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JULY 2014 ISSUE 28 JERSEY S BUSINESS MAGAZINE COMPLACENCY Is Jersey willing to grow its economy VIEW ONLINE AT BAILIWICKEXPRESS.COM SPENDING TIME How the States spends 3million a day PLEASE TAKE ONE PAGE 52 Stressed out by Gatwick Arrive relaxed in the heart of the capital TICKET CHANGES FREE London City Airport O2 Arena DLR Tube Canary Wharf 12 mins The Shard 19 mins Bank 22 mins Waterloo 23 mins Westminster 25 mins 10 mins 10 miles 5 miles Terms and conditions apply. AN AWARD-WINNING G LO B A L L E A D E R IN TRUST AND FIDUCIARY SERVICES Institutional Trust Company of the Year Citywealth Magic Circle Awards 2014 Best Wealth Planning Team WealthBriefing European Awards 2014 Best Trust Services Jersey and the UK Euromoney Private Banking and Wealth Management Survey 2014 Best Inheritance and Succession Planning Jersey Euromoney Private Banking and Wealth Management Survey 2014 Best Offshore Services Jersey Euromoney Private Banking and Wealth Management Survey 2014 Top 25 Most Admired Companies eprivateclient 2014 Top 25 Trust Companies eprivateclient 2014 To learn more please contact 44 (0) 20 7029 7580 or trustinfo Visit us online at There s Wealth in Our Approach.TM BAHAMAS BARBADOS CAYMAN DELAWARE GENEVA GUERNSEY HONG KONG JERSEY LONDON SINGAPORE The value of investments may fall as well as rise. You may not get back the full amount that you originally invested. TM Trademark(s) of Royal Bank of Canada. Used under licence. Above mentioned services are offered through Royal Bank of Canada or its affiliates. This advertisement does not constitute an offer of products or services to any person in any jurisdiction to whom it is unlawful for RBC Wealth Management to make such an offer. RBC Trust Company (International) Limited is regulated by the Jersey Financial Services Commission in the conduct of fund services and trust company business. The Private Client Fiduciary Services Terms and Conditions are updated from time to time and can be found at terms-and-conditions-British-Isles.html. Registered Office La Motte Chambers St Helier Jersey Channel Islands JE1 1PB. CA 1634 May 15 WELCOME FURTHER INFORMATION PUBLISHERS If you would like to appear in Connect have a story to tell or simply want to receive a copy then please get in touch with the publishers BAILIWICKEXPRES S.COM He ll be fine as long as he doesn t succumb to the Jersey disease. When my parents were told that at one mid-teen parent teacher evening I imagine their first instinct was to shuffle discreetly backwards after all was it contagious Unfortunately the answer is yes but not in any way recognised by the medical profession. As he quickly clarified the Jersey disease this particular teacher was referring to is not one that can be avoided with regular hand-washing it doesn t react well to medication (well maybe) and it doesn t bring you out in spots. On the flip side it does mean you might spend rather too much time in bed. Complacency. Or to put it another way how hungry are we for sustained prosperity What choices are we prepared to make to get there One man who believes the Jersey disease has taken hold is Chris Clark. He s the CEO of the aptly-titled business Prosperity 24.7 and on page 40 he explains why Jersey has plenty of work to do before it can live up to the name of his business. The point is this do we think an improving market is enough or are the clients in 2014 looking for very different suppliers than they were in 2008 If so for many businesses that means major changes still need to be made which is where leadership comes in. On page 52 you ll find the views of one Jerseyman who believes great JULY S ISSUE JULY 2014 ISSUE 28 JERSEY S BUSINES S MAGAZINE COMPLACENCY Is Jersey willing to grow its economy VIEW ONLINE AT SPENDING TIME How the States spend s 3million a day Bailiwick Publishing (LCI) Fox Building Second Floor Suite La Rue des Pres St. Saviour JE1 3UP Telephone 01534 887740 CONNECT ONLINE For all the latest news and classifieds straight to your inbox visit and subscribe to our daily news service. EDITOR James Filleul Email editor WRITERS Ben Qu r e Email ben Gwyn Garfield Bennett Email gwyn Paula Thelwell Email paula ADVERTISING Lisa Barnes Telephone 01534 510309 Email lisa SUBSCRIPTIONS Email subscriptions DESIGN AND PRODUCTION Mark Jackson Email studio Artwork under 10Mb in size may be sent to this address. PLEASE TAKE ONE PAGE 52 Arrive relaxed in the Stressed out by Gat wick heart of the capital 5 miles TICKET CHANGES FREE London City Airport DLR Tube O2 Arena 10 mins Canary Wharf 12 mins 19 mins 22 mins Waterloo 23 mins Westminster 25 mins 10 miles The Shard Bank Terms and conditions apply. business leaders are made not born and he has the track record to prove it. Of course one reason that complacency is so insidious in Jersey is that our politicians continually tell us what a great job they are doing Jersey might not be perfect but it s much better than anywhere else Indeed. And so in this edition we thought we d take a look at government spending just to see if the numbers revealed anything interesting. Take a look at page 18 for the result. So for now sit back put your feet up relax and read Connect. There s plenty of work to do tomorrow. This magazine can also be read online at Copyright Bailiwick Publishing LCI. All rights reserved. Reproduction in whole or in part without written permission is strictly prohibited. Views expressed by our contributors are their own. Editorial opinions expressed in this magazine are not necessarily those of Bailiwick Publishing. Bailiwick Publishing does not accept responsibility for the advertising content. While every effort is made to achieve total accuracy Bailiwick Publishing cannot be held responsible for any errors or omissions. James Filleul Editor Please recycle this magazine. Like Bailiwick Express on Facebook Follow us on twitter connectjersey JULY CONNECT 01 ON THE COVER NO ORDINARY DAY JOB Dr Jeremy Cross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 REGULARS LOCAL NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 APPOINTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 MUSING OF A MARKETER Sam Watts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 NEXT QUESTION Luke Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 UNPLUGGED Chris Clark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 SLIDING DOORS Alan Cox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 WHO S THE FOOL GLASS HALF FULL Delta Production Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 HERE S THE THING... ................................ ................................... 51 iSPY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 60 40 26 28 16 MY SECRET LIFE Annie Baker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 DEADLY DIARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 THE ADVISER Olaf Blakeley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 SPECIAL REPORT Tax & Spend - There s only one rule that matters in politics in the 21st century and in an election year it s even more important Ignore what they say watch what they do. Ben Qu r e reports on States spending. . . . . 18 FEATURES BANKING Barclays Wealth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 FATCA Blue Bison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 INVESTMENT GoldMoney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 KPMG .................................................... 30 TRUST & FIDUCIARY RBC Wealth Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 PROPERTY Skipton International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 02 CONNECT JULY 24 CONTENTS 62 30 CONTENTS J U LY 2 0 1 4 . ISSUE 28. 36 46 52 WANT THE LATEST BUSINESS NEWS TO COME TO YOU Scan the QR code and click to send us your email address. JULY CONNECT 03 NEWS Want this magazine delivered to your home or office Email your postal address to subscribe Jersey shoppers spend 258 million online a year Jersey households are spending an average of 7 000 a year shopping online - according to new figures on the impact of internet shopping on local retailers. A survey of online trends by Island Analysis shows that Islanders are logging on and spending in the region 258 million a year. The survey asked 560 Islanders about their spending habits. Two-thirds said they shopped online more last year compared to the year before and were choosing to shop outside the Island for convenience price product range and choice. Around half of the Island s clothing and footwear is bought online - as are household goods like furniture and furnishings - and more than half of Islanders are internet shopping for electronic goods books and downloads. More than one-in-three people said they often go window shopping for items locally before buying them online although one-in-three also said they frequently look online before buying the same thing in the Island. One of the main problems people face is getting their items to Jersey more than half of those surveyed said very often online retailers won t deliver to the Island. Many Islanders are put off ordering when companies won t deduct the VAT from their goods. The results show that fewer than 10% of adult Jersey residents don t have any internet access and around 15% of households still don t buy any products or services online. Public pat on the back for posties Public appreciation of the Island s postal service has grown over the past year according to a recent survey by Jersey Post. The results of the Island-wide survey showed that 91.6% of respondents said their postman was either good or very good compared to 86.5 % last year. Jersey Post first conducted an Island-wide survey at the end of 2011 and as a result implemented a number of changes including the removal of the two-tier postal service and the introduction of alternative parcel delivery options. Jersey Post s outgoing CEO Kevin Keen said Almost 7 000 households responded to the survey which is almost 1 000 more than last year and demonstrates that Islanders continue to feel passionate about their postal service. Other findings included 81%ofrespondents said that the retail network and associated services are good or very good comparedto70.9%last year. Islandersstatedthat theirhighestpriorityfor theirpostalserviceare keepingcostslow(51%) followedbyconsistencyof deliverytime(36%)and timelinessofdelivery (13%). Feedback from this third survey will enable Jersey Post to continue to benchmark change and review where service areas can be improved. Mr Keen said We re very pleased that this year s results have shown an improvement but we recognise that there is still plenty of work to do both in developing our products and services but also in providing excellent customer service. 04 CONNECT JULY Investment Outcome Char ting your own Course South of France N43 16 38 E7 3 12 Where will your investments take you Your world isn t con ned to a single set of geographic coordinates. Neither should your investments be. Our experts have access to investment ideas around the globe wherever they happen to be. Contact us to learn about the wealth management services we offer. 44 (0)1534 708090 Investments can fall in value and you might get back less than you invested. To us there are no foreign markets.TM Canaccord Genuity Wealth Management is a trading name of Canaccord Genuity Wealth (International) Limited ( CGWI ) which is licensed and regulated by the Guernsey Financial Services Commission the Isle of Man Financial Supervision Commission and the Jersey Financial Services Commission and is a member of the London Stock Exchange and the Channel Islands Securities Exchange. CGWI is registered in Guernsey no. 22761 and is a wholly owned subsidiary of Canaccord Genuity Group Inc. Registered of ce 2 Grange Place The Grange St. Peter Port Guernsey GY1 2QA. NEWS For news stories every day visit to sign up to our daily Jersey email news service Genuine Jersey goes stateside Local products made by members of the Genuine Jersey Products Association have travelled across the Atlantic to go on sale as part of the state of New Jersey s 350th anniversary celebrations NJ350 . Items made by artists Rosemary Blackmore Jools Holt and Kathy Rondel photographer Kevin Brace and students of Le Rocquier School along with books from L Office du J rriais and music by Badlabecques were on last month in a pop-up shop in Main Street Boonton New Jersey. The NJ350 Pop-Up Store initiative involves temporary stores opening in 14 communities to sell anniversary memorabilia and to celebrate independent businesses and local artists retailers restaurants and produce. The Chief Executive of Genuine Jersey John Garton said We are very pleased to be invited to send Genuine Jersey products to be showcased in New Jersey as part of their celebrations. Jersey to introduce new companies regulation The Island s Companies Law has been amended to make the jurisdiction more attractive for those who use Jersey companies for investment structuring asset holding and a wide variety of other purposes. The Draft Companies (Amendment No. 11) (Jersey) Law has been passed by the States and is expected to come onto the statute book in the autumn once it obtains Privy Council approval. The measures to be introduced which are some of the most wide-ranging in recent years include an out of court procedure for reduction of capital increased flexibility surrounding shareholder resolutions and the prospect of new regulations that will permit a company to demerge into two or more surviving companies. Jersey Finance CEO Geoff Cook said Jersey is already well established as a leading European centre for investment structures and the Jersey company is an attractive choice for institutional investors listing in London and on other international stock exchanges. These 20 or so amendments which have been agreed following detailed consultation with industry and the regulator serve to clarify important aspects of the existing law expand the options and choices for investors and further enhance Jersey s corporate offering ensuring that it continues to provide the fullest range of modern and flexible vehicles both incorporated and unincorporated. JT caps roaming charges Mobile provider JT has introduced two new roaming initiatives in response to customer demand. The first enables JT customers to better manage their roaming costs by opting-in for a monthly limit of 50 to be placed on an account. Customers will receive a message notifying the limit has been reached and access will then be blocked. It will not affect calls or texts. The second initiative is a 1GB or 100MB mobile bolton for JT s pay monthly customers which effectively reduces the cost of data roaming to 10p MB when they are in the UK France or USA. The Managing Director of Global Consumer division at JT Barna Kutvolgyi said We are very pleased to announce the introduction of these two initiatives which are designed specifically to address the needs of our customers to help them to manage and reduce costs when roaming . JT s capping service and new bolt-ons are introduced in addition to its existing ones. It provides pre-travel advice in store support automated SMS alerts to warn of usage Travel SIM cards and low cost data bolt-ons all of which help ensure customers don t get caught out by high charges but continue to stay in touch wherever they travel. 06 CONNECT JULY The only system you need for wealth management. NavOne is the world-leading wealth management system delivered by Touchstone and powered by Microsoft Dynamics NAV technology. Used by small to large trust and fund administration companies family offices private equity firms and specialist legal and accounting practices across 20 global jurisdictions NavOne helps increase operational efficiencies and reduces administration costs. For more information call 01534 818900 or visit Delivered by Powered by NEWS Follow us on Twitter connectjersey New insurance underwriting business launched A new underwriting business has been set up to provide a range of insurance policy covers to brokers in the islands and the UK. Known in the insurance industry as an underwriting agent or managing general agent Advantage Underwriting Limited will act for insurance companies and Lloyds of London underwriters and provide a personal underwriting service for its brokers. It also aims to open up access to the Lloyds insurance market for brokers client risks. With offices in Grenville Street Advantage s staff provide insurance quotations bind cover and issue the policy documentation. Products include commercial combined liability high net worth household and professional indemnity insurances. Director Richard Packman says This is an exciting opportunity both for our business and indeed for Jersey as a whole in marketing the Island s insurance capabilities on a wider stage. We have worked hard to secure our underwriting capacity and are now looking forward to developing the business for the benefit of our clients and stakeholders. Our aim is to make it easier for our brokers to strengthen their client relationships with our products both by retaining existing business and attracting new business. Shenzhen E-Commerce Services Centre and in Shanghai in association with Ebrun a leading e-commerce business. Led by Economic Development Minister Alan Maclean - and coordinated by Locate Jersey - the delegation from Jersey included Wayne Gallichan the Island s Director International Trade Nora Zhang project manager at Locate Jersey and the Head of International Development at Jersey Post Michael McNally. Senator Alan Maclean said The Far East is a very competitive and complex market but it is clear that there are significant opportunities for Jersey businesses in both Hong Kong and China. We are earning a good reputation and are well placed to act as a gateway to Europe for the raft of Chinese firms seeking to expand globally. Hunt for finance watchdog The search is on for the Chairman of the Office of the Financial Services Ombudsman to handle complaints about financial services in Jersey and Guernsey. Jersey s Minister for Economic Development and Guernsey s Department of Commerce and Employment are carrying out a joint recruitment process to find a chairman initially and later other non-executive directors for the shared board. These appointments will be on a shadow basis until the laws are registered. The Financial Services Ombudsman for the Channel Islands is in the process of being established by law and will have powers to investigate and determine customer complaints. The office will be based in Jersey with shared staff resources and premises and funded by the financial services industries in both islands. Minister for Economic Development Alan Maclean said I look forward to working with our Guernsey colleagues to find a chairman for this new Ombudsman scheme which will both benefit the people of the Channel Islands and support our flagship financial services industries. The Financial Services Ombudsman (Jersey) Law 201- was approved by Jersey s States Assembly on 1 April 2014 and is waiting for approval from the UK Privy Council. Guernsey is in the process of drafting the Financial Services Ombudsman (Bailiwick of Guernsey) Law 201- to mirror the Jersey law as far as possible. Opportunity knocks for Jersey in the Far East The States of Jersey say that a recent visit to Hong Kong and mainland China has given the Island the opportunity to seize diverse opportunities in the education e-commerce telecoms digital and tourism sectors as well as in financial services. During the visit meetings with a number of business leaders and government officials were held in Hong Kong Shenzhen Shanghai Beijing and Tianjin. In addition two seminars showcasing Jersey as a centre for digital excellence also took place in Shenzhen in association with the 08 CONNECT JULY The ultimate in wellbeing Experience the highest sense of wellness and relaxation to sooth away the pressures of everyday life with a Jacuzzi whirlpool bath from Romerils. Renowned throughout the world as the global leader in design wellbeing and performance there s never been a better time to experience the ultimate in bathroom luxury. Jacuzzi whirlpool baths from only 999 Call 738806 or pop into our Bathroom studio today Dumaresq Street St Helier T 738806 E enquiry Open Monday - Saturday 8.00am - 5.30pm NEWS Get all the latest Jersey UK news and sport at aMaizin time for kids whatever the weather Work is starting this September to create an indoor activity centre at one of Jersey s top visitor attractions so that it can open all year round. The aMaizin Adventure Park has secured a 300 000 grant from the Tourism Development Fund towards the project which will cost 1.2 million. The all-weather centre will be built next to the entrance to the park and will include a new shop children s soft-play and role-play areas party rooms and toilets. It will provide entertainment facilities all year round and will mean the park can open for seasonal activities at Halloween Christmas and Easter. The owners already have planning permission and it should open early next year creating at least ten new full-time local jobs and up to eight part-time positions. They are now looking for tenders for the job. Owner Carlton Le Feuvre said So far the park has been a seasonal facility with visitor numbers largely dependent on the weather. We knew what we needed to do to change that and were able to invest threequarters of the funding ourselves but we needed the support of the TDF to get all the way there. Their contribution is the difference between the new indoor centre going ahead or not. The new centre will enable us to open yearround in all weathers and to offer a much wider range of entertainment facilities currently the park is targeted at families but with this development we ll be appealing to a broader range of customers. Our aim is to provide attractive leisure facilities for Islanders and visitors alike and we will make sure that the centre is an excellent addition to the Island s entertainment facilities . The park attracts about 55 000 visitors a year around 65% of them are tourists. Fraud warning for NatWest customers in the Channel Islands NatWest has issued a warning to all its customers in Jersey and Guernsey about emails being circulated by fraudsters to try to get access to customer bank details. The bank says A number of NatWest Channel Island customers have received suspicious emails purporting to be from NatWest. The emails are very authentic in appearance which may convince some of our customers that they are genuine. We would advise customers not to respond to these emails or to click on any attachments or links and request that they forward the emails to phishing The bank have emphasised that it would never ask customers for their full pin and passwords or debit credit card information and said that if anyone believes that their account may have been compromised that they should get hold of them on 282850. A NatWest spokesman said We would also caution customers to be aware of voice phishing which involves customers receiving unsolicited phone calls pretending to be from the bank or even the police. If you get a call asking you for your security information end the call immediately. If you receive a suspicious or unexpected call always verify the caller using an independently checked phone number such as a contact number from our website. 10 CONNECT JULY The Precious Metals Professionals We don t just deal in gold. We re trusted to protect and preserve your wealth. GoldMoney is a market leading precious metals trading company trusted by more than 22 000 private individuals and wealth advisers around the world. We ve forged long-lasting relationships with wealth advisers and their clients by providing a convenient online platform and dedicated relationship managers to help you buy sell and store gold silver platinum and palladium. Our storage rates are among the lowest in the industry and we protect the integrity of the precious metals we store by regularly providing independent vault reports and audits comprehensive insurance and ultrasonic scanning of gold bars. Telephone 01534 633933 or visit Private vault facilities in CANADA HONG KONG SINGAPORE SWITZERLAND UNITED KINGDOM Regulated by the Jersey Financial Services Commission NEWS NEWS RE.VIEW At any one time there are around 250 people in the trust and estate area of the financial services sector in Jersey studying towards their STEP professional qualifications and the student conference is designed to expose them to industry experts both from Jersey and the UK. The course finder brings together details of more than 900 courses qualifications and workshops offered by training providers operating in Jersey. Islanders can take advantage of the finder s keyword search facility to view details of all training available in an area of particular interest or can choose to browse through details of the courses offered by specific training providers. Every course record includes a link to the relevant training provider s website so users can confirm costs dates and book the course of their choice. Skills Jersey s course finder completes the second phase of Skills Jersey s website development. JT data centres achieve top global standard JT has become the only Channel Island data centre provider to achieve the SOC quality certification. Becoming SOC (Service Organisation Certification) certified is a rigorous independent process which inspects the full detail of a company s controls processes and procedures in a wide range of business critical areas from HR to security financial management and operations. After a year s work JT has now achieved this standard for its three Data Centres at First Tower Lane in Guernsey and its sites at Rue des Pr s and Five Oaks in Jersey. JT is the largest local provider of Data Hosting services as well as being the only company who have designed and built their facilities to a Tier 3 having so far invested close to 22 milion. ABN AMRO supports Gaelic football ABN AMRO Bank Jersey is the official kit sponsor for the junior Jersey Irish GAA team also known as the Youngstars . The sponsorship forms part of the banking group s 40th anniversary celebrations and their on-going commitment to providing local children with opportunities to take up a new sport and encourage physical activity. Junior council chairman at Jersey GAA Sean Killian said Gaelic football is growing in popularity throughout Europe with more and more of the European clubs developing their youth structures to compete in tournaments throughout the continent over the next few years. Thanks to the support of our sponsors such as ABN AMRO Bank Jersey we are able to continue to develop the sport in Jersey and get more youngsters into the sport from an early age. Mourant Ozannes leads offshore law firm FTSE rankings Mourant Ozannes advises more FTSE listed companies than any other offshore law firm according to the latest set of ratings published by the Adviser Rankings Limited Corporate Advisers Rankings Guide. The guide is published quarterly in February May August and November. Recognised for advising 14 FTSE listed companies four FTSE 100 and ten FTSE 250 clients - the firm also came top of all offshore firms in terms of the value of its listed clients with a total market capitalisation of over 113 billion more than double that of the second placed offshore firm. Fourth annual STEP students conference The fourth annual student conference organised by the Jersey branch of the Society of Trust and Estate Practitioners (STEP) takes place on 10 July at the Pomme d Or. The event tailored specifically for people studying for their STEP professional examinations will cover trusts in commercial arrangements the impact of UK taxes in particular inheritance tax investments and understanding credit. Online course finder for job seekers Skills Jersey has set up an online tool on its website to help Islanders find work-related training courses. 14 CONNECT JULY NEWS Follow Bailiwick Express on Facebook Carey Olsen tops offshore legal adviser list Carey Olsen is the number one offshore legal adviser to London Stock Market clients according to the Corporate Advisers Rankings Guide for the second quarter of 2014. The law firm increased its LSE clients by four compared to the previous quarter and has 40 more clients than the next ranked offshore law firm featured in the guide. In the second quarter of 2014 the firm maintained fourth place for the total number of LSE clients advised and continued to be the top ranking offshore law firm with 91 clients. It also continues to lead the AIM rankings table among offshore law firms with 43 clients ten more than its nearest offshore rival retaining third position overall in the AIM table. Island to host securities authorities conference Jersey is the location this month for a high-level conference organised jointly by the United States Securities and Exchange Commission and Jersey Financial Services Commission. The purpose of the conference is to encourage international co-operation between securities authorities in order to protect investors. It takes place at the Radisson Blu Waterfront Hotel and is believed to be the first time the United States Securities and Exchange Commission (US SEC) has staged a conference in a British Crown Dependency. The programme includes a one-day seminar designed to promote communication between the US SEC staff and industry participants in the Channel Islands on compliance issues of relevance to investment advisers and collective investment funds. Where does your organisation s data reside Global Infrastructure as a Service Desktop as a Service Software as a Service Disaster Recovery as a Service 100% Data Encryption Guaranteed Data Residency ISO Certified Secured Web Hosting Calligo guarantees data residency and encryption across the globe through our unique Offshore Cloud Network calligocloud info JULY CONNECT 15 Find the latest jobs online at Asset Leverage Consultants senior appointments Asset Leverage Consultants has strengthened its Jersey team with two senior appointments. Larry Catterson has been appointed a director and Grant Hamilton has joined the business in a consultancy capacity. Asset Leverage Consultants (ALC) was founded and is privately owned by Ben Thomason. The business provides Larry Catterson (above) and Grant Hamilton consultancy services covering all aspects of credit and debt structuring across the full spectrum of asset classes. Mr Catterson is well known figure within the local financial services industry having worked in the sector for more than 30 years. He has extensive offshore banking expertise and his most recent role was as the Chairman of KPMG s Offshore Group. Mr Hamilton also has a wealth of experience having previously held a number of senior positions including Managing Director at Merrill Lynch in Jersey and a director at Schroders (CI) Limited. Chartered Surveyor appointed real estate director private practice for DTZ plc Donaldsons LLP and Chesterton. The CEO and Chairman of the JTC Group Nigel Le Quesne said Philip has extensive real estate experience both from an administration and private practice perspective and these combined are unique to the industry. These valuable qualities will strengthen our offering in continuing to deliver a first class real estate service. JTC s real estate team comprises specialists in corporate private clients funds and accountancy. Mr Hendy will predominantly work in its corporate services division managing a portfolio of core corporate clients with real estate structures. Philip Hendy has been appointed a director of real estate services at the JTC Group. Mr Hendy has joined the group from State Street where he was a director and head of the real estate department for five years. Prior to that appointment he worked in GoldMoney appoints new directors Online precious metals trader GoldMoney has strengthened its management steam with the appointment of two new directors. Natasha Le Dain-Cyples and Christina Irgel have joined Chief Financial Officer Peter Wright and the Chief Executive Officer Geoff Turk in leading the day-to-day business of the British-based company. Mr Turk said The appointments of Christina and Natasha as directors has added further expertise to the top tier of GoldMoney s management. They join Pete who has been with the business for seven years and together as long-standing members of the Management Committee both the board and I have full confidence that they will do an excellent job as proven in the past. Mrs Irgel is also general counsel for GoldMoney. A dually qualified solicitor (England Wales and Germany) she has extensive global investment banking experience. She joined GoldMoney in 2012. Mrs Le Dain-Cyples also joined the business in 2012 and is the Head of Human Resources. She has 20 years of senior management experience with a strong understanding of the needs of a business from a strategic people management and organizational perspective. First Names Group appoint new MD in Jersey First Names Group has appointed Ben Newman as Managing Director of its Jersey trust and corporate business. Mr Newman was Client Services Director for the past five years having joined the business in 2008 as a private client director. He takes over from Mark Pesco who has moved to new role in the group. Group CEO Morgan Jubb said I am delighted with Ben s promotion he is a strong and very personable leader who is dedicated to delivering the highest level of client service. He is very well respected by clients and colleagues alike and I have every confidence that he will continue to raise the bar and drive the business forward in Jersey. His appointment comes just weeks after the group ranked first in ePrivateclient s 2014 Top 25 UK and UK Offshore Trust Companies. 16 CONNECT JULY APPOINTMENTS NatWest appoints director to Jersey real estate team senior risk manager in the offshore corporate credit team. His new role will include maintaining and enhancing current relationships whilst developing a portfolio of clients whose primary focus is the local real estate sector such as local house builders and others looking at property for investment purposes. NatWest has appointed Bryan Simpson as a relationship director in its local real estate finance team based in Jersey. Mr Simpson has more than 25 years experience working for the RBS Group mostly at NatWest in Jersey where he has been based since 1997. His most recent position was a He said I am delighted to have been appointed and look forward to having the opportunity to play an active part in assisting our existing and prospective customers with their real estate plans which I also hope will go some way towards meeting the Island s housing requirements. New President for the Co-operative Society Former Senator Ben Shenton has been elected President of The Channel Islands Cooperative Society to replace former Guernsey Deputy Peter Roffey. Alexander Fearn from Jersey and Tanya Dorrity from Guernsey were chosen to fill the role of joint Vice President the first time the board has had two members occupy the vice presidency position. Co-op CEO Colin Macleod thanked Mr Roffey for his hard work and dedication to the society. We are incredibly grateful for the significant contribution Peter has made in what amounts to five years as President. In that time the society s turnover has increased significantly and our business interests have expanded. I m delighted that he is staying on the board as a non-executive director. I d also like to take this opportunity to welcome our former Vice President Ben to the role of President. I am very much looking forward to working more closely with him he said. Proud Winners at the 2013 Jersey Construction Awards Structural Engineering Civil & Geotechnical Engineering Mechanical & Electrical Engineering Historic Building Conservation Environmental Engineering Consulting civil structural mechanical and electrical engineers t 01534 766655 f 01534 766650 e admin w JULY CONNECT 17 SPECIAL REPORT Tax and Spend There s only one rule that matters in politics in the 21st century and in an election year it s even more important Ignore what they say watch what they do. The gap between political rhetoric and political reality grows more quickly than the US debt clock and in that void a new phenomenon has emerged - the various sides and factions don t just have their own ideological views political beliefs and earnest promises - they have their own facts too. It is the case in the US where Barack Obama is simultaneously described as a seditious communist whose medicare reforms have turned America into East Germany and a heartless neo-con murderer targetting civilians with drone strikes. It s the case in the UK where David Cameron is either an elitist fop who has razed the NHS to the ground or a weak-minded stuffed shirt who has surrendered on Europe gay marriage and immigration. And in a way it s the same here. Depending on which side you listen to the public sector has either been subjected to Faced with the choice of believing Treasury Minister Philip Ozouf or Deputy Geoff Southern what s the sane response We say it s easy - ignore them both. Look at the facts. And fortunately they are (relatively) freely available. The old gag in the House of Commons was that if you wanted something to leak while carefully covering your tracks all you had to do was write Confidential over the top of it in red pen and leave it lying around somewhere. You could be relatively assured that it would find its way into the pages of the next morning s edition of The Times. On the other hand if you wanted to release something quietly without a ripple or murmur from the media opposition or the public all you had to do was say it in the House of Commons at 10 pm on a quiet wet Thursday when most of the hacks and politicos had long gone to the bar. The equivalent here of that late quiet wet Thursday in Parliament is the States of Jersey s annual financial report and accounts for 2013 - a 777 page monster of a document that reveals an extraordinary amount of data about the way that government works and how it s changed in the last five years. While most of the public sector is grappling with the cultural shift of the Freedom of Information Law that comes into force on 1 January the Treasury department is way ahead of them the death by a thousand cuts and has been hacked back to the point that it is barely functioning or it s a monstrous bloated Ozymandian edifice propping up selfish wasters off the sweat of honest workers. accounts are an enormous step in government transparency detailing exactly how much has been spent on precisely what and when. The only problem is that there s too much to digest so Connect sat down stocked up on coffee lined up the highlighters and got to work... 18 CONNECT JULY Combined public spending by States departments including everything funded through Social Security and States-owned companies like the States of Jersey Development Company reached 1 125 866 000 in 2013. That s 1.1 billion to you and me or the rough equivalent of 3 million per day. Spending by States departments is up just over 6% in real terms over five years - even after the CSR and all of the fights about cuts and even after allowing for the effects of inflation the States spent just over 36 million more last year than they did in 2008. JULY CONNECT 19 2008 RPI would be... ( m) 2008 actual spending ( m) Chief Minister s department Economic Development department Education Sport and Culture department Health and Social Services department Home Affairs department Housing department Environment department Social Security department Transport and Technical Services department Treasury department TOTAL (Depts nonminStatesfunded) 18.54 16.51 96.68 148.54 48.89 -21.69 6.08 146.37 21.67 61.93 572.64 21.06 18.75 109.81 166.25 55.53 6.91 166.25 24.61 70.34 599.62 23.22 17.01 106.9 186.72 47.14 -26.12 6.23 181.78 25.86 32.35 636.18 2013 actual spending ( m) How has public spending changed in the last five years 2.16 -1.74 -2.91 20.47 -8.39 -0.68 15.53 1.25 37.99 36.56 These figures show the 2008 budgets of States departments what those budgets would mean in today s terms (with RPI factored in) and finally the difference in real terms over the last five years. They need a pretty heavy disclaimer in respect of a few things - first the Housing department s budget is negative because they hand over all of their rent to the Treasury department and the transfer of responsibilities (HR IT and the finance industry) between the Treasury and the Chief Minister s department skews their departmental figures. But all that said there s three clear messages from the numbers Firstly what Jersey has experienced over the last five years is not the kind of austerity politics seen elsewhere in Europe. Spending is up in real terms not down. That s despite the much-talked about Comprehensive Spending Review and the post-recession pressure on spending. Secondly two departments in particular have seen a rise in spending - the Health and Social Security departments have both had big increases to their budgets over the last five years. That trend is only going to continue as the ageing population takes on more services from the States interestingly the Treasury Minister said this month that a new CSR looking for between 50million and 75million would be unveiled in the coming weeks to increase funding to Health and Education without needing more taxes. Finally the fact that overall spending is up and does not mean that individual departments have all seen an increase in their budgets - the figures show that the Home Affairs and Economic Development departments have taken a big hit in particular. Difference between 2008 and 2013 spending in real terms ( m) SPECIAL REPORT 2008 RPI would be... ( m) 2008 actual spending ( m) Salaries and wages Pension Social Security FTE s 259 407 32 473 14 041 6 157 294 635 36 882 15 947 295 042 37 943 17 196 6 496 Given that the States is by far the biggest employer in the Island it s not a huge surprise that spending on staff makes up a big proportion of where taxpayers money goes every year (the public sector employs roughly the same number of people as every hotel restaurant and bar as well as the agricultural and fisheries sectors). The figures show that from 2008 to 2013 total employment costs in terms of salaries and pensions were effectively flat in inflation-adjusted terms despite pay freezes on States workers. At the same time the number of people employed by the States (measured through fulltime equivalent posts) has gone up more substantially by around 5.5% in five years. Income Tax proceeds have still not recovered from the 2008 crash - they re down 120 million in real terms which is more than the entire Education Sport and Culture department s annual budget. JULY CONNECT 21 2013 actual spending ( m) SPECIAL REPORT Gross spending ( m) Ministerial departments (excluding Housing) Social Security Funds Trading Operations (such as the Ports of Jersey) Non-ministerial departments and the States Assembly The Housing department Special Funds and the Collective Investment Fund General Revenue Income The States of Jersey Development Company Other Consolidated Fund 750 736 240 474 51 267 37 696 27 775 12 615 6 230 2 483 -3 410 Total 1 125 866 Like any major organisation that covers a big range of services the way that the States spend money is complicated. The Treasury department tends to focus on net revenue expenditure for departments which shows how much the various departments that provide services need in terms of taxpayers money every year. But that s not the whole picture. There s also gross spending which includes the money that departments make in charges (for things such as Planning fees or some health costs) as well as the millions of pounds spent through the Social Security system and the money spent by States-owned bodies such as the States of Jersey Development Company. The figure that emerges at the end of that is a huge amount of money - round about 3 million per day. Actually it is not quite all of what you might call public spending in Jersey because there s still the work of the parishes that is covered by rates bills. But to put it properly in context imagine that all of that gross spending (again minus the parishes) actually added up to a crisp tenner. Here s how it would break down... Ministerial departments (excluding Housing) Social Security Funds Trading Operations (such as the Ports of Jersey) Non-ministerial departments and the States Assembly The Housing department Special Funds and the Collective Investment Fund General Revenue Income The States of Jersey Development Company This gives you a clearer idea of where the money goes proportionally. Exactly twothirds of spending goes to the departments (and as we have seen most of that goes to Health Social Security and Education) but there s a significant amount that goes out in Social Security benefits as well as smaller quantities to keep the Ports of Jersey going (although they plan to cover their own costs once they have been set up as a private company) or to run the States Assembly the SOJDC and outside bodies. 22 CONNECT JULY 6.66 2.13 45p 33p 24p 11p 5p 3p Where does the money come from 2013 Net General Revenue Income ( m) Net Income Tax GST Duty Stamp duty Island Rate Fines and other income 451 661 77 603 54 320 17 370 11 641 24 093 And if that was a tenner... Net Income Tax GST Duty Stamp duty Island Rate Fines and other income 7.09 1.21 85p 27p 18p 37p Total 636 688 Public spending comes from one place - the public. It might come via direct taxes sales taxes fees for services or charges on businesses but ultimately all costs are passed back to Islanders. The figures here show how the way that the States brings in that money has changed and also demonstrates the impact of 2008 crash on States revenues. In terms of Income Tax for example we re still a huge way from what the taxman was collecting back in 2008. In the last few weeks we have also seen the first move by the States into borrowing to fund spending - that s a common practice in just about every other country in the world. In fact the amount of debt that countries are clocking up has become a major political issue because although it seemed like a great deal at first to the mid 1990s voters who were effectively getting services for free and passing the bills on to the next generation the amount of current government spending in the UK and the US that is going into paying off that debt is running into billions. Jersey s position is slightly different because the States have raised 250million in a bond to pay for a major capital project as opposed to ongoing spending. How s it all changed 2008 ( m) Net Income Tax GST Duty Stamp duty Island Rate Fines and other income Departmental income 499 32 50 24 10 45 109 2008 plus RPI... ( m) 2013 ( m) 566.77 36.35 56.79 27.26 11.36 51.11 123.8 451 77 54 17 11 24 127.6 Difference ( m) -115.77 40.65 -2.79 -10.26 -0.36 -27.11 3.8 It is no big surprise that tax receipts have taken a huge hit since the recession started in 2008. Income tax is down more than 100million in real terms and stamp duty has been significantly reduced. The GST rate went up from 3% to 5% during the five-year period but everything else dropped with the exception of departmental income - the odds and ends that various departments take in charges which add up to a significant amount of income (roughly the equivalent to GST and duty). JULY CONNECT 23 BANKING Host-to-host solutions provide businesses with a single gateway to their banking partner to submit a variety of payment types in a single secure file and subsequently a single channel for reporting of transactional data. Taking control of cash management Cash management is one area where businesses have identified the need for improving efficiency through automation more sophisticated use of digital and technological solutions and reduction in the number of separate processes needed to manage transactions as Sam Johnson Senior Cash Manager Barclays Wealth and Investment Management explains. ddressing operational efficiency is high on the priority list for many businesses. Processes and systems that take time and resources are critical to this drive. Reducing the number of man hours or manual processes can greatly improve the efficiency of an organisation. A system does not make it easy to produce an accurate picture of the cash situation of a business at any given point. Reducing complexity gives company directors clearer information about cash flow and position and the liquidity present in their business. Traditionally cash management may have involved manual processes. This has drawbacks for example where multiple payments have been made they have required individual authorisation. Dealing with multiple banking partners and multiple online banking solutions is also a barrier to efficiency as different systems must be used. The business might also have multiple users which of course means multiple logins passwords or codes and now of course multiple security devices used by banks to keep details secure. What this means is that businesses may have slowly developed workflows for managing payments that are unwieldy and require a complete revamp. In order to manage the different aspects of payments these workflows have increased in complexity and from an efficiency point of view they now require streamlining to the number of systems and databases in use. Oversight and control are also important. A complex transaction management Simplification is one solution Providing the technology and infrastructure within banking that enables quicker processing is one solution. Reducing the processing time for transactions helps all parties manage their businesses better and improves their flexibility and responsiveness. The rise in straight-through processing (STP) is a direct result of this need and many transactions focus on STP which reduces manual processes and allows transactions to pass through multiple systems seamlessly. Simplifying the way businesses instruct their bank can also grant efficiency gains and one of the most effective ways to do this is to use the SWIFT messaging network or a host-to-host solution. SWIFT enables businesses to make payments and receive transactional data from their banking partners using standardised messaging. Taking an integrated SWIFT approach enables those businesses to reduce human intervention in their payments and reconciliation processes and removes the need for various online banking channels. Host-to-host solutions provide businesses with a single gateway to their banking partner to submit a variety of payment types in a single secure file and subsequently a single channel for reporting of transactional data. Simplification of the range of end-user interfaces for cash management processes in this way provides businesses with the opportunity to increase efficiency in other areas. Staff training is quicker and simpler so that more users can be trained if needed reducing the strain on key staff and increasing cover in case of holiday leave or illness. Reducing the amount of time needed to use the systems also frees up time for employees to focus on other areas of the business such as business or employee development which will have great benefits in the long term. consistent process means even more of the administration can be automated. A further benefit of improving cash management within a business is gaining better control of processes and the flow of funds. This is critical for supporting business risk management and gives them peace of mind knowing that all transactions are being managed accurately and efficiently and ensuring that processes are more aligned with the strategic goals of the business. Working with business It is important for banks to work with businesses to find solutions for all aspects of their cash management needs whether it be improving the way payments are made or received better management of any short term surplus cash balances or different ways to connect to banking partners and manage banking transaction data. Better cash management will improve a business straight-through processing and straight-through reconciliation capabilities bringing potential cost savings as a result. At a time when the focus for some organisations is increasingly on internal costs as fee generation is becoming increasingly challenging taking control of cash management has become more important than ever. JULY CONNECT 25 Simplicity means less risk With banks looking to enable greater efficiency through technology banking partners are offering clients the ability to submit their instructions in a variety of ways with sophisticated systems taking on the task of passing the information into the relevant format. This automates what used to be an onerous task significantly improving the efficiency of payment processes for the client. This also has knock-on effects for example it is easier to integrate one system with a business accountancy function and providing one FAT C A There are fundamental differences between KYC and FATCA. One is intended to mitigate moneylaundering risk the other to identify US tax evaders. Chris Eaton Executive Vice President Blue Bison Software takes a look at the initial effects of the US s new global tax law. K the results are in the count complete and the first tranche of registrants under the Foreign Account Tax Compliance Act have been identified. The act (FACTA) mandates that all foreign banks and other foreign financial institutions disclose details of American accounts with an aggregate balance over US 50 000. O processes and systems to ensure ongoing compliance with the regulations from 1 July. And breathe and begin operational compliance The plethora of recent regulation means that clients are now well versed in deploying technology to address compliance concerns. Unfortunately many opted to pursue point solutions for each regulatory thread and are now looking at integration projects to bring it all together. Data collection cleansing and consolidation challenges dominate institutions are grappling with multiple data repositories and no single golden source of client data. Emerging against that backdrop is a trend towards a more holistic approach. There are some common best practices which will help put the foundations into place for that approach in the areas of counterparty data data quality and address standardisation. These are applicable to all regulatory topics represent initiatives that are platform agnostic and can commence immediately. Broader systems initiatives should have adaptability to cater for the likely rapid introduction of new regulatory variants. In the narrower context of systems relating to FATCA there are both the US and UK variants to consider today and just around the corner the OECD is looking ahead to the Common Reporting Standard (CRS). This introduces four additional data points to the seven US indicia which may not be based on tax citizenship but tax residency. Failure to participate has significant consequences. Non-US firms that do not comply potentially face a 30% withholding tax on their US investment income and could be frozen out of US capital markets. Ouch. With the sudden acceleration of inter-governmental agreements being agreed upon and now some 70 countries signed up to help the IRS FATCA has very much arrived and is here to stay. So cue the rush to register and get onto the first list published on 3 June. Some 77 000 banks and financial institutions have registered with Cayman home of hundreds of banks and a high concentration of hedge funds leading the way with 14 837 (19% of the total). Other jurisdictions of interest include the UK (6 264) Luxembourg (3 561) Guernsey (2 406) and Jersey (1 619). The registration process itself is not overly complex but the choices made can have profound impact if not given due consideration. Many financial institutions have made significant investments in securing professional advice to ensure that entity classification is appropriately structured to get over the registration hurdle. But the fun really begins with fine-tuning operational FATCA HAS ARRIVED Some key questions to keep in mind Oncethedataisinoneplace howdoyoucode thatsystemtolookforUSandUKindicia Willthatsystembeflexibleenoughforother versionsorglobaliterationsofFATCA CanyousetupyourprocessforFATCAandany otherregulatoryrequirementsthatmaycome later A flexible system architecture and design must be able to adapt on an ongoing basis and the need to have something in place is pressing. The prospect of managing against the regulations using the legacy approach of paper-based point and manual systems by throwing people at the problem simply does not scale to even medium client volumes and introduces significant levels of risk. incremental attention via the European Commission s fourth AML directive the US Treasury FinCEN CDD initiative and FATF recommendations. The coming together of FATCA with global changes to AML KYC means that coordinating FATCA and compliance initiatives should be considered. FATCA does not state specifically that AML KYC processes be adopted but it does require that information collected during the KYC process be reviewed for US indicia. FATCA adds an additional level of complexity to the on-boarding process by requiring extra tax-related information. The challenge is to unify fragmented operational processes and their associated technology silos which store customer data and documentation. Harmonising on-boarding and on-going account maintenance processes will be critical to successfully implementing FATCA with the added benefit of consistent client data. With FATCA almost here the industry is mostly in the final stages of preparation dealing with data integration issues catering for and organising information held in paper records. Addressing this phase of the process requires the allocation of technology resources whether through external platform solutions technology advisory help or purely through more staffing to complete everything that needs to be done. And of course balancing this with focusing on business priorities and the client experience are key concepts the industry must keep in mind throughout. Interesting times lie ahead. JULY CONNECT 27 FATCA KYC and on-boarding better together There are fundamental differences between KYC and FATCA. One is intended to mitigate moneylaundering risk the other to identify US tax evaders. The due diligence indicators are also different but the significant overlaps in information collected represent an opportunity to align processes and deliver an integrated cost-effective solution. Identifying Ultimate Beneficial Owners performing Customer Due Diligence and Enhanced Due Diligence have historically been the function of the AML KYC department. The area has been a focus for INVESTMENT Looking after your future Capital or wealth preservation has become an increased priority for high net worth individuals in recent years and not just in the west the China Private Wealth Report 2013 by Bain & Company and China Merchants Bank has reported a change in the spending and investment habits of China s millionaires in the last few years. recent poll by deVere Group of 880 High Net Worth clients has found that the most common mistake they make when investing is to fail to diversify sufficiently 23% fell foul of that error. Diversification has become the buzzword following the economic crash in 2008. Anyone who had all their eggs in an equity basket especially if it was their retirement fund that was maturing was badly burnt. Ensuring our portfolios are balanced and diversified makes common sense. A MAT Brink s Rhenus Malca Amit and G4S in a choice of locations and they benefit from the transparent low storage fees that include comprehensive insurance cover and regular independent audits. If you re not getting that from your current provider then perhaps it s time to review where your precious metals are being held. GoldMoney is able to easily assist customers to transfer their metal from their existing provider to one or more of our vault facilities as a way of managing and diversifying their portfolio. Capital or wealth preservation has become an increased priority for high net worth individuals (HNWIs) in recent years and not just in the west the China Private Wealth Report 2013 by Bain & Company and China Merchants Bank has reported a change in the spending and investment habits of China s millionaires in the last few years. They now want to preserve their wealth and leave it to their families and so their investment habits have evolved. Wealth preservation is now placed higher in their objectives than wealth creation which used to be top of the list according to the report. Concurrent with this is the fact that the Chinese are not only the biggest producers but also the biggest consumers of gold and their government is actively encouraging its citizens to acquire more. It is not rocket science to work out that the Chinese view gold as a long term store of wealth and are buying up the world s stocks at an increased rate. At GoldMoney we have noticed a marked trend in the last two years of gold leaving our western vaults for those in the east. The West appears to be left behind in the physical storage of wealth. It might be time for us to review our precious metals portfolios and start to redress the balance. After the crash of 2008 gold dramatically rose in price jumping from around US 730 an ounce to a peak of US 1 834 an ounce in September 2011. Gold is seen as a safe haven and with its record of preserving purchasing power over centuries it is an asset we in the west may sorely miss should the world s economies dip into recession again. One of the other findings of the deVere Group poll was that 16% of those interviewed fail to regularly review their portfolio. Our appetite for risk changes throughout our lifetimes dependent on circumstances and age. Experts advise us to be a little more adventurous when we re younger and investing for retirement so that we can maximise returns but as we get older and our money creation opportunities reduce then we need to ensure our nest egg is safe. With ageing populations in the west there are more retirees seeking stable low risk investments and at a time when the bank interest rates are at an all time low. The ultra rich are increasingly diversifying their portfolios with passion investments or alternative collectibles but they can be volatile and subject to fashion cycles the art market being a particular example. They can also create storage headaches. A classic car can t be left untouched for years as it would simply deteriorate plus you need the space to keep it. Wine also has to be stored at the correct temperature and conversely you can t touch it or enjoy it unless you want to completely negate your investment. Gold has been used as a store of wealth for centuries and for many it is a vital part of their balanced portfolio. It s not usually an asset bought for short term gain however and so it is easy to buy some metal and then just forget about it leaving it in whichever vault you originally chose. Our customers appreciate that we deal with independent vaults operated by the world s leading operators such as VIA Nobody would suggest you put all your eggs in one basket even if they re golden eggs but as any good mother hen knows it s also not a good idea to wander off and leave them unattended. Jacquie Williams Head of Verification and Relationship Management at GoldMoney takes a look at the importance of balance and review in an investment portfolio. JULY CONNECT 29 INVESTMENT Following the 2008 financial crash wealthy individuals have increasingly looked to invest their fortunes in more secure structures moving away from traditional stocks and financial assets which had dominated the market previously. Artwork jewellery wine and vintage cars - all at your local airport Military bunkers blasted into the Swiss Alps. Buildings surveyed by hundreds of cameras and armed security. Individual rooms protected by fingerprint scanners and vibration detectors. You could be forgiven for thinking that these features are safeguarding the lair of the villain in the latest Bond film. Rob Kirkby Advisory Director at KPMG and Edward Muhlemann Advisory Consultant look at what truth is sometimes stranger than fiction. cross the world increasing numbers of high security free ports are being erected for wealthy individuals to deposit artwork jewellery and other valuables. Originally established in airports and harbours free ports were used to allow goods to be stored briefly without incurring any customs duties before being exported to their final destinations. However the in-transit status of goods stored at these facilities has been redefined and free port use has evolved to now include the long-term storage of assets on behalf of high-net-worth individuals. A In exchange for a storage fee the asset holder deposits anything from artwork and jewellery to wine and vintage cars free from duties and other taxes. In addition goods in free ports can be readily sold and traded without incurring VAT or capital gains taxes until they are exported to their final destination at which point the tax charge will crystallise. Growing Industry Following the 2008 financial crash wealthy individuals have increasingly looked to invest their fortunes in more secure structures moving away from traditional stocks and financial assets which had dominated the market previously. This combined with a global increase in the population of high net worth individuals has lead to increasing demand for storage facilities to both protect valuables and also to offer additional fiscal advantages. Annual known sales of artwork around the world increased 140% over the 12 years to 2012 ( 23bn in 2000 55bn in 2012) reflecting the global growth in valuable asset investments. Rental spaces in some of Switzerland s largest free ports have been filling quickly an indication that these pieces of art are not just being bought to hang on the walls in multimillion pound houses. One Swiss free port is in such high demand that they are able to charge CHF22 000 (approximately 15 000) per annum for a 10 sq mt room. Competitors The burgeoning demand for space has lead to new free ports being built in a number of competing jurisdictions including Luxembourg Singapore Monaco and China. The market leader however is Switzerland boasting half a dozen well established ports including one situated in Geneva dating back to the 19th century. Despite these well established free ports the market is far from saturated with demand likely to continue as the number of the world s high net worth individuals continues to grow. The Proposal Despite their comparatively small sizes Jersey and Guernsey are well positioned to enter this growing market and be highly competitive against the already prominent players. The well established network of high net worth individuals living and investing in the islands means that there are already a number of potential investors. The nature of this type of service and the fiscal advantages realised by investors have naturally lead to some negative associations being made with tax evasion and money laundering. However the Channel Islands reputations as well run financial centres put them in a good position to be looked upon more favourably as a provider of valuables storage by investors and tax authorities in comparison with other less transparent countries. Free ports are typically located near harbours or airports but there is no definitive requirement for them to be located in such places. If a feasible location could be identified a private contractor could be sought to develop and run the facility helping to increase the overall investment in either island s economy. The majority of the construction could be completed by local firms with special expertise being used for the more complex security aspects. The site will generate jobs for Islanders in a number of different roles ranging from site management and security to art renovation and valuation (additional services often offered in these facilities). This increased employment would lead to increased tax and social security revenues for the States in addition to increased travel to the islands. A local free port would be able to compete with already established competitors by being able to service those clients that already use the islands for private wealth services. In addition perhaps higher profits or lower fees could result as one of the main reasons for the high annual storage fee in Switzerland is the insurance charges suffered by the managers of free ports. The secretive nature of the jurisdiction s facilities has meant that insurers are growing increasingly concerned by their level of exposure at any point of time. This has lead insurers to levy large charges to cover the risk of fires floods or terrorist attacks. Jersey and Guernsey s greater transparency and geographical isolation relative safety from natural disasters and terrorist attacks should mean that insurers will be more comfortable with their level of risk and demand lower fees. Recent pressures on the finance industry in general have lead to concerns about both islands overreliance on the finance industry and calls for greater diversification of services. The establishment of a free port would take advantage of the wellestablished finance industry whilst helping to alleviate these fears by diversifying into a new industry. On top of this there are likely to be synergistic advantages for the finance industry as a result of the increased exposure to high net worth individuals. Free ports also come with certain cultural advantages. Owners are always looking to increase the value of their belongings and will often offer to display their valuables in local galleries in order to increase their exposure. This could therefore result in artwork by some of the world s leading artists and sculptors being displayed in the Island s galleries and the potential boost the islands tourism industry. PICTURED Rob Kirkby (above) Edward Muhlemann (left) Conclusion In April the States of Jersey launched a new financial services policy framework with the objective of shaping the direction of Jersey s financial services industry. The policy framework highlighted four key priorities that need to be addressed in order to ensure the Island s financial services industry continues to prosper two of which are particularly applicable to the discussion of free ports to capture adjacent growth and to reposition and build new capabilities . We believe there can be few other proposals that fulfil these criteria as strongly. JULY CONNECT 31 TRUST & FIDUCIARY There is of course a big difference between legitimate tax mitigation and the creation of artificial schemes designed to deceive authorities. Trusted advisers wanted for the sporting mega-wealthy Paul Tomlinson Private Client Associate Director RBC Wealth Management explains how our top athletes try to protect the fruits of their sporting success. orld Cup fever has firmly gripped the globe as footballing nations celebrated friendly rivalries and the sense of international commonality that only football or soccer provides. The celebrations were not reserved to the spectators. It can be a once in a lifetime opportunity for the sportsmen taking part in the competition to earn huge sums by building their personal profiles and securing lucrative brand endorsements. W English Premier League football is one sport where the erosion of wealth after retirement seems to be particularly acute. Despite the average annual salary in the Premier League being around 2 million excluding bonuses and other sources of revenue recent research released by the charitable body for ex-professional footballers XPro revealed that as many as 60% of ex-Premier League players experience financial difficulties within five years of retirement. Wealth managers and trustees in partnership with professional advisors can offer a solution typically addressing a number of issues when executing such plans for athletes to prevent these types of problems occurring. Athletes are a unique breed in the world of wealth management. While other more traditional careers may allow for wealth generation over 30 years or more with income increasing with age and maturity the opposite can be said of those with careers on the sports field. Many reach peak earning power relatively early in life and while their talent may be the reason behind their fame and fortune the day job is usually one of several income streams as commercial opportunities such as endorsements sponsorships and merchandising become ever more profitable. However this wealth doesn t always deliver a happily ever after story. The sudden drop in income at retirement coupled with factors such as a failure to adjust lifestyle to earnings poor investment decisions and matrimonial breakups can lead to financial ruin in a very short period of time. Set against that a backdrop of relatively few opportunities for sportspeople to continue to earn anywhere near the kind of sums they did during the peak of their career means there is often little or no prospect of any form of financial recovery. Where trusts come into play Everyone regardless of wealth or profession seeks to manage their tax affairs in the most efficient manner possible. There is of course a big difference between legitimate tax mitigation and the creation of artificial schemes designed to deceive authorities. Careful use of offshore trusts and companies are among the favoured solutions providing an opportunity to mitigate tax liabilities in a legitimate fashion. In addition to ensuring that their tax affairs are in order the wealthy individual will want to take measures to preserve their wealth and this is another reason to use a trust. One such benefit is asset protection which is achieved as a result of transferring legal title of certain assets to the trustee thus taking them outside of the individual s personal estate. all aspects of wealth creation management and distribution. The trustee has a legal duty to preserve and enhance the trust fund meaning they play a key role in investment of trust assets. The trustee may be heavily involved in the appointment monitoring and review of investment managers for example. Given that poor investment decisions have been identified as one of the major causes of wealth erosion for rich athletes this benefit may be critical. Image and reputation There is nothing controversial about using a trust to protect assets from attack from unforeseen creditors most privately-owned businesses operate as limited companies for this reason. Reputable trust jurisdictions have robust legislation in place that prevents insolvent individuals from establishing trusts simply to defeat creditor claims. The asset protection qualities of a trust also extend to a number of other scenarios including divorce. Again contrary to belief using a trust to protect assets in the event of a matrimonial break-up is not about hiding assets away from spouses. In all probability a trust set up for this purpose would likely be defeated in the courts. A trust can also be useful for succession planning. Where there is concern about children of the rich squandering large fortunes on designer clothes luxury cars or penthouses a trustee would be able to control the heirs access to their inheritance. Another key advantage of a trust is the privacy it provides. While it won t succeed in tempering any media interest in the athlete s life it will enable them to make investments and other asset purchases confidentially because the assets will be bought by and held in the name of the trustee. The value that the trustee adds in the process of delivering those benefits should not be underestimated or overlooked. Reputable trustees are typically highly trained professionals qualified in areas such as accounting tax law and estate planning and are therefore well-placed to offer guidance to high net worth individuals on Image and reputation management particularly in a world where copyright and image right infringement can be commonplace is central to wealth planning. When a career is over it is often the case that an athlete s primary income stream comes from endorsements. Depending on the goals of the client it may also be prudent to plan for sale or transfer of rights. Therefore finding the correct jurisdiction under which to register intellectual property or image rights is vital and we have recently seen a number of jurisdictions introduce new or amend existing legislation on trademarks or publicity rights to provide greater protection. Guernsey is one such jurisdiction and became the first to create a registrable image right in December 2012. Guernsey s image rights legislation enables effective management and control of the commercial use of a person s identity and images. Structuring those rights through a Guernsey company possibly in conjunction with the use of an overlying trust may also be advantageous from a tax perspective given the island s status as a low-tax jurisdiction. Foresight is key As important as it is for an athlete to have the right mindset and level of maturity when it comes to managing their finances it is seldom enough to deal with the scenarios and events they are likely to face both during and after their career which can potentially erode their wealth. Only by building a financial and estate plan flexible enough to adapt as their circumstances change can provide the assurance that they and their loved ones will reap the rewards of their success for years to come. JULY CONNECT 33 PROPERTY A tale of two markets The Jersey economy is showing some signs of a modest recovery and that is likely to be reflected in the housing market. It was a tale of two different islands in the first quarter property prices with Guernsey showing a small rise and Jersey a slight drop. However those headline figures don t reflect the true picture of what is going on in the Channel Islands housing markets as Nigel Pascoe Director of Lending at Skipton International explains. uernsey was the first to report its latest housing statistics for the first three months of this year. The mixed adjusted average price for a local market property rose 1.1% on the same quarter last year and 1.5% higher than the final quarter of 2013. In Jersey the story was the opposite the mixed adjusted average price of homes was 1% lower than the previous quarter and 2% lower than 2013. G It is easy to make instant assumptions from these figures but it s important to also look at the bigger picture including the number of properties being sold. The story here is exactly the opposite Guernsey saw a dip in its transactions whereas turnover in Jersey jumped more than 50% on the first quarter of last year although the start of 2013 was unusually low that is still a positive. So what is really going on Jersey has been undergoing a period of price correction since the huge price rises in 2007 and 2008 which saw hikes of nearly 19% and 12% respectively. The latest quarter s figures were pulled down by the decline in the price of three-bedroom homes which had seen some of the biggest rises historically and they are now at their lowest mean price since 2007. This is of course good news for those hoping to buy as it makes a family home more affordable. It is this sector of the property market which pulled the overall index down as the mean price of two-bed flats and twoand four-bedroom houses rose slightly. The Starter Homes Deposit Loan Scheme in Jersey for which Skipton International was the only lender has now finished. It helped 51 individuals and families to buy their own homes and this has had a stimulating effect throughout the whole market enabling others to sell and move as well as boosting ancillary trades such as removals firms and decorators. The housing market is also a reflection of the economy and in Jersey the seasonally adjusted figure for those registered as Actively Seeking Work is at its lowest level in two years. The Jersey economy is showing some signs of a modest recovery and that is likely to be reflected in the housing market. In Guernsey the housing market didn t see the big price inflation prior to the economic downturn and so its market hasn t needed to rebalance to quite the same extent. Instead it has seen moderate growth throughout the recession. However the number of people unemployed in Guernsey although a small percentage of the population has until very recently been rising steadily. The good news is the latest figures suggest unemployment is now on the decline but this different trend in the two economies could go some way to explaining why there has been a discrepancy in the turnover. There is also an external factor which could have an impact on both Islands housing markets and that s the UK s Mortgage Market Review (MMR) which came into effect at the end of April. The main changes are that lenders must now take more responsibility for assessing if a customer can afford the loan and rules on affordability have been tightened to encourage responsible lending. So how is this affecting Guernsey and Jersey Some lenders will follow their UK parents and so their mortgage application processes have changed. Whilst it s a positive that more safeguards will be brought in it is slowing down the application process particularly for the next few months as the system settles. At Skipton International our lending criteria hasn t changed too much because we have always lent responsibly. Improvements in the review have been our long-standing practice. Because we are local we also understand the local situation and have always been adaptable and responsive. We will have to wait until the next quarter figures are out before we see what effect if any MMR has had. We do know that our mortgage business in Jersey is booming. Having announced that our lending in Jersey overtook Guernsey s in March it is positively forging ahead with record numbers of applications coming in to our underwriters. Affordability coupled with excellent customer service is the backbone of our business and now the route to owning your own home in our islands. COMMUNICATE YOUR MARKETING WITH ONE VOICE Jersey. Guernsey. Gibraltar. MUSINGS OF A MARKETER Inspiration the mother of creativity Connect s marketing columnist Sam Watts has been committed to all things marketing and brand for more than 20 years. Founder and director of Channel Islands communications agency Orchid she is passionate about the power of communication. This week Stella Young popped into my inbox. You ve probably not heard of Stella. She is an Aussie comedian and journalist who happens to go about her day in a wheelchair. This fact she is keen to make clear doesn t automatically turn her into a noble inspiration for all humanity . Her brilliantly delivered talk featuring this month on www.ted. com looks at society s habit of turning disabled people into inspiration porn . When I asked what inspires my family children and colleagues people with disabilities overcoming perceived adversity came back as a fairly common trigger. Stella s point is that just because she gets up in the morning manages to hold down a job and pay the mortgage doesn t mean she s an inspiration. She is just getting on with life like so many others. She says I m not your inspiration thank you very much. So that got me thinking. What is this thing we call inspiration Is it a trigger or is it an outcome Is it tangible or is it emotional Is it instant or is it the catalyst for an idea that incubates and over time turns into something wonderful So much of our marketing world is founded in inspiration the fuel of our creativity. If we all took some time out to understand what our personal inspiration triggers were we could constantly administer a shot-in-the-arm boost that would foster improvement help find solutions and develop both emotional and actual intelligence. A dive into the dictionary says inspiration is the process of being mentally stimulated to do or feel something especially to do something creative . It s also described as a sudden brilliant or timely idea . So the Oxford English Dictionary believes it is a process with an outcome. But what inspiration literally means is to breathe in and be filled with the spirit of the gods. Greek mythology said all creativity came from the gods who were the muses of ancient Greece a muse being someone who inspired you. This literal meaning is far more in keeping with the responses I received when asking colleagues family and friends about inspiration. The team at Orchid threw the following triggers into the melting pot books other people other people s work running Richard Branson really strong images Bruce Springsteen music good conversation walking the dog in the early morning and the bottom of a good bottle of wine Turning to Facebook and Twitter my social network was surprisingly consistent in the belief that people and what they do say or achieve are their greatest inspiration. I would love to write all the posts I received here but space doesn t permit (I will list them in full on the Orchid website because the answers in themselves were truly inspiring). Triggers included Amazingpeoplewhogivewithoutexpectinganything inreturn. Peoplewhoworkhard taketheroadless-travelled andwhofailamilliontimesbeforetheysucceedbut keepgoinguntiltheygetthere. Peoplewhowon ttakenoforananswerifthegood ofsomeoneelsedependsonayes. Spidersbecausetheyspendagesperfectingtheir homes youtearthemdownandtheyjuststartallover again. Peoplewholoveandexpressemotionfreely. Mychildren norulesornormstocontainthem. Myfamilybecausetheyarethemostloving honest peopleIknowandtheyinspiremetobeagood honestperson. Whenyouseeorhearsomething(art music writing poetry sport aninvention)thatyouknow-evenifyou had100yearstothink you dnevercomeupwith. So many are about people or are the product of human action. Of triumph over adversity the power of human kindness or the sheer brilliance of something no one else had thought of already. I wondered if inspiration changed as you grew older. My children and their friends were consistent that people were their primary trigger. Probably unsurprisingly immediate responses revolved around their sports music and film heroes people they look up to and want to emulate. But digging deeper their answers turned often to people who were triumphing over adversity be it disability (sorry Stella) or hardship as a result of their geographical location. So what do we do with all of this Read watch listen run walk converse. Think about who or what inspires you and find ways to receive regular updates from them. So sit back take a big deep breath and inspire. If you have a question for Sam please e-mail sam bailiwick ALL SET FOR FATCA Since July 1 a spreadsheet is no longer a viable compliance tool for KYC and CDD under FATCA. New regulations mandate the use of electronically searchable data and paper record searches are not required when electronically searchable databases are properly deployed within a Reporting FI. All of which means it s time to look for a better alternative. BLUE BISON KYC is a competitively priced US and UK FATCA-ready compliance solution. Why build what you can buy So get set for FATCA today. Call BLUE BISON on 44 7911 106835 email info visit Find BLUE BISON SOFTWARE on Linkedin Model 1 IGA Annex I Section D Page 5 I am just starting out and wonder if there are any common attributes among successful small business owners Yes there are - and it s not just about resources and a great new idea or invention - which means that anyone can be successful in any industry. What it all boils down to is locally successful entrepreneurs focus on the three most important words in business intention attention and responsibility. business owners. My favourite example of this is someone I work with who agreed to have a picture of his garage on the homepage of our new website. When it went live he was hugely disappointed with the photo as it showed a few oil stains on the floor after a full day of servicing cars Just spotting something like that shows the attention to detail that is required across all aspects of a business. Intention The intention must be to create a great product or service leading to an excellent customer experience which massively differentiates you from all your competition and allows you to charge enough to make it sustainable. Ultimately every idea or innovation is copied and that means to have a sustainable business in the long-term the way you deliver your service or product and your terms of business are much more important than what it is that you do. In my view many Jersey companies are lazy when it comes to the customer experience as there is so little competition. Strangely though it is especially poor in our retail industry which now with online substitutes has even more competition. For example when was the last time you went into a shop or business and were surprised by how welcome they made you feel or the great explanation of the choices you could make Has that ever happened If they are going to compete with the price and choices online they need to start delivering what online outlets can t trust relationship and a great experience. Responsibility I met someone recently who appeared to be very good at what they do. They had some great case studies and stories and there is little doubt they make a real difference to the lives of the people they work with as a personal coach. However they re hardly making any money and the idea that this was in some way their fault was completely alien. As we talked she opened up a little and said something that I found enlightening If I do a good enough job with my coaching and counseling people will hear about it and discover me. I had to burst her bubble. The fact is there s no business where simply being really good will guarantee success. Business owners must take responsibility for getting the message out there and communicating to customers and potential customers in an utterly compelling way why they need to dip into their hard earned cash and spend it. It s 100% her responsibility. The longer she kids herself that she s living in this utopia where how well you do something is the sole factor in determining your success the longer she ll remain good at what she does - but poor. Luke Smith MD of accountants Purpose delivers straight answers to common business questions. Be careful he is blunt uncompromising and if you are sitting too comfortably you may be in for a rather bumpy ride. If you have a question for Luke please e-mail askluke bailiwick Attention Attention to detail really helps to differentiate a business. As I said above every new idea or innovation is eventually copied and in some industries in Jersey there are two or three competitors and in others up to 20. Making sure that you follow through on your good intentions is key to sustainable success. Take builders and tradesmen. At the start it s mostly smiles and a level of rapport where you trust that everything will be done to your complete satisfaction. At the end it is more mastic and cover-ups fag-ends left underneath the kitchen appliances to be found later and bits of wall behind toilet seats that they forgot to paint. Would you use them again Attention to detail runs through the veins of successful Summary As an owner-manager of a business you are fully aware that you are ultimately accountable so you may as well just accept now that you are responsible too and act like it. Tough decisions are what responsibility is all about and pretending that there are things outside our control things that we can t change is part of a defense mechanism that actually hinders us. Take responsibility for everything in your business have the intention to produce something the client will think is fantastic and then give the whole business and service delivery incredible attention to detail and you will be successful. Those that do always are. 38 CONNECT JULY These fantastic phones deserve the best plan around Sure s 46 month SmartUltimate plan All include UNLIMITED data and UNLIMITED texts 49 on 46 m 49 49 on 46 m on 46 m 29 on 46 m Samsung Galaxy S5 HTC One M8 Apple iPhone 5s Sony Xperia Z2 All prices based on 24 month contract. Terms & conditions apply see Unplugged. Does Jersey have what it takes to grow its economy Chris Clark Being brutally honest I have concerns. I can see the economy picking up. We can see it first hand in our own business. Since September last year there has been far more positivity. Clients are engaging in a far more direct and immediate way. There s no faffing around especially in other islands actually. In Guernsey in particular you see people just making a decision and going with it whereas there is still a lot of complacency in Jersey regarding decision-making and lots of falling back to traditional behaviours. Still genuinely considering do we automate and make things efficient for the future or do we go out and recruit people The thing that really worries me about that recruitment option is it s great for the unemployment stats. It s great that everyone is becoming like an extension to the Social Security department because we re employing the unemployed people - but it s not making us competitive as a jurisdiction. What s going to happen potentially is that you re going to see companies going back to the default comfortable position. You re going to see people working 9-5 and not leveraging the available technologies. We can do pretty much twice the amount of work that we could do two years ago for half the money. For example I saw an internet banking platform being built over a period of years where it was a couple of million pounds worth of work of something like that. Then more recently a big online solution was developed it had far more functionality far more automation a far better experience for the end-user - but that was delivered for a quarter of the costs. We as a technology business have to be incredibly mindful of the amount of people that we re going to employ going forwards because you could say that you re going to have a reducing work force of very clever people rather than this burgeoning workforce that s going to be there doing manual traditional processes. I just don t think that s sustainable. Businesses are working smarter and simpler and by smart and simple you do have to make those brutal decisions to automate once rather than to employ and then have that consistent overhead of staff. It s the world we re in. James Filleul Are you worried Jersey is becoming uncompetitive CC Absolutely. If we just go at a traditional problem by the traditional manner of throwing more bodies at it you re not going to move forward. Things aren t going to evolve. We re not going to be an innovative digital society. We re going to be some quaint little back water that nobody has ever heard of and which is going to just disappear and probably it will revert to tourism agriculture fishing. That is lovely don t get me wrong but it s not going to be a digital hub it s not going to be a digital Island and it s not going to be a digital economy. JF You re talking about a fundamental change in mind-set CC Culturally there s this whole thing about complacency. As you know it s one of my buzz words and angst points. People are happy to come in at 09.00 leave at 17.00 and go to the beach walk their dogs. I do that too - but then I go back to work in the evening I wait for my kids to go to bed and then I start working again in the evening from 21.00 until 23.30. It means that we can grow the business very quickly from nothing to 24 people in less than three years. I think if people want to thrive prosper and succeed they are going to have to really step back and consider how they are applying technology. For example people shouldn t be tinkering with the tools any more. The back-end infrastructure should just work. That is a dying job in a way. If there are people that are basing careers 40 CONNECT JULY With confidence and opportunities returning there is a line of thinking which says that this is now the most crucial period in our economic recovery. That reasoning is based on the observation that a combination of deep recession and technological revolution has changed fundamentally the way we do business. So a recovery in the market isn t enough alone to restore growth businesses also need to radically alter how they work to take account of the greater efficiency which technology can now deliver. One man who argues passionately that Jersey needs to recognise that shift is Chris Clark Chief Executive Officer of tech consultancy Prosperity 24.7 and a recent winner at both the IoD awards and the Awards for Enterprise. James Filleul asked him if he thought local businesses have recognised how much change is required. JULY CONNECT 41 42 CONNECT JULY UNPLUGGED on maintaining servers and infrastructure you need to consider your skills road map because it s not a sustainable opportunity. JF The knock-on effect of what you re saying though is higher unemployment CC If you re an export business by all means you may be able to sustain significant headcount growth. But then I m talking about delivering projects to thousands of people and adding two or three more people to deliver that. I m not talking about having one project which is going to help a 50-man trust company and employing three people and thinking that s a sustainable employment approach. For example I ve been working with an organisation from out of the Island. They re not in Jersey. I wish they were. They ve not got their governance and control team in an offshore jurisdiction they ve got their IT team there. Why Because they appreciate that the IT team are the guys that are innovative and coming up with the intellectual solutions and the intellectual property that will ultimately derive all of the value in their business. We re talking 100million plus per annum turnover and they re seeing the application of technology enabling them to make the smallest changes but then making a 12% operating difference on their bottom line and it s just through looking at correlations in data and the behaviours on the customer journey that they are deriving that. That s brilliant. It s really inspirational but the problem is that s one client in two islands that I ve seen behaving like that. Unless people really wake up and smell the coffee and realise that technology isn t a buzzword it isn t a dream it isn t some vision that isn t achievable. It is attainable today. It can be deployed in a very common sense way and you need to utilise it otherwise there s going to be some kind of digital revolution and the Island is just going to get out-competed consistently by other jurisdictions that have leveraged technology. Those jurisdictions are going to have the cost of service that is a fraction of Jersey s but better margins because they ve not got all the overheads. I think what s happened in the retail space could very well happen in other areas of the economy in Jersey. JF So what lessons could the finance sector take from what s happened to retailers CC Well you can no longer sustain a business that has historically worked on a time and materials approach and six minute increments for billing and things like that when customers expect basic services to just happen. There s lots of banking reconciliations and automation and sanction matching compliance checks FATCA (Foreign Account Tax Compliance Act) reporting all of that stuff and customers don t expect to pay for that. Yet I m sure they re going to be made to by Jersey firms. What you would expect is that a lot of that manual intervention can be automated. Jersey from what I can see is incredibly comfortable. We are incredibly fortunate. We have had 50 years in the financial services which gives us a phenomenal quality of JULY CONNECT 43 I ve been working with an organisation from out of the Island. They re not in Jersey. I wish they were. They ve not got their governance and control team in an offshore jurisdiction they ve got their IT team there. Why Because they appreciate that the IT team are the guys that are innovative and coming up with the intellectual solutions and the intellectual property that will ultimately derive all of the value in their business. UNPLUGGED life. I ve been taking photos the last couple of days out taking the dogs for a walk of an evening because it is just beautiful and we re incredibly fortunate. But we have a really high quality level of services today and if people don t adjust their operating practices and their business processes and their traditional behaviours into an efficient profitable model for the future I am really concerned that things that we take for granted today simply aren t going to be available in the near future. JF But the recent recession must have driven a lot of efficiency gains CC Well yes you d think that wouldn t you We ve seen businesses fail so those are the ones that really haven t reacted at all. We ve seen other businesses that have sweated their assets mercilessly and those assets may well have been people as well as their technology and their infrastructure. I think the problem is that people are now thinking right we ve had stuff in place since 2006 2007 it s lasted us eight years instead of three and we can just replace it again with the same old kit. And they really need to use it as an opportunity to step back and reflect about where they are going. Traditional business models will survive up to a point for the next five or ten years and maybe they can then sell their business to one of the bigger more aggressive more agile trust companies that you are seeing that are going global and developing their footprint internationally because they can see the writing is on the wall - but there are other financial services businesses that have their heads in the sand. They are just tucked away saying it s not going to happen to us or we only need to keep the lights on for eight more years and then I can retire . You see that sort of behaviour and it s quite worrying. They ve got compliance squeezing their business development capacity so they re focusing more on complying with the regulatory demands of the Island which is an everincreasing burden rather than the opportunity to go out and develop new markets with existing products in international arenas. I m just glad that we re in technology. I think the problem is that people are now thinking right we ve had stuff in place since 2006 2007 it s lasted us eight years instead of three and we can just replace it again with the same old kit. 44 CONNECT JULY JULY CONNECT 45 SLIDING DOORS We all face major decisions in our careers. Do I take this new job or stay where I am Should I take the plunge of going into business for myself Is it time to change direction completely and retrain It s these big decisions that tell us most about our values our ambitions about who we really are. It is the moment at which our past and our future slides apart. This month we meet a man who isn t keen on being in the media spotlight but has a company that has been in Jersey for 16 years and employs around 80 people in the Island. Many of us have heard of Indigo Lighthouse or Indigo Starfish but its founder Alan Cox has been somewhat elusive. Gwyn Garfield-Bennett went to meet the entrepreneur who started his working career as an optometrist. Alan Cox is clearly not overly keen on talking to the media a fairly rare trait when it comes to successful entrepreneurs many of whom love to blow their own trumpets but start talking to him about his business and the passion and enthusiasm soon gets the better of him. After our interview I did a straw poll of friends and family to see if their understanding of Indigo Lighthouse had been the same as mine prior to talking to Alan it was. They all said a fulfilment company . The reality is it is so much more than that and all because Alan spotted a gap in the market for repeat contact lens deliveries. Alan Cox has never worked for anyone he s always run his own businesses At school I had a snooker manufacturing business making pool tables and snooker tables then at university I opened a fashion business. A girlfriend was a fashion designer and she was good so I took the designs and made them into end garments and then we went to international shows down in London. I sold a huge order to Nordstrom at the tender age of 20 and can remember dancing in the aisles on the train back to Glasgow. Then I went into the bank manager having worked out how much money I needed to produce the order and I can also still remember the shrills of laughter. That was a salient lesson for me. It was his father an optometrist who suggested that the young Alan had a degree or qualification behind him saying it would be a good port of call in a storm. So Alan also trained as an optometrist the first big decision that would change the course of his life. After qualifying I worked as a locum in London then I went travelling for a year and when I came back I decided to open up a franchise which was one of the We are now the global leader in repeat contact lenses with over one and a half million consumers. Life through a Lens JULY CONNECT 47 48 CONNECT JULY SLIDING DOORS first Specsavers franchises. I had a major store in Glasgow and two in Edinburgh before I eventually started my own chain of opticians aimed at the middle market. With 14 stores in his chain Alan soon had a successful business but then he spotted another opportunity which was to completely change his focus I noticed that there was always a queue of repeat contact lens customers at lunchtime young professionals waiting for their regular orders. I said I know when they are going to run out so why don t I send them to them and make it easier by also spreading the payments. Then if there s a problem they can phone this number. So that started him on the route of a payments system picking and packing and a call centre which he has finetuned and developed. He sold the optical retail chain in 1998 but kept the contact lens management system and that is the basis for Indigo Lighthouse. We are now the global leader in repeat contact lenses with over one-and-a-halfmillion consumers. We do that now for other retailers we answer the phones in their name and we have a 15 language award winning communications centre in Glasgow that supports our payments platform throughout Europe sending out 25 million packages a year. We work with clients in 47 countries worldwide. The communications centre is now not just on the phone but also deals with social media and live chat. The heart of Indigo is creating customer loyalty and Alan soon realised that if he could do it for lenses then he could do it for other products as well. He said We empower brands to have customer loyalty through subscription converting shoppers into subscribers. There is a seismic change going on in retail with exponential growth but with that comes a lot of promiscuity with consumers moving brands. They don t want to spend time shopping they want added value. Consumers want things quickly if you think about coffee pods razor blades or pet food regular purchases if you get the customer into a system like ours giving them the right product at the right time with great customer service then it binds them to your brand. Indigo uses a sophisticated global payment management system which offers a range of payment methods and can be integrated into the customer-facing website of any retailer. They re effectively the backroom side of an online business the magic behind the scenes Alan calls it so the customer will see the shop brand and not know that she he is dealing through Indigo Lighthouse. Using SAP a sophisticated enterprise software Indigo can offer stock predictions ordering co-ordination of stock from manufacturer to distribution centres picking and packing and mailing to customers. Their software will be able to tell the retailer who is buying what when and how they can increase that customer s brand loyalty. A little bit more than just fulfilment. A consumer in 12 months will buy 11.8 months worth of product through a subscription but if left to their own devices will only buy 8.3 months says Alan. When he started he met with a fair amount of scepticism. People were negative and said it wouldn t work going into Europe nobody would want to do it that way but now we have a huge European database. It s giving consumers control. Some retailers try to do it themselves but the difficulty is that when you have a live pulsating database that is dynamic and shifting and moving all the time then the real complexity is the creditor balance and making sure you have the tags on what they have paid and what they re owed. When you re dealing with large numbers then that can get out of kilter easily. Our best customers have been those who had their own internal system and thought they could handle it but learn that it quickly gets out of control. We have been doing this for so long now that our system is incredibly robust it runs payments tracks payments and integrates into any front end website. Alan had to have a system which didn t make mistakes right from the start send somebody the wrong prescription contact lenses and you would soon be in trouble and out of business. That need for very high quality control has dictated the strengths of their current system. We never send out the wrong product because every one is bar coded. Our system can trace every individual item and monitor it. We can even locate faulty batches for retailers by JULY CONNECT 49 ...I went into the bank manager having worked out how much money I needed to produce the order and I can also still remember the shrills of laughter. That was a salient lesson for me. SLIDING DOORS tracking which items are returned. If consumers want to cancel then they first talk to one of the communications team who will endeavour to keep their business. We will have a dialogue with them. If it s because they have three bottles of contact lens solution in the cupboard and don t need the next month s then we will say that we ll not send it for a couple of months and then send it to them after that so they don t find themselves running out. The system moulds itself to the customer and that s what keeps them loyal. In 1998 Alan started Indigo Starfish a straight-to-consumer business which had its operations in Jersey when Low Value Consignment Relief (LVCR) was still in place. Many of us will recognise the Indigo name from then but he decided to close that side of the business at the time when Jersey lost LVCR. Actually LVCR wasn t ever a major factor in that business the UK just wasn t seeing the same volumes as it s all on price differentiation and there s no point in trying to compete with Amazon the margins weren t good enough. When Indigo Starfish went his Jersey operations were reduced currently there is sales and marketing and data analysis as well as a small distribution centre. The communications and operations centre is based in his home city of Glasgow primarily he says because of the need for a large population particularly one with a university which can provide a ready supply of multi-lingual workers. Indigo employs 400 people in Glasgow. He also has his own team of SAP engineers and like so many companies would like to base that side of the operation here in Jersey but can t get the skilled IT workers. SAP engineers are hard to find even in the UK. So what of the future Not surprisingly Alan has all sorts of plans and ideas one of which is mhealth (mobile health). He is working with Jersey cardiologist Andrew Mitchell to develop a system that can monitor health and manage it not Actually LVCR wasn t ever a major factor in that business the UK just wasn t seeing the same volumes as it s all on price differentiation and there s no point in trying to compete with Amazon the margins weren t good enough. just take money. We are already sending out bowel cancer tests and vitamins. If we can manage repeat prescriptions for optometrists then we can do it for doctors. Another area that has particular relevance for Jersey is the work he has been doing with Economic Development and Jersey Post. We have been over to China four times now to try to get across the message to the Chinese that it s not just about price and a one-off purchase that it s about loyalty and building up customer loyalty through subscriptions and a good returns policy. They want to develop their business beyond their own shores but Europe is a complex collage of different countries with different regulations and so it s not easy. We have been trading in Europe for 16 years and so we re saying we can offer a one-stop plug and play into Europe. Trust and quality is what s important and we re offering a compelling proposition that says bring your products here and we will send them out for you and run the returns system to cut out the time delay and we ve got zero corporation tax. The States have been great in keeping on with this as it takes time but if we can persuade the Chinese that it s not just about price then it will bring long term sustainable business to Jersey which isn t just built on a tax law like LVCR but on brand loyalty and meeting the demands of a changing market place. It was Jersey Post who first brought Alan to the Island 16 years ago as they offered him a deal which meant it was cheaper to send his contact lenses from here. He s come a long way since then I have no regrets. What keeps me awake at night is other opportunities and taking the right route. Retailers will not be able to be all things and master of everything so the business is fragmenting into specialities. We don t source products what we do is the infrastructure support behind the scenes and we re excellent at that. It means retailers don t have to invest in customer service and warehouses they can plug into us and we ll keep up with all the latest digital advancements while they concentrate on their core business. 50 CONNECT JULY Buy now pay later With the successful launch of a 250 million bond on the 9 June Jersey has finally joined the global debt merry-go-round. Having one s cake now but paying for the tasty confection later is a game in which most of us are of course willing participants be it the house the boat or the new M5 with the full options pack. And while that master of the pithy quote William Shakespeare offered the advice to never a lender nor borrower be surely even the Bard himself wouldn t be able to resist after five years of near-negligible interest rates the offer of a 100% base rate-linked tracker mortgage on that new half-timbered pile currently on offer from ye olde worlde estate agent down Stratford high street Governments around the world are of course the largest players in this debt game. When one s invitation for another five years of gainful employment depends upon the public s perception of one s good deeds (and the bills for that work don t start arriving until years later when one is kicking it in the Caribbean courtesy of a gold-plated index-linked final salary pension scheme and no longer answerable to the schmucks who employed you) who wouldn t want a slice of the action But let s be a little more generous and accept that the Treasury Minister s ability to borrow 250 million at possibly the lowest ever rate of interest for 40 years (3.75%) might represent a financial masterstroke. He was lavished after all with new media praise by his Guernsey opposite number ( Congratulations Philip on getting your bond away so well quoth Deputy Gavin St Pier). The practical effect of all of this is to give our Housing Minister the financial wherewithal to embark upon a programme of improving social housing stock which in turn should generate sufficient return to pay the interest on the loan ( 9.4 million per annum) whilst improving the lives of hundreds of our population. It all seems to stack up pretty well - those October elections it would seem can t come soon enough. But to steal a phrase from another heavyweight political commentator here s the thing . Going into debt has consequences. It brings the government s finances under the much broader spotlight of ratings agencies and holders of our debt those rapacious global financial investors (especially important given that the debt is secured against all of our financial assets not just the housing stock). It makes it imperative that our government s promise of generating a financial return from the investment in housing must be followed through. It means that at some point we need to set aside cash to actually pay back that 250 million in the future. But far more important than any of those things is that it has provided for those with less of a handle on how modern finance actually works something very powerful an easy and pain-free means of paying for any scheme no matter how hare-brained that our politicians might suggest. And with those elections approaching with the same grim inevitability of death and taxes who knows what worthy minority interest secured voter bloc might need pleasing appeasing It was only a matter of hours after the bond issue was announced that suggestions started to appear on social media for alternative uses of the proceeds. You need 3.6 million of public money for Pl mont A mere drop in the ocean just issue a bond. Public bailouts for private investment losses Pah issue a bond. Profits on this year s spud crop taken a drop (again) No problem issue a bond. Free GP visits for all Think of the little kiddies for God s sake issue a bond. And so we return to Shakespeare because it is the last line of Polonius s famous lender quote that often gets forgotten but is perhaps most apt in this regard ...and borrowing dulls the edge of husbandry . We should all worry when those making the suggestions as to how our (and future generations) money is spent are divorced from the actual consequences of that spending. But that s politics. When we suddenly come up with a whizz-bang new way of enabling those people to make more promises whilst the liabilities are pushed further into the future we really need to sit up and take notice. The global financial collapse of recent years and spiralling public deficits has been to a large extent a consequence of governments making promises they could not afford to keep. Let s hope that common sense reigns and just because we can borrow cheaply gold taps in the bathrooms of Cyril Le Marquand house and 1 000 new senior assistant diversity deliverance co-ordinators are not something my grandson ends up paying for. DEFINITION The Fool A privileged position held at an ancient king or queen s court the fool was not taken seriously by the high and mighty but was the only person able to speak the truth to power. The Greater Fool Theory The belief held by one who makes a questionable investment with the assumption that they will be able to sell it later to a greater fool . JULY CONNECT 51 N O O R D I N A R Y DAY J O B No Ordinary Day Job. Great leaders are made not born Most of what we see and hear about leadership is about a particular type of personality a particular style of working and a particular type of person. It s all about Alex Ferguson giving some hapless full-back the hairdryer treatment at half-time Winston Churchill managing the whole war effort on three hours of sleep and two bottles of brandy a day or Bill Clinton sweet-talking a nation into an astonishing economic renaissance in the 1990s. What we know about leadership now is that most of that stereotype the heroic natural-born leader all-powerful and very strictly male isn t right at all. He says that a lot of old notions about what it takes to be a great leader are being challenged and that modern leaders need to learn and hone skills in exactly the same way as everyone else. all-knowing heavy-handed leader the Alex Ferguson strategy this idea of the best type of leader and it s not right. The science shows us that the best approach is the more humble nurturing approach. Most of the people remember the thing about kicking the boot at Beckham and apparently he was a bit like that when he was younger but he changed it seems like what he became was a very flexible leader who was able to adapt. And I think good leaders are agile and can flip their style depending on what they need and he is a good example of someone who has done that and who was given the time to do it. I don t think David Moyes was given that time. Jim Collins wrote a book called Good to Great about companies that went from being good companies to being great companies. He found that one of the threads was that great companies had level five leaders as opposed to level four leaders. Level four types are heroic leaders they re awesome and they turn companies around but when they leave the companies flipped and folded. The level five leaders were the ones who created leadership around them and created a company that was good beyond them. You wouldn t know them because they would not promote themselves. Just after coming back he gave a TEDtalk about leadership titled Ben Qu r e went to meet a Jerseyman who is leading Heroic to Humble the leaders in Jersey down a rather different path. and he says that encapsulates a lot of what he has learned A study of the top ten firms in The in the last 20 years of coaching and Times Top 100 Companies list found mentoring leaders at companies one single factor that correlated such as Sainsbury s Coca Cola and linking every one of the very top BP. He says that crucial shift from firms and it was that the people playing a heroic role to treating working in those companies felt that colleagues with humility is the their bosses listened to them. That s key to successful leadership. a message that Dr Jeremy Cross a former tennis pro who was educated You give people the space to in Jersey and has now returned to talk about things and they feel the Island as a leadership consultant a lot better because someone and coach is working to get across. has listened said Jeremy. Jeremy has returned to the Island And that is one of the central with his wife and two children things about leadership if after 20 years working in the UK you have a boss that listens to and internationally as a leadership you that encourages people. coach and has launched Bailiwick Consulting at bailiwickconsulting. We ve got this idea of the heroic 52 CONNECT JULY Photography by Gary Grimshaw N O O R D I N A R Y DAY J O B That heroic stuff about big inspiring speeches is useful in a small number of instances but it s absolutely not sustainable and it doesn t work for everyone. Some people need that but some need to focus on being themselves. Jeremy s job is to help bosses reach that level of creating leadership around them and being effective listeners. Part of the issue he says is that the facets and skills that made them excel at their jobs also makes them ineffective as leaders. And like any other skills leadership skills have to be learned. He said I do a lot of work with senior leaders one-to-one. I did some work with the director of security in a very large household name firm. And he didn t have anyone else to bounce ideas off or to share any kind of faults or vulnerabilities and half of the time he was pretty unsure of what he was doing or he was scared. But he projected being that strong leader and people like that rarely get the chance to share their inner thoughts. So often my role is to be that sounding board and have that cathartic release. I ve done some work with a headteacher in Slough. He has 100 staff and a thousand pupils it s basically a medium sized business. The previous head was there for 20 years and he was the heroic charismatic type. The rest of the staff took no responsibility they looked up to him for everything and when he left there was this vacuum. That s part of my work helping new-into-role leaders making the step to thinking and acting more strategically. Often what happens is that you get people who are good accountants and what makes a good accountant is a good eye for detail. But when you become a leader you have got to take your eye off the detail and look at the big picture. Those leaders who get too much into detail will struggle. Lawyers are trained at critiquing arguments and documents that s their skill set. When they become a leader they use that to critique people. But what we know is that we you need a ratio of five-to-one positive-to-negative in individual relationships to create good relationships. I ve done quite a lot of work with Sainsbury s and people stepping up from being a manager of a small store to a superstore or a regional manager. They might be able to rule their store knowing everything and being the bottle-neck of information that might even work even though they find they have no life. But as soon as you go to something that is too big to do that they start to struggle because the way that they used to lead doesn t work anymore. Quite often the idea is that you re a born leader and you re not. You can improve these skills you can acquire them and change them. Part of the difficulty is that measuring the success of a leader is a tricky task. Jeremy s academic background a PhD in psychology and being an accredited leadership coach helps to add some rigour to that measurement. Most of the time it s not measured well said Jeremy. A lot of it is self-reported so people might look at emotional intelligence and it would be you writing about what you think you are so we are going to skew the results. The next step is to do 360s and get feedback from the people that they lead. But the best way is to observe them and to observe their behaviours. Increasingly he says people get the idea of leadership coaching. Some of the perception is tinged with a hint of David Brent the brilliant Ricky Gervais creation who thought of himself not as a manager but as more of a chilled-out entertainer . When people ask for support they are already at a stage of maturity for people development said Jeremy. 54 CONNECT JULY I did OK I reached the qualifying of Wimbledon but not quite well enough. N O O R D I N A R Y DAY J O B skill do you want to learn Asked to sum up his approach to coaching leaders Jeremy said there were three crucial points shifting from focusing on just tasks to focusing on relationships shifting to inquiry rather than advocacy in understanding what s going on around you and shifting from negative to positive in dealing with the people that you work with. That view is built out of experience not just from a career in coaching and his academic background but also his history in sport. I was a tennis player I played professionally for a while from my late teens to my early 20s but all the It works really well when you have a chairman or CEO or MD and they approach you I like to work directly with boards or with CEOs. It doesn t work so well when you have an HR director who has a budget and asks What shall I spend it on Let s get some leadership development. People just go away on their two-day courses come back and put the file on the shelf and go back to normal. I would call that training and there are some people who are brilliant at it and do it really well. There are a lot of companies who do one or two day workshops and it just does nothing. You might feel a bit better you have a nice time but you only go back to the way that things were. The way that you are positioned as a consultancy is as a solution provider. What I do is act as a leadership coach or a board coach who will come in and work with whoever needs the help. It s a bit like a sports coach there s no two or three day programme. But it s about improving performance and the starting point is how do you do that as opposed to what time I was studying as well he said. I did OK I reached the qualifying of Wimbledon but not quite well enough. I became head coach at Loughborough University which is a pretty good job to land at 21-years-old and I started working with individuals and teams and it was just a brilliant place to get a trade in performance psychology. I had always wanted to apply it not to be an academic. I was trying to find somewhere to work after my PhD which would give me a chance to learn a lot about talented people and I came across a consultancy called Lane 4 run by Adrian Moorehouse who won a gold medal in the pool in the Seoul Olympics in 1988. I got a really good job as a junior consultant and worked with them full time for seven or eight years and that was kind of my business apprenticeship. The whole concept was inspiring stories and rigour from the science. I worked with a lot of businesses doing leadership and stuff that s what I know. In 2010 I left them and got married and went to the Commonwealth Games as a sports psychologist in Delhi. My wife and I decided to come to Jersey because it s a great place basically. It was a big family decision but it s a great place to bring up your kids and of course to be nearer to my parents. I said right set up in Jersey and I need to make the consultancy about Jersey and Guernsey I don t want to spend all of my time going back and forth to the UK. Yesterday I did a day trip to Birmingham so I was out at 9.30 am and back at 3.30 pm I ve got some legacy clients that I work with from Sainsburys BP and Coca Cola. I also still play tennis so last year I was number one in England in the four nations event for the over 35s so I m a veteran which is a bit of a shock. I m hoping to be in the Jersey Island Games team which would be 22 years after I won gold in Gibraltar which is nice. So most of my time has been spent either doing trips to the UK and doing client work or just developing a better network in Jersey so I did the TED talk here in my second week which was a bit stressful I think that a lot of it is going to be about relationships in Jersey I think that s the way with any professional service anyway. Quite a lot of the banks get leadership development from a London base so I need to understand how people buy their leadership development and part of my proposition is that I m hopefully a credible person with UK and international experience but I m local which is why I chose the name Bailiwick Consulting. Like a lot of things in Jersey if people can get a local provider over a UK company it s a benefit. 56 CONNECT JULY iSPY Welcome to iSpy a new columnist whose role is to observe and comment on those who normally do all the observation and commentary the media. Nothing is sacred from their seat in a local newsroom iSpy will be turning skeptically through the pages of Connect and Bailiwick Express too as well as the work of agencies and the chatter on social media. WHAT A LOAD OF BALLOTS There are some reassuring certainties in life. Christmas Day will fall on 25 December. The return of X Factor to ITV means Christmas is about four months away. And a sudden rush of previously mute politicians vying for media coverage of their crowd-pleasing ideas and initiatives means it must be around T minus six months to a general election. THE PRIDE OF JERSEY What s going on at the JEP It seems a three-line whip s gone out to the reporting team that the Island s population is made up of more than just middle-class middle-aged Daily Mail readers. We ve had objective non-sensational pieces on the push for the issues affecting the island s transgender community to be higher up the political agenda. There s been a run of pieces on various gay rightsrelated subjects. And there was even a front-page splash on a reader vote backing the introduction of same-sex marriage in the Island. Yes of course the letters page has been home to some woefully ignorant and vicious opposition to said articles and that s the joy of having an outlet for opinions of all shapes and sizes to get a good airing but overall the Island has not ground to a halt because the JEP is talking about the things that matter to some arguably under-represented sections of the community. Even the coverage of the National Trust Sir Philip Bailhache pact to buy the former Pontin s holiday camp site at Pl mont wasn t as one-sided as you might have expected. Again a reader poll showing the let s-buy-it brigade aren t necessarily a massive majority (though it ll still happen as Sir Philip will make sure it gets through the States) added real context to an important story for Jersey. JEP team from the editor down we like what we see. Whether you can bring your core audience with you and attract a new generation of readers is the real test. It s not just a Jersey thing. You see it in the UK every four or five years and the same is true in Guernsey but it is amusing to see various politicians in the island jockeying for position. The whole Pl mont saga is a pre-election gift for those who may have a vested interest in votes from the north west of the Island. Yes Chief Minister of course that includes you. But there are also reasonably blatant moves being made across the board. Have a look at who s been saying what over the Waterfront finance centre development check out who s been pushing for gold-plated maternity rights see who is tweeting shopping lists of the things the government s achieved in recent times. Some of it may be community-minded citizenfocused life-improving stuff. But that altruism can also look like electioneering. Politicians iSpy is watching you. INQUIRING MINDS Finally this month the rest of this year affords a small band of journalists in Jersey the chance to shine. Reporters from the BBC ITV Channel TV Channel 103 Bailiwick Express and the JEP will be among those following the long and winding road of the Independent Jersey Care Inquiry. Islanders who were victims of abuse over the years those in power who perhaps could or should have done more as well as those who have played their part in uncovering any sense of truth will all be giving evidence to Frances Oldham QC s panel at their Seaton Place headquarters. So-called citizen journalists as they call themselves (and who under no obligation to fact-check balance stories offer right of reply or not mix reporting with opinion) have argued they re the ones who have done most of the hard work in reporting events leading up to the start of the inquiry - and now journalists from mainstream media can show the depth of their skills through accurate level-headed reporting of the inquiry and the concentric circles of activity that will inevitably surround it. There will be distractions along the way. There may even be false starts. But it will also be a long journey. Let s see who works hardest to keep us all informed and enlightened about this important chapter in the story of modern Jersey. If you re a journalist iSpy wants titbits from your newsroom if you re in the headlines iSpy wants the inside track of your media encounter if you re a reader viewer or listener let iSpy know if you ve stumbled across something that s worth sharing. Email in confidence to ispyjersey JULY CONNECT 57 GLASS HALF FULL Glass half full with... It won t come as a surprise to hear that events budgets have reduced through the recent recession but despite that the industry certainly in Jersey has remained relatively stable mainly because businesses still have a requirement to communicate with their customers staff and stakeholders. DELTA PRODUCTION SERVICES Despite recent difficult times we are really pleased to say that over the last six to nine months we have noticed significant confidence returning to the market place. What is really encouraging is that this upturn is across all areas private and corporate large and small. Our reputation has been built partly on our innovation not just technically but also our inventiveness and ingenuity. But when client budgets were restricted we unfortunately became accustomed to hearing We love the ideas but we need to trim the costs. That meant that we had to think smart and get even cleverer with concepts and technical delivery. We recognised that it was vitally important to maintain a high level of service and quality and to ensure clients were 100% satisfied despite working with less resource. We pride ourselves on our customer care and loyalty and we certainly didn t want to compromise this in any way. Now however we are enjoying the fact that over the last few months we are increasingly having conversations with clients who are looking to include previously considered nice to have but not a necessity elements to their events. As budgets are starting to increase what is particularly pleasing is that many clients are now looking for the extra level of technical quality that smaller budgets had perhaps not allowed previously. We ve always had a positive outlook on the local market place and confidence in our industry sector even during the leaner times. Our approach to the difficulties faced in the recent recession was to look at alternative ways to develop our business and examine other complementary revenue streams. We expanded our presence in Guernsey and we also took stock of the business overall mirroring many of our clients by analyzing where we spent our money. The upturn that we are now seeing and the return of positivity in the sector has had a knock on effect for all areas of our business. We are really pleased that as we ve ridden the storm we are now looking forward to some great events and opportunities in the coming months. More good news is that we re looking to expand our team to manage the increasing workload. We have the ability to combine experienced technical crew alongside nurturing young talent in the industry and this works to great effect. Technology moves so quickly that we need to ensure we have the right mix of talented people on board who understand the fast pace and nature of our industry. We re looking forward to exciting times ahead. In this month s Glass Half Full Delta Production Services explain how they have weathered the storm and are now looking for new opportunities We have seen a lengthy period during which events budgets were cut significantly pretty much across the board from large corporate dinners conferences of all sizes and also the more intimate client events. This somewhat bleak outlook meant that for us it was a case of battening down the hatches for a while and sitting tight until things recovered. Delta Production Services has been established since 1994 and over the last few years despite the peaks and troughs we have worked incredibly hard to provide our clients with an unparalleled level of creativity and customer service it is this approach that has allowed us to continually develop and grow our business slowly but steadily. 58 CONNECT JULY WITH OUR RANGE OF MORTGAGES YOU COULD MOVE IN FASTER With a same day decision in principle your new home could be closer than you think. Choose from the flexibility of fixed and variable mortgages or the ability to borrow up to 100% of the house value . Call our friendly mortgage team today who will help guide you through the home buying process and get your dream house on its way. CALL US ON 730730 PO Box 509 Fairbairn House Rohais St Peter Port Guernsey GY1 6DS Security guarantee can take the form of an interest earning deposit with Skipton International Limited (SIL) or a charge on another property. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Minimum age 18 years. All mortgages are subject to status and valuation. SIL requires a first charge on the property as security. SIL registered in Guernsey 30112 is a wholly owned subsidiary of Skipton Building Society (SBS). SBS established 1853 has given an undertaking agreeing to discharge the liabilities of SIL in so far as SIL is unable to discharge them out of its own assets and whilst SIL remains a subsidiary of SBS. SIL is a participant in the Guernsey Banking Deposit Compensation Scheme. The Scheme offers protection for qualifying deposits up to 50 000 subject to certain limitations. The maximum total amount of compensation is capped at 100 000 000 in any 5 year period. Full details are available on the Scheme s website or on request. SIL is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 1994 as amended. To help maintain service and quality telephone calls may be recorded and monitored. SIL abides by the Jersey Code of Practice for Consumer Lending. P O L I T I C S Connect s political columnist Ben Qu r e spent far far too long covering the States during his 13 years as a noted news reporter and commentator. In Here s The Thing... he takes on a key subject each month drawing on his experience knowledge and contacts to lift the lid and stir things up If you want to contact Ben Qu r e please email ben bailiwick ome on this should be pretty straightforward really. It s not quite two years since the States last debated the purchase of Pl mont (and they spent three long days on it then) before deciding by a single vote that it wasn t worth it. All they have to do this time around is think about what s changed. And what s changed is easy the proposal is to do it for 3.6 million instead of some unknown figure between 4m and 16million and to do it through negotiation not through compulsory purchase. If that s enough for anyone to change their vote they can just do it and we can be done with the whole thing - right Here s the thing. No that s not right. It s not right at all. As always with these issues they re not really debating what they say they re debating. Take the States reform debate. It isn t about the States or reform. It s not even really a debate. It s a tussle between the left and the right about trying to stack the deck in their favour. In exactly the same way the population debate in May wasn t about population or immigration or housing or infrastructure or any of those things it was about whether the Chief Minister had the muscle to get the issue off the table for two years. And the Pl mont debate Well it s not entirely about Pl mont. But what it s really about is a bit more complicated and it depends where you sit. For some people admittedly Senator Sir Philip Bailhache s second crack at this subject is about Pl mont about the chance to save a bit of the coastline. You don t have to live there to think that s a good idea and you don t have to go up there every weekend to care about it. For quite a few people it s about the election that takes place in less than four months. There s enough frenzied tweeting and hopeless propositions being lodged for us to be fully into the campaign. There s usually nothing quite so unshakeable as the certainty of a Jersey politician that the public agrees with them on absolutely everything - but the Pl mont fault line runs right down the middle. There was just one vote separating the yes and no columns in the last debate and the more recent JEP poll (and the JEP has been openly supportive of the campaign to buy the land) was only 60 40 in favour. That s tight. And if you re a politician going into an election campaign what you don t want is a vote on a tight margin in some ways you re better off on the wrong side of C a big loss than being involved in something tight where you aggravate both sides. And for a lot of people the debate is about money. And in fairness it should be about money. The States have arrived at the point at which spending 3.6 million doesn t seem like a big deal when of course it should be. It s hard to avoid noticing that this is all coming fairly soon after we stepped into the bond market to raise 250m for social housing. But the more important point is to set that 3.6million against the context of public sector spending. Last year the Health and Social Services department spent 186 723 million of taxpayers money. By some insane celestial quirk that s almost exactly 3.6m the cost of Pl mont every week. Every single week. But take it a step further if you can find the gross spending figures in the accounts (and they re breezily tucked away to brush over the fact that departments make 128million in charges every year that they don t like talking about) you ll pick up that total spending was 1 126 million last year or just over 3m per day. Per day. Just over 3million per day. Against that context it s hard to see the cost argument against buying Pl mont standing up. But what s difficult about all of this is that it requires people either side of the political divide to accept things they don t want to hear and if there s any class of human being better able to simply put its fingers in its ears and chant la la la la... in the face of facts that it doesn t like than a Jersey States Member I ve yet to encounter it. And that s what s interesting about the Pl mont debate. It forces the political left to choose between saving part of the environment and the principle of public ownership of unspoiled land on the one hand and the difficulty they have in backing Senator Bailhache on the other who has taken on some kind of strange hate figure role for them after his tussles with former Senator Stuart Syvret. It s no easier for the political right who also want to do it but who have to accept that in contextual terms 3.6million is not much more than a drop in the ocean in terms of the largesse with which they currently chuck around public money. That s difficult for them having talked the talk about prudence and control for years. So let me offer a new perspective on this debate win or lose what we get in the end is a whole lot of unhappy politicians - and what s not to like about that 60 CONNECT JULY My Secret Life. Everyone has a dream place they want to return to - but only a very lucky few ever get to make it their own. In fact launching a new business in the hospitality sector might not be what everyone would call lucky at all. But in this month s Secret Life Paula Thelwell meets a lady for whom the busy life of caf proprietor is something of a homecoming. Annie Baker s life changed forever one day at the Watersplash when a surfer trying to impress her and her friends tripped over his board s leash and fell flat on the sand. That teenage surfer was Jo Baker who went on to become a successful actor on TV film and stage and Annie s future husband though of course she didn t realise it at the time. However she had a premonition that one day he would walk her up the aisle. I met Jo on the beach and we had a holiday romance she recounted. It was the first time I had come here on my own (without family) with some friends. Apparently when I came home I stepped off the plane and said I had met the man of my life and said I was going to marry him and my parents fell around laughing. Five years later they were married in the Town Church in a bi-lingual wedding ceremony Annie is German - conducted by Jo s father Rev Geoffrey Baker who learned German for the big day. Twenty-eight years on from that first meeting they are still together and business partners having come almost full circle as the hands-on owners of Le Braye Caf at the southern end of St Ouen s Bay. In between came three children careers in hospitality property development and interior design and homes in London and the Cotswolds before coming back to Jersey 14 years ago. A beach caf is as about as far removed from a fine dining establishment in London s Mayfair as you can get but for Annie it s her dream come true. Le Braye has been popular with visitors and locals since it first opened after the Occupation. Annie and Jo have transformed this local icon. The 1960s concrete block exterior has been given a New England style with dove grey cladding already immortalised by artist Ian Rolls in his unique style of architectural painting. There is still a fair amount of concrete around in the polished floor inset with seashells. The contemporary beach theme continues throughout and even the pine cladding has been sandblasted. I wanted to combine my love of interior design and hospitality and make it a really nice family restaurant where people can come to eat drink and be merry she said. To those who eat there or just pop in to buy an ice cream the welcoming Annie is probably just another of the friendly Island folk they meet on a daily basis. And unless she shares her secret they would never imagine how she came to be here. Annie fell for Jersey years before Jo literally fell for her. Born in Dusseldorf she grew up in the first generation after the Second World War. Her father had fought but only for six months towards the It is so easy to define a person simply in terms of the one frame through which you meet them but does the job that we do today really cover all that we are - or have been Even in a small community like Jersey you can find a wealth of interesting histories hobbies and experiences sitting just beneath the surface of the person you thought you knew so well. It is those stories that we will be telling in this new series of features My Secret Life. If you know someone who should feature here please e-mail editor bailiwick JULY CONNECT 63 end of the war. She knew nothing about Jersey or that it had been occupied until her godmother discovered the Island in a book and suggested they all go on holiday together. My godmother had read about the Island and was fascinated by the fact it had been occupied by the Germans that very few people knew about it and that it was a fun place to go. So we drove to Ostend (in Belgium) as there were direct flights to Jersey and we fell in love with the Island my family and godmother and from then on we came every summer we just loved it and particularly this spot where we are now she said sitting in the caf after a busy weekday lunch service. She was 13 when she first came here and 17 when she met Jo. Her husband enjoyed a successful acting career including Bergerac Wire in the Blood and New Tricks and arguably the best-ever episode of Inspector Morse the one where Morse and Lewis go to Italy and Morse falls for an opera singer played by Frances Barber. Jo played her husband but in the end it s the white- haired crinkly detective who walks off into the sunset with the girl His film credits include Out of Ashes Horatio Hornblower and Rowing in the Wind alongside Hugh Grant. On stage he played Bill Sykes in Sam Mendes production of Oliver at the London Palladium for two years from January 1998. We met at the Watersplash. I was on the beach with my friends and he started to walk towards us and tripped over his leash (on his surfboard) -he had been surfing. We chatted got on and it started from there. Then he came to Germany and we met several times a year. When I was 19 I moved to London and we lived for 20 years in England as he worked on his career she said. At first Annie attended Westminister College to study hospitality. After that she worked at the Capital Hotel and the Greenhouse Restaurant in Mayfair. When they got married and started a family she became a full-time mum. The couple bought and did up houses to sell and discovering a flair for interior design Annie made a career from it for 18 years. Her work included projects in London and the Cotswolds a ski chalet in M ribel as well as many projects in Jersey. So why did they give up a comfortable life and successful careers in the UK to live in little Jersey We felt strongly about the Island it s a great and safe place to bring children up and not constantly worry about them. They had a fantastic time surfing and just the freedom which they could not have if living in Oxford or London she said. Their children Fabian Joseph and Delia have all flown the nest and while they don t live here the pull is as strong as for their parents. Fabian is recently married (the reception took place in St Ouen s Bay of course). He s a geologist with his own business currently looking for mineral resources in Morocco. Joseph went to Durham University but worked as a head chef in the kitchen last summer. He is now studying for a business masters with a vision of opening his own restaurant in London. Delia has just It was the first time I had come here on my own (without family) I came with some friends. Apparently when I came home I stepped off the plane and said I had met the man of my life and said I was going to marry him and my parents fell around laughing. 64 CONNECT JULY D E A D LY D I A R Y The States 1 July With all the foresight and maturity of a 15-year-old putting off his geography coursework the States have run headlong into their traditional pre-election logjam having piled all the work up right to the last minute. So only the 30-odd debates for our glorious leaders for this sitting. But their attention is only going to be on a handful lodged with one eye on the October elections. Expect lots of heated nonsense in the propositions on gay marriage free GP visits for the elderly (DD kids you not) better maternity rights and yep another chat about Pl mont. DD solemnly advises you to turn off your radio. relative terms. Last time around the headline rate the all-sector business activity indicator was neutral demonstrating that there was an equal number of businesses reporting an increase in business to those reporting a decrease. Indicators for new business and future business were the strongest yet recorded for the finance sector and in non-finance sectors eight of the ten indicators were up compared with the last 12 months. The States 14 July Survey of Financial Institutions 2 July A bit of an oddity this it s a set of figures that the new population system hasn t completely mucked up. Two of the big ones the overall size of the economy and employment are going to be released in the fortnight before election day which will be interesting. In other news the survey of Financial Institutions is a wideranging survey for last year that looks at profits revenue and staff across the various parts of the finance sector. Last time around net profit per FTE was down to 1999 levels and overall net profits had slipped slightly while employment costs had risen. A load of debates about the Island Plan are lined up with various politicians agreeing that yes we need affordable homes and yes we have to have somewhere for young families and yes it s important to plan these things properly but on no circumstances whatsoever can you even countenance building so much as a shed in my constituency you heartless fascist... There is simply nothing as tiring and depressing as listening to this selfish rubbish mostly spouted by people with huge ancient houses in the countryside that must you would think have been built on a field at some point but such is life right RP I June 2014 18 July The last figure was 1.7% and the RPI our main measure of inflation has held reasonably steadily under the 2% mark since December 2012. It was fuel light and clothing that kept the index down in March with household services housing and food all pushing upwards. All of this is crucial for how well off we all are when measured against the earnings figures that are expected out next month. Deadly Diary - every month Connect will be flicking carefully through the future calendar of political and business events ...and chewing over what it finds there. Business Tendency Survey 9 July The Business Tendency Survey covers all sectors of the economy showing how the various parts are doing in 66 CONNECT JULY SEMINAR Alternative investments the way to diversify Guests at a recent Alternative Investment seminar organised by GoldMoney heard how now is the time to take a look at their investment portfolios and consider if they are adequately diversified. The panel of experts included Alasdair Macleod GoldMoney s Head of Research Nigel Pascoe Skipton International s Director of Lending and Keith Heddle Stanley Gibbons Group Investment Director. The discussion covered investing in precious metals UK buy-to-let property and rare stamps and coins. Alasdair Macleod shared some of his research which shows the trend in recent years for gold to be held in the east leaving the west with low stocks Gold has traditionally been used as a store of wealth a hedge against inflation and financial risk as opposed to a get rich quick investment. In the West our currencies no longer have anywhere near enough gold to back them up as limited global stocks are being increasingly bought up by the east in particular China and India. This has implications for stocks of monetary gold in the west should we ever need to rely on gold again as backing for our currencies. Skipton International s Nigel Pascoe said the UK property market is attracting increasing interest from Channel Islanders The rising UK property market is seen by many Islanders as providing opportunities especially with the restricted supply of buy-to-let properties in Jersey so we re seeing people come to us who are looking at the UK as a good investment option. Property is seen an inflation protector and investors are hoping they ll have a rising asset value as well as rental income. Many look at it as part of their retirement plan. Keith Heddle from Stanley Gibbons dispelled some common myths about stamp collecting including that it s a dying hobby The Chinese and the Indians are avid stamp collectors and when you consider that the number of High Net Worth Individuals in the Asia Pacific region alone jumped over 17% last year according to the latest Capgemini and RBC Wealth management survey you can see why both stamp and coin collecting is buoyant. This is evidenced by the GB250 index which has seen an 11.96% compound annual growth since 2002. All three warned that past performance cannot be relied upon and alternatives should be viewed as investments to be held over the longer time not get rich quick schemes also how much of a portfolio to invest is down to individual circumstances. For more information contact E hayley.dewar T 01534 633900 or visit Gold has traditionally been used as a store of wealth a hedge against inflation and financial risk as opposed to a get rich quick investment THE ADVISOR Data Protection and the right to get information from people that hold it. Many people are concerned about big brother . They are concerned that their privacy is at times invaded that information about them is compiled and stored and that data concerning them is shared with others. In the main they believe that most of this data is held by government bodies. Well all of that is true - to an extent. But the holding and processing of data goes beyond just government departments and extends to banks shops online companies insurers and so on. Since this information concerns you what rights do you have under the law What standards are set to control the use of such information Most protection is provided for by the Data Protection Law which came about in 2005 replacing previous law which was pretty wishywashy. It has provisions to control how data is processed and stored how it is used and how it is shared while also setting out rules for individuals access to such information. Data under the law is largely split into two categories Personal Data and Sensitive Personal Data . Personal data is information about you generally by which you can be identified sensitive personal data is information about you but which as the name suggests is sensitive. This includes information relating to your ethnicity your political opinions religion criminal record health and sexual information. The distinction is important because control over sensitive information is much greater than for run of the mill information. In an article of this size it is simply impossible to provide anything other than a very simple overview of controls and individuals rights. In very general terms people who hold information about you (on computer and some paper records) must deal with that information within certain constraints. These controls are set out under the law in the protocols . They include rules about accuracy storage security and sharing. Organisations who are controlled by the law must also register with the Data Protection Commissioner. There exists in Jersey a database of all those companies which process store data about individuals. The result is that the Data Protection Commissioner has lots of data about those who have data But in the spirit of access that database is available online and so you can check to find out about such organisations and the type of information they hold and process as well as points of contact. The law provides some real rights. It allows you to make a request of those who hold data about you to tell you what they have and to tell you how they use it including how automated decision- making within that organisation using your information is carried out. You can also make applications for the correcting of inaccurate information stopping unwanted marketing and taking steps to stop data processing in certain circumstances. In most cases those who hold data about you must respond to you free of charge (or a for a very minimal fee) and within certain time periods. Such applications are called subject access requests . Failure to comply with requests can be followed up by a complaint to the Commissioner or if necessary by court action. The law has to strike a balance between individuals rights to information held about them but also considering the administrative constraints of some businesses (especially small ones). For that reason there is a limit to how frequently you can make a subject access request of the same company. The law is there to genuinely help you it is not there to make a nightmare for the person holding the data. Access rights are very useful in regard to credit rating information which if incorrect can cause serious problems for people. Data protection is taken very seriously in Jersey and the number one source of information is the Data Protection Commissioner and her department as well as the official website. The website provides detailed guides and sets out codes of practice including use of CCTV and how individuals can obtain information regarding images taken of them. My firm has had several dealings with the Data Protection Commissioner and I have to say that that department can so easily be singled out from many government departments for its efficiency approachability reasonableness and willingness to help and advise. It is a department which you can telephone for advice and receive it. It is truly a breath of fresh air from most bureaucracy we have come across. One really useful part of the website is the links it provides to organisations who govern telephone and mail marketing providing choices for people to opt out and escape the nuisance of those phone calls trying to sell you a kitchen or yet more windows. Olaf Blakeley is an Advocate specialising in litigation and commercial law If you have a legal question you would like to put to Advocate Blakeley please email editor bailiwick 68 CONNECT JULY ACQUISITIONS INTERNATIONAL REGULATION ACCOUNTANCY OFFSHORE FINANCE 2014 KPMG Channel Islands Limited a Jersey Company a member firm of the of the KPMG network of independent 2012 KPMG Channel Islands Limited a Guernsey Company and and a member firm KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ) entity. All rights reserved. member firms affiliated with KPMG International Cooperative ( KPMG International ) a Swiss a Swiss entity. All rights reserved. The KPMG name logo and cutting through complexity are registered trademarks or trademarks of KPMG International. KPMG name logo and cutting through complexity are registered trademarks or trademarks of KPMG International. CHANNEL ISL BASEL III AIFM KNOWLEDGE CORPORATE SERVICES GR INSURANCE GROWTH MI PART OF GLOBAL KPMG NETWORK TAX AUDIT ADVISORY FUNDS TRUSTS OFFSH RESTRUCTURING LOCALLY OWNED MERGERS COMPLIANCE INTERNATIONA GUERNSEY ACQUISITIONS INTERNATIONAL REGULATION KNOWLEDGE CORPORATE SERVICES AU GROWTH MERGERS INSURANCE AUDIT ADVISORY TAX FUNDS TRUSTS OFFSHORE FINANCE LOCALLY OWNED PART OF KPMG GLOBAL KNOWLEDGE CORPORATE SERVICES GROWTH MERGERS INSURANCE TAX INSURANCE RESTRUCTURING MERGERS ADVISORY GROWTH JERSEY GUERNSEY CHANNEL ISLANDS OFFSHORE KNOWLEDGE CORPORATE FUNDS TRUSTS OFFSHORE FINANCE ACQUISITIONS INTERNATIONAL REGUL AUDIT ADVISORY TAX INSURANCE GROWTH MERGER GROWTH INSURANCE ADVISORY FUNDS TRUSTS OFFSHORE ACQUISITIONS INTERNAT INTERNATIONAL REGULATION KNOWLEDGE CORPORATE KNOWLEDGE CORPORATE SERVICES AUDIT RESTRUCTURING ACQUISITIONS INTERNATIONAL REGULATION LOCALLY CHANNEL ISLANDS OWNED GUERNSEY JERSEY GROWTH KNOWLEDGE CORPORATE SERVICES RESTRUCTURING BASEL III ADVISORY ACQUISITIONS INTERNATIONAL REGULATION AIFM AUDIT PART OF GLOBAL KPMG NETWORK TAX ADVISORY Want to find out more channelislands INSURANCE MERGERS RESTRUCTURING FUNDS TRUST OFFSHORE FINANCE LOCALLY OWNED JERSEY TAX AUDIT ADVISORY GROWTH MERGERS KNOWLEDGE CORPORATE SERVICES CHANNEL ISLANDS FUNDS TRUSTS OFFSHORE FINANCE PART OFINSURANCE KPMG RESTRUCTURING AIFM What a bank should be Whether small family companies or global corporations we approach every business customer as an individual relationship. We strive to understand your unique needs and to make banking straightforward so you can focus on growth. That s why our clients get a dedicated expert Relationship Director. We believe credit partners should meet you directly so our decisions are as transparent as possible. We work hard to do right by you and your business now and in the long term. It s thanks to this approach that we re proud to say 4 out of 5 of our business customers would recommend us. Find out how we re supporting businesses like yours at email Stephen.OBrien or call 01534 767750 We re proud sponsors of the International Festival for Business. GfK NOP Research Santander Business Satisfaction survey Q4 13. 1 628 respondents interviewed. Santander Corporate & Commercial is a brand name of Santander UK plc Abbey National Treasury Services plc (which also uses the brand name Santander Global Banking and Markets) and Santander Asset Finance plc all (with the exception of Santander Asset Finance plc) authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority. Our Financial Services Register numbers are 106054 and 146003 respectively. In Jersey Santander UK plc is regulated by the Jersey Financial Services Commission to carry on deposit-taking business under the Banking Business (Jersey) Law 1991. Registered o ce 2 Triton Square Regent s Place London NW1 3AN. Company numbers 2294747 2338548 and 153312 respectively. Registered in England. Santander and the flame logo are registered trademarks. Santander UK plc is a participant in the Jersey Banking Depositor Compensation Scheme. The Scheme o ers protection for eligible deposits of up to 50 000. The maximum total amount of compensation is capped at 100 000 000 in any 5 year period. Full details of the scheme and banking groups covered are available on the States of Jersey website ( or on request. CCBB JUL HT