TOP TEN EMPLOYERS Presented by PwC P. 26
IN PROFILE
RECRUITMENT
TRAVEL
RenRe celebrates 25 years
Bermuda management vs. the robot
The world’s most extravagant airport lounges
P. 5
P. 10
P. 16
September 2018 | RG BUSINESS
Book now at jetblue.com
CONTENTS
COVER STORY 26 TOP TEN EMPLOYERS Presented by PwC Congratulations to this year’s Top Ten Employers for being named the best places to work, learn and excel in Bermuda!
DEPARTMENTS 5
6
8
IN PROFILE
14 TRAVEL
RenaissanceRe
In with the new
Beyond its 25th anniversary, may its creative spark long continue
A look at a charming Bermuda buyer’s market
BY JONATHAN KENT
BY BUDDY REGO
INSURANCE
16 TRAVEL
Risks of a connected world
Extravagant airport lounges
Our society is growing more inter-connected. What does this mean?
We know about the luxury onboard, but what’s behind the curtain?
BY JOHANNES EULEN
BY ALEJANDRA OTTLEY
BANKING
18 LEGAL
Jobs in a fintech industry
Anti-Money Laundering 2018
A look at how we can expect this new industry to give back
Implications, reactions, and possible means of attack
BY KRISTEN SCOTT NDIAYE
BY RONALD H MYERS
10 RECRUITMENT Managing intelligence Taking on the robot in Bermuda Business
BY JONATHAN KENT
11 RECRUITMENT Benefits of Consulting A look at this type of employment in today’s competitive environment
BY KEITH SZMIEREK
12 TOP TREADS Renault KWID Everything you need for an economic price tag
21 FINANCE Bundled or unbundled? One of the largest expenses for your business – health insurance
BY CARLA SEELY
22 TECH Finally, fibre to business Fibre technology is here to provide ongoing success in business
BY NIGEL TAYLOR
24 ACCOUNTING Who’d be an accountant? How the thankless role fits into a world of change
BY JOHANNES EULEN
BY ASHLEY YEARWOOD SEPTEMBER 2018 RG BUSINESS
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BUSINESSSPOTLIGHT DEPARTMENTS
READ:
The Culture Code: Secrets of Highly Successful Groups AUTHOR: DANIEL COYLE
Chief Executive Officer Jonathan Howes
Director of Sales Michael Grier
Publications & Product Development Manager Carlene Spencer-Darrell
Culture is not something you are — it’s something you do. So, how do you build and sustain it in your group, or strengthen a culture that needs fixing? The Culture Code puts the power in your hands. No matter the size of your group or your goal, this book can teach you the principles of cultural chemistry that transform individuals into teams that can accomplish amazing things together.
PLAY:
World Rugby Classic Members Tent NOVEMBER 4 – 10, 2018 The Members Tent, located behind the goal line, provides viewing from the comfort of one’s own table or from the nearby stand. It is the VIP tent where some of the famous former players are entertained, along with other special guests and sponsors. You can expect an open bar, along with a wonderful buffet meal provided by Fourways, and accompanied by wines from the Gosling cellars.
Creative Director Nikeisha Burrows
Designer Christina White
Sales team Shawn-Nae Cann Brad Tatem Andre Bolotenko
Manager of Content Kristen Scott Ndiaye
Contributing Writers Johnathan Kent Johannes Eulen Ashley Yearwood Keith Szmierek
Buddy Rego Alejandra Ottley Ronald H Myers Nigel Taylor
Published by The Bermuda Press [Holdings] Ltd.
Printed by Bermuda Press Ltd.
Established 1828; Incorporating The Colonist and Daily News (Established 1866). Member of the Newspaper Association of America. The Royal Gazette Ltd, a subsidiary company of Bermuda Press (Holdings) Ltd. BPH incorporated in Bermuda, publishers and printers of The Royal Gazette. The Royal Gazette Ltd’s Electronic Edition is published daily at www.royalgazette.com
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TRAIN:
Executive Blockchain Training Throughout the Fall @ Connectech Connectech, in conjunction with MLG, invite your executive and senior level staff to a full-day of blockchain training. This full-day training will cover topics such as blockchain, digital currency, network effects, and protocols, with case studies from the banking, insurance, government, health, retail and education industries.
NETWORK: Harry’s
HAPPY HOUR FROM 3 PM TO 6 PM Why Keep Happy to Just One Drink? Where business locals and visitors can meet and mingle, Harry’s is the best bar and dining place for beers, wines and cocktails with modern comfort food. You can catch sports telecast and live entertainment here, too.
World Rugby Classic 2017
IN PROFILE
RenaissanceRe building entrance on East Broadway.
A jewel in the crown of Bermuda’s reinsurance BY JONATHAN KENT
RenaissanceRe Holdings Ltd celebrated its 25th anniversary on June 14, marking a milestone not only for the company, but also for Bermuda’s reinsurance industry. RenRe was one of the batch of property catastrophe reinsurers to set up on the island in the wake of the Hurricane Andrew – and it is the only one of the “Class of ’93” to remain as a stand-alone company today. From its launch with initial capital of $140 million, RenRe set out its stall to bring much more than capital to the marketplace. Its founding chairman and chief executive officer was James Stanard, an actuary with a PhD in finance, who brought a profoundly scientific approach
to risk evaluation that established a lasting reputation for RenRe as “the smartest people in the room”. Andrew destroyed more than 28,000 homes and damaged another 107,000 in Florida and Louisiana. Several US insurers folded and many others
suffered devastating losses in a massive shock to a complacent industry. It was the most expensive disaster in US history at the time and it prompted insurers to up their game with regard to data on their catastrophe exposures. Better data presented an opportunity for reinsurers to go about their business in a more professional and analytical way. RenRe took full advantage through the development of proprietary technology for risk models and analysis, which gave them a better understanding of the huge risks they were underwriting than most of their peers. Financial outperformance followed. Its innovative drive was also evident in its role as one of the pioneers in the formation of sidecars, vehicles that boost underwriting capacity through the use of third-party capital. These forerunners of today’s insurance-linked securities boom sprang up widely after Hurricane Katrina in 2005, after a smaller and earlier bunch had appeared after the 9/11 terrorist attacks. But RenRe was ahead of the curve. Its Top Layer Re and OpCat entities were active from the 1990s putting to work capital partly supplied by other insurance companies. Through operations including Da Vinci Re, Langhorne Re, Fibonacci Re and the RenaissanceRe Medici Fund, RenRe has built an impressive ILS and managed assets platform, featuring some $2.2 billion in third-party capital, according to the Artemis alternative risk transfer website, as well as joint ventures and ILS fund investment strategies. Such an innovative capital structure has not only grown RenRe’s capacity to underwrite risks, but also has also aided flexibility in ramping up or scaling down according to market conditions and has improved risk portfolio diversification. Today RenRe, whose headquarters are in waterside offices on Crow Lane, has operations in Ireland, the UK, the US, Singapore and Switzerland. It
has grown from that initial $140 million capital into a publicly traded company with market capitalisation of more than $5.3 billion at the time of writing, and a company that deploys $13 billion of capital in the reinsurance market. While RenRe is undeniably a Bermudian success story, it has not all been plain sailing over the past quarter of a century. In 2005, Mr Stanard resigned after US regulator the Securities and Exchange Commission accused him and two other executives of perpetrating a sham “finite reinsurance” transaction, which had the effect of deferring $26 million of RenRe’s 2001 earnings to later years. RenRe was not the only reinsurer to get caught up in the SEC clampdown on such transactions, but that was little consolation to the company that lost its leader, founder and the man who personified its competitive edge. It is a testament to RenRe’s corporate culture that the company dealt so well with that heavy blow and continued unhindered on its path to growth, with innovative reputation intact. Neill Currie, a cofounder of the company, was named as the new CEO in late 2005. During his eight years at the helm, he frequently stressed the importance of a strong corporate culture and excellence in customer service. Mr Currie was succeeded in 2013 by Kevin O’Donnell, another executive who knows the company inside out, having joined as an underwriter in 1996. He led the $1.9 billion acquisition of fellow Bermudian reinsurer Platinum Underwriters Holdings Ltd in 2015, which considerably strengthened the firm’s presence in the US and added further product diversification. RenRe is a jewel in the crown of Bermuda’s reinsurance market. Its remarkable story over the last 25 years has lent credence to the island’s frequent claims to be a laboratory of insurance innovation. May its creative spark long continue. SEPTEMBER 2018 RG BUSINESS
5
INSURANCE
Risks of a connected world:
Is Bermuda cybersecure? BY JOHANNES EULEN
Those of us who are above a certain age can remember a time in which, apart from the telegraph and telephone, a connection had to be made physically in some way; or someone had to go from point A to point B in person. Now, as the late Stephen Hawking said: “We are all now connected by the internet, like neurons in a giant brain”. This may still be an exaggeration for effect, but it edges ever closer to being the truth. In a world in which people can be killed remotely by those thousands of miles away, your
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fridge can tell you that you are out of milk, or your exercise habits can be plotted in real
As “digital” continues to transform, organizations must learn what their cybersecurity risks are and how to deal with them.
time, the concept of connection has moved from the realm of the metaphysical to an ever-expanding reality. Undoubtedly, the level and diversity of available connectivity have brought many benefits and enriched lives, and there is clearly no going back. However, a connected world is, in many ways, a more dangerous one, in which scope for creating mayhem increases all the time. It is “old news” that, for example, power grids can be hacked and disabled; and any government with any foresight (including Bermuda’s) has compiled a list of critical infrastructures and is trying to “harden” it against those with malicious intent. But what if connectivity means that the definition of “critical” is greatly underestimated?
Consider some scenarios. Autonomous cars become prevalent on the roads, and are convoyed to improve efficient use of road space. But what if the front vehicle, to which all the others are connected, is suddenly seized remotely and stalls? What if the entire network created to enable such traffic management is hacked, and all the autonomous vehicles it controls are disabled, or re-purposed as weapons? Or imagine that you are the general contractor on a major building site, who has improved your business’s capital efficiency by dispensing with human drivers and operators, and is now using remotely controlled machinery such as excavators, borers and robotic crews. What if the network which controls it all is hacked and the equipment
“
runs amok in a crowded city? Perhaps you rely, as much of modern life does, on the continuing existence of a reliable GPS network of satellites. What if, rather than being taken out, the system is subtly re-programmed to be slightly “off”. The potential consequences will give a whole new meaning to off-kilter. Of course, by then you will have all “mod cons” in your home (apart from the seemingly telepathic fridge) –– the electronic access system; the Nest “smart” thermostat; your friend “Alexa”; and that wonderful Roomba. Ironically, the so-called Internet of Things is, in reality, a system of networks and connections. That is what ultimately makes it both powerful and very dangerous. Next, your hospital is so advanced, with the latest in AI-based diagnostic systems and remote-operated access to the world’s best surgeons. Would you rather have a false positive or a false negative when the system is hacked? Will the theatre nurses realise quickly enough that something is wrong with the surgical procedure under way before you are maimed, disfigured or dead? Bear in mind that these are all scenarios that one can imagine now, and many, if not most, already carry an inherent threat. Looking at the issues from a business viewpoint, risk managers are going to have to step up their game when it comes to formulating and evaluating “emerging” risks or threats, many of which will be potentially existential; and, as with
existing cyber risks, there is going to be an escalating battle between the black and the white hatsand we should all hope that the white hats and the counter-cyber experts are better and better-resourced than their opponents, many of whom will be state actors, or those backed by states but allowing plausible deniability. If they are not, the consequences will be unpleasant. Our society is now advanced, complex and inter-connected. In reality, it is not that far from chaos and disorder. What if some malevolent actor persistently hacks into the navigation systems of the container ships which act as Bermuda’s lifeline so that they steam around in circles, unable to deliver essential supplies? Someone would have to mount the Bermuda Airlift, at least for a time. Dystopian, yes. Fantasy? Perhaps. Impossible? No. We are quite sure that the (re)insurance companies, whose presence underpins much of Bermuda’s economy, are already employing their best minds on understanding the impact of “connectivity” in order, firstly, to assess what is insurable; secondly, how it impacts their existing policy design; and, thirdly, how to design an effective way to map and aggregate the outcomes of a vast range of potential scenarios. Bermudians are unusually well-adapted to the idea of withstanding natural risks; but are they sufficiently aware of the fact that connectivity brings harm as well as opportunity?
Bear in mind that these are all scenarios that one can imagine now, and many, if not most, already carry an inherent threat.
Insuring our future For the past 21 years, BFIS has been providing Bermudian students with opportunities to gain the education and training necessary to enter Bermuda’s insurance sector, through a 5 step
programme of scholarships, internships, mentoring, networking and career guidance. Find out how we can help you take the first steps towards a rewarding career in insurance. Email: info@bfis.bm
SEPTEMBER 2018 RG BUSINESS
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BERMUDA REGISTERED CHARITY 440
BANKING opportunities to be project managers, to manage multiple dossiers to completion; UX (user experience) product designers and engineers who can think systematically and at larger scales, something they are calling “designing for trust” and for higher stakes; not to mention lawyers will now have to be versed in “tech” to fit the role of “blockchain legal consultant” that will open up. Some other jobs that can be expected:
Blockchain developers:
From intern to management Jobs that come with a fintech industry BY KRISTEN SCOTT NDIAYE
Some of us will remember a time when currency was a physical entity; no other options. Trades were made in animals, food, gold, coins and dollar bills. Then we saw credit cards and debit cards become more prevalent and money become almost virtual; just the swipe of a card was necessary for money to be transferred. Now, no card needed, a tap of your phone will suffice. This is the rise of the fintech industry. Fintech (Financial Technology) is the use of technologies such as machine learning and Artificial Intelligence (AI) to support financial services. The Bermuda Government has been working away to make the island the epicentre of the global fintech, and with it bring jobs in the technology, compliance, legal and financial sectors. It could also open up new options for
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students looking for internships and encourage young people to return to Bermuda. According to the government, Binance Group’s partnership with Bermuda will bring at least 40 jobs and a sponsorship of up to $10 million USD worth of university-level training for Bermudians in blockchain technology. These candidates will have
A blockchain is a shared ledger that aids in the process of recording and verifying transactions and tracks information of both tangible and intangible assets. It is the platform or operating system that allows digital and cryptocurrencies to be used. Those interested in getting involved with blockchains will need to have extensive programming skills. Medici Ventures’s (who started incorporating cryptocurrencies in their business in 2014) President Jonathon Johnson said “Blockchain can solve real world problems, the first way is by banking the unbankable, and the second is unleashing dead capital around the world” at a Heritage Foundation Event on June 12, 2018.
App developers: With the rise of digital platforms, naturally, apps will appear. These apps have to be designed not only to be user-friendly, but also to be secure and trustworthy. So, as cryptocurrencies continue to take the world by storm, and secure mobile payment options continue to become the default option, more platforms will need to be developed. Once up and running, they constantly have to be maintained and improved. Dr. Patrick Byrne, Founder and CEO of Overstock.com (one of Medici Venture’s companies) told Bermuda’s public in a press
conference with Premier, the Hon. David Burt, JP, MP, Medici will bring two to three and hopefully more of their 12 business to Bermuda providing jobs in graphic design and mainly technology focused individuals.
Financial analysts: Every company needs a financial analyst (FA). Fintech FAs, in particular, will be expected to research emerging technologies like AI (Artificial Intelligence), DLT (Distributed Ledger Technology) – the blockchain and APIs (Application Programming Interface) and build innovative financial models; an exciting opportunity for those who enjoy a self-directed project.
Compliance experts: Compliance jobs have been in steady rise in recent years, and it’s absolutely blowing up in fintech. Compliance specialists enforce regulations and ensure the legality of activities within a company. No organisation chartering this new territory will advance without someone in this role.
Cybersecurity analysts: Cybersecurity analysts are arguably the most important part of this whole developing ecosystem. They will develop and advance security policies and procedures in the most secure way. This job combines all of the above roles, such analysts dip their toe in the engineering pool, and have to have knowledge in capacity planning, audit principles and security risk assessment. Luckily, Bermuda wants to be home to some of the best, with plans to train and attract more diverse talent in this industry. The government is bringing Bermuda forward on the global landscape as a leader in fintech. It’s time to start laying out the benefits to the island itself, and looking at building and benefitting the greater community.
RECRUITMENT
Managing intelligence An update on business versus robot BY JONATHAN KENT
The rapid and accelerating pace of technological advance means that, for many businesses, change has become a constant rather than occasional survival requirement, with disruption ever looming. The flip-side is that technology also provides more powerful tools than ever for the drilldown analysis necessary to enable informed and timely decisions that can keep an organisation moving in the right direction. Artificial Intelligence (AI), for example, has huge potential to help managers make better decisions. But the power of AI has to be handled with care so it can empower rather than threaten people, and to ensure that rich new data do not lead
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managers to leap to faulty conclusions based on perceived correlations and causalities that might not exist. Unease is clearly widespread among the working population, as AI becomes more pervasive. However, a report by PwC in July this year suggested that the robots are not going to take all of our jobs, after all. AI will create as many jobs as it displaces, PwC’s analysts concluded, because of the economic growth it will stimulate. People will indeed contin-
“constraint”, as proposed by Eliyahu Goldratt. The constraint is the element that, more than any other, determines the pace at which an organisation achieves units of its goal, such as products, ideas or money. A constraint could be anything from production capacity to employee behaviours or company policies. The theory is that an overarching focus on managing this constraint can generate serious improvements in output. During the 1990s, Dr Leopore, working with Oded Cohen, merged Deming’s and Goldratt’s ideas into “The Decalogue”, a series of ten steps designed to help organisations apply these philosophies and manage systemically. ue to matter in organisations. As Professor Tomo Noda of Shizenkan University, remarked at a conference on the future of management in Barcelona in April this year: “Planning, budgeting, and organising can be done by AI. But establishing vision, aligning people, and motivating people requires people”. This fluid environment may prompt many managers to seek a fresh approach. The concept of “intelligent management”, although based on a set of ideas that have been around for decades, may appeal to some as being potentially well-suited to today’s complex and challenging conditions. The Intelligent Management (IM) website, www.intelligentmanagement.ws, describes a systemic approach as to how organisations are understood and managed. Under the concept’s paradigm shift, the hierarchies and artificially created silos of prevailing management convention are transformed into a singular focus on system optimisation. IM’s founder, Domenico Lepore, believes that the management of an organisation as a system, as proposed by W. Edwards Deming as far back as the 1950s, could be optimised by the identification of its
“
A report by PwC suggests that the robots are not going to take all of our jobs, after all.
IM’s website explains: “At Intelligent Management, we guide organisations to understand operationally that they are not made up of disconnected pieces. Rather, they are a network of interdependent components with one shared goal”. Essential to making this work would clearly be ensuring that employees are engaged and think like managers. Such a corporate culture is difficult to achieve, but once in place, it would make the process of constant change management a whole lot easier.
Consultancy
How does it benefit business? BY KEITH SZMIEREK
Company growth, a sudden termination, maternity leave, new business acquired, project work – whatever the situation, you now have an opening in your company. Some already do, but would you consider hiring a consultant?
The benefits could be:
1
Speed
The recruitment process can be a long-winded one. If you need work to be carried out as soon as possible, hiring a consultant can mean work begins in days rather than weeks and months.
2
Skill Availability and Access Recruitment agencies have a bank of pre-screened consultants ready to fill whatever the need may be. There may be a hiring freeze, but the work still needs to be done, hiring a consultant can fill that gap.
3
Flexibility and Risk
Companies spend thousands of dollars on training and onboarding during the probation period, which could be a burden if the employee doesn’t work out. If a consultant isn’t quite right for the employer it is much easier to end the assignment.
4
Convenience
Taking on a consultant means much less administration
because the agency is responsible for HR, payroll and compliance functions. The agency is responsible for employment contracts, benefits and for additional headcount.
5
Coverage
When there isn’t a permanent need - such as seasonal demand, project work, parttime needs, or as an interim solution during the permanent recruitment process - a consultant can help fill that gap or help with a transition, which will ease staff burden.
6
Permanent Potential A consulting assignment can be used as a trial period, for both the employee and the employer. Even if the assignment was specific in terms of time frame, the consultant may have proven themselves indispensable leading the employer to consider the consultant as a permanent employee.
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Cost
There are often misconceptions about an hourly rate of a consultant equating to be more than the salary of an employee. Most employers
listen differently.
We
work on the basis that there are 52 working weeks in a year when vacation, public holidays, and sickness should be taken into account – you only pay for what you use. Some employers haven’t considered the full cost of hiring a permanent employee such as benefits including payroll tax, medical, social insurance, pension, and continuing professional development. Bonuses that the permanent employee stands to receive should also be factored in. Once those points are considered, many times the cost of the consultant is actually cheaper than the cost of the permanent employee.
vet differently. We
search differently.
We
support We
differently.
While companies have always recognised the need to recruit and retain permanent employees, enhancing this traditional model through the use of consultants has provided much needed flexibility in today’s competitive environment. Keith Szmierek is the Recruitment Manager for Bermuda-based recruitment agency Frontier Financial Services Ltd. Established in 2000, Frontier provides both permanent and consulting recruitment for international and local business, as well as immigration and new business set-up, compliance and related professional services.
Recruitment done differently.
441.296.8663
www.elevateselection.com Permanent & Contract Immigration & Outplacement
TOP TREADS
2018 Renault KWID interior
Renault KWID 2018
“Designed to turn heads” BY ASHLEY YEARWOOD
Originally made for the Indian market, the Renault KWID will give you everything you need for an economic price. According to EuroCar’s Stephen Davidge, Renault cars in Bermuda have never had to be rust proofed, a huge feat considering all the salt spray in the air. SUVs are the cool family car of convenience, and the KWID has adopted this look, making it sleek. Not to mention, compact. The car is measuring at about 144 inches long and 62 inches wide. Which means that it was designed to provide space only in the places that matter. The front, with its adjustable seat, always has enough leg room,
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but the back usually suffers because of this. The high ceiling, however, gives good head clearance and, in a way, makes up for the lack of space below. The trunk has a surprisingly large amount of room for cargo, and
the back seats can fold down for more space, if necessary. Parking and navigating Bermuda’s winding roads is a breeze with this car. If you are looking to save money on TCD licensing, the KWID might be the car for you. As a Class C, you can get the car on the road relatively cheap as opposed to bigger ones. It’s 1.0 Litre gas engine gets 60 miles to the gallon, and has been rumored by costumers to only cost $40 to fill up (that back seat isn’t looking too bad now). The transmission is an automatic manual, which means the car has a regular manual gear box, but automatic functions. In other words, it has a clutch and gears, but the car changes and does everything for you. This kind of system improves overall engine performance and fuel economy. The car isn’t going to let you win a drag race, but luckily you’re traveling a 21-square mile terrain, so it will get you from point A to point B quickly enough, and more importantly, with A/C. The KWID is more basic
than other Renault vehicles and only has one clutch (compared to other models that have two) making the ride a bit bumpier, but smooth enough for comfort. Again, it will be the back-seat passenger who will take the brunt. The wheels have good compression, so going over the small bumps and grates on our roads doesn’t serve to be that big of a problem –– as long as you’re dreams of going off-road are put in your back pocket. The car also sits quite high off the ground and has good brake clearance. A gravel driveway, or unpaved dirt road is no match for the KWID. The interior has cloth seats which can be reupholstered to leather after you’ve bought the car, and a dash mounted with an uncomplicated information system. The display is completely digital for easy view of information. When it comes to the driver’s view and peripheral, good, but there have been some blind spots reported by users. The KWID was originally only available as a manual in India, but they have expanded their markets to South Africa
Features Starting price tag of $16,250 TCD Class C Automatic manual transmission 144 inches long 62 inches wide 1.0 Litre gas engine gets 60 miles to the gallon Good brake clearance Interior cloth seats Digital display Anti-lock braking Driver’s Airbags Electric front windows Electric mirrors Air-conditioning Front fog lights Central locking Touchscreen stereo Bluetooth USB port Phone charging
and Bermuda and opened the opportunities for an automatic option. The list of standard features is quite surprising for such a basic and budget-priced car. It includes all the goodies such as anti-lock braking, driver’s Airbags, electric front windows, electric mirrors, air-conditioning, front fog lights and central locking. It also has touchscreen stereo, Bluetooth, and a USB port for music, phone charging, etc. Just over two months in Bermuda, at the time of writing, EuroCar LTD has already sold out of their first shipment and are halfway through their second. Its biggest competitor size-wise is the Kia Picanto, and pricewise the Hyundai Eon, which only comes in a stick shift. So far, the car is available in four colours and has a starting price tag of $16,250, an impressive one for the island. No top down, but definitely easy on your bank account.
TRAVEL
A modern Bermuda home in Smith’s parish.
In with the new
A look at a charming Bermuda’s buyer’s market BY BUDDY REGO
While out with the old is not always the case with real estate in Bermuda, it is certainly becoming prevalent for today’s discerning buyer. Dated kitchens and bathrooms are the death knell of hopeful sellers whether the property is a condominium or cottage. Bermuda advocates have long sought out the quintessential Bermuda cottage with cedar beams and Dutch doors, at least until recently. There has been a definitive move from the traditional aspirations of home buyers including second and third-time buyers who have exchanged charming and cute for
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contemporary and functional. Mill workers will tell you that Bermuda (or Virginia) Cedar do not command the price it once did. Travel the island countryside and you will notice more demolition of traditional design being replaced by more contemporary shutter-free homes.
The idea that newer is better has been demonstrated by the lackluster performance of sales for dated condominiums and homes throughout the island in recent years. Newer or renovated properties stay on the market for a shorter period of time and achieve the best price. Hence the resurgence of new developments that have been repurposed from their heyday as industry standard hotel/tourism properties. Not all are recognized as luxury, such as Wedco’s development in Dockyard. Additionally, the new rising standard is exemplified by luxury properties such as Caroline Bay in Southampton, Newstead and Belmont Hills and Azure in Warwick, The Wharf in Paget, Park Place on 10 Dundonald, Belvedere and Queen of the East in Hamilton. The redeveloped hotel properties in the East end of Bermuda now boast the gold standard of luxury condos in such properties as Ariel Sands, The Loren At Pink Beach, Hidden Cove, Rosewood Tucker’s Point and upcoming St. Regis Bermuda Resort and Residences. With real estate sales prices
holding firm over the last few years, property sellers are having to offer more value to buyers in order to hold those prices. Simply put, buyers get more for their money today compared to five, or even eight years ago. It might be time for “out with the old”.
So,
what is the state of the market? Average sales prices of homes under $126,000 ARV remain firm around $1.1 million. Condominiums with an ARV greater than $25,800 continue to sell at an average price of around $850,000 to $900,000. In every category of property, it still remains a buyers’ market where replacement costs exceed market value in 2018.
LIVE BERMUDA STYLE
RESIDENTIAL SALES RENTALS COMMERCIAL VALUATIONS PROPERTY MANAGEMENT TENANT SERVICES
441.292.3921 regosothebysrealty.com info@regosir.com 83-85 Front Street, Hamilton, HM AX Each Sotheby’s International Realty office is independently owned and operated.
TRAVEL
The most extravagant airport lounges in the world BY ALEJANDRA OTTLEY
Air travel is usually associated with long lines, overpriced bottled water and painfully uncomfortable seating areas. This, however, is in stark contrast to those that are fortunate enough to travel in first or business class. We know about the luxury on board, but what’s behind the curtain in the airport lounges? Here’s a peek at some of the most extravagant airport lounges that might convince you to upgrade on your next ticket.
1
British Airways “The Concorde Room”, London Heathrow and New York JFK For starters, passengers go through the “First Wing”, an exclusive check-in experience and expedited security clearance. Once inside, First Wing passengers are treated to a la carte menus from top chefs perfectly paired with fine wine and champagne, complementary snacks and beverages.
WINNING FEATURE: the private cabanas: a comfortable bed, room service and even a wake-up call. There is a flight to catch, after all.
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2
Cathay Pacific “The Pier”, Hong Kong International Airport Your high-class trip to China starts and ends with the lounge, which features a unique tea house with a variety of artisanal and traditional Chinese teas served by specialists. Dining options include a deli-style restaurant for those on the go, a coffee cart offering freshly brewed specialty coffee made by expert baristas, as well as a noodle bar, serving fresh regional specials.
WINNING FEATURE: relaxation rooms and workstations are offered for those looking to catch up on some rest or a quiet place to work.
Don’t worry about waking up groggy, you can freshen up before or after take-off with a nice, long private shower.
3
Turkish Airlines “Lounge Istanbul”, Atatürk Airport Measuring over 32,000 square feet, Lounge Istanbul has been labelled as one of the world’s best lounges for numerous reasons; captivating architecture and tasteful design make it more than a stop, but truly an experience. Hotel-like suites, private showers, children’s play area and massage therapy. You’ll want a long layover with video games, snooker tables, and golf simula-
tors. For restaurants, you have your choice of both Turkish and world cuisines, and bars with the top-of-the-line libations.
WINNING FEATURE: a cinema to watch all the latest and greatest to shut off before business begins.
4
Virgin Airlines “New York Club House”: New York JFK Airport Self-described as “a space that oozes uptown style”, this clubhouse promises that “the moment you walk in, you’ll be transported into a world of graceful elegance, with soothing lighting and luxurious furnishings”. Luggage storage,
showers, an entertainment zone, relaxation pods, and a clubhouse spa, all open for use.
WINNING FEATURE: a complementary a la carte menu, five-star dining that features tapas-style dishes, alongside a bar with signature cocktails and complementary beverages.
5
Etihad Airways “Etihad First Class Lounge & Spa”, Abu Dhabi International Airport The first choice for many long-distance travellers, this lounge is open 24/7, which is a major plus for stopovers during odd hours.
A view from the top floor of Turkish Airlines Lounge Istanbul at Atatürk Airport. MB_GLABermuda_8.5x3.5_April2017.pdf
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1:53 PM
It has a full fitness room, a children’s play area, a spa offering complimentary treatments including massages and facials, VIP rooms for more privacy, TV rooms, showers and even a clothes-pressing service. Guests experience worldly cuisine, tastefully inspired by Abu Dhabi and complimented by exquisite wine pairings. If spirits are more to your liking visit the bar to be tempted by one of their signature cocktails.
WINNING FEATURE: The complimentary cigar lounge, featuring high-class cigars specially made for Etihad, paired with a large selection of single malt whiskies and Cognac.
6
Qatar Airways “Al Mourjan Business Lounge”: Hamad International Airport Spread over 10,000 square metres, the design is a mixture of modern and classic style ¬– exclusive marbles, designer furniture and intricate embellishments. With world-class facilities and awards winning hospitality, Al Mourjan earns a spot as one of the top lounges in the world. Multiple dining options include anything and everything in between a light snack to gourmet meals, and fine beverages. Amenities include quiet rooms for a quick nap, family rooms and shower and restroom facilities.
WINNING FEATURE: Formula 1 simulator and children’s nursery –– because they know that behind every good person in business, is a great family.
LEGAL
The Anti-Money Laundering Act 2018 What does it mean for Bermuda?
BY RONALD H MYERS
The Act The Sanctions and Anti-Money Laundering Act 2018 (“the Sanctions Act”), enacted by the UK Parliament on May 23, 2018, would appear to put the Government of Bermuda on a direct collision course with the United Kingdom over the powers of the latter to legislate for the former. The Sanctions Act broadly makes provision to enable the United Kingdom to continue to implement United Nations sanctions regimes and to ensure that anti-money laundering and counter-terrorist financing measures are kept up to date. More controversially, Part 2 sets out the duty of the Secretary of State to provide all reasonable assistance to enable the governments of British Overseas Territories to establish publicly accessible registers of beneficial owners of companies, for the purpose of detecting, investigating or preventing money laundering. The relevant provisions go on to state that the Secretary of State must, no later than December 31, 2020, prepare a draft Order in Council requiring the government of any British Overseas Territory that has not introduced such a register within its jurisdiction to do so.
1
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Bermuda is of course a British Overseas Territory. These provisions therefore apply to it. They would appear to have the effect that Bermuda has until December 31, 2020 to establish such registers or an Order in Council will be made forcing Bermuda to do so. Such registers must be registers which provide information broadly equivalent to that available in accordance with the provisions of the UK Companies Act 2006. That in essence requires that companies keep and maintain registers “of people with significant control over the company”. The provisions are broad and include a person who holds more than 25 percent of the shares or voting rights in the company; a person who holds the right to appoint or remove a majority of the board of directors of the company; a person who has the right to exercise, significant influence or control over the company; and even a person who has the right to exercise significant influence over a trust or firm which fits any of the preceding descriptions.
Reaction to the Sanctions Act Unsurprisingly, the Act is not without controversy. From the
moment the provisions concerning the Overseas Territories became known, they engendered various public statements from or on behalf of the Overseas Territories affected. The relevant section’s primary goal is to combat financial crime in the territories: opening the registers to public scrutiny makes it harder to conceal corruption, money laundering, tax evasion and similar activities, and so makes the territories less attractive to criminals. That is, in any event, the theory espoused by its supporters. Financial services stakeholders argue, however, that such a requirement would violate their clients’ privacy rights, which in turn could cripple the industry. They also point out that other jurisdictions around the world engaged in the same industry are not required to meet this standard and that its imposition will therefore lead unfairly to the flow of business to those other jurisdictions. The result, it is said, will be that the provision will be self-defeating, in that it will then become more difficult to obtain the relevant information. In a Ministerial Statement dated May 4, 2018 and headed “The British Government vs
Reported in Bernews (http://bernews.com/2018/05/overseas-territories-accuse-uk-colonialism/).
RG BUSINESS SEPTEMBER 2018
The Bermuda Constitution”, Premier David Burt referred to the action taken by the UK Parliament as one “imposed in the absence of any applicable international standard [which] can only be viewed as a direct assault on the conduct of legal business in the Overseas Territories.” He went on to refer to “the wider issue of the UK Parliament’s wanton disregard for the unique constitutional position of Bermuda”, which he described as being “of greater concern to the Government and people of Bermuda”. He called the action taken “an egregious breach of well-established constitutional coventions”. He continued, “the constitutional position is founded in entrenched conventions that any legislative power sought to be exercised by the UK Parliament over Bermuda can only be done with the consent of the Bermuda Legislature.” His defiant conclusion was: “There will be no public register of Beneficial Ownership in Bermuda until this Honourable House, elected by the people of Bermuda votes to implement one! The Government rejects the regressive colonial mindset that some in London hold, that a Parliament 3000 miles away can impose anything on Bermuda that does not fall under the areas of Defence, Internal Security, the Judiciary, and External Affairs.” In an interview with Bloomberg1 Premier Burt is reported as having also said: “The era of colonialism ended quite a while ago; Bermuda sets its own laws and the only time that we’ll have a public register of beneficial ownership is when the Bermuda Parliament decides to do so.” Deputy Premier Walter Roban added2:
“We don’t recognise the authority of the UK Parliament to legislate over Bermuda outside of the prerogative powers that already exist in our constitutional order section 62 — that is understood by the elected minister and agreed with.” “Bermuda will only do what is passed in the Bermuda Parliament.” The Premier and Deputy Premier are not alone in their condemnation of the UK Parliament’s action. Leaders and commentators of other Overseas Territories essentially echo their sentiments. It would appear that the view being taken is that Bermuda sets its own laws; that the UK Parliament cannot legislate for Bermuda otherwise than with the consent of the Bermuda legislature and that Bermuda is in a position to reject the UK Government’s intention to legislate for Bermuda.
The law The law in this area has been crisply stated as follows3: “The competence of the Parliament of the United Kingdom to legislate for the British overseas territories and other dependencies of the Crown has not been in serious doubt since the seventeenth century. From the middle of the nineteenth century, however, there was a convention against Parliament legislating for the self-governing colonies and colonies with responsible government without their consent. However this convention does not restrict the legal powers of Parliament, and may in any event be inoperative in some circumstances.” Another text explains4: “The Westminster Parliament is the supreme legislative authority of the United Kingdom and of all
territories under UK sovereignty. Accordingly, Parliament has unlimited power to enact laws for all British overseas territories. Acts of Parliament confer power to make subordinate legislation for the overseas territories. Such a power is usually conferred on Her Majesty to legislate by Order in Council. There is no rule of law that requires the consent of a territory, or even prior consultation with a territory, before Parliament legislates for it. In modern practice consultation is normally undertaken where practicable. The power of Parliament to legislate for a British overseas territory is a principal mark, if not the principal mark, of the dependence of the territory on the United Kingdom. Acts of Parliament granting independence routinely provided for the removal of that power.”
The Premier and Deputy Premier’s propositions in light of the law It is apparent that the propositions put forward by the Premier and Deputy Premier are (legally at least) misconceived. In this area, Bermuda holds a constitutional position in common with the other overseas territories, one which is therefore not unique. There may be a convention as to consent, but this does not restrict the UK Parliament’s legal powers, indeed, there is no rule of law requiring even consultation. No entrenched or inviolable constitutional convention therefore prevents the UK Parliament legislating for Bermuda. The subject matter of imposed legislation is unlimited and in particular, is not limited to the topics referred to. Given that the power of the UK Parliament to legislate for Bermuda is the principal mark of Bermuda’s dependent
constitutional status, the idea that Bermuda is in a position to reject this power must be entirely without foundation. Bermuda does set its own laws, but only in so far as the United Kingdom does not set laws for it, which it is perfectly entitled to do. Morever, it should also be noted at this point, Bermuda’s legislature does not have the power to override inconsistent UK legislation extending to Bermuda, because of the Colonial Laws Validity Act 1865, which continues to apply. Such Bermuda legislation would be “absolutely void and inoperative” to the extent of the inconsistency, to use the language of that Act. So any attempt by the Bermuda legislature to pass a law inconsistent with an Order in Council under the Sanctions Act would be entirely ineffective. It follows that Bermuda is in no position to not recognise UK legislation designed to enforce public registers, nor is Bermuda in a position to not recognise the authority of the UK Parliament to legislate for Bermuda on any topic.
A possible means of attack However, the decision to make an Order in Council under the Sanctions Act could be attacked in UK courts on the basis that, in the particular circumstances of the case, to proceed with it would be in breach of the usual public law principles of irrationality, illegality or procedural propriety. In relation to irrationality, for example, an argument could perhaps be made to the effect that to make such an Order in Council, given the concerns about the disproportionate impact of the measure, its self-defeating nature and so on, would be irrational in the public law sense. In relation to procedural
Implications Bermuda derives advantage from its connection with the United Kingdom, to the extent that it is able to advertise that it offers the security and stability traditionally associated with the British flag. Decisions made by Bermuda’s overseas clients typically give weight to this important factor. It is that very residual or ultimate control by the United Kingdom that offers the security and stability, at least perceptually, that Bermuda is able to promote. That control is the primary marker of the relationship of dependence. It is therefore an inherent part of the perceived advantage associated with such status. Bermuda must decide whether it continues to carry its weight, whether economically, socially, culturally or socio-economically. If it does not, then logic suggests that the way forward is to terminate the relationship of dependence which confers such control. Nothing else will eliminate the legal fetters which, it seems, the Premier and Deputy Premier at least, given their statements, would seem desirous of shaking off. Ronald H Myers is the Director of Marshall Diel & Myers Ltd.
During a meeting with the UK’s Minister of State for the Commonwealth and the United Nations reported in The Royal Gazette
2
(http://www.royalgazette.com/news/article/20180615/roban-attends-conference-for-ots-in-london&source=RSS).
Halsbury’s Laws of England, Title: “Commonwealth”, Volume 13 (2017), paragraph 709.
3 4
propriety, it could conceivably be argued that Bermuda has a legitimate expectation of consultation, given the accepted constitutional convention. It is respectfully suggested that to test the matter in this way is an approach which ought to commend itself to the Bermuda Government, as its chances of success are far higher than to seek to assert that Bermuda may simply ignore the UK Parliament while still retaining its overseas territory status.
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British Overseas Territories Law (Second Edition), Hendry & Dickson, pages 57 to 59.
RG BUSINESS SEPTEMBER 2018
FINANCE
Bundled or unbundled? Evaluating your employee benefits BY CARLA SEELY
When a new business starts up on the island, one of the many items on the ever-increasing checklist is the topic of employee benefits. Understanding what is required by law, what is considered an added benefit, or deciding between using a single provider or splitting between different ones, is all part of the research. The benefits an employer provides to its employees will have a big impact on employee retention, so understanding your corporate responsibility and the industry standard is essential. As Richard Branson, founder of the Virgin Group, once declared: “Take care of your employees, and they will take care of your business”. As an employer, you’ll discover one of the largest expenses is health insurance for employees, not just in Bermuda: health insurance costs are challenging globally. An employer’s responsibility is to ensure employees have good-quality insurance that meets the needs of its workforce. However, providing health insurance is only one element; a company should also implement wellness programmes. Investing in a workplace wellness programme can improve the company brand, build loyalty with its employees and re-
duce sick time. Effective as of January 1, 2000, a mandatory pension scheme was established in Bermuda, requiring companies based in Bermuda, or wishing to set up in Bermuda, to create a company pension plan for their employees (Bermudians and spouses of Bermudians). There have been amendments to the Pension Act over the past eighteen years, the same binding principle still exists – providing retirement benefits. Most employers now offer a pension plan to all employees regardless of their status, which shows employers recognise the value in helping their employees towards their retirement goals.
Life and disability insurance, although not a mandatory benefit, is something that is typically offered by most employers. However, it is important to note that since life and disability insurance is not mandatory, there will be eligibility requirements – some of which the benefit provider will set and some of which the employer can request. Once you have decided on the type of benefits you wish to offer your employees, the next decision is whether you bundle the benefits (use one provider for all) or unbundle the benefits (use the best provider for each type of benefit). A great way to figure out what your workforce is looking for is to hold a “town hall meeting”, where you find out what is important to them, i.e. essentially which products and services they are looking for in today’s environment. Once you have the information from your staff, it is time to tender a request for proposal (RFP) for all your employee benefits, and we normally recommend doing this every few years. Once the RFPs come back, sift through the information and determine what options are available. Perhaps you will stay put, but perhaps you will discover a much better offer for each benefit. Changing benefit providers is not as painful as you may think. Yes, it generates paperwork, but benefit providers are experienced with the process, which is streamlined and well regulated. At the end of the day a happy employee is a productive employee, which is what any employer wants. Carla Seely is the Vice President of Pension and Investments at FM Group.
TECH
Finally, fibre to the business What does that mean? BY NIGEL TAYLOR
Over the last 14 months there has been a lot of talk about the benefits of 100 percent true fibre network for residents of the island. But what about businesses? The newest technology for business-to-business services and solutions is “Fibre to the Business”, and here’s a breakdown: There are two main types of internet technologies used by businesses on the island: fibre and copper. Fibre optic is, by simple scientific fact, the best technology currently available for the transferring of data. Fibre optic cables use pulses of light to send data between two points while traditional copper cable uses sound pulses over expensive copper metal. A 100 percent fibre internet service goes point-to-point without interruption. This means taking the fibre cable all the way into the business, rather than switch to another technology, such as copper, to cover the last portion of the journey. Going from fibre to copper cabling or another network type introduces degradation and a possible point of failure. Mathieu Dion, Head of Business Solutions at Digicel Bermuda explains, “Fibre to the business is the future of business telecoms and services, for a number of reasons. In today’s business environment organisations can’t put up with even the lowest level of latency for data
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transfer or internet speed. Likewise, security is paramount”. The big benefit for companies is that fibre all the way into the business provides a point-to-point, dedicated network connection that combines low latency and high security. In simple terms there is no sharing of a fibre line with outside parties, which copper, a hybrid (of copper and fibre) or WiFi solutions allow. Fibre is also not susceptible to magnetic, electrical or other types of interference that can impact both copper and wireless technologies. “The term ‘future proofed’ may sound like jargon but fibre is built for future needs and completely scalable as the need for greater bandwidth grows. This also makes it cost effective in the long run for future upgrades. Given the pace of technology advances, even at the SMEs and home office level, this is crucial to continued growth and reduction in costs”, added Mr Dion. “In today’s fast-paced business world it’s essential to be
able to run all business-critical applications reliably online. Effective communication with colleagues, customers and suppliers is key to success. Businesses with fibre connections will be able to expand their computing power and capabilities on demand at a moment’s notice.” Fibre is less susceptible than copper to degradation, temperature and moisture interference, which is a common problem in Bermuda due to its subtropical climate. Fibre connectivity provides businesses with consistently fast speeds when they need it, i.e. all the time. In the United Kingdom, companies are making the switch and when British Telecom surveyed 900 of their customers, 75 percent said fibre internet helped them achieve their business goals and deliver a better customer experience when compared to the standard business internet. In the wider context of what a fibre infrastructure means for Bermuda, during an interview with Bloomberg TV earlier this year, Premier David Burt mentioned the fibre-to-the-home network as he talked about the island’s readiness to host blockchain and fintech companies as well as the development of Bermuda as a digital hub. In terms of islands of similar size and development plans, this matches what has been happening in Jersey, in the Channel Islands, as it aims to the become the first jurisdiction in the world to reach 100 percent full-fibre connectivity this year. There are 36,000+ properties connected to 100 percent fibre in Jersey, while fibre runs past 36,365 properties (business and home) in Bermuda so the potential is there. Additionally, Bermuda also has an advanced LTE (Long-Term Evolution) mobile network, meaning the island is not far behind as one of the most seamlessly connected places in the world. Fintech, blockchain and cryptocurrencies have been hot
topics recently as the government plans to attract these industries to the island. Commenting on the government’s plans, Paul Stafford, CEO of Digicel Bermuda, said, “As the island looks to attract fintech and blockchain-based companies, Digicel is best placed to offer a world-class fibre network. Because ours is the only 100 percent end-to-end fibre network, we are in a unique position to provide a service with not just high speeds, but equally, reliability, scalability, resilience and low-latency.” From an employment perspective, this is a positive move as the island expands its employment base beyond the reinsurance industry. According to Jersey Telecom, 100+ jobs were created within the digital sector off the back of the fibre roll out. This can only be good news as the government peruses its digital agenda. In addition to job creation, locally it has resulted in upskilling as BTC service technicians with decades of experience of building, installing and maintaining a copper network were retrained on a newer technology, ensuring job security. As Bermuda continues to lead the way in the reinsurance industry, seeks to attract emerging industries, and grows opportunities for local business owners, the fibre technology is there to provide the unseen, unsung backbone to ongoing success. Digicel’s Fibre to the Business is launching in early October.
“
Fibre technology grows opportunities for local business success.
ACCOUNTING
Who’d be an Accountant? They are human after all BY JOHANNES EUNES
Accountants and the accounting profession are often the butt of disparaging jokes (“Mind the GAAP”, for example), ranking perhaps only above actuaries in the hierarchy of professions seen as “boring”. Yet, ever since the days of Luca Pacioli (Franciscan friar and correspondent of da Vinci) in the late fifteenth century, who is regarded as the “Father of Accounting”*, the accounting profession has assumed an ever more prominent role in ensuring the smooth running of business and government. Of course, Mick Jagger (sic), escaped the profession after just one year of studying at London School of Economics; and accountants do sometimes go rogue – consider Skyler White
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in Breaking Bad! Generally, however, the profession is seen as one that is safe, predictable and essential to the smooth functioning of any complex economy; with the role of auditor particularly important in underpinning the veracity and reliability of a set of published accounts, and a “clean audit opinion” as the mark of probity for any corporation or business. So, it comes as rather a shock that the profession is, in a number of key economies,
in something of an existential crisis. Not in the sense that it will cease to exist, (we can envision a Monty Python-like “Accountants at the End of the Universe” skit*), but rather in the sense of what exactly its purpose, responsibilities and standards should be. Just read the recent Financial Times series on the topic. In many ways, the task of an accountant as auditor is a thankless one. They are expected to “get it right”; ferret out fraud and malfeasance; crunch mind-numbing quantities of information; estimate appropriate parameters for sampling, testing and verification; question management; ensure a board is performing adequate oversight; and reassure shareholders and creditors that “the numbers” are accurate and reliable. Meanwhile those “other accountants” (management consultants by another name) seemingly get all the interesting work, more money, and plausible deniability if something goes wrong. Life is so unfair! In reality, it is too easy to mock a profession, whose members on the island have a broad range of skills, knowledge and experience to offer, dealing
with the needs of often complex multinational businesses; ambitious start-ups; and the ever-expanding demands for more transparency and improved compliance and corporate governance. The idea of creating digital asset businesses, fintech banks or “crypto-exchanges” on Bermuda without the close involvement of skilled and knowledgeable accountants would be truly disturbing. As such, accountants need to be brought in the developing conversation about how Bermuda can thrive and prosper (and avoid being made to look foolish, or worse) in a world in which the likes of the United States and the European Union are all too ready to dismiss jurisdictions such as Bermuda as “tax havens”. The island (including Government) needs the accounting profession, and the accounting profession needs to be more vocal in expressing the views of its members on how to improve opportunities for all Bermudians, and maintain appropriate standards for the conduct of business and government. I invite them to respond to tell us their thoughts. Give a thought, therefore, to the position of your friendly, island-based, Bermudian accountant. Consider that behind the sunglasses and conservative attire, the air of calm competence, and the well-honed ability to put that mot juste into every clarifying Note, all may not be well; and that there lies a soul that seeks inclusion, recognition and redemption. Perhaps we should institute a “Hug-your-Accountant” campaign? On second thoughts, perhaps not. The excitement and display of human feeling might be a little too much…. *Because of his codification and publication of its essential components. *Search YouTube for some original Monty Python sketches involving accountants!
Become a CPA. The Canadian CPA offers Bermuda’s only fully on-island program with mentors, instructors, and classmates to support you while you study. Contact us to start your path today. cpa atlantic.ca
TOP TEN
2018
1 2 3 4 rontier Financial Services made a spectacular debut by taking top honours in the tenth staging of the RG Business Top Ten Employers Awards, presented by PwC. The business-services and consultancy firm edged out FedEx, ranked top last year and in four of the last five surveys, into second place. Frontier was one of four new participants to make the list this year, the others being accounting-services firm ABS (sixth), airport operator Bermuda Skyport Corporation (seventh) and insurance-linked securities and fund management specialist Horseshoe Group (ninth). Six companies added to their previous appearances in the Top Ten, further confirming their status as great employers, namely FedEx, Bacardi, Argus Group, Marshall Diel & Myers, Fireminds and Auto Solutions. This year’s winners span a broad range of Bermuda business, local and international, and from many industries. The survey is based on the views of employees, with the data processed by Global Research, a leading quantitative research firm who partnered with the magazine on this project for an eighth year. Professional-services firm PwC Bermuda provided generous sponsorship for a seventh consecutive year. “Our congratulations to this year’s Top Ten Employers for being named the best places to work, learn and excel in Bermuda”, Arthur Wightman, PwC Bermuda leader, said. “Each of these organisations should be extremely proud of their commitment to career coaching and training, corporate responsibility, diversity, work-life flexibility, and benefits and rewards. They are leaders in attracting and retaining employees and recognise that culture and benefits are as important as financial rewards”. “PwC is pleased to sponsor and continue our support of these annual awards, now in their tenth year. With a collaborative, people-focused and innovative culture, our firm is part of a global network that is committed to offering our employees the best opportunities to realise their full potential. We hope the Top Ten Awards encourage other organisations in Bermuda to aspire to be exceptional employers”.
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5 6 7 8 9 10
1 Frontier Financial Services Professional Services
FOUNDED
2000
EMPLOYEES MALE/FEMALE RATIO
29% • 71%
35
BERMUDIAN/ NON-BERMUDIAN RATIO
54% • 46%
STAFF TURNOVER (2017)
14%
Frontier Financial Services made a perfect debut in the Top 10 Employers competition, taking top honours at the first attempt. The professional-services company lends its expertise to employers all over the island in a wide range of areas from accounting and recruitment to immigration requirements and compliance. Its newfound status as Bermuda’s top employer will be a great advert for the business. The 18-year-old company is based in offices on Reid Street and its staff apparently love working there. In their survey responses, employees remarked favourably on compensation, work-life balance and a listening management in the survey. Personal wellbeing is of great importance. All employees receive full health coverage and all were given FitBit devices to encourage them to monitor their activity. The company also staged a health and wellness seminar with BF&M, its health insurer. One trait of all great employers is that employees feel they have a
WHAT THE
EMPLOYEES HAD TO SAY
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“Better management, structure, commitment, pay and opportunity. Almost everything is better here than in my previous employers in Bermuda”.
voice, whether they are managers or not. One employee said in the survey: “Leadership has a clear plan. Employees are respected. Communication is a priority. All input is considered and appreciated.” When economic conditions worsened, the company was able to continue to thrive by making the interests of employees paramount and preserving its all-important talent. During the recession, the company said it increased marketing to improve demand for its services, while reducing prices to ensure staff were kept busy. It also reduced shareholder dividends to preserve cash in the interests of retaining all of its employees. “Staff levels are currently higher than before the downturn with no redundancies or staff pay or benefits being reduced”, the company stated in the survey. Frontier also does its bit for the community, donating financial support to youth sports and donating services to charities.
“Much better work-life balance. Better
“Management takes the time to listen
atmosphere within which to work.
and act upon the wishes of employees
Happy staff”.
to the best of their abilities”.
2 FedEx Express Logistics / Courier Services
FOUNDED
1987
EMPLOYEES MALE/FEMALE RATIO
93% • 7%
28
BERMUDIAN/ NON-BERMUDIAN RATIO
57% • 43%
STAFF TURNOVER (2017)
18%
FedEx Express puts just as great an emphasis on keeping employees happy as it does customers. This culture, instilled at global level, certainly shows up strongly in the logistics expert’s Bermuda operation, which has enjoyed more success than any participant in the history of the Top Ten Employers awards. A four-time winner, FedEx missed out by a whisker on defending the number one spot that it held in 2017. FedEx founder and CEO, Fred Smith espouses a “people-service-profits” philosophy and believes that “when people are placed first they will provide the highest possible service and profits will follow”. This is no empty slogan. For example FedEx holds an annual employee satisfaction survey, which rates management’s performance and forms a basis for improvement through formal written action plans. The ongoing conversation with employees is encouraged through
One employee said: “My current workplace really shows that it puts its people first before anything. Not only do we talk about safety, we practise it too, and the benefits are excellent as well. The opportunities are here if you’re willing to put in the work.” FedEx’s employee-centric approach is also evident in its take on performance appraisals that it prefers to the term “performance development discussions”. The focus of such meetings “should be on what the employee needs, and how the manager can support, to raise their performance to the next level”, FedEx states. Employees can earn quarterly bonuses, as well as annual incentive compensation, tied to performance. Unusual staff benefits include FedEx’s online learning centre and special airfares for employees and their families.
“They value their people and show
WHAT THE
EMPLOYEES HAD TO SAY
FedEx’s Open Door programme, a process for dealing with employee questions or complaints regarding corporate policy. There is also a formalised structure for employees to have an issue heard, known as the Guaranteed Fair Treatment Procedure.
“Our benefits program, our FedEx university classes, overall the growth we have to better ourselves to serve our customers”.
this. For example, in the past year of hurricanes which greatly impacted the Caribbean region they sent in aircrafts with just supplies, generators, water,
“We are allowed to do our jobs daily to the best of our ability without any micro managing”.
medicines for their employees”.
MAY 2018 RG BUSINESS
29
3 Bacardi
Consumer Package Goods – Beverage Alcohol
FOUNDED
1862
EMPLOYEES MALE/FEMALE RATIO
62% • 38%
74
BERMUDIAN/ NON-BERMUDIAN RATIO
34% • 66%
STAFF TURNOVER (2017)
12%
Bacardi has become a fixture among the Top Ten Employers and this year’s third spot marks progress from the sixth place the drinks giant achieved in 2017. It may be a leading global player in its industry, but Bacardi is still very much a family business. That characteristic is ingrained in the corporate culture and may well contribute to Bacardi’s strength as an employer. In its comments in the Top Ten survey, Bacardi makes clear that staff are thought of as part of the corporate family and – just like in a family – constructive differences of opinion are welcome. Bacardi stated: “The performance management process has been changed for this fiscal year, which will embrace the company’s culture – based on family”. This will involve “viewing the organisation as if it were our own and doing what’s right for the business and adopting a fearless attitude, being empowered to question, challenge and innovate our company and the way in which we work. Nothing should get in our way of challenging the status quo, thinking cre-
WHAT THE
EMPLOYEES HAD TO SAY
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atively and improving our business processes”. Employees are eligible to receive annual bonuses, based half on company financial results and half on individual performance, as judged through the performance review. One employee said: “I’ve been with many large public companies and they do not treat their employees, the community and the environment as well as Bacardi does. We treat each other like the family company that we are”. Staff benefits include in-house childcare facilities and an annual gym membership allowance of up to $1,500, as well as free breakfast and lunch provided. Mentoring and career development opportunities feature strongly, with management coaching, a Women in Leadership programme and a range of internships available. The company is also a vigorous supporter of numerous local charities.
“Company accepts staff involvement
“The vision and direction of Bacardi in
Bacardi cares for their staff. They make you
for all aspects of business and work life
terms of business and people strategy
feel like you are part of a family”.
processes. Provides support to staff on
is far superior than any other place I
all fronts”.
have ever been employed”.
4 Argus Group
Insurance, Retirement and Financial Services
FOUNDED
1950
EMPLOYEES MALE/FEMALE RATIO
88% • 12%
153
BERMUDIAN/ NON-BERMUDIAN RATIO
31% • 69%
STAFF TURNOVER (2017)
9%
Argus has been a consistently high performer in its illustrious Top Ten Employers history. This year’s fourth place follows last year’s third, which came on the back of three consecutive fourths. With a staff turnover rate in single digits, it would appear that employees are happy to work at the insurer and provider of retirement products. Employee responses to the survey show that Argus’s people feel empowered, valued and encouraged to fulfill their potential. Many employers speak of their desire for an engaged workforce. Argus has taken this a step further by setting a high benchmark for itself and measuring it through an anonymous annual survey. The latest poll found 87 percent of respondents were “fully engaged”, nicely above the company’s 80 percent target. That is extraordinarily high, according to the company that helps Argus survey staff sentiment. Indeed, the company scored in the top five percent of engaged
WHAT THE
EMPLOYEES HAD TO SAY
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RG BUSINESS MAY 2018
“Argus is very employee focused. I genuinely feel cared about at work and feel as though I am beneficial to my team”.
organisations, with the vendor’s benchmark including the past three years of data from 20 million responses across multiple industries. Health is treated seriously at Argus, where staff receive up to $500 per year towards gym membership. The company has a Wellness Committee that works out ways to promote healthy living and a proper work-life balance. In January, for example, it launched an eight-week nutritional and fitness challenge called “Reboot” for employees. Participants found that the programme alleviated stress, provided clarity of mind and improved their mood. All employees can enrol on the company’s Get Up and Thrive online wellness programme and can enjoy a stress-busting, quarterly massage. Personal development is a priority. As well as a focus on staff training, the online Argus University programme, since launching three years ago, has helped employees complete more than 600 short courses on topics ranging from customer service to advanced Excel.
“Argus makes the effort to do ‘the right thing’ for their clients and staff while still remaining competitive as one of the leaders in the local insurance industry”.
“In general, management ‘walks the talk’. Employees are genuinely appreciated”.
Our People Our People have a long history of protecting what matters most to the Argus family of clients, shareholders and the Bermuda community. We care for their future, because it’s our future too.
argus.bm • 298-0888 “Argus” and “the Argus Group”, collectively refers to Argus Holdings Limited and its subsidiaries.
5 Marshall Diel & Myers Law
FOUNDED
1989
EMPLOYEES MALE/FEMALE RATIO
89% • 11%
26
BERMUDIAN/ NON-BERMUDIAN RATIO
42% • 58%
STAFF TURNOVER (2017)
4%
Marshall Diel & Myers has proved itself to be a truly outstanding employer, having taken top honours in the Top Ten Employers awards in 2016 and second place last year. The Hamilton law firm prides itself on creating a warm and friendly working atmosphere that allows its employees to focus fully on the job and not be distracted by the negative factors that can plague a place of employment. As one staff member stated in the survey: “They say you spend more time with your colleagues at work than your family. I am lucky enough to have my family at home and at work”. The pleasant office atmosphere is not an accident – it is a deliberately nurtured culture. As the company stated in the survey: “MDM treats its staff as family. All are valued for the roles that they play. “As a result, the working environment is relaxed and friendly – resulting in everybody giving their best to their work. Our staff rarely
WHAT THE
EMPLOYEES HAD TO SAY
34
RG BUSINESS MAY 2018
leave and our longstanding staff work together to achieve the same objective - to service our clients to their satisfaction.” The firm made none of its staff redundant during the economic downturn of recent years and said it had expanded some office roles to make redundancy unnecessary. Employees speak of a workplace in which their views are sought and listened to. One staff member said: “The culture of the firm lends to diversity and unity. All are a part of the process and we each bring different views, cultures, and backgrounds that aid in providing well-rounded services to the Bermuda public”. Though a small firm, MDM does offer its own scholarship to law students, worth $15,000 per year, as well as some discretionary bursaries. The firm further encourages young people by offering internships that give law students paid work experience.
“The company treats each person as an
“Staff are free to express concerns
individual thereby making us feel valued
about issues openly to the GM or the
within the organisation. The work-life balance
office manager, both of whom are very
is perfect”.
approachable”.
“MDM is the nicest place I have worked. Everyone works hard but we also look after everyone”.
6 ABS Ltd
Bookkeeping, Accounting And Financial Consulting
FOUNDED
1988
EMPLOYEES MALE/FEMALE RATIO
92% • 8%
24
BERMUDIAN/ NON-BERMUDIAN RATIO
8% • 92%
STAFF TURNOVER (2017)
10%
To appreciate why ABS Ltd has made the grade in the Top Ten Employers award, one need look no further than the company’s mission statement. It reads: “To provide opportunity to as many unqualified and qualified Bermudian staff to enjoy a satisfying and rewarding job in a pleasant working environment while generating a better than average return for the shareholders of the company”. It’s not just the content of this sentence, but also the order of the wording that show that this is a company that puts employees’ interests first. For ABS, an accounting and bookkeeping services provider based in the AS Cooper Building on Reid Street, Hamilton, customer service is wholly reliant on the quality of staff. So, keeping good employees happy is critical. ABS practises what it preaches in terms of giving opportunity to Bermudians, with 92 percent of its staff being locals. All employees
WHAT THE
EMPLOYEES HAD TO SAY
“ABS Ltd is a company where you can voice your concerns and they are immediately addressed”.
receive annual cash bonuses of between $1,000 and $5,000, depending on attitude and performance. Its low turnover rate of 10 percent may be connected to the company’s readiness to help out employees when times are tough. Its response to the Top Ten survey states: “We constantly lend money (usually from $1,000 to $5,000) to long-term staff who have financial difficulties. We have written off loans in situations where staff were unable to repay for genuine reasons”. In addition, ABS will foot the bill for all continuing education at Bermuda College for any member of staff. Any employee who wants to pursue formal accounting qualifications will also receive financial support. Add to that the fact that ABS did not make a single redundancy during the island’s economic downturn and it’s easy to understand why many of its staff have worked there for more than a decade.
“I have worked for this company for 25 years. I have always been treated
“Each case is treated individually when
with the utmost respect and given every
anything falls outside the norm”.
opportunity to grow”.
MAY 2018 RG BUSINESS
35
7 Bermuda Skyport Corporation Airport Operations, Maintenance And Commercial Functions
FOUNDED
2018
EMPLOYEES MALE/FEMALE RATIO
97% • 3%
52
BERMUDIAN/ NON-BERMUDIAN RATIO
63% • 37%
STAFF TURNOVER (2017)
4%
Bermuda Skyport Corporation has only existed for a matter of months, but it has clearly made a positive impression on its employees in that short time.
The company says safety is its “number one core value”. It has a safety management system based on international standards and a safety committee.
The company, which is wholly owned by Aecon Concessions, was created to take over operations, maintenance and commercial functions at the LF Wade International Airport and to oversee the project to deliver a new terminal by 2020.
Skyport pays bonuses, which can be as much as 15 percent of base salary, depending on the company’s profitability and employees’ level of success in meeting personal objectives. It also operates a staff savings programme. Employees can save up to $750 a month and the company provides a fixed annual interest rate of five percent, paid out together with principal at the end of a 12-month term.
Staff may have had concerns over switching from public- to private-sector employment, but their survey responses suggest they are happy with the result. Evidently they feel valued, appreciate having a voice in decision-making and their compensation and benefits have improved. One employee said of Skyport: “It has more resources to get things done; it rewards its staff; it acknowledges its staff; better pay and benefits; and more opportunities to have fun”.
Skyport scores well on health, giving their staff up to $400 per year for wellness programmes of their choice, whether it be gym membership, a nutritional programme, or a quit-smoking course. It is active with local charities and for 2018 it has a focus on children’s and educational causes. It also offers internships that have already given six Bermudians work experience with Canadian host companies.
WHAT THE
EMPLOYEES HAD TO SAY
36
RG BUSINESS MAY 2018
“Makes us all feel that no matter where you work in the organization, you are equally important”.
“My boss actually cares about me as an individual before me as the employee”.
“Room for personal and professional growth, training opportunities, good benefits, stronger company moral”.
8 Fireminds Information Technology
FOUNDED
2001
EMPLOYEES MALE/FEMALE RATIO
40% • 60%
36
BERMUDIAN/ NON-BERMUDIAN RATIO
65% • 35%
STAFF TURNOVER (2017)
15%
Fireminds has made the Top Ten Employers for the third time, having placed third in 2015 and fourth in 2017. The IT firm is expanding, helped by a multimillion-dollar investment by American partner ATN International, which is also the majority owner of One Communications. That boost has helped its staff base rise to 36 this year from 25 last year. Fireminds is very focused on its customers and being able to come up with solutions for their specific needs. For example, it built and ran the America’s Cup ticketing system and the Bermuda Government’s online census portal. Micheal Branco, CEO of Fireminds, has said the ATN investment, which will facilitate access to new markets, will give employees more opportunity to travel and to work on broader projects. “Fireminds measures itself by global standards and tries to be one of the most innovative IT providers”, the company stated in its Top Ten survey response.
The kind of bright, young talent an IT solutions company needs is increasingly in demand and Fireminds engages with schools to try to attract young Bermudians who may have what it takes. Under its high school interns programme, three students visit every Thursday to work on software development projects, while middle school interns are invited to shadow employees annually. Fireminds also hires talented university graduates, with degrees in computer science or software development, to undergo an intense two-year programme in its graduate internship. The company also supports the Ewan Sampson Scholarship Trust. Fireminds and its staff get involved in charitable activities spanning science and the arts, including the Technology Leadership Forum, the Bermuda Festival and the Bermuda International Film Festival. Its charitable efforts are focused on three areas: technology and youth; performing arts and youth; and job creation.
WHAT THE
EMPLOYEES HAD TO SAY
38
RG BUSINESS MAY 2018
“Dynamic place to work with a family feel,
“Fireminds has allowed a more creative,
everyone contributes together to make the
free-flow environment that allows for a
company the best it can be”.
relaxed atmosphere”.
“Progressive company where my input matters!”
Identify Threats and Protect your Business with a Fireminds Disaster Recovery Planning Session
CLOUD SOLUTIONS MANAGED SERVICES SOFTWARE CONSULTING 441.295.0000
INFO@FIREMINDS.COM
FIREMINDS.COM
9 Horseshoe Group
Insurance Management and Fund Administration
FOUNDED
2005
EMPLOYEES MALE/FEMALE RATIO
57% • 43%
44
BERMUDIAN/ NON-BERMUDIAN RATIO
36% • 64%
STAFF TURNOVER (2017)
20%
Horseshoe Group has made the grade at the first time of asking in the Top Ten Employers awards. The company is at the forefront of the booming insurance-linked securities industry and is a specialist in ILS, as well as fund management. Employees clearly enjoy working there. Among their survey responses, staff said they felt appreciated and that Horseshoe provided a “relaxing atmosphere” and a great work-life balance. High performers are rewarded, as Horseshoe awards bonuses based on both the company’s and the employee’s performance. Each employee has a target bonus, based on level in the company. Objectives and goals for employees are set through a formal annual appraisal process, which involves employees and their managers completing an assessment as a basis for the performance discussion. The company says it has been fortunate enough to have had few internal conflicts, but when they arise employees are encouraged to discuss them with their manager, the CEO, or Horseshoe’s external HR contact.
Communication is aided by a digital equivalent of the old-fashioned suggestion box: a suggestion e-mail folder that allows employees to voice ideas and concerns anonymously. The suggestions are accessed by Horseshoe’s compliance officer and then directed to the appropriate senior manager based on sensitivity and area of concern. The firm has a health and safety committee that meets regularly to assess the office environment and address any concerns. Horseshoe supports charitable activities, including being on a weekly roster for Meals on Wheels deliveries, clearing trash in periodic Keep Bermuda Beautiful clean-ups and taking part in the annual BF&M Breast Cancer Awareness Walk. Horseshoe, through its summer internship programme, also takes on at least two or three college students to give them an introduction to insurance management and fund administration.
WHAT THE
EMPLOYEES HAD TO SAY
40
RG BUSINESS MAY 2018
“The management is approachable and the staff are friendly, and they feel valued and appreciated”.
“Mutual respect and trust of colleagues. Pleasant and collegial atmosphere”.
“Senior management is engaged and involved and shows an interest in staff and daily operations”.
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10 Auto Solutions Automotive Sales and Service
FOUNDED
2013
EMPLOYEES MALE/FEMALE RATIO
80% • 20%
44
BERMUDIAN/ NON-BERMUDIAN RATIO
75% • 25%
STAFF TURNOVER (2017)
12%
Auto Solutions finished the game, nabbing the tenth position, down from number nine last year. Since then, the company has stayed relatively the same size, with 44 employees, compared to 45 last year, focusing more on their current staff, of which, almost all expressed having pride in their current job and feel that they are developing with the company. On average, employees are sick just four times a year. “Just a great place to come [to] work every morning…majority of employees arrive happy…and the morale is a great one and the best [place] I have ever worked”, says one staff member in the survey. It could be due to generous commission for staff, or the Technicians and Customer Service monthly incentive programme that is put in place. Plus, Auto Solutions is a part of the BF&M Livewell Program to ensure a healthy and safe environment to work in.
WHAT THE
EMPLOYEES HAD TO SAY
RG BUSINESS MAY 2018
One staff member stated, “Management is making an effort to ask staff for their ideas and opinions and actually listen and updated on what is being worked on”, and when it comes to working habits, “we have better hours, we don’t have to work every weekend, we have holidays off, we close on Saturdays after a holiday, the pay is great”. Obviously the best
“I can see the management making an effort to listen to and take stock in the employee’s
“We have an HR that takes the time
“Less stressful environment,
thoughts. They are putting the effort in so that
to listen and try help. Sometimes just
better company culture,
we can see that our opinions count and are
listening is enough”.
genuine concern for employees”.
important”.
42
They also make sure to give back, working with CADA, where they launched a Safe Driving Pledge Wall earlier this year. They sponsor raffles, assist with Tag day, and host an NFL tailgate with all proceeds going to The Reading Clinic. They also work with YouthNet and have a designated Community Education and Development Programme: Summer Internship, plus work with Bermuda Government schools to provide opportunities for students interested in the automotive industry.