiom.com

Finance – Foundations

An introduction to Foundations on the Isle of Man John Rimmer, Partner, Appleby

The Isle of Man has for many years been a jurisdiction of choice for the structuring administration and preservation of private wealth. As a common law jurisdiction, Manx companies and trusts have become the traditional vehicles through which wealth is passed. This has changed with the passing of the Foundations Act 2011 (“the Act”) in 2011 which came into force last year. A foundation is a legal concept more familiar to civil law jurisdictions and has never had a statutory footing in Manx law. The manx foundation’s general character A foundation can be described as a self-owning legal person formed by the dedication of property for specified purposes. Property may or may not be transferred into the foundation when it is established. The foundation is established by making a successful application for establishment to the Foundations Registrar. Whoever initiates the registration of the foundation at the outset is known as the Founder. A foundation, being a legal person, can sue and be sued in its own name and can own property in its own name. Importantly a foundation must have:

registered agents and enforcers • the remuneration of council members, registered agents and enforcers • powers that are to be reserved by the founder • when the foundation is to be woundup and for what object or person any surplus assets are to be applied. Other than certain particular issues that must be dealt with in the rules, there is wide scope for the rules to be varied from foundation to foundation. This will be exploited to adapt a foundation to its particular role. • The foundation’s objects define the purpose of the foundation. The objects must be certain, reasonable and possible, but must not be unlawful, contrary to public policy or immoral. The objects may or may not be charitable, they can also be for the benefit of a person or class of persons or for a specified purpose, or both. • The Council’s role is to administer the foundations property and to ensure that the objects are met. The council must comprise of at least one person and that person may be a corporate entity.

• A foundation instrument that defines

A council member who is an individual

the purpose or objects for which the

must be at least 18 years old, but must

foundation has been set up as well as

not be suffering from a mental disorder,

the foundation’s name.

or be disqualified from being a director

• The foundation rules which must

or officer of a company or a member of

specify those persons who will act as

a foundation council. The members of

its council, its registered agent and its

the council must act in good faith and in

enforcer. The Act specifies what must

the best interests of the foundation. The

be covered by the rules which include

council members must also exercise

but is not limited to:

the care, due diligence and skill that

• the appointment, retirement and

a reasonably prudent person would

replacement of council members,

exercise in comparable circumstances.

John Rimmer

• A Registered Agent whose initial purpose is to establish the foundation. The Bill imposes certain administrative duties including the safe custody or particular foundation documents, the production of accounts, filing of annual returns. It is envisaged that these duties will be undertaken by the registered agent. • An Enforcer whose purpose is to ensure that the objects of the foundation are met. It is not obligatory to have an enforcer, unless the foundation has a specified non-charitable object. Isle Of Man Fiduciary industry The Act specifies the various parties involved in a foundation and their roles. Amongst others, the registered agent must be a regulated corporate service provider. The Isle of Man has a well established and internationally renowned industry for the provision of corporate and trust services, and it can be assumed that this fiduciary industry will handle foundation business with its characteristic skill and efficiency.

30 inspired

Relocating to the Isle of Man, a practical guide Michelle Murphy, Relocation Options

Relocation Options has for the last five

decisions that will affect key employees

years assisted individuals, families and

be they directors, senior management or

businesses with their relocation to the Isle

technical support. The relocation may

of Man and in doing so garnered wide

also affect the partners of those willing

ranging experience in the practicalities of

to make the move to the Isle of Man and

relocating. Some of the relocations we

their families. The question of relocating

have assisted with include those ceasing

is more wide-reaching and disruptive than

residence in the UK and further afield who

simply establishing a new enterprise on

have transported their businesses to the

the island.

Isle of Man and started again through a new corporate vehicle. We have also assisted the larger multi-jurisdictional enterprises that have utilised a subsidiary based in the Isle of Man, with real presence on the Island with employees forming an integral part in their overall structure. Other managed relocations include key employees such as managing directors and senior managers of well established Isle of Man companies.

It is our experience that many of the concerns surrounding the relocation are personal rather than business related and involves questions such as where is the best place to live on the Isle of Man? Will my partner be comfortable moving to the island? What are the educational facilities available to our children? Many of the concerns are though surmountable with good advice, information and dedicated support. We believe it is advantageous

Michelle Murphy

provide the practical, softer services that make the relocation much easier such as arranging for broadband to be set-up in your new accommodation or stocking the refrigerator with the basics. We are able to source a range of properties and are

Whilst the positive business and lifestyle

to employ a committed overall relocation

perspectives may draw people to the

support system that not only assists with

Isle of Man, the practical issues for a

the establishment of the new enterprise

business, individual or even a family may

but also supports on a personal and family

seem onerous. For those on the other

level so that the key individuals of the

Through our sister businesses, Financial

side of the globe, the challenges faced are

business can hit the ground running.

Options and Corporate Options, we can

numerous, whether it is dealing in another time-zone, overcoming language barriers, grasping the Isle of Man relationship with

Relocation Options offers a bespoke relocation service and is able to assist

able to advise on a number of important areas including housing, education and employment.

assist in securing Isle of Man mortgages, life assurance, health insurance,

those moving to the island in finding

investment advice and pension advice as

the perfect accommodation to suit

well as services to businesses relocating

their requirements. Our services are

such as establishment of Isle of Man

individually tailored to those needs,

Companies, secretarial and administration

Many of the challenges faced with

ranging from general advice on relocation,

services, accountancy services and

relocation though are not just business

to property searches or accompanied

guidance on the grants and financial

related; many of the practicalities involve

property viewings. We also able to

assistance available.

the UK and European Union or just where to get started with relocating to the Isle of Man.

Relocation Options Helping professionals, families & businesses relocate to the Isle of Man with the smoothest of moves

Residential property searches

Company / Trust formation

Commercial property searches

Business start up

Isle of Man mortgage advice

Grants advice & assistance

Moving in assistance

Pension transfers

Guided island tours

Investment advice

Local services information

Insurance & assurance

Tel:

+ 44 (0) 1624 612888

Skype:

relocationoptions

Email:

enquiries@relocationoptions.co.im

Web:

www.relocationoptions.co.im

37 Hope Street, Douglas, Isle of Man, IM1 1AR

Relocation Options is a trading name of Corporate Options Limited which is registered in the Isle of Man No. 122844C and is licensed by the Isle of Man Financial Supervision Commission. Chase Financial Services Limited is registered in the Isle of Man No. 084203C and is licensed by the Isle of Man Financial Supervision Commission. Chase Financial Services Limited is registered with the Isle of Man Insurance and Pensions Authority in respect of general business.

32 inspired

Isle of Man Chamber of Commerce

Jane Dellar, Chief Executive of the Isle of

the private sector work together towards

Man Chamber of Commerce, has worked

the common goal of growing the economy.

in the Channel Islands, Caribbean and

We have members of the Chamber

Bahrain and headed Isle of Man Finance

representing businesses which are

for the Treasury. She became Chamber

competitors, but they also recognise that

Chief Executive in March 2013. The

there is a shared interest in the success

Chamber of Commerce, she says, is a

of ‘Isle of Man plc’. In simple terms,

microcosm of the Isle of Man’s unique

the prevailing attitude in the business

attitude towards business.

community is that we all have to work

“The Chamber here is a proactive

together to make the pie bigger, and it’s

organisation with an extremely high level

only when this has been done that we can

of participation from its membership.

start to discuss how it is shared out.”

We have eight committees covering construction, employment and training, finance, ICT and e-Business, manufacturing and technical, retail, tourism and transport – and around 100 business professionals who devote many hours of their free time to a variety of Chamber projects. It’s a lively and vibrant organisation in which members recognise that everyone in the business community

One of her main aims for the Isle of Man Chamber is to increase affiliations with Chambers in countries which are potential new markets for members, or countries in which members already have a presence. For example, several Isle of Man Chamber members have offices in Jersey, Guernsey, and the Isle of Man. While the Channel Islands have often been seen as

has a shared interest in the Island’s

‘competing jurisdictions’ to the Isle of Man,

success. The number of experienced and

Dellar believes that increased co-operation

talented people who are prepared to give

between Chambers can benefit members

up their time to help Chamber is quite

in all three islands.

remarkable. Of course, Chamber exists

When it comes to setting up a new

to represent its members – we receive no funding from Government – but we have a close relationship with Government and the work that our members do ultimately benefits the Island as a whole. In my experience of working in many other parts of the world the Isle of Man is unique in terms of the extent to which Government, regulators, professional organisations, and

business, Jane has practical experience which she can draw upon if asked to give advice to entrepreneurs wanting to do the same. She and a business partner recently opened a coffee shop called Coffee Exchange in the heart of the Island’s financial district. www.iomchamber.org.im

Jane Dellar

Moving forward with confidence Sandra Georgeson, Director of the Isle of Man Association of Corporate Service Providers

Change has always been an inherent part

environment. The most recent changes

of the fiduciary business and today this

are being driven by the US and now the

is no different. Since 2008 the pace of

UK FATCA agreements. Once again

change has been accelerating but some

these are heralded as ‘game changers’

of the main ‘game changers’ had affected

but these new rules and standards also

the industry even before then. During the

present opportunity and the industry will

1990’s we saw a moratorium on non-

move forward. There is no doubt that there

resident companies and the beginning of

will be another shift in the make-up of our

the Corporate and Trust Service Providers

business portfolios but can we compare

(CSP and TSP) licensing legislation.

the change we have now with that of 10 or

The 2000’s saw the implementation of

15 years ago?

the CSP and TSP licensing regimes, the

Some may disagree with the Isle of Man’s

end of the tax exempt company and the continual closing of loopholes within the

‘brave’ move to be the first to sign up to the UK agreement, but is it inevitable that

UK tax regime. But, the industry continues

the other Crown Dependencies and British

to grow, adapting to the ever changing

Overseas Territories will have to follow

operating environment.

suit? Only time will tell but the important

The Isle of Man has risen to the challenges

aspect of this latest change is responding

and its ability to innovate and diversify

and adapting to the new order of things

has shaped the Island’s economy. This

and using our intellectual capacity to find

has been advantageous not only to the

the opportunity and exploit it. In this way

Isle of Man as a whole but to the fiduciary

we will make a virtue of the new rules

sector which has often found itself at the cutting edge of these new developments.

and approach the business world with a confidence based on the knowledge that

New sectors that have been supported

we are embracing progress.

by fiduciaries include the pleasure yacht

So what is the forecast? Well, with

application, the fiduciary industry on the

space and clean technologies. Although

Isle of Man will continue to offer attractive

our tax regime has remained central to

solutions to business people all over the

those developments, the offering has

world. At the heart of all the offerings will

developed to a platform of solutions for

be confidence. That confidence is founded

businesses involved in those sectors.

on the knowledge that basing your

The Isle of Man has shown that it has

business in the Isle of Man equates

the resilience to adapt to the changing

to probity and security.

Sandra Georgeson

inspired 2013

Aerospace

The concept of clustering Adrian Moore, founder and Chairman of the Isle of Man Aerospace Cluster

I’m often asked about the concept of clustering, what it really means and in particular what the Isle of Man Aerospace Cluster is all about. In the manufacturing world and especially in the aerospace industry the importance and function of clusters is well known. They are fully appreciated as a powerful way of putting into practice a principle first conceptualised by Aristotle – ‘The whole is greater than the sum of its parts’. Leading business strategist Michael Porter proposed that in business, the cluster can be described as a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field. Clusters are considered to increase the productivity with which companies can compete nationally and globally.

Parts assembly at Swagelock Limited

has reverted once again to the primeval

area which is considered safe from those

notion of taking a raw material and adding

who might seek to steal this collateral and

value to it using skill and ingenuity to

replicate it.

The manufacturing industry in the UK

create a desirable product to sell. This is

has taken a hit over the last 100 years.

the concept that made Britain great, our

However, due to the unfortunate economic

islands wealthy and our products and

events centred around financial services

inventions the envy of the world for such a

over the last few years, manufacturing in

long time.

the British Isles is ‘trending’ again.

They are therefore naturally reserved and choose their business partners carefully to try and protect their intellectual property. This issue can also affect their attitude to staff, recruitment and further deter them

When companies decide to enter the world

from mixing with other businesses in their

In truth it always has been important

of manufacturing they are understandably

region due to the competition for skills

to those of us who have trained in

protective of their idea, designs, methods

in that area. In particular engineering is

engineering, manufacturing and science

and contacts. They can go to great lengths

becoming more and more of an issue

and technology but now it is politically

and expense to protect their ideas via

across the world due to a shortage of

‘hot’ again. The overriding culture of the

patents and copyrights and may even

newly qualified craftsmen, technicians and

last 2 decades, that money makes money,

choose to conduct their business in an

technically biased management talent.

In 2006 the aerospace sector in the Isle

can capitalise on and

of Man, built on the strong foundations

supported impressive

already in place with the local Chamber

growth.

of Commerce and the Isle Of Man Government, formed the Isle of Man Aerospace Cluster.

An innovative collaboration between government and the Isle of Man College

This sector already had a strong 60 year

has enabled the sector

heritage of design and manufacture for

to influence the way we

the civil and military markets but over this

train the engineers of the

time had never really capitalised on the

future. This approach has

power of working together as a sector.

grown into a government

We already knew each other of course

supported project to

but the culture of sharing ideas, contacts,

build a new engineering

expertise and even resources had not

training academy, with

really been exploited.

a significantly increased

It became clear very quickly that we all had something to offer such a partnership. A culture of openness and working together soon began to flourish based on the premise that if everyone brings their knowledge and experience to the table then the ultimate outcome would be benefits for all. After all, if businesses join an organisation motivated purely by ‘what’s in it for me?’ the pot will very soon run dry and the opportunity will die on the vine.

student capacity, all borne from an early initiative which puts an engineer in the Island’s schools to increase awareness of

Adrian Moore

careers in engineering (the ACE Programme). We have created a business improvement programme based on a Rolls-Royce model of excellence, joint purchasing and shared services initiatives which save money, cluster networking events and exhibited at some of the world’s biggest

We don’t have a huge budget, use outside consultants, or spend money on extensive advertising. We use our collective knowledge, contacts and passion for our industry to help each other and as a result the sector is projecting huge growth. We have already increased employment by 32% since formation and we are attracting

Over the last few years the Isle of Man

events, raised money for charities, won

Aerospace Cluster has made a big

awards and even put components on

many international businesses to expand

difference to the way the sector works. It

Mars. Most significant is the fact that little

or relocate.

has created benefits which every member

of this costs additional money.

www.aerospace.co.im

inspired 2013

Clean Tech Stroma Group – building sustainability The Stroma Group is a leading provider

breaking energy-efficient school the Isle

of building sustainability and compliance

of Man can be proud of. Stroma NX has

services. After four years of quietly building

worked extensively with the Isle of Man

relationships and a substantial body of

Department of Education and Children

diverse case studies on the Isle of Man,

and the Department of Health and the

in 2013 Stroma increased its commitment

Department of Social Care to assess and

to the Island by establishing Stroma NX

improve the energy efficiency of their

Ltd as an Island-incorporated business. It

buildings.

has now started to move key staff to the

The company’s methodology focuses

Island, the first already settled in to life in

on targeted improvements to ensure

Peel, and will look to recruit local residents

the building envelopes are working

as its workload expands, while at the same

effectively, thus reducing energy bills and

time continuing to train and accredit local

carbon emissions; it is also extended to

companies in support of the company’s

consider plumbing, heating, insulation

technologies and services.

levels, lighting and controls, as well as

Stroma NX aims to bring the largest body of state-of-the-art resources in energy services and renewable technologies to the Isle of Man. From fabulous eco houses to traditional farm estates, private new build and retro-fit residences, offices and commercial premises, public sector buildings and social housing, Stroma NX has provided a huge range of site specific solutions incorporating the latest technologies, system designs and energy services – and all in the Isle of Man. The company helps clients assess and improve their building stock’s services and fabrics, cut their energy usage, and generate their own clean, renewable energy.

new renewable hard technologies such as heat pumps, biomass, wind turbines, heat recovery, solar PV and LED lighting, to further improve the performance and comfort levels of the buildings assessed. The Isle of Man has plentiful natural resources that can be used to generate low-cost, clean, renewable energy: for example, it has one of the best wind resources in the British Isles and a wealth of forestry providing woodchip for biomass. It’s not surprising, therefore, that the Isle of Man Government is eager to promote the adoption of renewable technologies on the Island, through its Clean Tech initiative. Stroma NX supports this programme and is experienced in delivering renewable technologies on

Stephen Brown, MD of Stroma NX Ltd. and Richard Collister of The Department of Education and Children at the 2012 Isle of Man Government Energy Awards

As energy policy and best practice change, it is important that the industry can keep up. Stroma NX already provides flexible training and certification packages that enable Island-based consultants and contractors to monitor, measure and improve the Island’s buildings, whether by undertaking energy assessments, undertaking specialist air sealing or installing and servicing renewables. Its

Stroma NX projects achieved resounding

the Island, from undertaking feasibility

approval at the Isle of Man Government

studies to the supply, design, installation

Energy Awards 2012, gaining outright wins

and commissioning of renewable

in two of the six categories and a further

energy systems. As an Energy Efficiency

three commendations. Stroma NX recently

Consultant under the Department of

provided air-tightness testing services for

Economic Development’s Business

Auldyn Construction on the new £28million

Support Scheme (BSS), Stroma NX are

St Ninian’s Lower School at Bemahague,

authorised to provide related business

where the air-tight building envelope

services which could qualify for 50%

For more information go to

has contributed to delivering a ground-

Government funding of up to £4,500.

www.stromanx.im

expertise is now widely recognised on the Island and in early 2013 delivered CPD presentations to the Chartered Institute of Builders and the Royal Institute of Chartered Surveyors on the subjects of Passivhaus and The Green Deal in relation to the Isle of Man.

Komatti – inspired by the TT

Headquartered in Douglas is a new

In 2012 Komatti helped Japanese EV

start-up Komatti Ltd. Komatti is a racing

start-up Mirai to come to the Isle of Man

company, but with a twist, as Dr Koen

TT. “An interesting project”, explains

Matthys, founder of Komatti, explains:

Koen, “and more of a partnership as the

“Our business model is simple - we enable

base racing vehicle and testing platform

the trialling of new technology on the track.

was designed and built in Japan. In turn,

Conventional racing outfits have a racing

Komatti consulted on selected design,

team at their core and maintain a satellite

engineering and build aspects, did some

activity to extract technology from the race

technology development work but also

track, but we are moving in the opposite

took care of race operations at the TT and

direction. We bring new technology from

the post-race PR and communications

our clients to the race track and use it as a

outside Japan. It is important to note

proving ground for product development.

that we can offer value to technology

It’s a subtle difference at times, but it

providers in a wide range of markets –

emphasizes why we do what we do: we

consumer electronics is but one example.

race to innovate.”

We currently work with a London-based

Komatti’s approach is to seek out a

SME that produces action cameras. Their

new breed racing competition where

design team is an innovative and talented

regulations are relaxed enough to let

bunch of individuals, and their work ethos

innovation flourish. No wonder then that

aligns with ours so it was an easy match

Komatti has a heavy involvement with

from the off.”

the low carbon, zero emission racing challenge TT Zero around the Isle of Man TT Mountain Course. In fact, founder Koen Matthys has been active in electric racing on the Isle of Man since the inaugural event in 2009 and Komatti is a direct spin-off from the annual clean tech racing challenges held since then.

Asked whether Komatti will be producing consumer-ready technology or racing vehicles in-house in the near future, Koen says: “We have to start from where we are. Today we enable others to develop their technology solutions. Komatti has considered designing and developing more in-house, but this will happen

He says: “Although it is not our only

when the time is right. Because of our

activity, TT e-Racing is in the company’s

pedigree, most likely our first technology

DNA and we are most known for assisting

demonstrator vehicle would then be a

R&D start-ups and university entries

thoroughbred monster of a TT race bike.

with getting to the grid. It’s challenging

For no other reason than to show that we

because the racing budget for those

can, because sure we race to innovate -

teams is usually small, but they still need

but we also want to win!”

to get their development work done in a high-profile environment and maintain positive brand exposure while doing it.”

For more info go to komatti.com

Dr Koen Matthys, founder of Komatti

inspired 2013

ICT

Information and communications technology and economic growth ICT, or Information and Communications

number of niche software

Technology, is one of the fastest growing

businesses to relocate

sectors in the global economy, and the

here – and this has

role that it can play in economic growth is

been achieved with little

widely recognised. While the Island’s ICT

intervention. There is

sector is already strong, there is also room

considerable potential

for expansion which in turn can bring long

to create new high value

term economic benefits. In 2013 an Isle

jobs and accelerate future

of Man Information and Communication

growth by increasing the

Technology (ICT) Strategic Plan was

focus on ICT.”

produced by the e-Business Development Group to look at how Government and the private sector could work together to realise the Island’s potential in ICT. The report was prepared by Chris Gledhill, Chairman of the Manx ICT Association and Managing Director of PDMS; Chris Hall, Managing Director of Can Do Consulting; and Brian Donegan, Business

The ICT strategy will focus on four key strands: developing ICT skills, supporting existing ICT companies, attracting new inward investment, and supporting technology entrepreneurs and new

Development Manager for ICT at the

start-ups.

Department of Economic Development.

The ICT Strategic Plan clearly illustrates

devoted to supporting educational causes

Chris Hall, who led the strategic planning

that there is growing interest in the

for the benefit of students within the

potential that the Island has to create a

Isle of Man) is aiming to create a higher

increasingly important in the global

knowledge based economy in which,

education establishment in Douglas called

economy but there is a global skills

through investment in education and

The International Centre for Technology.

shortage with over 100,000 IT vacancies

training, the Isle of Man can become a

Working in conjunction with a network of

currently in the UK. In the UK the ICT

centre of excellence where the skills of ICT,

global educational and industry partners,

sector represents around 10% of the

software, and e-Business experts can be

as well as the local ICT community, it

economy, whereas currently the sector

sold worldwide. At the time of writing the

is hoped the International Centre for

represents about 4% of the Isle of Man’s

ICT Strategic Plan has been endorsed by

Technology will become a centre of

economy. So there is clearly room for

the Department of Economic Development

excellence for ICT education both for local

growth.”

and work is underway to deliver the key

students and those from off-Island. Current

actions identified in the report and to

plans involve the provision of industry

promote the Island as a great place to run

supported certification and professional

a software business.

development short courses as early as

project, commented: “ICT is becoming

Hall says that the Isle of Man has a strong proposition for ICT and is an attractive base for locating either some or all of the functions of an ICT SME - especially

In the next few years the Isle of Man could

if the entrepreneur/owner is prepared to

have a new ICT higher education centre

relocate. He adds: “During the last year

which would act as a hub for nurturing

the Island has successfully attracted a

and developing ICT entrepreneurs. The

Manx Educational Foundation (a charity

Autumn 2013, with the first major intake of full time undergraduates in September the following year. www.whereyoucan.com

Skanco - always seeing the big picture

Companies invariably want one IT partner

on many brands. Our Partnership

and not a host of irregular suppliers that

Managers not only act as the prime

never see the big picture, says David

point of contact but will proactively

Butterworth, Managing Director of IT

keep clients up to date and advise

services company Skanco Business

on new services, developments and

Systems Ltd.

products that might be of benefit to

“We aim to offer almost every service a company might need, it is the added value of skill, experience and yes, the all important ability to see the ‘big picture’, that helps us to build a service which really stands out from the crowd.” The size and strength of Skanco is Manx grown and the Braddan-based company,

their business. • Technical services – highly accredited technical team can meet a company’s needs for everything from simple installations to complex projects. It is crucial to have qualified engineers available who can respond quickly and efficiently should the need arise. • Maintenance – guaranteed response

which was founded in 1985, is wholly

times 24 hours a day, 365 days a year.

owned by its directors, all of whom are

When something stops working it can

Isle of Man residents. This, says Mr

halt the smooth operation of a business

Butterworth, is one of the reasons why

if there is no solution in place. With a

it has invested so heavily in the local

flexible contract to suit a company’s

community.

specific needs Skanco can deal with

The company now has more than 30

any problems that occur.

staff working across two custom-built

• IT Relocation – moving offices costs

locations totalling over 20,000 square

time and effort; we use our experience

feet. “That size makes us reliable, gives

to manage the relocation of IT

the customer access to a wider range of

equipment, cutting stress levels and

technical skills and allows us to pass on

staff downtime.

the benefits of higher purchasing powers,”

• Business continuity – When disaster

adds Mr Butterworth. “Yet, over the years

strikes we manage the re-instatement

we have also stayed on the cutting edge of

of systems, software and data, taking

technology, bringing ever more innovative

responsibility for getting the company

products to the Island’s businesses.”

up and running in the fastest possible

In 2011 Skanco won a three-year contract to provide IT services to the Isle of Man Government’s Information Systems Division (ISD) which involves hardware and software procurement, maintenance of servers and support for approximately 6,500 desktop and laptop computers.

time. With a Skanco Restart contract we can move a company’s entire business to our resilient and secure built facility in the event of a disaster. • Media storage – every business relies on the accuracy and security of its data. Our secure offsite storage offers a simple and cost effective way to ensure

Skanco’s services embrace:

business data is protected from loss or

• Procurement – we can find the perfect

damage.

match of hardware or software and can leverage significant purchasing power

• Outsourcing – we integrate seamlessly with a business, giving it the

David Butterworth, Managing Director, Skanco Business Systems Ltd

strength of a whole IT team at a fraction of the cost. IT is a constantly evolving area and even a small business can require a wide range of competencies and specific knowledge in order to work. • Hosting – an important part of managing and maintaining data and business-critical applications. We can meet a company’s needs from quarterrack hosting up to fully secure hosting areas containing multiple racks. • Disposal – we dispose of old equipment securely, ensuring a company’s sensitive information is completely erased. “Our philosophy is to provide professional IT services to our customers,” is the unequivocal assertion of Mr Butterworth. “We have been delivering that distinctive service for 28 years and some of the current management team have been with the company since its inception. Skanco is set apart by the quality, range and professionalism of its IT services.” www.skanco.co.uk

inspired 2013

e-Business & e-Gaming Manx Telecom – Excellence in e-Business Manx Telecom is the leading telecoms and data centre provider on the Isle of Man – we play a major role in making the Island a global centre of excellence for e-Business and businesses of all kinds.

Our Data Centre at Douglas North, just

we have achieved 100% availability since

Protection against DDOS attacks is also

outside the Island’s capital, is the only

operations began in 2005.

a priority. Manx Telecom has designed,

purpose-built Data Centre on the Isle of

installed, and manages its own multi-

Man. It offers world-class data security,

Security

layer and multi-vendor hardware and

super fast and highly resilient global

Manx Telecom is accredited to ISO/IEC

software DDOS protection platform which

connectivity, fully outsourced managed

27001, the only auditable international

platforms, plus scalable and flexible

standard which defines the requirements

hosting, network capacity and cloud

for an Information Security Management

services. Currently, our clients include

System (ISMS). One of the most rigorous

some of the world’s largest e-Gaming

standards of its type anywhere in the

companies, online bookmakers, global

world, our certification covers all of Manx

payment processors, international

Telecom’s Data Centre service operations,

e-money providers, global banks,

including managed service platforms, IP

international insurance companies, and

networks, fixed and mobile networks, plus

government departments.

Resilience

power and estate management. We also provide fully outsourced managed Data Centre platforms to a range of customers

One of the most secure and resilient

which are required to be audited annually

facilities on the Island, Douglas North

and be compliant with PCI DSS (Payment

is protected by a three metre high

Card Industry Data Security Standard); the

fence, and covered extensively by

‘gold standard’ for protecting customer

CCTV. Fabricated to a non combustible

account data.

standard and erected on a green field

incorporates the latest technologies available from leading suppliers such as Cisco Systems and Arbor Networks. All traffic is monitored at the point where we connect to Tier 1 Providers; malicious traffic is filtered out automatically, while genuine traffic is passed straight through to our customers.

Skills & Partnership We’re especially proud of our Data Centre team, the largest and most experienced of its kind on the Island. There are over 30 Manx Telecom staff specifically dedicated to delivering enterprise hosting and connectivity services to our Data Centre clients – guaranteeing that skills and expertise are always available, 24 x 7 x 365

site some 165 metres above sea level,

Connectivity

days a year. We also work in association

the centre possesses a sophisticated

We offer a variety of flexible options

including; Alcatel-Lucent, BT, Cable &

designed to meet the connectivity needs

Wireless Worldwide, Cisco, Dell, HP, Level

of a wide range of customers, whether

3, Microsoft, Mitel, Nortel, Red Hat, Sun

based on or off-Island. Our high capacity

Systems, Telefónica, and Verizon.

building management system which includes security control, environmental management, and fire suppression. Power is ensured via a resilient ring power supply and onsite substations, plus UPS battery backups, and diesel generators with 5 days of diesel storage on site. Each system is integrated and monitored by Manx Telecom’s dedicated building management systems, 24 x 7 x 365.

with a number of leading industry players

Cisco-powered MPLS off-Island network is diversely supplied over protected multi-

The Complete Package

carrier links, via a 10 Gbps SDH backbone

Taken together, our Data Centre and its

which connects the Isle of Man directly

associated on and off-Island networks,

via Points of Presence in the Isle of Man,

combined with our team’s skills and

Manchester, London, Dublin and Belfast.

experience, means that we can offer

Our Internet peering strategy involves

the complete package for any company

The Data Centre and its associated

multiple Tier 1 networks and key peering

thinking of establishing their operation on

high capacity off-Island networks were

partners in order to provide consistent

the Isle of Man. We can offer world class

initially designed to deliver 99.999%

high speed Transatlantic, European, and

Data Centre solutions, geographically

‘uptime’ to hosted customers. In fact,

Asian connectivity.

diverse 24 x 7 x 365 managed platforms

and many flavours of resilient Internet, MPLS, private circuit and international private circuit connectivity. In addition, as the leading telecoms provider on the Isle of Man, we can provide businesses with a one stop shop for advanced office telephony and broadband and mobile broadband solutions – all backed up by the largest pool of IT and telecoms talent and expertise on the Island. Our location on the Isle of Man also plays a key role in the mix. The Island has a government with a ‘can do’ attitude to e-Business, plus a growing professional support sector of legal, accounting, venture capitalists, and web specialists. Manx Telecom vigorously supports the Isle of Man Government’s e-Business strategy and has an active programme of marketing both our Data Centre and the Isle of Man to potential clients across the globe. The strategy seems to be working, as the company – and the Island – is winning a significant share of the investment in worldwide e-Business and technology relocation. Companies can choose to base themselves anywhere in the world – increasingly, they are choosing the Isle of Man and Manx Telecom.

42 inspired

Registering intellectual property in the Isle of Man By Andrew Cardwell, Tax Director, Abacus Trust Company Limited

The Isle of Man offers a favourable regime

and both the WIPO Berne and Rome

for holding intellectual property (‘IP’) rights,

Conventions on copyright.

the principal benefits being protection of those rights under legislative provisions, IP

Taxation

treaties and conventions and tax neutrality

With few exceptions, Isle of Man

offered to non-resident beneficial owners

companies are subject to the general

of the IP.

corporate tax rate of 0% and distributions

Whilst many offshore financial centres offer

to non-resident investors are free of

tax neutrality for entities holding IP, the Isle

withholding taxes. This provides complete

of Man may be well ahead of its rivals in

tax neutrality in the Isle of Man, although

terms of asset protection. Few offshore

foreign withholding taxes would need to

jurisdictions can claim the extensive

be considered if income originates from

protection afforded in the Island.

overseas jurisdictions.

Legislation, Treaties & Conventions

The tax consequences of transferring existing IP to a new structure must be considered, as they should for the

IP law in the Isle of Man is based upon

creation of new IP within a structure. Tax

UK statute. In relation to patents and

issues during the lifespan of the IP are

trademarks, for example, this is by

also important – the withholding taxes on

extension of applicable UK law to the

income referred to above, for example – as

Island, and for copyright, through the

should the tax consequences of an exit by

Island’s own legislative provisions, which

way of sale of IP.

mirror the equivalent UK statute.

Andrew Cardwell

• Corporate ownership: Controlled Foreign Company legislation dictates that where there is a ‘relevant UK connection’, profits of offshore companies holding IP will be attributed back to the UK parent. The term ‘relevant UK connection’ refers to the

If there are UK connections, anti-

origin of the IP or where the activities

This extension of UK statute to the Isle of

avoidance provisions must be considered:

relating to creation, maintenance or

Man means that that the Island is party to

• Personal ownership: In many cases,

enhancement of the IP are carried on.

the Patent Cooperation Treaty and Madrid

tax provisions designed to target

Similar provisions tend to apply in the

Protocol (trademarks), neither of which

transfers of assets by individuals

more sophisticated jurisdictions, and

extends to the Channel Islands and British

to offshore structures result in an

irrespective of where the beneficial owners

overseas territories such as the BVI.

increased burden of UK tax compared

of IP reside, detailed tax advice should

The Island is also party to, amongst

to holding property through a UK

always be sought before engaging in any

others, the World Intellectual Property

company, but there is still scope for

planning offshore. For more information

Organisation (‘WIPO’) Paris Convention

planning if the beneficial owner is

on how Abacus can assist you with

on trademarks and patents; the World

foreign domiciled or is considering a

intellectual property telephone

Trade Organisation’s TRIPS Agreement

move abroad before any significant

+44 1624 689 600.

on trademarks, patents and copyright;

profit is generated from the project.

www.abacusiom.com

OFFSHORE TAX SPECIALISTS A privately owned independent Tax Consultancy providing bespoke solutions and tax advice to Corporate and Private Clients

Manx Disclosure Facility Offshore Health Check UK FATCA Fios Limited | Murdoch Chambers, South Quay, Douglas, Isle of Man IM1 5AS Tel +44 (0)1624 614955 | Fax +44 (0)1624 615601 info@fiostax.com | www.fiostax.com

44 inspired

Kreston International brand launches on the Isle of Man One of the Island’s leading independent corporate and trust service providers has recently adopted the brand of its network, Kreston International. Previously under the name of BW Oakfield Group, the established company became Kreston IOM Limited (“Kreston IOM”), at a recent launch in Douglas. The launch took place in the presence of the Isle of Man’s Chief Minister, Allan Bell, Minister for the Department of Economic Development, John Shimmin and on his second visit to the Isle of Man, Kreston International Chief Executive Officer, Jon Lisby, along with over 100 invited guests. However, despite the change of name,

Left to right are Stewart Davies, Managing Director, Kreston IOM; Department of Economic Development Minister John Shimmin MHK; Chief Minister Allan Bell MHK and Jon Lisby, Kreston International Chief Executive Officer.

especially in China, South Africa, Eastern

‘International Wealth and Fiduciary

Europe and South America.

Services’, composing of 12 territories including Singapore, Luxemburg,

Kreston IOM Limited has been heavily

Stewart Davies, Managing Director,

involved in the Network since its initial

Kreston IOM, explains, “Whilst the Network

membership was accepted in 2005.

is particularity strong in developed

Commenting on this initiative he added,

countries, we believe that our core

“We were asked to set up this Group

opportunity and USP will be to target

following the last World Conference,

existing and new members in emerging

hosted by Jun He Law firm in Beijing in

markets, with a specific emphasis on

September 2012. Despite the differing

China, India and Africa. During the last two

nature of the firms and the various time

is currently the 13th largest Accounting

years, we have attended and spoken at

zones, we have successfully completed

Network in the world and won the

the regional Asia Pacific Conferences in

two meetings by Video Conference and

International Accounting Bulletins’ ‘Rising

Sri Lanka and Mauritius, and this year we

will hold our inaugural physical meeting

Star’ Network award in 2012.

will attend the conference being hosted in

later in 2013.

Kreston International is a dedicated Network of accountants and business advisors, based in 105 countries with 700 offices, providing a resource of over 21,000 professional and support staff. It

The Network is particularly strong in

Bangalore.

Switzerland, BVI and Malta.

We have already established Kreston

the United States, where it is heavily

We also believe that the Kreston brand

IOM as the primary source of Isle of

represented by CBIZ MHM, with over

will allow us to open doors and take

Man structures for the Group (Trust,

140 offices in the country, along with

advantage of the emerging wealth in

Foundations and Companies)”.

established jurisdictions in Western

these countries, not least due to the Isle

Europe including Germany, France, Spain

of Man’s safe haven status as AA+ rated

and the Netherlands.

territory and its established position as an

Of particular interest to the Isle of

International Financial Centre”.

In terms of the current Isle of Man business, Kreston IOM expects their rate of growth to continue, despite the tough market conditions in 2011 and 2012.

Man business is the Networks’ recent

In addition, Kreston IOM chairs the

Their success is attributed primarily to the

expansion in emerging markets -

Networks’ special interest group -

emphasis on focusing on the Network and

high value quality businesses, as well as

scrutiny of planning; high profile press

to acquire good quality businesses in

accepting that the traditional local markets

and UK Government commentary on tax

2013/14”.

(UK and Ireland), will not see significant

avoidance confirms this.

growth going forward.

We welcome both the Isle of Man’s FATCA

Outlining his views on the topic, Davies

agreement with the UK and its Manx

said;

Disclosure Facility as suitable mechanisms for weeding out ineffective structures. We

Kreston IOM will be attending this years’ World Conference in Vancouver, in September, at which the Company intends to solidify its position as the leading

“We need to acknowledge that as

believe that this will lead to consolidation

Fiduciary Service Provider in the Network

established jurisdictions are struggling

within the Isle of Man Fiduciary Sector. We

and also push on with the Special Interest

for tax receipts, there will be greater

plan to take advantage of this by seeking

Group initiative.

Building Trust Around the World Kreston IOM is one of the Isle of Man’s leading independent providers of Trust, Fiduciary and Corporate services. We manage and administer underlying assets worth over £2 billion, specialising in: · Trust · Foundations · Companies We are the Isle of Man’s only representative of Kreston International, a global network of independent accounting firms with over 700 firms in 105 countries, providing a resource of over 21,000 professional and support staff. Due to our affiliation with Kreston International, we are able to offer a multi-jurisdictional as well as a personal approach to our clients. As a member of the Kreston International network, Kreston IOM is also a member of the prestigious Forum of Firms association. Kreston IOM is licensed by the Isle of Man Financial Supervision Commission to provide Corporate and Trust Services.

IOM

Millennium House, Victoria Road Douglas, Isle of Man IM2 4RW

Tel: +44 1624 611926 Email: info@kreston.im Visit: www.kreston.im

46 inspired

Setting up and running an e-Gaming business in the Isle of Man Ray Davies, e-Gaming Development Manager, Department of Economic Development

There are a number of challenges facing

ready to launch when the operator is ready

the entrepreneur who is considering

to go and further capitalisation may be

establishing an online e-Gaming company,

required. There may be numerous other

not least of which is choosing the right

reasons that operators need to be aware

jurisdiction in which to locate the business.

of and that can slow down the go live

Each jurisdiction is different whilst sharing

process.

some similarities. Operators should base their decision upon a number of factors, a

In the Isle of Man, we have developed a

low cost operating environment, a robust

very strong professional services sector

and resilient technical platform, the quality

that can provide invaluable assistance to

of the regulation required, the location

potential new operators. New operators

of the target audience, the payment

have a lot of things to deal with, just by

services required, and even the time zone,

concentrating on their business and

can be important and the jurisdictions

markets. Having the additional burden

international credentials should also play a

of the licensing process is very hard

part in the ultimate decision.

and some operators find themselves

Clearly anyone looking for the highest

taking their eye off the ball. This is

standards of regulation, a low cost

where the corporate service provider

operating environment, world class

can be invaluable. The CSP will assist

technical platform and a business friendly

with the licence application, provision

and supportive government would do well

of directors and designated officials,

to include the Isle of Man as part of their

due diligence checks, anti-money

jurisdictional research.

laundering requirements, KYC, business

The first step is to establish a licence

plan preparation and all of the other

gamers will be interested in converting

for online activities with a jurisdiction of

requirements of the licence application

to a real-money environment, but those

repute. The Isle of Man has the ‘gold’

leaving the operator to focus on what

that do could be converted and retained

standard and is widely recognised as

they know best – the business and

at a fraction of the cost of acquiring new

a world-class centre of excellence for

attracting players.

players. It is the trusted brand and the

e-Gaming. Having established the licence it is important to get the timing right. Many operators applying for a licence are very

Some operators may find the process of establishing a new gaming business quite

Ray Davies

With the huge rise in social media gaming a ‘white label’ is an excellent example of where an operator of non-gambling social games can cross sell and commercialise a real money experience to its social media player base. Not all social media

trusted customer experience that is the catalyst for conversion.

daunting and would prefer a ‘toe-in-the-

There is no doubt that there is a lot to think

water’ approach. Using a ‘white label’

about when considering establishing an

is always a period of setting up, contracts

or an Isle of Man ‘sub-licence’, potential

e-Gaming business. My advice to anyone

and SLAs may still need to be established,

operators can quickly, easily and at low

considering taking the plunge is to contact

software glitches can occur, software

cost, establish an online site that looks

testing has not been fully completed or

and feels just like their own brand, and for

not fully tested, bank accounts may not

good reason it is - but with much of the

have been set up or are still within the due

regulatory requirement being provided for

diligence process. Partners may not be

by a fully licensed operator.

keen to start operating as soon as the licence has been issued. In reality there

the Isle of Man e-Gaming Team. We have a great deal of experience in helping new business to flourish and can provide help and support in the early stages. www.whereyoucan.com/egaming

ace in the pack “Being offline costs money. That’s why we rely on a world class hosting provider” Gary Hill Director of IT Operations Rational Group, owners of PokerStars and Full Tilt Poker

hosting the world’s biggest poker sites call +44 (0) 1624 888 777 visit manxtelecom.com/egaming

48 inspired

Corporate social responsibility – who should be interested? Bill Mummery, Executive Director, Celton Manx Corporate philanthropy, or corporate social

to meet consumers’ rising expectations of

responsibility, is the act of corporations

the role businesses should play in society’.

donating some of their profits, or their

Consumers, quite rightly, increasingly

resources, to charitable causes. To be

expect more from the companies they

effective such a programme of supporting

support and display loyalty to in their

the communities in which we operate has

community engagement policies.

to be supported at board level and be

Clearly, as with individuals, the ability

part of the culture of the business. Where

for businesses and corporations to

this happens there is clear evidence that

contribute will vary significantly. In my

it helps motivate, attract, and retain staff.

view, the traditional approach adopted by

“People want to work at a company where

shareholders in too many publicly listed

they share the values and the ethos,” says

companies is that the only mandate given

Mike Kelly, Head of CSR at KPMG Europe.

to senior management is to maximise

In my view we all should. Much like the

profits for shareholders. I believe that this

even with continued uncertainty about the

growing importance of ‘Third Sector’

is out of line with both the views of society

global economy.

voluntary organisations delivering

and their customers.

For me the key statistic is the US$695 per

vital services in areas like health care,

Companies that 20 years ago were held

employee figure. It may not be achievable

education, and homelessness, the role of

accountable only for direct, contractually

for all corporations, but it isn’t a wholly

responsible, structured corporate giving

specified, or regulated consequences of

unrealistic target. The same report showed

has never been so important.

their actions today find themselves held

that there is a clear trend towards fewer

In our personal lives many people

to account for the consequences of their

grants (down by 26% since 2009) but of

recognise that they enjoy a relatively

actions in areas as disparate as offshoring,

higher value (up 31%).

privileged position in society which allows

obesity, excessive consumer debt, and

At the same time there has been a

them, and their families, to enjoy a higher

environmental sustainability.

move towards more focused causes

standard of living than others and that it

Encouragingly though, executives whose

which means that potential recipient

is absolutely right and appropriate to put

companies have a corporate philanthropy

charitable organisations have to be

back into their community. This is often

programme now recognise that these

‘smarter’ in the way that the apply for

through voluntary and charitable work, or

programmes are much likelier to address

grant funding, particularly for the larger

through service organisations such as the

a broad mix of local issues to address the

so called ‘signature’ grants. But, at the

Rotary movement, Lions Clubs or any of

social and political issues that they expect

same time, the awarding of smaller grants

the other service organisations.

will affect shareholder value the most. The

has increased significantly. This is also

In my view, given the present economic

mix of issues addressed varies across

encouraging for communities such as

climate that most societies are struggling

industries and regions, but the overall

ours.

with, it is an opportunity for the corporate

difference remains.

So, in conclusion, my wish for 2013

sector to support the communities in

It is also heartening to read in a report

and beyond is that the Isle of Man as a

which they operate. Even as businesses

published in January 2013 that each of

business community considers what it

we benefit from all of the fabric of our

the Fortune 500 companies included in

can do both collectively and as individual

society, its Government, its infrastructure

the report gave an average of $21 million

companies to work with and support our

and most of all its people. Investing back

($695 per employee), and 60% of the

community, the many excellent initiatives

into the community is not only the right

companies gave more in 2011 than they

and ‘Third Sector’ organisations that

thing to do as businesses, it’s also the

did in 2009. For a third of the companies

deliver high quality services in a committed

smart thing to do

in the survey, giving rose by 25% or more.

and efficient manner.

A recent McKinsey global survey indicated

This shows that a substantial number of

Without doubt we all benefit and it

that ‘corporate philanthropy can be an

companies are progressing towards their

strengthens our community, our Island and

effective tool for companies that are trying

giving levels prior to the financial crisis,

quality of life.

Bill Mummery

IE R

AD LERAL C S OF HU R M CH AN O HE AT F ST HEANLRTY BL HL G HCAROOM ET ERME TRNUOBL IC AN ST EM AS PE AYO SO EL RAL M CI ISL CON AN VIC AT E O CER X T TIM IO F M T R AE SUP N A AMS K PO TR N F EY WO RT AC OO TEN ND K TBA NIS O AN LL CLU D TE B FI AM EL CR D W US I

KE TH CR M M EC M AT OS ANX RY H SR SPC K EDE

SUPPORTING OUR

COMMUNITY

corporate@celtonmanx.com

OM MB LIFE W M ER BO AR ER O AT R CE F IO

DO U C GLA C HA S

CE LT ON

SH E UPBE ONRE AV HO A E CK D M EY R E CL EA N UB M T

CA ST LE TO W N

www.celtonmanx.com • www.sbobet.com

Celton House • Isle of Man Business Park • Douglas • Isle of Man • IM2 2QZ

EN T

AWBRE R EL A AY IS A KT FO L R H IS E O D RO R LI DOLE F MAS UG FE EL U O N F H LA GL F AG O B N AS M RIC R RE VA B AS UL A PO NN OR N TU E T C RT IN OU R RALX AN C P JU ST IP GH ED BE E C ER NE NI M ES F OR A ANIR C VOLL RY D EW R LE E ST AC L D O O N EP T HI IF RU RK S TRN EV EB M S S U C ST E EM OA S T

JO J URUN I NEJUN NA OR LE TB IO LIS AG A R T UELL

CELTON MANX

From Fireworks to Football, Healthcare to Hockey, Training to Taekwondo, we are actively engaged in Island life. Proudly supporting community, charity, sport and youth projects in the Isle of Man.

50 inspired

Keep calm and carry on licensing! by Tina Rawlinson, Director, Cavendish Trust Company Limited

There is some concern surrounding the

proposals were not designed to duplicate

impact the impending shake up of the

the work of other ‘approved’ regulators

UK’s gambling and licensing regulations

or to unnecessarily increase burdens

will have on the Isle of Man’s e-Gaming

imposed on operators.

sector.

We, therefore, have to accept that

The UK’s influential Department of Culture,

there will be changes to the UK gaming

Media and Sport Committee (DCMS) has

legislation, the changes may impact

recommended that, in future, all operators

upon the cost base for those Isle of Man

providing services or advertising to British-

licensed operators with UK clients and,

based consumers should be taxed and

also, that at some point in the future,

regulated at the point of consumption

the Isle of Man’s white label status will

(POC). Companies would also be subject

Tina Rawlinson

to a tax on UK gaming yields, at a rate still to be set.

registered e-Gaming companies will get

Around 80% of online gambling in the

favourable UK licensing provisions with

UK is currently conducted with operators

fast track priority, meaning no duplicating

not licensed in the UK. Under existing

of due diligence etc.

UK legislation, these non UK operators must be licensed in one of the white list jurisdictions approved by the UK Gambling Commission. The Isle of Man is one of only four such white list jurisdictions in the world and, of the four, the Isle of

Opponents of the Bill say it will not provide any more protection for consumers and could even drive them to unlicensed

be lost and previously non-white listed jurisdictions will be allowed to advertise to the UK market, creating a highly competitive and potentially overcrowded market place. Whilst this may be a cause of concern for some, I believe the changes in the UK will have a minimal impact on the Isle of Man’s e-Gaming sector.

operators with a cheaper cost base and

My opinion is based on the fact that the

therefore higher win percentages. But

Isle of Man has created its market position

the UK authorities are convinced the

by offering a commercially superior,

Man is seen by many as offering the best

POC-regulation proposals will ‘bridge

responsible and well regulated platform

infrastructure and services for the gaming

a regulatory gap’ that currently exists

for international e-Gaming companies and

industry.

in consumer protection and anti-

that this offering has not changed, and will

The DCMS admits the proposed changes

corruption efforts, claiming operators in

not change, for the foreseeable future. As

well-regulated jurisdictions will not face

such, the Isle of Man will continue to be a

system, but has confirmed that operators

significant increases in licensing costs.

very attractive location for all e-Business

already doing business in the UK, but

DCMS Minister, Hugh Robertson, says

based in a white-listed country, will

the changes mean all operators selling

It is also worth noting that the Isle of Man

benefit from a ‘period of transition’ during

into the British market, wherever they

Government has intimated it may consider

which they will automatically be given a

are based, would be required to hold a

mitigating the ‘doubling up’ of gaming duty

‘provisional licence’ to ensure continuity of

UK Gambling Commission licence and

costs, caused by needing both an Isle of

trade. Further, former white list jurisdiction

adhere to UK gambling laws, but that the

Man and a UK license, however even if all

will mean the scrapping of the white list

entities.

Isle of Man gaming duties are removed, it will only offset a portion of the proposed UK duty charges facing all e-Gaming companies doing business in the UK. Furthermore, any changes in the UK position aren’t likely to take place until December 2014 at the very earliest, so this still provides a lengthy timeframe in which to take an e-Gaming business through licensing and, thereafter, achieve the UK market share advantages available to Isle of Man licensed gaming operators, prior to the market opening up, post the legislative changes. So my advice to any start-up or established businesses considering applying for an e-Gaming licence in the Isle of Man, is to begin the application process as soon as possible and make hay while the sun shines! And even after implementation, the significant advantages of being an Isle of Man based e-Gaming company will remain; which can be summarised as follows: • the kudos from being established in a top tier regulatory jurisdiction • world class telecoms and hosting facilities with resilient power supply • a business friendly (pro-Gaming) Government • a zero corporation tax platform • very low gaming duties • network of highly experienced professionals to support the industry. So keep calm and carry on licensing!

Cavendish Trust is a multi-jurisdictional, independent corporate and trust service provider with extensive experience resulting in the ability to administer all international structures, irrespective of asset value, size, complexity or level of activity. Our services include management of: • • • • • •

companies from all major jurisdictions trusts and foundations aircraft, superyachts and ships space/ satellite related entities e-Gaming and IP structures AIM/ IPO entities

To contact Cavendish, please visit www.cavendishtrust.com, call +44 1624 679000 or email info@cavendishtrust.com Licensed by the Isle of Man Financial Supervision Commission

52 inspired

Continent 8 continues to invest in Isle of Man

Continent 8 has been in operation in

market. We have also increased both

gradual growth of these customers, their

the Isle of Man for 6 years now having

technical and commercial resources

service requirements, their geographical

grown significantly in terms of service

locally through the addition of three senior

expansion challenges and the regulatory

and footprint to meet the ever challenging

professionals sourced locally on the Isle

roadblocks that they have faced, together

demands from our growing customer

of Man. This demonstrates Continent 8’s

with Continent 8 that has formed our

base. Continent 8 is focused exclusively

continued commitment to the location of

customer focus strategy. There is no

on delivering on advanced secure service

our global headquarters.

comparative services based company in

levels to the gaming community through our hosting centre in Douglas, and our extensive suite of services supported on a private redundant global backbone. No other provider in the Isle of Man offers

In addition to a suite of services designed specifically to meet the requirements of the gaming sector, the key differentiator in the Isle of Man is how we manage our

the gaming industry that has lived through these challenges, or gained such a level of experience in the way that Continent 8 has.

infrastructure and network. Continent

Considering the pace at which the

8, in addition to an unparalleled service

gaming industry is moving, we see every

model that has been created, has a

development as an opportunity to grow

unique differentiator in terms of network.

our service and geographical capabilities

Rather than depend on local IP transit

by staying close to regulation, keeping

Continent 8 has just announced an

providers, which are available as a back-

an open and flexible approach to partner

extension to its pan-European network

up, Continent 8 has invested to build a

development and maintaining a healthy

into Italy and Dublin to meet demand

fully private protected redundant network

capital reserve to react to changing

from gaming companies for connectivity

connected to two separate data centre

conditions for the benefit of Continent

to address additional diversity and

locations in Paris and London. This private

8 and our customers alike. This has

resilience. The new points of presence

network, in addition to the IP Transit routes

been evidenced by our continued

(PoP), which has been in service since Q3

available, gives us the flexibility to deliver

expansion to support customers in

2012, provides Continent 8’s customers

a unique and reliable online experience,

multiple jurisdictions, address regulatory

with resilient, high quality private data,

and an enhanced level of service in terms

developments such as the launch of

video, voice and internet services. This

of MPLS VPN Network services, effective

our Paris data centre in reaction to the

results in additional resilience for gaming

DDOS monitoring and mitigation and a

Arjel framework and the network and

companies located in Continent 8’s Isle

suite of fully managed services.

services growth to provide a single partner

an end-to-end solution to support our customers with a defined and measurable performance management capability in all of the markets they operate in.

of Man hosting facility addressing Central and Eastern Europe in terms of high speed internet services along with direct

Since our beginnings in 1997 Continent 8 has defined a unique approach in

approach for communications, hosting and management for our customers.

the gaming industry to customer focus

In the past year we have witnessed

which has created an environment for our

considerable growth in customer

customer’s success. To understand this it

acquisition, service capability and

Continent 8 launched operations in the

is important to go back to the beginning

locations from which they can be offered.

Isle of Man in 2006 building an

of the online gaming industry as we know

Through expansion and investment

expandable data centre to address

it today. Continent 8 launched its first

we have fuelled increased customer

Gaming and Enterprise markets alike.

service to the industry in Montreal in 1997

acquisition and uptake on newly launched

This facility is currently being trebled in

to what were start-up operators, and

services, particularly in the area of shared,

capacity to address growth in demand

networks who now form the largest in the

for Continent 8 services in the Isle of Man

online gaming industry. It is through the

connectivity to London and Paris as part of the Continent 8 Private MPLS backbone.

Continued over

Itâ&#x20AC;&#x2122;s all in hand...

continent8.com

reliable innovation

eGamingâ&#x20AC;&#x2122;s multi-jurisdictional hosting solution

54 inspired

Continent 8 (continued)

managed and networking services. We have also greatly extended the services portfolio we provide to our existing customer base fuelling organic revenue

the regulated jurisdictions. In terms of future strategy Continent 8 will continue to closely monitor regulatory

centre. We work closely with customers, regulators and governments to create unique regulatory models to support our

developments within the sector with the

customerâ&#x20AC;&#x2122;s business challenges.

objective of continuing our expansion in

Continent 8 is uniquely positioned to

terms of footprint and services to meet the

new products and services designed to

provide an end-to-end service approach

communications and hosting requirements

address the sector requirements while

of our customers, wherever they need to

to assume responsibility for infrastructure

expanding its jurisdictional footprint

be. North America and Asia are two key

with many data centres across multiple

priorities for us right now, though Europe

continents. This has been the key to

is also a key growth geography which we

expanding the addressable market for

will continue to invest in and support as

our business. We are the only data centre

demonstrated by the current expansion

Continent 8 remains committed to the Isle

provider that can offer a multi-jurisdiction

underway in the Isle of Man and the

of Man with growth forecast for some time

solution approach to the gaming sector in

launch of the Continent 8 Dublin data

to come.

growth and profitability. Continent 8 has grown, developed and delivered

and network management functions for our customers allowing them to focus on what is core to supporting their business, application performance and availability.

Transfer Agency Solutions for the Asset Management Industry The Riva Advantage In an increasingly global transfer agency environment, the ability to offer a single TA solution capable of servicing multiple jurisdictions and product types across the globe has become a primary requirement. Riva offers a comprehensive transfer agency solution that supports multiple locations, jurisdictions and investment products on a single platform with a low total cost of ownership.

For further information please visit our website www.rivafs.com or call us on +44 (0) 1624 850140 and learn more about Riva TA.

Riva Financial Systems

Nestled away in the peaceful surroundings

integrated imaging and workflow

us to move quickly to be ready to support

of the Isle of Man is a thriving niche

functionality, enhanced foreign exchange

our clients’ needs in any new markets we

software company that is making a big

processing and interface capabilities with

enter.”

impression on the global asset servicing

an open database architecture.

industry.

To fully complete its value proposition, Riva

Riva’s ascendancy was publicly

Financial Systems maintains a team of

Riva Financial Systems was founded by

acknowledged in September 2007 when

highly skilled business analysts, software

a group of experienced business and

Franklin Templeton Investments, one of the

quality engineers and developers recruited

technical experts who recognised that

world’s largest asset managers and global

from within the financial services industry

legacy transfer agency systems relying

distributors of funds acquired a majority

to ensure that design, implementation

upon decades old software and hardware

stake in the company.

and support issues are always addressed

Riva’s status as a key market player was

in the appropriate business context by

confirmed in January 2013 following the

individuals with the required expertise.

announcement that Riva TA had been

It is this rare combination of business

Together, the founders conceived of

successfully deployed across the entire

knowledge and technical skill that we

a flexible, scalable, affordable, self-

international transfer agency operations

believe sets Riva apart in the industry.

contained investor record keeping solution

at Franklin Templeton Investments

built using best of class technology and

marking the culmination of a project

Valuing the island’s enterprising heritage

servers, and the flagship product that

that Mr Ghassan Hakim, CEO of Riva

emerged from this blueprint was Riva

Financial Systems, described as being

Transfer Agent (‘Riva TA’).

“unprecedented in terms of scale and

would struggle to keep up with the changing demands of a transfer agent in an increasingly global marketplace.

Suitable for both a transfer agent and fund

complexity”.

and values, and a vision which looks beyond its shores to the world at large, Riva Financial Systems is headquartered in the Isle of Man, with offices and employees also based in Luxembourg,

administrator, Riva TA is a highly functional

Whilst speaking about the successful

Canada and India. As at January 2013,

dealing and registration software solution

deployment of Riva TA, Paul Brady,

the Riva TA software was used to manage

capable of supporting the entire investor

Senior Vice President and Operations

approximately US $230 billion of assets

record-keeping process across multiple

director at Franklin Templeton Investments

across 14 global locations covering Asia,

administration centres, investment

commented, “The Riva system will now

Middle East, Europe and the United

products and currencies. Operating on

support all of our cross border clients

States.

a single platform, it comprises a range

in countries across Asia, Europe, the

of features designed to make transfer

Middle East and Latin America on a

agency operations more efficient, flexible

single efficient global platform, delivering

Should you wish to learn more about Riva

and responsive. It offers among other

a standardised service and operational

TA’s potential within your organisation,

features, a web enabled front-end for ease

model supplemented with regional

please visit our website www.rivafs.com or

of servicing, integrated cash management

features. As our global business

alternatively please call us on +44 (1624)

and general ledger advanced functionality,

continues to expand, this solution will allow

850 140 or email learnmore@rivafs.com

inspired 00 inspired

2013

Lifestyle Owzat! Bowled over by Island life David Smith, Marketing Director, Manx Telecom

Anyone working in London would find it

good iron shots – another advantage

of sports. Playing in the midweek evening

difficult to leave the office on a Wednesday

of Island life. He’s found that the Manx

cricket league here is something that I

evening and be opening the bowling for a

sporting community is ideal to enjoy his

would struggle to find time for in many

club cricket team within the hour. But that’s

passion for golf and distance running – but

other locations simply because of the

just accepted as one of the advantages

it’s cricket which is his main pastime.

commuting time.” In midweek the long

of the work/life balance that business people in the Isle of Man enjoy. Manx Telecom Marketing Director David Smith

“Cricket is my first love and I had only been on the Island a few weeks before

summer evenings can be filled with cricket matches, running races, or even a full round of golf in June or July.

moved to the Island in early 2011 to take

I was invited to play for Ronaldsway

up his current role with the Island’s leading

Cricket Club in the south of the Island,”

As a keen runner (he finished the 2013

telecoms provider, and he makes the most

he says. “The Isle of Man is a friendly

Virgin London Marathon and has also

of the sporting opportunities the Island

place and very welcoming for newcomers,

run marathons in Paris and Berlin) the

offers. He’s a member of Peel Golf Club

and anyone who loves sport will find

Island’s beautiful scenery with its rolling

and the distance of his daily commute

many kindred spirits here and many

hills, beaches, and trails provide a perfect

is little more than the equivalent of a few

opportunities to take part in a wide range

place to train with friends in the Isle of Man

Veteran Athletes Club, or just to enjoy a relaxing jog after a busy day in the office. He’s also taken part in the Manx Telecom End2End Mountain Bike Challenge – a 46-mile race across the length of the Island from north to south – and the Manx Telecom Parish Walk which is an epic 85mile endurance challenge which attracts around 2,000 participants every year. “Sport plays a big part in the Island’s community and, like many people, when I first arrived here I was impressed by the high level of participation in lots of different sports. Manx Telecom is one of the Island’s major employers and we recognise that we have a responsibility to play a part in supporting the local community, and one of the ways we do that is to sponsor sports events and clubs. So I’m doubly lucky that not only is the Island a great place to take part in sports that I enjoy, but part of my job also involves helping to support events and clubs that are an integral part of Island life.” Manx Telecom also sponsors the Manx Road Club (the club includes Tour de France star Mark Cavendish MBE and London 2012 Olympic gold medallist Peter Kennaugh MBE as members) and competes as Team Manx Telecom. Prior to moving to the Isle of Man to take up his role with Manx Telecom, David worked for telecoms operators in several far flung parts of the world, and has been based in Barbados, Grand Cayman, Jersey and Pakistan. “All things considered, I would rate the Isle of Man as my number one location for sport over my career. Perhaps I’d select the Caribbean for the weather and Pakistan for cricketing prowess, but neither location can offer long summer evenings, idyllic mountain back-drops and a friendly rivalry that’s second to none.”

00 inspired

inspired 2013

Ship Management Bernhard Schulte Shipmanagement (Isle of Man) Ltd Bernhard Schulte Shipmanagement (Isle of Man) Limited has a proud history of over 26 years operating from the Isle of Man. During this time the company has gone through many changes and today is designated as a Crew Management Centre within the Bernhard Schulte Shipmanagement Group (BSM). BSM are currently the second largest ship manager in the world, managing over 600 vessels on behalf of our clients, including the Schulte Group’s own fleet of 85 vessels. We specialise in providing crew management services to a wide variety of clients and vessels, including specialised types such as LPG/LNG carriers, chemical/product carriers, crude oil tankers, offshore supply vessels, FPSOs, FSOs and drilling vessels. We currently manage over 100 vessels.

As part of the BSM Group we can utilise

in house travel agency, Eurasia Travel (Isle

the strengths of other offices for situations

of Man) LP offers all aspects of marine

where we do not have in house expertise.

travel services to our Group and external

Examples include technical management,

third party customers.

chartering services and newbuilding

Providing the highest quality officers and

supervision. However, in addition to crew

The statutory management side of our

ratings, either recruited through BSM’s

management, we also provide statutory

business provides our connection with the

global network of Crew Service Centre’s or

management, gas and chemical training

Isle of Man Ship Registry. As part of the

directly by ourselves, is a critical element

and cryogenic consultancy services. Our

Schulte Group, who are shipowners

of the service we provide to our clients. This global network ensures that we can provide crew which meet shipowners’ specific and demanding needs whether it be nationality of crew, levels of training and competence or years of sea service. The crew are then supported by our experienced teams based in the Isle of Man office who specialise in the management of the crew, recruitment activities, insurance administration and claims handling, accounting and payroll operations. In total there are 75 people employed in the Isle of Man office and we are certified by Lloyds Register under ISO 9001, ISO 14001 and ISM code standards.

59 in their own right, we administer all aspects of the registration and ongoing administration for vessels which sail under the Isle of Man Flag. We also provide the same service to external clients. This includes acting on behalf of the shipowner as the Representative Person under the requirements of the Isle of Man Flag and the provision of advice for ship registration/deregistration etc. We have an excellent working relationship with the Isle of Man Ship Registry and are able to work together to meet our specific client requirements. Due to its location on the Isle of Man, Bernhard Schulte Shipmanagement (Isle of Man) offers a unique offshore base for the management of vessels. The Isle of Man zero percent corporate tax rate, the growing ship register and the excellent communications developed for the offshore financial institutions add to the appeal of the Isle of Man as a prime location for the services we provide.

inspired 00 inspired

2013

Registries

Isle of Man Yachting & Aviation not all “plane sailing”!

Steve Cain

Steve Cain – Equiom’s VAT Director tells why the Isle of Man is still the premier jurisdiction for Yachting and Aviation business. Steve is highly regarded within the industry for his entrepreneurial approach to VAT solutions.

As a Crown Dependency the Isle of Man

Whilst the Isle of Man has always been

each sector having developed world-

recognised as a leading financial centre – it

renowned registries and the Island gaining

is one that hasn’t rested on its laurels and

a reputation as a highly respectable and

has shown a proactive attitude to business,

leading offshore jurisdiction.

recognising opportunities in growth sectors

Part of the Island’s success is the open

such as e-Business, Space, Yachting,

and transparent co-operation which exists

Aviation and many more.

between the public and private sectors

is separate from the United Kingdom and European Economic Community, but considered part of the EU for Customs and VAT purposes (under Protocol 3), which is part of the attraction for yacht and aircraft owners and operators bringing their business to the Island. Growth has been substantial in both areas, with

61 – culminating in a very business friendly

for example, is certainly made easier

change however in 2011, when HMRC

environment with an innovative culture and

by the flexible and “can-do” approach

(which the Isle of Man is party to for VAT

a nucleus of experts all working together

regularly demonstrated by the Island’s

purposes) implemented new legislation

to ensure the Isle of Man remains the

Customs & Excise department who make

which removed the EU Fall-Back

pivotal location for yachting and aviation

themselves available around the clock to

provision, resulting in yachts needing to

business.

accommodate new aircraft into the Island

physically sail to the UK/Isle of Man in

The aircraft registry was launched in 2007

from a variety of destinations.

order to reclaim VAT. Naturally other EU

The absence of Customs Officers in the

jurisdictions recognised the opportunity

UK to deal with importations out of normal

this presented and were quick to offer

working hours enables the Isle of Man to

solutions in order to attract business

benefit from additional income such as

away from the Island – leaving Corporate

the time of writing but continues to show

handling fees, aircraft landing fees and

Services Providers such as Equiom with a

very strong signs of continued growth

domestic expenditure by the Crew.

more challenging outlook for their yachting

into 2014 and beyond. Confidence in the

Similar success has been enjoyed by

registry is demonstrated by the acclaim

the Island’s Ship Registry which was

It is however an ever-changing landscape

of winning “Best Aircraft Registry in the

established in 1984. Its strong emphasis

in terms of legislation. Recent VAT

world” in 2012 by leading global aviation

on quality, service and efficiency has

changes within certain EU Member

ensured that it ranks highly on a variety

States, has resulted in VAT registration

Equiom has worked closely with the

of “white lists” which monitor port state

requirements being introduced in

aircraft registry since inception, and

control, helping it to achieve a listing as

the country where a yacht charter

established its own aviation service

one of the top performers in the Shipping

commences. The need to now have

offering in conjunction with the launch of

Industry’s Flag State Performance Table.

multiple VAT registrations in place means

for corporate and private aircraft, and was the first registry in Europe to provide a 24 hour service. The highly regarded “M” register has over 590 registered aircraft at

lawyers.

the register, and today provides one of the most comprehensive service offerings available within the marketplace including aircraft registration, ownership structures and importation services. Importation of aircraft into the Island

In addition to the excellent service from the Registry, the Island has also been a prime location for many years

business.

that using an Isle of Man ownership structure to hold a commercial yacht is as good as any other jurisdiction.

for yacht ownership structures using a

What next in terms of legislation? No-one

sole Isle of Man VAT registration for all

can know for sure, but for the Island and

EU chartering activities. All this was to

Equiom the outlook remains positive.

inspired inspired 2013

Infrastructure

Chrystals estate agents Shane Magee MRICS, Chairman of Isle of Man estate agents Chrystals, gives his view on how the Island’s residential property market fared in 2012 and first Quarter of 2013.

Any estate agent who described the

on the mat’ inviting Chinese banks and

residential property market as strong

commercial enterprise to consider the Isle

in 2012 would have had his rose tinted

of Man as a spring board and trading hub

spectacles on! The main issue was

for their business interests into the United

stringent and restrictive lending practices

Kingdom and Europe. If this move proves

from the Island’s banks and this had a

successful we can expect increased

direct impact on the volume of buyers

interest being shown in the residential and

able to secure funding for property

commercial property sectors.

purchase. For those vendors having to

New developments still provide the focus

sell, pricing was key and some sales were

of attention and Chrystals have achieved

only achieved after the seller made a

£9m of sales on behalf of Hartford Homes

serious correction in asking price. Vendors

over the last 12 months. Much of the

have generally been more receptive to

activity has been at top end of the market

applicants making bids and as the year

and quality wins through with discerning

progressed the volume of sales

buyers attracted by location, design and

gathered pace.

finish. Buyers at this end of the market

applicants taking up positions on Island,

The spring market has seen sales levels

appreciate flexibility from the developer

however, demand remains focused on

and the opportunity to fine tune the

high quality property with a well presented

interior design to suit their own distinct

finish.

rebound and whilst new listings are still outstripping sales there has been a noticeable increase in the volume of viewings and offers. The Isle of Man economy is faring better than that of our near neighbours with net growth in GDP of 3% per annum. Any increase in unemployment is unwelcome but at 2.7% we must be the envy of Europe.

requirements has helped seal the deal on a number of larger residential transactions. The era of low interest rates is likely to remain with us for the foreseeable future. With negative growth in real terms on deposit accounts and low income producing savings bonds, investors seek other avenues of income to add to their portfolios. Many Isle of Man residents like

Shane Magee

Chrystals have now sold almost 80% of Imperial Court apartments in Douglas. A new scheme of 54 one and two bed units with secure underground car parking, court yard garden and rooftop outdoor seating areas. Each apartment comes complete with white goods and fitted carpets. Owner occupiers and investor buyers have been attracted by this

However, there is no room for

the idea of property ownership as an asset

complacency and driving the economy

class which they can control, monitor

centrally located Douglas development

forward remains the focus of Government

and improve. Gross yields between 4-6%

and discounts remain on selected units.

and the private sector. The global business

per annum start to look attractive with

I anticipate market activity will improve

arena provides many opportunities and

the rental market remaining fluid. The

slowly but much will depend on the

the Isle of Man Government and private

e-Gaming industry continues to provide

strength of the UK economy and lending

business have been putting a ‘welcome

a steady stream of enquiries from rental

parameters from local lending institutions.

Top: The private balcony of The Penthouse at Imperial Heights, Port Erin – £1,100,000 Bottom: Ballavoddan, Ballasalla is set in tranquil grounds extending to approximately one acre – £1,250,000

64 inspired

Sure – building new connections By Andy Bridson, CCO, Sure

The acquisition of Sure by Batelco, the

company’s CCO. “This means that we

Bahrain-based telecommunications

understand the needs of companies

provider in April this year was an exciting

across the Island because we are one

step forward for the Isle of Man based

of them.

telecommunications company.

“Not only have we invested to bring new

The Batelco Group has a long history,

products and services to Isle of Man

dating back almost 140 years, of delivering

residents and businesses but we have

high quality communications services to

invested in people, creating jobs in every

its customers, who are the focal point of the company’s mission. It is the desire to bring the latest products and services to its clients, that has driven Batelco as an innovator and which complements Sure’s existing philosophy, which has seen new infrastructure and services being brought

area of our business. Over the years, we have continued to accumulate and strengthen our international partnerships to ensure that Isle of Man residents receive the best provision for both domestic and international communications.

to the Isle of Man for the benefit of Isle of

“The shape of the world’s economy

Man residents.

is changing at unprecedented speed.

Since it began operations in the Island, Sure has invested over £25m into the economy, building a strong and reliable

Industries are expanding and changing across the globe as new technologies open new markets and end the old way

local network whilst connecting the Island

of doing things. Our new relationship

to other, similar jurisdictions.

with Batelco, means that Sure is perfectly

Sure continues to balance its global strength, enhanced by the new Batelco connection, with domestic insight. For instance, it brought a 40MB broadband

placed to provide the Island with the communications technologies of the 21st Century, bringing the world forever closer to the Isle of Man.”

service to the Isle of Man because it knew

Local on the outside and global on

the strength of local demand for faster

the inside, Sure’s knowledge of the

broadband.

telecommunications industry brings

Sure has also created a new submarine

worldwide expertise that can be delivered

fibre network that connects the Island

with the essential addition of local

directly to London, Paris, Guernsey and

knowledge, to create the ideal platform for

Jersey and onward to every corner of

Island businesses.

the globe, providing businesses with

“With Sure in the Isle of Man,” said Andy

the services they need to conduct trade around the world.

Bridson. “You have the peace of mind in knowing that no matter where you do

“We are a local business with a global

business, your communications solutions

outlook,” said Andy Bridson, the

are just around the corner.”

Andy Bridson

Case study The Isle of Man. Where you can enjoy life and build a successful business isis digital Limited The digital TV industry is a fast-moving one

me less time to get to Manchester from my

businesses here and introducing us to

and David Gillies, founder and Director of

base in the Isle of Man than it did just to

really helpful contacts. I’ve also been

isis Digital Limited, is well suited to it. After

do the car journey from Leeds!”

introduced to the Government’s ICT

an initial visit to the Island in early 2012, he managed to relocate both himself and his business from Leeds to Onchan within just

The relocation to the Isle of Man had been suggested by David’s UK accountant for

strategy and asked to provide feedback on it for the future.”

tax efficiency and David knew very little

David is hugely positive about the future

about the Island, other than the TT races,

of the technology industry on the Island

Helping to deliver an end to end (or ‘glass

at the time of that first visit. “I liked the

as well as the future of his own business.

to glass’ as it’s known in the trade) service

place immediately,” says David. “It is

“I’ve been astonished by the quality

from video production all the way through

a very beautiful Island and there are so

of the hosting providers here – there

to video display for the consumer, isis

many things to do, especially if you like the

are at least four, if not more, world-

digital has worked with some big names

outdoors. There are the nine golf courses,

class hosting companies. Combined

six weeks.

in the European market such as B.T., the German division of Vodaphone and the start up Belgian internet company WeePee New Media Ventures. When it came to deciding on an optimum location for the isis digital business, David had two ‘absolutely key’ requirements – good, reliable broadband and ease

great walks and even if you’re just going

with the guaranteed power supply and

for a drive, the scenery is fantastic.”

the telecoms infrastructure, there is

David’s particular passion is sailing and

more internet-centric businesses to the

he spends as much time as he can on the water. “The people on the Island have been so welcoming and friendly too. It’s been easy to get to know them.”

of access to European airports. “The

Having had mixed experiences of

telecoms infrastructure in the Island is

relationships with governments overseas,

excellent and the broadband speed is

David took some six months to engage

significantly better than what we were

with the Isle of Man’s Department of

getting in the UK,” says David. “The air

Economic Development. “In retrospect

links through Manchester, London City

I wish I had done it sooner as they have

and London Gatwick mean you can get

been incredibly supportive, providing

anywhere in Europe and I’ve found it takes

guidance to the opportunities open to

tremendous opportunity for attracting Isle of Man.” Meanwhile David is happily flying the flag for his new home. “It’s been such a very, very positive move for me and isis digital,” he says. “I’ve not regretted a day of it.”

66 inspired

Manx Telecom - first for innovation and investment Manx Telecom, the Isle of Man’s leading telecoms and IT services provider, has always been at the forefront of new technology. In 2005 it was the world’s first operator to launch a super-fast 3G HSDPA (3.5G) network and here Manx Telecom CEO Mike Dee explains how the company is already looking ahead to the next major developments in mobile and broadband technology. Innovation is in Manx Telecom’s DNA.

Our technical preparations for 4G are

In our business, constant evolution is

well advanced and, depending upon the

a necessity to remain competitive and

allocation of radio frequencies, we plan to

provide our customers with the latest

launch a 4G network as soon as we can.

telecommunications and IT solutions. We are always analysing opportunities offered by new technology and have a proven track record of investing in the Island’s telecommunications infrastructure. Over the last 10 years we have invested £100million. In doing this, we recognise our responsibility not just to our customers, but also to the Island as a whole. The telecoms infrastructure we provide plays a critical role in upholding the Island’s excellent reputation as an international business centre. In many regards, such as 3G mobile coverage and average broadband network speeds, Manx Telecom’s investment has meant the Isle of Man benchmarks ahead of most jurisdictions including the UK. Mobile or

Since its launch in October 2011, the Manx Telecom ‘Ultima’ high-speed broadband service has surpassed expectations and ably demonstrates the Island’s appetite for technology. Offering speeds up to three times that of regular broadband services, it satisfies the growing demand for families and businesses to access smartphones, iPads, games consoles, laptops and internet-enabled TVs simultaneously. Currently, there are more than 2000 customers using Ultima which is available to 70% of homes on the Island. In partnership with the Isle of Man Government, Manx Telecom plays a pivotal role in making the Island a global centre of excellence for e-Business in all its forms.

MIke Dee

One further example of Manx Telecom’s commitment to investing for the Island’s future is our Next Generation Network (NGN) which is the result of a £25million

To achieve this we have made a significant

investment to give our customers the

investment in our Douglas North data

ability to access and manipulate voice

centre and a world class Cisco powered

calls, data, television, and video, on one

The latest 4G (LTE) mobile broadband

off-Island Multi-protocol Label Switching

seamless, converged, IP network. In

technology is firmly in our plans for

(MPLS) network which connects the Isle of

effect, it’s the move from an analogue

2013 and we have already successfully

Man directly to London and other points

and compartmentalised world to a totally

trialled the technology on the Island to

of presence in Manchester, Dublin and

connected digital world. NGN will keep

show its capabilities. To make 4G (LTE)

Belfast in a matter of milliseconds. Our

the Island’s communications network

technology available to consumers will

Douglas North data centre, however, is

require one of the biggest investments

at the cutting edge of technology and

the jewel in the crown, meeting stringent

in Manx Telecom’s history in order to

provides an excellent platform for Island

international standards for resilience and

upgrade our entire mobile infrastructure

security and trusted by Government and

businesses to take full advantage of an

which already provides our customers with

many leading e-Gaming and financial

exceptional 3G mobile broadband speeds

services brands. It’s this data centre which

As I said, innovation is in Manx Telecom’s

and exceptional coverage. But, as always,

is the backbone to enable us to offer the

DNA - and we are determined to drive

we are looking ahead to ensure we can

Island’s businesses the very latest desktop

forward the evolution in technology which

support our customers growing demand

virtualization services provided on our very

we believe will play a vital role in the

for mobile data hungry smartphones.

own Intelligent Cloud platform.

Island’s continued economic growth.

fixed, consumer or business, we’ve got the island covered.

exciting new era in telecommunications.

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68 inspired

Cleared for take off! The Private Jet Company’s Business Aviation Centre and Executive Terminal opens for business

The successful completion of an ambitious and exciting project to create a new state of the art Business Aviation Centre and Executive Terminal at Ronaldsway Airport, marks the dawn of a new era for the Island’s aviation sector. The stunning new centre has been created by the Private Jet Company and opens a new business aviation gateway to the Island, to enable it to compete with leading UK and European centres that already offer high-class facilities for business/private jets. The Private Jet Company was first incorporated in 2007, and has rapidly developed its own niche market. It’s a bespoke solution that is focused on a close personal relationship with clients, and which can cover all bases in terms of initial purchase of the aircraft and its registration, to maintenance and day-today operation. The Private Jet Company has dedicated crews at the disposal of clients whenever they require their

years, and with the new Business Aviation

interior and exterior cleaning).The new

Centre and Executive Terminal now on

centre provides the Private Jet Company

stream, the sky’s the limit.

with room to expand, and provides a timely boost to the Isle of Man economy

services. Furthermore, the intricacies of

Facilities at the new centre are impressive,

technical documentation, flight planning

and cover all the demanding day-to-day

and hangarage are all part of the service.

requirements of the business aviation

Private Jet Company spokeswoman

sector. There’s an executive lounge, VIP

Caly Roberts said the move into the new

Passenger facilities, conference room,

centre marked an exciting period in the

ample complimentary parking, pre-cleared

company’s history. She said: “We are

immigration for passengers and crew,

still finding our feet in the building, but

lucrative transatlantic private/business jet

on-site security screening (if required)

it’s already been incredibly busy. We

market. Presently aircraft use airports such

and a dedicated quiet room with shower

believe the centre will be an asset for the

as Prestwick (Scotland) and Shannon

facilities. The centre is located away from

whole of the Island, and apart from giving

(Ireland) for refuelling and technical

the main terminal and offers substantial

us the space to grow and develop our

stops. But now, The Private Jet Company

hangarage, able to accommodate aircraft

services, there will be a positive spin-off

believes the Island is poised to land a

up to, and including, Bombardier Global

for other service providers, such as hotels,

significant share of the business. Evidence

Express 8000. A full fuelling service

taxis, fuel supppliers and a host of other

suggests their confidence is well founded.

provided by Shell is also offered, along

businesses. It’s been a long and difficult

The company’s client base has risen by

with extensive support services (de-icing,

process to get to where we are, but now

between 65 and 70 per cent in just three

lav/water, oxygen and nitrogen top-ups,

it’s onwards and upwards”.

The opening of the new centre at the Island’s airport has gone hand in hand with an aggressive marketing initiative to land the Isle of Man a share of the

as it seeks to diversify and grow.

B-localiom.com relocation services Blank

B-localiom.com is a tailored service to help individuals, families and businesses relocate to Island quickly and easily. Since it was set up in 2005 the B-localiom.com team have gained extensive experience of relocating people from all over the world. Founder Mary Linehan moved here from England in 1993 because of her husband’s job in the finance sector. Her decision to set up b-localiom.com was born out of a desire to ensure people who have made the decision to move to the Island have a positive experience and are able to integrate rapidly into the business and social aspects of Island life. Having moved to the Island with her husband and family – and having experienced the

hassle out of relocation and allowing new

have been able to provide operational

logistical challenges this can pose she has

residents to focus on what’s important to

assistance to ensure the business move

first-hand experience to draw upon when

them so that they can fully appreciate and

happens on time, to budget, and with

advising her clients.

enjoy all the benefits of living and working

minimum disruption.”

The Isle of Man has so much to offer and

on the Island.”

B-localiom.com also offers what it calls

few people who move here ever regret

For business relocation B-localiom.

their decision. But, of course, any move to

com offers support in sourcing office

a new location is complex and the services

space, furnishing, recruitment, IT, and

and expertise that Mary and her team

introductions to proven professionals.

provide makes relocation as smooth as

Mary said “The Island is an ideal base to

possible. Mary said: “For individuals and

relocate a business to. The B-localiom.

families we offer support in every aspect

com team has relocated a number of

of moving to the Island, including finding

businesses from all over the world - each

accommodation, schooling, and financial

with their unique needs. The team with our

To find out more visit

advice. Our emphasis is upon taking the

extensive network and local knowledge

www.b-localiom.com

Mary Linehan

Michelle Bowen

Ann Faragher

‘taster introductory Island experiences’ for employees and their families. This service is useful in the interview stage for both employer and prospective employee and is designed to give those considering a move the chance to visit the Island to find out about its lifestyle and culture.

Linda Donald

70 inspired

Wi-Manx Network and Hosting Solutions

Much has been said about the Isle of

other markets – an ethos integral to our

High speed Internet connectivity, IP Transit,

Man’s reputation for enterprise, its diverse

business.

global site-to-site private circuits, MPLS

economy, world class infrastructure and it’s resilience during the current economic climate. These factors have meant the Island has emerged as one of the number one destinations to locate your e-Business or e-Gaming operation. The Island brings e-Business friendly legislation, trusted

As a leading Isle of Man service provider, Wi-Manx is a truly technology focused company with a strong emphasis on

WAN services and DDOS Mitigation services are a small selection of the connectivity services on offer.

service. Several thousand customers

Our experienced team of engineers are

already trust Wi-Manx to provide

knowledgeable across a broad spectrum

optimised connectivity solutions, host

of hosted solutions, network security,

their key systems whilst meeting their ever

storage and software platforms. We

regulation and a compelling taxation

increasing technology demands. We can

build relationships with our customers,

system, and with it competitive advantage.

reduce complexity, select the right blend

understand their solutions and can

The Isle of Man continues to attract the

of technology, deliver a solution that helps

function as an extension of their business,

innovative and the competitive, with

your business succeed and ultimately

working to the same goals. Financial

industries such as e-Gaming, space

provide the level of service that your

services, e-Gaming, digital agencies and

commerce and clean-tech flourishing – yet

customers expect.

local authorities – all have very different

the Island still retains its independent spirit of heritage and culture. Considered a well-regulated and respected independent Island with a diverse, successful economy, the Isle of Man clearly stands out from the

Mission critical systems and demanding internet applications require a first class hosting infrastructure. Our modern datacentre has been built to a

technical demands, but they are all serviced with the same dedication and technical understanding, tailored to their business.

high specification, featuring the latest

Small business communication services,

generation of power, cooling, security

load balanced cloud instances, MPLS

When it comes to hosting and e-Business,

and network infrastructure – delivering

links to Asia, multi site hosting solutions,

the Island is held in high regard, in

a highly available and resilient hosting

databases or managed security, Wi-

particular where hosting offshore (or

environment. Our datacentre facilities are

Manx can deliver a solution with the

nearshore) is a specific requirement. With

the ideal location to house your valuable

performance, scalability and flexibility that

high capacity, low-latency connections

data assets. Demonstrable quality and

your business demands. Our best in class

to the UK and Ireland, and onwards to

process is achieved through our ISO 9001

datacentre infrastructure coupled with

the US and the EU – the Isle of Man is

and ISO27001 certifications, providing a

our strong focus on customer satisfaction

the perfect offshore hosting location,

consistent approach and measureable

ensures maximum uptime, improves

without compromising on quality, trust

results.

business agility and accelerates service

or availability. The successful business

Your information is the life blood of your

environment is proven, however the

business, a datacentre can house your

hosting and connectivity needs of

data in a secure, stable environment,

businesses operating within the UK and

but to reach your customers, you need a

If you are considering the Isle of Man as

Europe are demanding, both in terms of

high capacity, adaptive, congestion free

a place to do business or if you demand

price and service. To truly stand out as a

network infrastructure. Our investment

a high quality hosting environment, speak

key hosting location, the Isle of Man needs

in a modern Juniper Networks powered

to Wi-Manx. For more information please

to match, or exceed the level of quality,

network delivers a range of high capacity

speak to our sales team on +44 1624

service availability and price as seen in

connectivity and flexible network services.

641188 or email sales@wimanx.com

crowd.

deployment. We offer a wide portfolio of solutions which can be combined to create the optimal solution to meet your needs.

Destination:

Isle of Man

Your host:

Flexible offshore hosting solutions Our datacentre facilities are the ideal location to house your valuable data assets, whilst we strongly believe the Isle of Man is the ideal location for all of your offsite or offshore data storage or hosting needs. Wi-Manx provides a trusted, stable and secure hosting environment whilst also ensuring you comply with the relevant industry guidelines and compliance requirements.

www.wimanx.com

Find out more To truly stand out as a key hosting location, the Isle of Man needs to match, or exceed the level of quality, service availability and price as seen in other markets - an ethos integral to our business . If you are considering the Isle of Man as a place to do business or if you demand a high quality hosting environment, speak to Wi-Manx. Our team of experienced staff will be happy to discuss your requirements, engage our technical experts and look to develop the perfect solution for your online business.

call +44 (0) 1624 641188 email hosting@wimanx.com visit www.wimanx.com

inspired 2013

Lifestyle The Isle of Man – a champion in sport and business Roger Raatgever, CEO, Microgaming The pace of life can be frenetic;

why he chose to base

we live in a world where people

the gaming giant

are so time poor that ideas

on the Isle of Man;

that once would have seemed

a question that he

ludicrous are now being

doesn’t need to give a

considered if they make us

lot of thought to before

more efficient. Take treadmill

answering. “The

desks for example; they do

powerful combination

what they say on the tin – quite

of business benefits

literally a desk combined with a

such as access to the

treadmill - employees can walk

government, along

or run without losing a minute

with the quality of life

at their desk. A concept that

the Island offers, made

not too long ago would have

it the ideal place.”

been laughed at has become a

The rolling hills and

reality and these mind-boggling

coastal paths of the

products are now on sale in

Isle of Man make it the

Europe and the USA and being

ideal backdrop for so

trialled by some organisations.

many sports and it is

With products like this coming

sport that has firmly

on to the market, you can’t help

cemented the Island

but wonder if this is a reflection

on the global map;

of the rate at which people now live their lives or a reflection of

local heroes such as the ‘Manx Missile’ Mark

Roger Raatgever

companies realising that their

Cavendish MBE and

time poor employees will be

This isn’t surprising though given that

more productive and healthier if they keep

their CEO Roger Raatgever, is an avid

winner Peter Kennaugh MBE highlight

moving whilst checking their emails and

sportsman and a highly impressive one

the Island’s ability to develop incredible

getting their work done?

at that; he will be representing the Isle of

sporting talent.

Microgaming, the Island based online gaming giant is a company with sport running through its veins. Whilst they don’t

Man as part of an eight-member triathlon team at the Island Games in Bermuda July 2013.

Olympic gold medal

Microgaming takes an active role in the local community, particularly through sport and healthcare initiatives. It sponsors

have treadmill desks, they do have a state

Roger’s enthusiasm for Microgaming,

Ramsey Youth Centre Old Boys Football

of the art gym installed in their Douglas

sport and life on the Island is contagious

Club, Team Microgaming Isle of Man

based Head Office and firmly believe that

and it permeates the culture at

Cycling, Rally Isle of Man, the Lighthouses

a ‘healthy body leads to a healthy mind’.

Microgaming. He is frequently asked

Challenge Cycle Sportive as well as

the Manx Tri Club and the Isle of Man

Microgaming Health and Care Trust. The

surprising that Roger is leading the field

Marathon and Half Marathon. It has most

company received the Corporate Social

in both sport and business. Running a

recently launched a Sports Ambassador

Responsibility award at the Isle of Man

company that is growing at an exponential

Programme, which provides funding to a

Excellence Awards in November 2012, an

rate certainly commands a clear mind and

number of local athletes who are tipped

accolade that it is particularly proud of.

Roger vows that having the Isle of Man as

to be rising stars. In addition to sport it

As one of the most well known CEOs on

the backdrop to his working life and sport

has donated a staggering ÂŁ700,000 to

the Island and one of the most respected

activities, create the perfect environment

local causes in need of help, through the

CEOs in the online gaming industry, it isnâ&#x20AC;&#x2122;t

for him to achieve that.

inspired inspired 2013

Education Educational Reforms and Assessment in the 21st Century Joss Buchanan, Vice Principal-Academic at King William’s College, discusses the International Baccalaureate (IB) and its benefits in the present-day academic environment

Recent proposals to press ahead

commercial examination

with major reforms to the UK’s

boards, which can be

secondary education system as

something of a poisoned

early as 2015 have revived the

chalice. With the single

contentious issue of assessment

examination board of the IB

frameworks, and the topic appears

there is no temptation for

to be very much back on the

any school to fish around for

political agenda. It is now well

whichever board is offering the

known that MPs investigating the

easiest qualification or the best

exam standards debacle have

grades. There’s rigour, and

been warned by many that teachers

structure, and there hasn’t been

may be avoiding tougher GCSEs

any significant grade inflation

and A-levels. Such a system has

for 30 years, in contrast to the

in turn been blamed for what is

A-level scenario, where grade

described as a loss of trust, both

inflation is both a fact, and a

parental and regulatory, in the

very real problem.

Government’s marking guidelines

While the ability of the IB to

and precipitated, albeit momentarily,

escape political control is an

a move to replace all GCSEs

attractive advantage, possibly

and A-Levels with the English

the greatest benefit of the IB

Baccalaureate certificate. A much

is that it allows an element

publicised Government u-turn on these proposals has since been announced, but the initial sentiment leaves in its wake a range of still unanswered questions concerning the lasting appeal of the IB and its implications in the modern teaching and assessment landscape.

of flexibility, in terms of both Joss Buchanan

the available subjects and the manner in which they are

opted to explore the IGCSE model in

taught. A classic example

order to lay the foundations and prepare

of this is languages. The IB has, for

students for the IB at Sixth Form. The

example, the requirement that every

IGCSE model also allows an escape from,

student must learn a foreign language.

not only political interference, but also

Given the growing internationalism within

One of the greatest assets and

certain tasks that so often interfere with

the commercial sector and the fact that

opportunities for independent and IB

the practise of teaching - such as retesting

more and more students are now looking

schools, such as King William’s College,

and modularity. Modularity can often be

globally for higher education, present-

is that while one eye can, and should, be

a very disruptive guide to teaching, and,

day graduates will be competing, in

kept on current developments in terms

when compared with other more linear

both the professional environment and

of the national curricula etcetera, an

alternatives, can take up a significantly

tertiary education fields, on a global

independent school can remain largely

larger amount of teaching time.

scale with people from all over the

free from political and bureaucratic control. At King William’s College we have even

Then there’s the question of competitive

world. Participation in the IB equips students with experiences, skills, and

qualifications which are portable, and that

Moscow, Shanghai and Australia. There

global citizens. It is because our students

will open doors to them, whether in the

is always the worry that an island by its

have had the correct support that they’re

UK or further afield. The higher degree

very nature may be insular. As such, we at

ready with the appropriate skills and are

of internationalism and language focus

King William’s College like to be outward

prepared for university and the wider world

offered by the IB is therefore very attractive

looking, encouraging students to be

when it comes.

in terms of preparing students for the truly global commercial environment which awaits them. Recently, much emphasis has been placed on the topic of fostering a sound work ethic in UK pupils, and encouraging them to take responsibility for their own academic development. Maintaining smaller class sizes is critical to enhancing an institutions ability to focus on individual development. So too is a rigorous process of thorough and regular assessment of individual progress. Students require a pastoral support structure, and King William’s College places great emphasis on tutors throughout the school. Expert tutors and small, intimate tutor groups allow students the opportunity to thrive within the classroom. The IB is not for the elite, or the super clever, but one does have to learn to be organised and dedicated, and the 100 per cent pass rate at IB level and near zero drop out rate of former King William’s College students at university is testament to the type of individual that the IB model produces. Despite being a small school on a small Island, the current practices of King William’s College are directly aligned with the rest of the world through the IB - both our curriculum model and the skills taught are being replicated in

inspired 2013 inspired

Leisure & Travel Are you making the right business connections? Love it or hate it, business travel is a

Now renowned as a technology company

necessity today, linking executives and

within the travel sector, the focus is very

corporations across the globe.

much now on empowering its clients through delivery of pioneering industry

Maintaining exceptional air and sea links is

capability combined with years of

also vital to the future success of the Isle

experience and the expert knowledge of

of Man, ensuring we are able to continue

its staff.

making the right business connections 24

The Group has major expansion plans

hours a day, 365 days a year.

for 2013 and beyond; in addition to re-

However, business travel can often be a

entering the Isle of Man’s inbound travel

time-consuming and frustrating process

market for the first time in over 20 years, it

for those tasked to look after it; for

Brian Kelly

busy secretaries trying to balance the travel needs of their bosses with their

plans to launch a number of international retail websites in the coming months as

and leisure bases covering the Isle of Man

well as extend its popular affiliate booking

(Mann Link Travel and Richmond Travel),

programme to a number of trusted

Jersey (Bellingham Travel) and Guernsey

hospitality and leisure partners.

(Wayfarers Travel).

So, why choose the Online Regional Travel

queue. And perhaps most important of

Across the Group, its staff have more than

Group?

all, business travel is a 24/7 requirement,

900 years of combined experience working

• Dedicated Business Travel Manager

going way beyond the realms of a

within the international and domestic

traditional 9-5 job.

business and leisure travel sectors.

Trusting an internationally experienced

With some of the world’s prestigious blue-

partner with your business travel

chip companies as clients and remaining

requirements is key, and is a decision

under the leadership of founding Chief

being taken more and more by companies

Executive Officer, Brian Kelly, the company

who recognise this. Why waste hours

also owns and operates a number

searching for flights, hotels with the

of leading travel websites including

often unpredictable and ever-changing schedules, managing multiple sector changes generally leads to valuable time being wasted sat in a call-centre

just one call away • 24/7 service • Offering year-round contracted fares with major airlines (better than web prices) and long-haul scheduled carrier discounts • Access to discounted hotels, car hire rates and ferry tickets • Visa and travel insurance experts

required facilities, organising transfers and

the award-winning www.justtheflight.

tickets when you can make one call to a

co.uk, www.flybelfast.co.uk, www.

dedicated Business Travel Manager?

manxflights.com and www.manxferries.

• Monthly credit facility (T&Cs apply)

In 2012, the Online Regional Travel Group

com. Following significant development

• Management reporting

celebrated 30 years in business. Having

investment by Mann Link Travel, this site

Just as important as connecting the Isle of

grown from a one-man office in the Isle

has recently become the first commercial

Man with the rest of the world is, one thing

of Man, the company is now the largest

site ever to facilitate inbound ferry and

the Online Regional Travel Group should

business and leisure travel group across

accommodation bookings in to the

be incredibly proud of is its ability to stay

the tri-Islands, with dedicated business

Isle of Man.

at the forefront of travel innovation.

• Incredibly experienced staff

Are you making the right business connections? The Online Regional Travel Group is the largest provider of Business Travel services across the Isle of Man, Jersey and Guernsey. Established more than 30 years ago, we specialise in linking together tri-Island companies with the rest of the world.

• Dedicated Business Travel Managers and personal Account Managers in each Island

With cutting-edge global travel technology at their fingertips, our dedicated Business experts combine their unrivalled industry knowledge with their enormous buying power, giving you a cost-effective travel solution and letting you concentrate on what really matters – your company.

• Online booking

• 24/7 service • Specially negotiated airfares, hotels and car hire • International/global travel expertise • Monthly account facility*

• Comprehensive travel reporting and policy management • Global travel news and alerts • Arrangement of travel insurance and Visas * Terms and conditions apply

Get in touch with one of our offices to find out more, or visit www.ortg.co.uk/business

In business, it pays to make the right connections.

Isle of Man

Guernsey

Mann Link Travel 01624 654655 business@mannlink.com

Wayfarers Travel 01481 243777 business@wayfarerstravel.co.uk

THE ONLINE REGIONAL TRAVEL GROUP

www.ortg.co.uk

Jersey

Bellingham Travel 01534 715010 business@bellinghamtravel.co.uk

78 inspired

Golfing on the Isle of Man Golfers are just discovering the brilliance

every golfer. The recent acquisition and

a marina and a medieval castle and you

of a break in the Isle of Man. We have

clever investment in the course by Mr

have a highly enjoyable day all wrapped

nine courses set in a variety of beautiful

Philip Vermuelen is taking Island golf to

up. Ged adds: “A key component in

landscapes and the fairways are rarely

another level. I am convinced that the Golf

making a golf trip hassle free is our fleet

crowded. Isle of Man Golf Tours are now

Links will be amongst the top echelons

of the latest TaylorMade hire clubs and

in their second year of operation and with

of European golf. We are blessed on

it means airport charges and tiresome

well over 300 customers on their books,

the Island with eight other outstanding

luggage issues are dismissed. We have

and enquiries for over 1,000 golfers, the

courses, all filled with character and which

14 sets available and the feedback is

Island’s golf offering is proving to be very

deliver consistent scenic pleasures. Our

great, I know of three customers who have

popular.

guests are treated to a friendly welcome at

Isle of Man Golf Tours is co-owned by Ged Power (pictured) and Martin Young. Ged says: “We are living in a golfing haven and

all of the courses, which means that many of our visitors cannot resist a return to play them all.”

purchased new TaylorMade products as a result of using our clubs. More often than not, they are a higher standard than what they are used to at home. Accommodation on the Island is excellent and we have our

to have such a selection of golf courses,

Escorted tours in minibuses are real

own golf resort at the 4* Mount Murray

and so many hotel options, we can cater

winners with groups. For example, the day

Hotel and our guests always enjoy their

for all golfing tourists. Our visitors love the

starts with a post breakfast pick up at the

stay. It has everything on site and the staff

Island, Castletown Golf Links (pictured)

hotel; a lovely round at Peel followed by

are commended regularly by our guests

is a favourite and many say it is as good

a beer at one of the Island’s best pubs -

for their friendliness.” The company also

as any course in Great Britain. Set on

The White House. Take a wander down

caters for the luxury golf break market

the Langness peninsula and bound

the quaint streets to the Creek Inn for a

with guests staying at The Arches 5*

by the dramatic Irish Sea, it energises

bite to eat where the views are flanked by

accommodation in Port Erin.

Ged concludes: “Developing Isle of Man Golf Tours as a business with Martin Young has been enjoyable and rewarding. There is real pride in knowing that the more golfers we bring to the Island, the more the Island’s economy benefits as the golfing tourist is one of the highest spenders. Economically, this supports our local hospitality industry and golf clubs. Our efforts have been recognised and endorsed by the tourism officials at the Department of Economic Development, their guidance and advice is valued.” Isle of Man Golf Tours has a partnership with www.yourgolftravel. com – the world’s largest golf tour operator. For more information go to www.isleofmangolftours.com

Top: Castletown Golf Links; above: Mount Murray Golf Club; Right: Ged Power

80 inspired

Case study

The Isle of Man. Where you can… make the most of your entrepreneurial spirit Integrated Capabilities Ltd There aren’t too many businesses that

high standards and positive attitude of

as it develops further and ensure a good

can recruit new customers without any

professional people here. The time zone

code of practice is established for lenders

advertising or promotion, but such is

is perfect – midway between Russia and

to adhere to.”

the impressive reputation of Integrated

the US so it is possible to do business

Capabilities Ltd, it has seen a period of

with countries in both directions – and

The future continues to look bright for

unprecedented growth by simple word

the legislative framework is very strong.

of mouth. The corporate service provider,

The 2006 Companies Act for example

based in Ramsey in the north of the

packages and its services to US based

is a really sensible piece of legislation

Island, has diversified from its traditional

entrepreneurs. The company’s ongoing

designed to help attract business but also

corporate and trust services business into

success is also having a positive impact

protect the Isle of Man’s reputation as an

the areas of marine management and

on its hometown of Ramsey.

excellent financial centre.”

online micro lending with tremendous

Integrated Capabilities as it develops both its all-inclusive marine management

Kevin adds: “Most of our colleagues live

The speed of growth at Integrated

in the north of the Island and our founder

Capabilities is testament to the high level

Kevin Perry wanted to make a commitment

of service it provides to its clients and also

to supporting the historic town of Ramsey

to how straightforward it has been to set

by investing in a purpose-built office on the

period and the number of staff increased

up its operations.

quayside. We moved in there in 2011 but

from 18 to 31 in the last 18 months, with

“It’s remarkably easy to talk to key

another 10 soon to be recruited for a sister

people here on the Isle of Man,” says

operation to support the online micro

Kevin. “There are not many jurisdictions

lending clients.

in the world where you can talk to

Director Kevin Perks believes much of

people in Government so readily and the

this growth is due to the opportunities

Department of Economic Development

open to businesses on the Isle of Man.

has been exceptionally supportive

“There are some key benefits to being

in making introductions to relevant

based in the Isle of Man,” he says. “Among

organisations and suppliers. They are also

them the 0% corporation tax, the robust

helping us to form a trade association for

IT connectivity, hosting capability and

Isle of Man micro credit businesses which

uninterrupted power supply as well as the

will give the industry a stronger platform

success. With a sister office in Malta assisting in access to the US market, and offering niche solutions to the yachting turnover has doubled in a three year

we have already outgrown that so we have rented further accommodation in the town for our future expansion.”

Communication Communication Communication

www.mmc.co.im +44 1624 678001

inspired ISLE OF MAN – INTERNATIONAL BUSINESS CENTRE