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AUGUST 2014 ISSUE 29 JERSEY S BUSINESS MAGAZINE TAX MORE OR SPEND LESS Dealing with the deficit in Jersey s 2015 Budget VIEW ONLINE AT BAILIWICKEXPRESS.COM TRUST US We gather views on the future of a key finance sector PLEASE TAKE ONE Fishing for global markets READ THE FULL INTERVIEW ON PAGE 54 PLACE YOUR BETS... Who will win the Ministerial derby 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. Connect with Aurum Outstanding cufflink designs handcrafted in Aurum s w or ks h op s a v a i la b le i n sterling silver 18ct white and yellow gold. Prices from 315 Tel. 44 (0) 1534 736182 sales for our full range of products Follow us on Facebook Aurum Jewellers. All rights reserved 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 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 info DESIGN AND PRODUCTION Mark Jackson Email mark Artwork under 10Mb in size may be sent to this address. When we launched Connect three years ago we said it would tell the stories of the island s business community. We said it would carefully pick out the issues that provoke interest stimulate and entertain the many thousands who go to work every day. So this month we are starting with fish. Ok for the purists amongst you it s actually molluscs. Would you believe me if I told you that Jersey now produces more oysters than the whole of the UK or would you think I had been at the muscadet rather then the fruit de mer If you follow the tide down through this magazine to page 54 you ll find a local man called Tony Legg in a sector of the economy which tends only to get to mentioned in a list of what we used to do you ll find him innovating exporting and diversifying all very successfully and on a major scale. For Jersey it is very much a case of back to the future . But if shellfish aren t quite to your tastes perhaps we can offer you the meaty main course of the 2015 Budget (page 42) although I accept there are a few numbers in there which might put you off your food altogether there is plenty to get your teeth into. Like the fact the island is now banking on economic growth and heading down a road with deficit as our rather awkward travelling companion. Don t worry though. If the forecasts for next year give you indigestion then I think the Connect August Dessert Special AUGUST 2014 ISSUE 29 JERSEY S BUSINESS MAGAZINE Dealing with the deficit in Jersey s 2015 Budget BAILIWICKEXPRESS. COM TAX MORE OR SPEND LESS AUGUST S ISSUE VIEW ONLINE AT We gathers views on the future of a key finance sector TRUST US PLEASE TAKE ONE READ THE FULL INTE RVIEW ON PAGE 54 Fishing for global markets heart of the capital Who will win the Ministerial derby PLACE YOUR BETS... Arrive relaxed in the Stressed out by Gat wick 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. will take your mind of it for those of you who got Iran in the World Cup sweepstake (thanks) we can offer you a little game of political roulette. What better way to amuse yourself on your August sun lounger than trying to guess who is going to be sitting in which seat around the Council of Ministers table after the elections See page 20 for our take on whose bottom will land in which chair and who will be left standing. And that s not all in place of coffee and petit fours we have a new feature to round-off your Connect feast this month. Viewpoint (page 50) will deal with a key question facing one of our industry sectors and give the views of leading industry professionals. This month we look at the future of the Trust sector. I hope you enjoy your meal 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 AUGUST CONNECT 01 ON THE COVER NO ORDINARY DAY JOB Tony Legg. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 REGULARS LOCAL NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 APPOINTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 UNPLUGGED Robert Kirkby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 HERE S THE THING... WHO S THE FOOL VIEWPOINT NEW ................................ 48 48 50 ................................... ........................................ GLASS HALF FULL Tapitbetter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 iSPY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 MY SECRET LIFE Nigel Pascoe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 MUSING OF A MARKETER Sam Watts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 THE ADVISER Olaf Blakeley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 62 18 36 06 26 SPECIAL REPORT There s a word you are going to hear rather a lot of in the next 10 weeks elections. Wait Before you skip this section Connect would like to make this one last plea for your attention. Adopt the safe-haven of the cynic if you will ( nothing ever changes so why does it matter ) but first just consider this isn t there just one tiny iota of fun in speculating who s going to win the ministerial game of musical chairs around the Council of Ministers table . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 FEATURES DISCRIMINATION LAW HR Now. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 BANKING Skipton International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Canaccord Genuity Wealth Management . . . . . . . . . . . . . . 30 RBC Wealth Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Deutsche Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Barclays Wealth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 TECHNOLOGY JT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Touchstone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 02 CONNECT AUGUST 38 CONTENTS 42 CONTENTS AUGUST 2014. ISSUE 29. 50 54 WANT THE LATEST BUSINESS NEWS TO COME TO YOU Scan the QR code and click to send us your email address. AUGUST CONNECT 03 NEWS Want this magazine delivered to your home or office Send us you name and address to info IOD puts immigration on the agenda This year s IOD debate is to focus on the controversial subject of population growth. A panel of speakers will discuss how Jersey should manage immigration in order to have a successful economy and be an attractive place to live in. Entitled Should Jersey Relax Its Immigration Policy the event sponsored by law firm Carey Olsen will take place on 25th September at the RJA&HS. The panel includes Mark Bol at (Chairman of the Policy and Resources Committee City of London Corporation) Geoff Cook (CEO Jersey Finance) Kristina Le Feuvre (Owner aMaizin Adventure Park and Vice President Chamber of Commerce) and Senator Paul Routier MBE (Assistant Chief Minister). A keynote speaker will also help set the scene with a look at how other jurisdictions manage their population policy. As well as exploring the needs of local businesses in all sectors the panellists will also look at the challenges in managing population levels with reference to practicalities such as legislative change economic policy pensions tax revenue health services and education. The event will once again be moderated by news broadcaster Alastair Stewart OBE. Commenting on the topic for this year s Debate IoD Jersey Chairman Wendy Dorman said The importance of striking a balance between meeting the increasingly sophisticated needs of businesses whilst at the same time retaining the quality of life that makes Jersey so special will be absolutely key in the run up to the elections in October. That s why our debate this year focuses on this very issue which is inherently complex affects all of us and involves some fundamental questions about our island and how we live and work here. Our line-up of speakers features a broad range of experience and I expect it to be another lively debate of real significance for Jersey s future. Le Masurier add to UK property portfolio Jersey s C Le Masurier Limited has acquired a substantial distribution warehouse in West Yorkshire for 5.7 million. The Managing Director of Le Masurier Brian McCarthy said We are delighted to have made another addition to our substantial UK property portfolio furthering our strategy of investment in the UK and Europe. The warehouse on the Cross Green Industrial Estate in Leeds covers more than 74 000 sq ft. The tenant is Palmer & Harvey the fifth largest private company by turnover in the UK which has occupied the building since it was built. The annual rental is 373 365 per annum and is set to rise in 2019 to 422 428 per annum. 04 CONNECT AUGUST And if the worst should happen We re here. Peace of mind for your business with JT At JT we understand the importance of reducing network and application downtime and keeping your business up and running to maximise productivity. JT can help you to protect your most valuable business assets with secure reliable and flexible solutions underpinned by a solid business continuity plan and 24x7x365 support. Contact our team of experts today to find out how we can create tailor-made innovative communications solutions that deliver real value for your business. T 44 1534 882345 E W NEWS For news stories every day visit to sign up to our daily email news service Locate Jersey highlights inward investment success The success of Locate Jersey helping almost 100 new businesses establish themselves in the Island over the last two years was highlighted in London recently. Economic Development Minister Alan Maclean and Treasury and Resources Minister Philip Ozouf addressed an audience of 90 UK intermediaries and high-net-worth individuals from a diverse range of sectors including aviation ICT mining luxury retail and hospitality. Chief Minister Ian Gorst and representatives from Jersey s business sectors also attended. The event also featured a panel session with Assistant Economic Development Minister James Baker as well as Senators Ozouf and Maclean facilitated by Economic Development Department CEO Mike King. During the session the panellists took a number of questions from the floor and highlighted Jersey s growing links with China across the digital retail and tourism sectors the stability of its public finances and Jersey s approach to residency. They also emphasised Jersey s competitive advantages compared to other jurisdictions in particular the strength of its social capital access to government professional infrastructure and range of expertise. A lunch featuring Genuine Jersey produce was served at the event. 06 CONNECT AUGUST A more direct approach to optimal cash management If the pinnacle is optimum efficiency we recommend taking the direct route. Equipped with a range of leading integrated cash management solutions fitted to your unique specifications we can facilitate the control of money throughout your organisation. To keep on top simply call 0207 574 3247 or speak to your Relationship Manager. Alternatively you can find out more by visiting us at wealth cash Wealth and Investment Management Barclays offers wealth and investment management products and services to its clients through Barclays Bank PLC and its subsidiary companies. Barclays Private Clients International Limited part of Barclays is registered in the Isle of Man. Registered Number 005619C. Registered Office Barclays House Victoria Street Douglas Isle of Man IM99 1AJ. Barclays Private Clients International Limited is licensed by the Isle of Man Financial Supervision Commission registered with the Insurance and Pensions Authority in respect of General Business and authorised and regulated by the Financial Conduct Authority in the UK in relation to UK regulated mortgage activities. Barclays Private Clients International Limited Jersey Branch is regulated by the Jersey Financial Services Commission. Barclays Private Clients International Limited Jersey Branch has its principal business address in Jersey at 13 Library Place St. Helier Jersey JE4 8NE Channel Islands. Barclays Bank PLC Isle of Man Branch has its principal business address in the Isle of Man at Barclays House Victoria Street Douglas Isle of Man IM99 1AJ. Barclays Private Clients International Limited Guernsey Branch is licensed by the Guernsey Financial Services Commission under the Banking Supervision (Bailiwick of Guernsey) Law 1994 as amended and the Protection of Investors (Bailiwick of Guernsey) Law 1987 as amended. Barclays Private Clients International Limited Guernsey Branch has its principal place of business at Le Marchant House St Peter Port Guernsey Channel Islands GY1 3BE. NEWS Follow us on Twitter bailiwickxpress Pre-election tax cut scrapped as income forecast plummets Plans for a pre-election tax cut have been shelved after a major hole emerged in tax forecasts for the next two years prompting a package of emergency measures to balance the books. The 2015 Budget has just been announced and it shows the States income tax receipts are predicted to be far lower than was thought seven months ago. It also sets out what will happen if those forecasts come true with the Treasury needing to find 33m in 2014 and 39m in 2015 just to balance the books. The Budget lists the measures which would be taken to do that including finding at least 20m of new savings next year. The predicted low tax receipts are being attributed to pay freezes and the lack of bonuses in the private sector. If the forecasts are right and the Treasury says it will know more in September - the Budget contains a long list of measures which will be taken to make sure the States current account - known as the Consolidated Fund doesn t going into the red which is illegal. The States Treasurer said the cuts would be made without affecting States services or meaning job losses. Treasury Minister Senator Philip Ozouf had wanted to make further tax cuts this year to bring the marginal rate down to 25% as set out a new Long Term Tax Policy but denied that the new package constituted emergency measures . Referring to the pre-election tax cut to bring the marginal Income Tax rate down from 26% to 25% he said It would have been nice to do it but clearly the income forecast shows it is not affordable for next year . Commenting on the list of measures which will be taken to plug the predicted tax gap he said If this is right we are putting the right measures in place to deal with it . increase of 12.4% on 2012 on a like for like basis. The report also confirmed JT is on track to deliver its flagship project Gigabit Jersey which will see all broadband customers switched over to fibre-optic broadband by the end of 2016. Group Chairman John Stares said Our financial results for 2013 show that even despite the recession with some recent signs of recovery JT has been able to perform exceptionally well. We have continued to implement our strategic growth plan in 2013 successfully both in the Channel Islands and beyond with more than half of Group revenues now coming from our interests abroad. Unemployment scheme cuts benefits bill JobsFest the States scheme which got 109 Islanders back to work for eight weeks last year may have cost 138 000 in wages - but it saved 200 000 in benefits. Moreover 64 are still in employment and so not reliant on benefits and 40 remain in their original JobsFest role. Social Security Minister Le Gresley said I am delighted that the initiative has been so successful. Employers were not required to keep the jobseekers on after the incentive ended and many of the roles were only expected to last for less than eight weeks. That fact that so many employers have shows that offering employers a short-term wage incentive gives them the confidence to hire someone that they might not otherwise have considered. JobsFest was effectively an eight-week job interview supported by the Back to Work team. Every person who took part in JobsFest was unemployed. Now six months later they are either in full time employment or have improved their CV and skills. It has successfully reduced the cost to the States and given jobseekers fresh inspiration he said. JT reports strong growth in 2013 The turnover of the JT Group increased to a new record high level of more than 151 million in 2013 a significant increase of 26% on the previous year s figure. The figures are contained in the group s annual report which published in July. It shows as well as significantly growing its turnover JT also returned a healthy dividend to its shareholder the States of Jersey of 3.2 million. EBITDA for 2013 was 33.7 million - an 08 CONNECT AUGUST 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 Follow us on Twitter for the latest Jersey news bailiwickxpress Green light for Bitcoin investment fund The Jersey Financial Services Commission has given the go ahead for the Island s first regulated Bitcoin investment fund. This is the latest development in the Statesled initiative to make Jersey an internationally recognised digital centre. The Global Advisors Bitcoin Investment Fund comes into effect on 1 August launching Jersey into the cryptocurrency market. The Assistant Chief Minister with responsibility for financial services Philip Ozouf said This is believed to be the first regulated Bitcoin fund in operation and Jersey is pleased to be paving the way. Fintech which broadly defines the emerging digital industry in finance is a sector that I believe holds significant opportunities for Jersey. The Senator first presented the State s policy framework for the future of the Island s financial services industry in April this year. He said We are working closely with the commission industry and Digital Jersey to help develop the Island as a natural hub for Fintech business. We are committed to maximising the benefits and opportunities of cryptocurrencies like Bitcoin in a well-regulated environment. Digital Jersey also welcomed the approval of the Bitcoin investment fund for the opportunities it would present. Its Chairman Paul Masterton said Cryptocurrencies are moving at an incredibly fast pace and it is essential that government the regulator and industry work together and at speed to capture the opportunities and minimise potential risk. Finance boss welcomes five-year high Jersey Finance has welcomed recent States figures which show that the finance industry is stronger than it has been for five years with survey respondents optimistic for future activity employment prospects and profitability. The latest Jersey Business Tendency survey covers business activity between March and June this year. Jersey s more positive economic mood reflects the wider picture in the UK where a recent survey of businesses by Lloyds Bank reported that business confidence had climbed to its highest level for at least 22 years raising hopes of continued economic growth. Richard Corrigan deputy CEO at Jersey Finance said the latest local figures from the States were welcome confirmation of the recovery and growth that we have been seeing in the market place reinforcing the positive picture painted in the recent survey of financial institutions. Three months ago finance firms indicated through this survey that they were anticipating increases in new and future business so it is promising that firms are now reporting those business flows coming to fruition and proving profitable. According to this survey more than two-thirds of finance companies are anticipating that profits will increase in 2014. Most other indicators for the finance sector were relatively unchanged on the previous quarter including business optimism which remained positive and at the same level throughout the last four quarters. There were encouraging signs generally for the economy with the all-sector business activity indicator for finance and non-finance sectors showing improvement in the latest quarter. 10 CONNECT AUGUST Banks aren t lending to businesses. Are they At NatWest we re committed and always have been to supporting and lending to local businesses. Our Relationship Managers are specialists in business banking and our in depth knowledge of the local market means we understand your challenges. From starting out to supporting expansion we will work with you to give you the guidance and tools you need to succeed. Talk to your Relationship Manager or Russell Dutch Head of Business and Commercial Banking Jersey 44 (0) 1534 286581 russelldutch business The Royal Bank of Scotland International Limited trading as NatWest (NatWest). Registered Office P.O. Box 64 Royal Bank House 71 Bath Street St. Helier Jersey JE4 8PJ. Regulated by the Jersey Financial Services Commission. Over 18 s only. (Security may be required.) Internet e-mails are not necessarily secure as information might be intercepted lost or destroyed. Please do not e-mail any account or other confidential information. Calls may be recorded. NEWS Want this magazine delivered to your home or office Visit to subscribe Fewer delays smoother crossings - Condor promises a new deal Lifeline ferry operator Condor is investing in a new 50 million vessel after winning a ten-year deal with the States. The company said the deal would safeguard the Island s passenger and freight ferry links enabling any operator to make an investment for a fair return and recoup that investment CEO James Fulford said the new vessel which will enter service in April 2015 - would provide increased reliability capacity and comfort. We have not asked our Islands or anyone else for a subsidy for this purchase. However in order to make this significant investment we have always said we need the certainty of a new operating licence. I am delighted that today we are a step closer to achieving that certainty and investing in a new ship which will secure the future of high speed ferry services for our Islands he said. Following changes to the Island s sea transport policy the company has agreed to make significant performance commitments and has now applied for a ramp permit to operate passenger car and freight services to and from the Channel Islands for the next ten years. The Atlantic Hotel wins industry Oscar Jersey s Atlantic Hotel beat off nationwide competition to be named Independent Hotel of the Year 2014 at the Catey Awards. Known as the hospitality industry s answer to the Oscars the Cateys recognise the industry s highest flyers strongest performers and top brands. It is the first time a local hotel has won this award. The Atlantic Hotel s owner Patrick Burke said I am so proud to be bringing it home. It represents national recognition of the many years of hard work by our dedicated and talented team and puts the island firmly on the hospitality industry map at the highest level. The Atlantic Hotel was one of three hotels in the country shortlisted as finalists for the award. It beat off competition from Congham Hall Hotel Norfolk and the Great Northern Hotel London to win this prestigious award. Previous winners have included The Pig in Hampshire The Isle of Eriska Argyll and Lucknam Park Bath. More than 140 judges selected for their expertise and industry knowledge determine a shortlist for the Catey Awards after a rigorous initial selection process. Jersey is too expensive - say businesses not customers The cost of operating in Jersey is one the biggest problems facing local businesses according to the latest States figures. The issue is mainly affecting the health of businesses outside of the finance sector in which 36% report that their profitability has dropped in the last quarter. Overall the latest States Business Tendency Survey shows increasing optimism and higher levels of activity in the local economy. In the finance sector 59% of businesses who responded reported that they were busier over the last three months than they were before and 42% of them were more profitable over the same period. However that picture is very different in the nonfinance sectors. Here firms in general report that they are a little busier but their operating costs and so their profitability are causing real problems. Looking specifically at the construction sector more than half of the businesses who responded (51%) reported that they were now less profitable than they were three months ago. The situation is similar in wholesale and retail with one third of respondents saying that their profitability had fallen over the same period. The wholesale and retail businesses who responded mainly said that they hadn t taken on any more staff in the last three months (79%) and even more (81%) said that they weren t likely to do so in the next quarter. It is a similar picture in construction with 67% of respondents saying they hadn t employed more people recently and 76% saying that wasn t going to change in the near future. Those statistics will be concerning for the States who are trying to encourage businesses in those sectors to employ more people as a way of bringing down the numbers of Islanders who are currently out of a job. 12 CONNECT AUGUST 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 NEWS New tourism post for Kevin Keen The outgoing Jersey Post boss has taken up the reigns at Visit Jersey the new body taking over from Jersey Tourism. Kevin Keen who previously ran the Jersey Dairy and is a former President of the Chamber of Commerce has been appointed Transition Director of Visit Jersey from 1 August to the end of January 2015. The move follows a report that criticised the current Tourism department for having no overall plan for having effectively managed the decline of the tourism industry and being afraid to innovate and take chances. That report by a shadow board of experts said that a new independent body should replace the Tourism department and Mr Keen s appointment is the first step in that process. Commenting on his appointment Kevin Keen said Being invited to play a small part in tourism s resumption of growth in the Island is a challenge that I find very exciting. As a long-term advocate for the industry which benefits every resident of Jersey I am looking forward to this opportunity to work with Economic Development Minister Alan Maclean the shadow board and the team at Jersey Tourism to bring Visit Jersey into being. Economic Development Minister Alan Maclean welcomed the appointment. He said I am delighted Kevin has agreed to accept this role. He has demonstrated both at Jersey Dairy and Jersey Post his ability to bring about fundamental change in a quiet but effective way and we know he will approach the task in hand in his usual thoughtful manner. The Writing s On The Wall So many speeches so many words - but how do you tell which are said most often Connect presents a new feature (powered by the clever folks at that gives a graphical summary of what the movers and shakers are saying. This month we deconstruct Treasury and Resources Minister 2015 Budget statement to the States Assembly... NEWS RE.VIEW 14 CONNECT AUGUST NEWS For news stories every day visit to sign up to our daily email news service Tax rises or spending cuts may be necessary say economic experts Islanders might have to pay more in tax or see services cut to fill a new black hole in public finances according to a recent report. Just a week after the Treasury department confirmed that the economy had failed to match their growth forecasts leaving a three-year 95 million shortfall in public finances the Fiscal Policy Panel has issued a gloomy report about the Island s economy. They say that they have downgraded their forecasts for the Island s economic performance in 2013 and 2014 although they say that some improvement is forecast for 2015. They have also raised concerns over whether the Island s construction industry has the capacity to carry out the 420 million worth of States capital projects that the government has planned for the next two years or whether the huge spending will lead to bottlenecks and disruption. Most importantly the panel say that they cannot tell whether there is a structural deficit in States finances. Chairman Joly Dixon a former top EU adviser said that once the economic recovery begins the States must start to look at whether the current deficits are temporary or whether they are permanent and require rebalancing the relationship between taxation and spending. He said At this stage the panel cannot rule out that there is a structural deficit in States finances but the States should plan to address this once the economic recovery in Jersey is more firmly underway. Although the outlook is somewhat uncertain this could mean it is appropriate to make a permanent change to income and or expenditure to correct for this over the next MTFP period. The structural challenges that States finances may face in the medium term highlight how important it is to raise the underlying performance of the Jersey economy and in particular raise productivity. 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 AUGUST CONNECT 15 APPOINTMENTS Find the latest jobs online at Senior appointments to Crestbridge Board Corporate fund and family office service provider Crestbridge has appointed Heather Tibbo and Ana Kekovska to its board of directors. A Chartered Accountant with over 19 years of experience in the financial services sector Ms Kekovska has a strong background in regulated markets and a real depth of knowledge of financial control corporate governance and risk management. Prior to joining Crestbridge she had a leadership role with a big 4 firm of accountants working with blue chip financial services clients operating across multiple jurisdictions. Ms Tibbo a member of the Ana Kekovska Heather Tibbo Promotions at ABN AMRO Bank Jersey Citywealth Power Women list joined Crestbridge in April 2013 to help develop the family office services business. She has over 15 years experience in the private client arena working with advisers in looking after families. Having worked in London for 11 years she returned to Jersey in 2010 to help set up and develop a stand-alone office for a wealth management firm until she joined Crestbridge. Graeme McArthur CEO of Crestbridge said I welcome Ana and Heather to the Board and am sure that their added expertise experience and knowledge will be hugely valuable as we continue to drive our business forward. Philip Harvey has been promoted to Commercial Head of Private Banking and Intermediary Banking at ABN AMRO Bank Jersey and Stephan Geissmar has been made the Head of Investment Services. Mr Harvey who was educated at De La Salle College started his banking career in 1988. He joined ABN AMRO in 2004 as a senior relationship manager responsible for intermediary client relationships. In 2007 he was promoted to Head of Intermediary Banking a position he has held since. South African-born Mr Geissmar previously worked in a number of jurisdictions including the City of London and joined ABN AMRO Bank Jersey in 2005 as a senior relationship manager responsible for the management of a portfolio of intermediary and high net worth private clients. Hawksford appoints Finance Director A chartered accountant with more than 23 years experience in financial services in Jersey joins Hawksford this month as Finance Director. Old Victorian Andrew Bennett joins the firm from Nordic Capital where he was Managing Director for six years. Prior to this he was a director at Standard Bank Fund Administration Jersey Limited and previously he was with EY. He said Hawksford is forward-thinking and has established a strong reputation for its expertise and client service I am delighted to be joining the dynamic team. I hope that the experience I bring to role will further enhance Hawksford s position and add to its continued success said Mr Bennett a chartered accountant since 1993. Enhance welcomes new Director Barry Hardisty has joined Enhance as a director. Mr Hardisty has 19 years experience in the investment industry managing advising on and monitoring portfolios for trustees and private clients he is a member of the Chartered Institute for Securities and Investment. In his previous role as a senior investment manager at Canaccord Genuity Wealth Management he was in charge of managing a variety of multi asset class portfolios servicing an extensive variety of clients as well as being a UK stock selection specialist. He said I am delighted to be working at Enhance and I am very much looking forward to supporting their growth over the coming year. Enhance is at a very exciting stage right now with significant international expansion quickly progressing . Graduate & A Level Opportunities 2015 A chance to beat the rush Deloitte recruits graduates and A Level students each year into our Audit and Tax areas. This is a fantastic starting point for a career in business and gives you the chance to study for a professional qualification and gain valuable commercial and technical experience that will help you go further with your career. The application process for 2015 entry to the graduate and A Level schemes are now open giving you the chance to beat the crowds and apply prior to returning to school or university. For further information please email Julie Whiteway HR Manager jwhiteway 2014 Deloitte LLP. All rights reserved. APPOINTMENTS Find the latest jobs online at New joint President for estate agents John Qu mard has joined Shelagh Marett as the new joint President of Jersey Estate Agents Association. The position was recently vacated by Marcus Matthews of Indigo Estates who stepped down due to business commitments. Ms Marett said The association is an important part of ensuring consumer confidence in estate agencies as we follow a strict Code of Practice so that vendors can be sure that they are getting a first class service Mr Qu mard said he intended to create and increase awareness of the website whilst also standardising administration procedures for members throughout. It is important for us to become more uniform in our approach and let others know that there are like minded people when it comes to safeguarding the buying and selling of property he said. RBC Wealth Management makes senior appointment Ann Marie Vibert has been made Head of Private Client Wealth Management Offshore at RBC Wealth Management. Based in Jersey Ms Vibert will be accountable for driving and ensuring the continuing success of the Private Client Wealth Management (Offshore) and British Isles Banking teams. She will provide strategic direction for and management of the distribution and banking activities offered by the teams located in Jersey Guernsey London and Dubai. She succeeds Tim Houghton who has recently taken the position of Head of Business Development British Isles and Caribbean RBC Wealth Chris Blampied the Head of Banking British Isles and Caribbean for RBC Wealth Management said Ann Marie has outstanding experience of advising international high net worth individuals particularly from the high-growth emerging markets. She is the ideal candidate to lead our Private Client Wealth Management team as we continue to build out our offering to these clients. Helen Gale promoted to partner at Deloitte Jersey Business appoints Deputy Chairman Jersey Business has appointed Wendy Lambert to its board in the role of Deputy Chairman. Ms Lambert is a Jersey qualified solicitor with over 25 years experience in providing legal advice in the areas of employment law business set-up mergers and acquisitions commercial property and corporate insolvency. Jersey Business is an independent body established two years ago by the States to provide support and advisory services for new and established businesses the group says it is seeing a marked increase in the demand for its services as economic confidence returns. The Chairman Peter Funk said We are delighted that Wendy Lambert has agreed to join our Board as Deputy Chair. We feel that additional resource is necessary to continue to maintain the momentum we have generated. The existing Board is exceptionally talented and is to be congratulated for the work it has delivered so far. With Wendy joining the team I am confident we are in a very strong position to meet our longer term objectives. Helen Gale has been made a partner at Deloitte LLP to strengthen the offshore practice. Based in Jersey she will continue to head up the offshore private equity group which provides audit and advisory services to clients in that sector. She has been with Deloitte for over 16 years working with the firm in Paris and London before joining the Jersey office 14 years ago. Ms Gale studied International Management and Modern Languages at the University of Bath and is a Fellow of the Institute of Chartered Accountants in England. She specialises in the provision of audit and advisory services to the investment management industry and particularly focuses on the alternative investment sector. Greg Branch Managing Partner said As a firm we are committed to investing in and developing our own talent as we believe it is a vital way to achieve sustainable success for both our clients and ourselves. These partner promotions further strengthen our offshore practice and our ability to serve our clients as well as helping our team achieve their ambitions. 18 CONNECT AUGUST Exciting new opportunities across our business Qualified Accountants Trust & Company Administrators Marketing and HR roles. Moore Stephens is part of one of the world s biggest accounting and consulting networks Moore Stephens International offering Accounting Fund Administration and Trust & Corporate services. Our vision is to be viewed as the first point-of-contact for financial and advisory needs by providing sensible advice and tailored solutions unique to each of our clients. We are currently experiencing growth within our business and have new opportunities for Qualified Accountants and Trust & Company Administrators in our client facing areas. We also have new opportunities in our value adding Marketing and HR functions. Candidates should hold relevant qualifications and experience have a strong client focus and be passionate about teamwork and sharing knowledge and experience. In return we offer successful individuals a dynamic opportunity within a successful and developing business. For more details on each role please see our website To apply please send your CV to Jenny Gamlin Moore Stephens PO Box 236 First Island House Peter Street St Helier Jersey JE4 8SG Email jenny.gamlin or call 01534 880088 for further information PRECISE. PROVEN. PERFORMANCE. Moore Stephens is regulated by the Jersey Financial Services Commission SPECIAL REPORT Ministerial Musical Chairs There s a word you are going to hear rather a lot of in the next 10 weeks elections. Wait Before you turn the page Connect would like to make this one last plea for your attention. Adopt the safe-haven of the cynic if you will ( nothing ever changes so why does it matter ) but first just consider this isn t there just one tiny iota of fun in speculating who s going to win the ministerial game of musical chairs around the Council of Ministers table Go on indulge us. If you got Iran in the World Cup sweepstake this is your chance for glory. The going is irrelevant repetitive and sometimes mad and the riders having been tentatively lining themselves up at the tape since the beginning of the year. So Ladies and Gentlemen who will win the crown and who will sink faster than the anchor Here is Ben Qu r e s guide to the leading contenders if they are re-elected (the first to do so) reformed the way the work and didn t upset anyone too much. Senator Bailhache s stock has fallen not risen (a combination of the aborted States reform effort the original narrow failure on Plemont and the recent dispute over the UK are the key reasons) so he s not likely to challenge but there is almost certainly going to be a move from Economic Development Minister Alan Maclean who is said to be eager to move on after six years at his department. Senator Maclean is well-liked charismatic and good at pressing the flesh and has already started building a case about focusing on public sector reform and addressing the balance between economic social and environmental concerns (although he hasn t said how that balance needs to be shifted). His judgment and PR skills have also been sharply called into question by the unfolding disaster of the Crystal Island film saga. Chief Minister Ian Gorst Senator States Member since 2005 Former accountant (won the job in a 27-24 vote over Senator Philip Bailhache) The best news for Senator Ian Gorst is that he s had a good three years the bad news is that Senator Alan Maclean s challenge is a serious one. It just goes to show you how quickly things can change this time three years ago the boy Gorst wasn t even in the running himself. He s had a decent three-year term considering how close his margin of victory over Senator Bailhache was he will be the first Chief Minister to run for office again (both of his predecessors retired after one term) and the first to try to keep hold of the job. At the start of this year it wasn t looking so great for the likeable Lancastrian he lost a bit of support in the Chamber over his aborted attempt to sack his environment minister but in the last few weeks he gained quite a bit back by successfully facing down his foreign minister Senator Bailhache over a major difference of opinion on relations with the UK. Senator Gorst has had a good three years he got the Comprehensive Spending Review finished kept all his ministers 20 CONNECT AUGUST Treasury Minister Philip Ozouf Senator States Member since 1999 Formerly worked in management and audit (won the job in a 26-24 vote over Senator Ian Le Marquand) There s been a lot of chat about the Senator moving on after six years at the Treasury to the International Relations gig and that s a possibility. But he s already putting in plenty of airmiles with his current job and his role as Assistant Minister responsible for the finance industry so there s not much need for him to go anywhere. Besides there s this he s the most ambitious of the current bunch of ministers and he s spent six years accumulating power to the Treasury department - he s hardly likely to give that up. The limiting factor isn t his ambition rather the fact that he s not much-loved in the States Chamber. Previous results... 2011 Bailhache Gorst Le Gresley Farnham Colley Cohen Syvret Forskitt Corby Richardson Pearce Lagadu Whitworth 2008 Le Marquand Breckon Maclean Routier Ozouf Ferguson Southern Higgins Vibert Tadier Pitman Troy Le Clercq Wimberley Macon Le Cornu Perkins Forskitt Palmer Walsh Pashley 14 238 10 273 9 084 8 775 8 712 8 546 7 194 6 979 6 098 5 011 4 931 3 927 3 597 3 458 3 130 3 074 2 768 1 932 1 538 1 210 682 17 538 15 614 14 981 11 095 8 253 7 922 6 402 2 813 2 489 1 570 1 562 1 332 1 296 Poll 28 225 62.10% 55.30% 53% 39.30% 29.20% 28% 22.60% 9.90% 8.80% 5.50% 5.50% 4.70% 4.50% Poll 24 346 58.40% 42.10% 37.30% 36% 35.70% 35.10% 29.50% 28.60% 25% 20.50% 20.20% 16.10% 14.70% 14.20% 12.80% 12.60% 11.30% 7.90% 6.30% 4.90% 2.80% 2005 Syvret Shenton Cohen Le Main Le Sueur Perchard Dorey Travert Le Claire Carroll Lewis de Faye Southern Bisson Risoli 15 131 14 025 13 704 12 159 9 976 8 998 6 693 6 256 5 413 5 081 5 028 4 994 4 720 2 009 1 127 Poll 23 175 65.20% 60.50% 59.10% 52.40% 43% 38.80% 28.80% 26.90% 23.30% 21.90% 21.60% 21.50% 20.30% 8.60% 4.80% 2002 Ozouf Kinnard Routier Vibert Norman Walker de Faye McDonald Stein Jennings Whitworth Walsh Partridge 14 442 12 230 11 687 10 564 10 192 9 377 7 576 7 488 7 303 4 667 1 982 1 846 1 201 Poll 21 050 68.60% 58% 55.50% 50.10% 48.40% 44.50% 35.90% 35.50% 34.60% 22.10% 9.40% 8.70% 5.70% AUGUST CONNECT 21 Who s standing for Senator in October It s too early to say for sure but you can take an educated stab at it. At the time of writing only two candidates have declared (Senator Lyndon Farnham and Deputy Andrew Green) - the others aren t saying and there s not much point trying to get a straight answer out of them. But at this stage it s reasonably safe to assume that everyone is running again apart from the ones that have publicly said they re standing down (Senators Ian Le Marquand and Francis Le Gresley). There are two strong potential outsiders in Russell Labey and Rose Colley who have been making all the noises that someone standing for election tends to make - Advocate Colley was close last time and she s had a few years chairing the Jersey Consumer Council to build up her profile. There s also the possibility of some former Members (maybe Stuart Syvret and Guy de Faye ) making an attempt at a comeback. So the field could end up looking something like this Senators Ian Gorst Philip Ozouf Alan Maclean Philip Bailhache Lyndon Farnham Alan Breckon Paul Routier and Sarah Ferguson. Deputies Andrew Green Pat Ryan and Sean Power. Non-States Members Russell Labey Rose Colley Stuart Syvret and Guy de Faye. That s potentially 15 reasonably strong candidates chasing eight seats before you get to the handful of candidates that poll under 10% which you get in every Senatorial election. Not a lot of elbow-room on the hustings platform... Senator Ozouf is one of the most energetic and hard-working States Members and while he may not be everyone s cup of tea there s no disputing the fact that he s an able politician probably one of the most naturally gifted that we ve got. He s had a mixed three years he took a big hit over his links to former Chief Executive Bill Ogley s 546 337 payoff (the former pinstripe said that Senator Ozouf forced him out the Senator has strongly denied it) there was controversy over the new police station but he also persuaded the States to borrow money to pay for major capital projects for the first time. But the last Budget with it s we haven t hit economic growth targets and we need to find another 95 million punchlines combined with the Fiscal Policy Panel s view that their might be a structural deficit in States finances have taken the sheen off things a little. If the boy Maclean goes for the top job it s not outside the realm of possibilities that the loser of the clash between him and the Gorstmeister ends up at the Treasury department which is arguably bigger than the Chief Minister s role in terms of influence with other departments and specific powers over the States-owned utilities and quangos such as the States of Jersey Development Company the new Housing department and (in a few months) the Airport. 22 CONNECT AUGUST International Relations Minister Sir Philip Bailhache Senator States Member since 2011 Former lawyer prosecutor and judge (won the job with 36 votes over seven for Deputy Montfort Tadier and three for Deputy Gerard Baudains) Again a mixed three years for the former Bailiff. He stormed to the top of the poll in 2011 and then announced that he was running for Chief Minister coming just a handful of votes away from landing the top job. A good start. Having come to the States on a reform platform he then made a mess of the whole thing by first of all successfully pushing for politicians to be included on the commission reviewing reform options and then taking the job of chairing it on himself. It all ended in the usual backbiting and stalemate when a referendum on the solution ended finely balanced and the States couldn t look past their own self-interest to finish the job (I know shocking...). Add that to the first defeat over Plemont and it wasn t looking great but he landed the Foreign Minister job when it was created and despite the bump over his disagreement with the Chief Minister over compliance SPECIAL REPORT be desired) and the story isn t going away. That said the creation of Digital Jersey and Locate Jersey have been success stories for the States. There are other big jobs to do at Social Security and Home Affairs and potentially Education too but that s more a sidewise move than a promotion. And all of this leaves open the question of what happens at Economic Development Senator Lyndon Farnham is sniffing around but it might be that he s not taken seriously enough by the States Chamber for a big portfolio. This one could be interesting. with UK anti-money laundering rules he seems to have made a good job of it. The Senator is a lightning rod for the left mostly because of a spectacularly ill-advised Liberation Day speech some years ago at the time that the historic abuse scandal was still leading the national press in which he said that it was the unjustified and remorseless denigration of Jersey and her people that is the real scandal . Will their antipathy be enough to stop him getting the job again in the absence of an obvious alternative Doubtful. The Senator is also one of the few people able to go into the election pointing to a specific piece of work the agreement for the purchase of Plemont as a tangible achievement of the last three years. The number of people who can do that is tiny. Social Security Minister Francis Le Gresley Senator States Member since 2010 Former head of the Citizens Advice Bureau (won the job in a 25-24 vote over Deputy Eddie Noel) Good news Francis Le Gresley has had a cracking three-year term he s sorted out retirement age acted on discrimination legislation implemented a new elderly care scheme that will stop people having to sell their homes to pay for care and led a range of schemes to help people back into the workplace. He s probably the best we ve had in the job. Now the bad news. He s quitting he s had enough. Considering he was just a single vote out last time this looks like a natural spot for Deputy Eddie Noel currently the number two at the Treasury. He s a chartered accountant (this is a job with lots of big numbers involved) but he may be hampered by the fact that he s not really gotten out of Philip Ozouf s shadow. There s a chance that the current Assistant Minister Susie Pinel might fancy a crack at it and she s been one of the few Assistant Ministers to really get engaged with the job. Economic Development Minister Alan Maclean Senator States Member since 2005 Former estate agent (won the job in a 38-12 vote over Deputy Mike Higgins) After six years at Economic Development Senator Maclean is understood to be keen to move on. The question is where to Unseating the Chief Minister or the Treasury Minister would be a big ask particularly given the unfolding scandal over the 200 000 grant to a film that now looks unlikely to be made. He s kept a high-line on that project insisting that his department has done nothing wrong (in the face of at least one Public Accounts Committee report that suggested their research left something to Health and Social Services Minister Anne Pryke Deputy for Trinity States Member since Former nurse States Member since 2005 (won the job with 26 votes over 18 for Senator Sarah Ferguson and five for Senator Lyndon Farnham) It has been a long long time coming but AUGUST CONNECT 23 SPECIAL REPORT headline involving some whacky scheme or other but the comedy value has certainly worn off on Senator Gorst who came pretty close to sacking him at the start of the year. They mended their bridges but whether it s all sustainable remains to be seen. Expect him to run again and remember that the States tend to saddle the Chief Minister with at least one minister that the big boss doesn t want. Other candidates Deputy Sean Power has been running the Planning Applications Panel for a while Deputy Noel might have a sniff and another one of Senator Ozouf s supporters St Peter Constable John Refault might have a look. the States appear to have finally lost patience with the Health Minister. In six years in the job she s yet to give the impression that she s mastered her brief and her performances in the States are so bad you could scarcely believe it. Those in the know say that she s better behind closed doors but that s the kind of statement that s impossible to prove disprove. Health is too big a gig for a weak minister who s being dominated by his her officers so it s probably a good thing that Housing Minister Andrew Green is going for it. In so far as anyone could ever be genuinely popular in the States he is. He s also a former senior manager at the department who s no stranger to the ideas behind health and community care he looks after a son with a brain injury and he s the national chairman for head injury charity Headway. Expect him to walk it and expect a very different level of performance for the next three years. Home Affairs Minister Ian Le Marquand Senator States Member since 2008 Former judge and lawyer (won the job in a 28-22 vote over Deputy Judy Martin) Another one out the door. Six years as Home Affairs Minister (including three as Deputy Chief Minister) is enough for the former Magistrate who s quitting the States. A seriously smart cookie if a little unorthodox and he ll be a big loss. But who s going to replace him Now that the new Police Authority is in place it ll be a slightly reduced role heading up the emergency services and the prison. The Assistant Minister Lyndon Farnham is looking elsewhere so could this be the job for former Centenier Jackie Hilton Or for that matter an opportunity for St Helier Constable Simon Crowcroft to finally come off the bench and get involved It s not clear whether Judy Martin would have the support but she could end up getting this job by default the States could do much much worse than the St Helier No 1 Deputy who as an Assistant Minister at health has been much more convincing than her boss. Like Anne Pryke she s not always completely convincing in the States Assembly but unlike her she does seem to be on top of her brief. Environment Minister Rob Duhamel Deputy for St Saviour No 1 States Member since 1993 Former teacher (won the job in a 27-24 vote over Deputy Eddie Noel) He s a riddle shrouded in mystery wrapped in a conundrum and that s just the way that he likes it. Deputy Duhamel thinks old people should take in lodgers to keep warm he badgers the Chief Minister for the money to build a bridge to France he wants you to eat Japanese knotweed to keep it under control and he wants to make toothpaste out of seaweed. Someone in a position to know says that there s nothing that he likes more than a 24 CONNECT AUGUST Housing Minister Andrew Green Deputy for St Helier No 3 States Member since 2008 Former civil servant (won the job in a 35-15 vote over Deputy Montfort Tadier) Right so if the boy Green is off to Health SIx things that the numbers tell us about this year s Senatorial election... In the last three Senatorial elections any candidate who has polled over 30% has got in. This year that s going to mean winning something in the region of 9 000 votes. In each of the last four elections one sitting Senator failed a re-election attempt Freddie Cohen (2011) Mike Vibert (2008) Paul Le Claire (2005) and Corrie Stein (2002). In the last two elections the sitting Senators who lost their seats were ministers Senator Cohen had been Environment Minister and then foreign minister and Senator Vibert had been Education Minister. In each of the last three elections a candidate has come from outside of the States to win or nearly win the election. In each of those cases the outsider has had a high public profile as Bailiff (Sir Philip Bailhache in 2011) Magistrate (Ian Le Marquand in 2008) or as the son of a political legend (Ben Shenton in 2005). There s already a high incumbency rate but it could be about to get higher. Voters will have eight votes to cast in the election - they might have some idea of their most favoured candidates but candidates with some name recognition (ie. those already in the States) are likely to pick up some of the final few choices. That could be decisive. The huge field of 2008 (when 21 stood for six seats) is unlikely to be repeated - that s because all elections are now taking place on a single day and candidates can t use a Senatorial campaign as a stepping stone for the Deputy campaign that used to take place a month later (which is what six of the 15 unsuccessful candidates of 2008 did). what about the Housing gig Well there s not much left to do now that the social rental side of the department has turned into a States-owned company leaving the regulatory policy bit as a leftover with some responsibility for work housing licences. Possibly a slot for one of the people we ve mentioned before one of Deputies Hilton Noel or Martin or even Mr Refault. There s a chance that Deputy John Young could get interested if he hangs on to his seat (voters in St Brelade No 1 are a bit twitchy). along with the newly-reduced Housing brief so don t expect a big hitter. Education Sport and Culture Minister Pat Ryan Deputy for St John States Member since 2011 (won the job in a 26-22 vote over Deputy James Reed) This is interesting. Deputy Ryan s probably going for promotion to Senator which isn t a sure thing although he did pretty well in the by-election against Francis Le Gresley four years ago. One of the issues is that he s not perceived as having done a huge amount at Education (and in fairness the word Education didn t feature in his 2011 election material even once) but that s a little unfair given that his record includes organising a new apprentices scheme sorting out the department s capital budget for improving schools and making the university funding system fairer. There may not have been the massive structural reforms that some people are waiting for but he s done more than his predecessors. His Assistant Minister Rod Bryans has been a bit more energetic and may fancy a crack at the job. AUGUST CONNECT 25 Transport Minister Kevin Lewis Deputy for St Saviour No 2 States Member since 2005 (won the job in a 25-23 against St Peter Constable John Refault) It was a close-run thing last time but noone s moaning about the job that Kevin Lewis has done. He s sorted a deal for the removal of waste asbestos he s got a new bus operator in agreed funding for a new sewage system and he s capping taxi tariffs. Mr Refault was close last time around so he might have another pop at it but don t be surprised to see Deputy Lewis return to action. This is probably the smallest ministerial portfolio Discrimination Law Should you become a Discrimination Law Vigilante There have been breakfast briefings lunch and learns dinner discussions and an endless supply of quick bite summaries of the law. The difficulty with all this appetizing is that you may well be feeling so bloated with a surfeit of information that when the main course is finally delivered you simply cannot stomach any more. I m not going to dish up more content about the law (which focuses on the characteristic of race) for you to try to devour I am sure you feel you are already up to here with it. But I would urge you to remain vigilant once the law comes in on 1st September. As happened when Jersey s employment laws were introduced many employers thought they were ready but many were caught out simply because they had not made sure their carefully crafted policies and procedures were properly explained and understood within their organisations. When the discrimination law becomes reality in a month s time no amount of preparation (and don t get me wrong you must be prepared) 26 CONNECT AUGUST will protect you if you do not ensure the work you are doing now is applied and monitored and I predict a number of very compliant businesses will be caught out because they have not remained vigilant post enactment. Most businesses will be beavering away now (if you are not you should be) aligning their policies and procedures to ensure they are compliant with the new law. But what about your organisational culture You might say we don t need the law because Jersey is generally a tolerant society and nearly all employers follow international best practice. The statistics don t bear that out the 2012 Jersey Annual Social Survey produced by the Statistics Unit showed that a quarter of all adults felt they had been discriminated against over the previous 12 months and of those a third said the discrimination occurred at work with a third of those saying they were discriminated against on the grounds of race. Those are interesting facts which may be helping to promulgate a myth that the new discrimination law is just a further burden on employers. But it is much more than an employment law. It governs the way we treat people and it is this objective breadth that will catch many unaware it is not simply a case of being a model employer but how you deliver your services to a far wider audience than your employees. You need to understand the underlying principles of the law it is not about red tape or making doing business more difficult rather it is about ensuring that Jersey businesses protect and promote modern standards of respect for an individual s rights and that we are seen to be complying with our international obligations thereby protecting the Island s reputation among the global community. Of course in a work environment the law is acutely focused with a cradle to grave approach the law covers all phases of the employer employee relationship from recruitment processes and advertising through development and promotion to termination. You will already know I Are you suffering from Discrimination Law indigestion before the legislation has even been properly laid on the table in Jersey If the answer is yes that s hardly surprising says Becky Hill owner and director at HR Now. am sure that your policies and procedures need to be reviewed (or written ) to cover discriminatory behaviour by your organisation towards its employees and customers. If you are doing this now it makes sense to have a pair of external expert eyes give them a second look. You might be aware that you also need to have consideration for the actions of your employees and agents if they act in a discriminatory manner while in the course of your business especially in the case of agents acting on your instructions. You should have been made aware of the remedies available to a complainant in the event of a successful claim against you up to 10 000 in compensation for hurt or distress you could be ordered to take remedial action or the tribunal may make a declaration of the rights of the individual concerned. That s not to mention of course the reputational damage you might suffer. You should also have been apprised of the actions you must take to mitigate a potential claim against you. Remember it is for you to prove that you have not acted in a discriminatory manner. You will also know that there are some exceptions to the law including if you are complying with a law or court order following a policy of the States of Jersey or there are genuine occupational requirements that force you to behave in the allegedly offensive manner. What you might not have fully appreciated though is that you can be vicariously liable for the actions of your employees or agents who are acting in the normal course of your business unless you can demonstrate that you have taken all steps necessary to impress upon them that discriminatory behaviour as defined in the law is not acceptable on your watch. Or at any time for that matter. Education and training will play an important role in this respect and I would urge you to take professional advice and support not just in the run up to September 1st but for a period of time after the law comes into force because it is in this period that you will probably be at your most vulnerable as the culture shift takes place. So should you become a discrimination law vigilante A vigilante of course is someone who takes the law into their own hands because they do not believe the legal agencies are active enough. I don t think that will be the case in Jersey all of the agencies involved are there to help and give advice but above all to apply the new law fairly. Drop the final e from vigilante and you achieve a state of careful watchfulness an awareness of danger or difficulties and this is where you need to be appreciating and applying the law in a careful and methodical way. So if you are what you eat perhaps the best advice I can give is to be vigilant be careful and you will remain fit and healthy under the new law. AUGUST CONNECT 27 Deutsche Bank Committed to creating lasting value in the Channel Islands. Deutsche Bank s global reach and expertise connect our busineses regions and markets. This enables us to provide innovative financial solutions to meet our clients most complex needs. As your financial services partner in Jersey with more than ten years experience serving local Family Offices we have the expertise and understanding to help you deliver and create value for your most discerning clients. To learn more about our financial solutions for Family Offices please contact Mark Osment Financial Intermediaries T 01534 889288 E mark.osment Channel Islands Custodian of the Year Custody Risk European Awards 2012 - 2013 World s No.1 FX Bank Euromoney FX Poll 2005 - 2013 Deutsche Bank International Limited is regulated by the Jersey Financial Services Commission BANKING Riding the waves in banking Although the economic data from the USA and UK is as positive as it s been since before the 2008 crash the banking industry is still reeling from the after shocks. Jim Coupe Managing Director Skipton International considers where the economic tsunami has left banking - high and dry or heading back to harbour S bank Citigroup announced in July that it will have to pay a US 7 billion fine following a federal investigation into the sale of risky sub-prime mortgages the catalyst for the economic crisis. It was certainly not the first bank to be fined and won t be the last. U banks face being broken up. Meanwhile Britain s new financial watchdog set up in the wake of the financial crisis the Financial Conduct Authority has launched a broad exploratory review of competition into the wholesale markets used by banks and the like to see if they operate effectively to help the economy and give customers a good deal. Whether Nimble s other fear that regulators will overstep themselves occurs will remain to be seen. The most important point is that we have to ensure we are running our banks transparently with strong corporate governance and clear lines of responsibility and accountability. One of the changes that have come out of the banking crisis has been the rise in importance of the compliance officer and their team. Ensuring a financial institution follows all the new rules and regulations is vital and it s also vital that those ways of working are filtered down through the entire company structure and to every staff member. Skipton International is a Guernsey regulated bank and I m pleased to say that the tenets of transparency and responsible lending have always been a part of our make-up. We have an excellent local board including Jersey and Guernsey resident non-executive directors and benefit from the likes of Nimble Thompson occasionally attending our board meetings providing experience and sound guidance. We also pride ourselves on clear lines of communication with all our customers. So where is the banking industry now In some senses it is still awash on the waves of the financial crisis the repercussions are ongoing. Yet business still has to move forward and so there is some sense of normality returning to a more confident banking industry. The issue is that the harbour has changed the structures and house rules that service it are no longer the same and they could change further. We all have our part to play in ensuring our own houses are in order and at Skipton International we are certainly looking forward to a positive future. As a small Channel Island bank we are a long way away from the events that Citigroup were involved in but nonetheless it sends shockwaves throughout the world. One of Skipton Building Society s non-executive Directors is Peter (Nimble) Thompson who is also Deputy Chairman of the Institute of Directors in the UK. I asked him where he felt banking had been left People have been through a torrid time and there are still glitches to be dealt with and some are being dealt with rather expensively but I think lessons have been learnt and although not everything is rosy in the garden things are better. The dangers are that regulators overstep themselves and a bit of complacency comes back into the system. In a sense and perversely both of these can happen at once. What was interesting about the Citigroup fine announcement is that afterwards their share price went up. The reason The market deemed the issue as settled. This is the past being fined but what of the future That s Nimble s biggest worry My fear would be that in the next year or two as things get back to what might be called normal and people forget what happened in the past because I think memories are shorter than they should be we end up people being more complacent and that s the most dangerous time for me. If things go wrong you put on the brakes and shout but over time you go back to where you were. I do think banks have to show and I think many are trying very hard that we re clear and transparent and here for our customers. As I write this article the Competition and Markets Authority in the UK have announced a full-blown competition review into the UK banking sector. It could mean that some of Britain s biggest high street I do think banks have to show and I think many are trying very hard that we re clear and transparent and here for our customers. BANKING One of the key notes at the halfway mark of 2014 is the remarkable recovery in government bond markets accordingly to Richard Pemberton Senior Investment Manager Canaccord Genuity Wealth Management. Why have we seen a rise in bond prices and a fall in yields in 2014 Bonds Are Dead Long Live Bonds A t the start of the year US Treasury yields were at 3% and it was difficult to find a voice of support for bond yields ending 2014 below that level. On the back of 10-year bonds losing around -8% in capital terms last year Source Bloomberg the overwhelming consensus view was for another difficult year for bonds as the US Federal Fundamental valuation Reserve continue to taper their monthly purchases of US Treasuries. The subsequent The significant rise in yields in 2013 reflected rally has therefore come as a bit of a the expectations for US Quantitative Easing surprise for the majority of investors. (QE) withdrawal and the assumed interest rate US and UK bond yields have increasingly rises to follow. Meanwhile the disinflationary aligned (figure 9) recently finding the trend seen globally (figure 10) has supported 2.5% level again equating to returns of the bond rally as the enhanced real return around 4% in 10-year benchmark bonds versus inflation has increased the attraction of in the first 6 months of 2014. It is logical fixed coupon returns. to assume that US and UK yields will remain range-bound between 2.5% to 3.0% as they have been for the last year Inflation and expectations since the major sell-off in May 2013. Why have we seen a rise in bond prices and a fall in yields in 2014 Inflation has historically been the main focus for setting interest rate policy and irrespective of what monetary policy committee members say it is difficult to believe that they will be in much of a rush to raise interest rates while growth is only moderate and inflation remains benign. Low inflation also tends to breed lower inflation expectations further support for bonds. Source Bloomberg Geopolitical Ukraine The uncertainty that is always generated by such scenarios was one of the key drivers for the resurgence in demand for the safety of government bonds in the early part of the year. especially driven European bond yields even lower and was bolstered by the European Central Bank cutting rates in early June and leaving the door open to some form of QE. Demand Many large investors such as pension funds were very underweight government bonds in favour of equity property and other higher risk investments. There has been evidence of a degree of reallocation from equities back into bonds driven by profit-taking and fear of giving up the significant gains made as well as the recognition of fundamental value as above. AUGUST CONNECT 31 Quantitative Easing While tapering of US QE has taken a steady path and the liquidity taps are expected to be turned off before the end of 2014 Europe has underlined its own stimulus package with potentially more to follow. This expectation has BANKING Being seen and heard Just as global wealth continues to grow it has become more challenging for wealth managers to differentiate themselves in an increasingly crowded marketplace. As in many competitive service industries the ability to be seen and heard requires a thorough understanding of what matters most to your target audience as Tim Houghton Head of Business Development RBC Wealth Management explains. or those in the wealth management industry the annual World Wealth Report produced by RBC Wealth Management and Capgemini Financial Services provides interesting insights into how high net worth individuals generate their wealth and their relationship with those that manage it. the globe. North America and Asia-Pacific continue to lead the way accounting for over half of the global HNWI population. While Europe continued to trail these two regions its growth of 12.5% was however significantly up on the previous two years pushing the European HNWI population to 3.83 million. Meanwhile the population growth in Latin America and Africa lagged registering just 3.5% and 3.7% compared with the previous year. The drivers behind these figures are important and despite the challenging economic conditions that have persisted over the course of the past year a global environment of reduced risk led to improved investor sentiment. That said different factors were at play in different markets with the equity market and real estate performance driving the wealth growth in the UK for instance. F Wealth today Despite ongoing economic challenges the 2014 World Wealth Report shows that the population and wealth of high net worth individuals (HNWIs - those with at least US 1 million in investable wealth) is growing and that confidence in wealth managers firms and financial markets is on the rise. These factors combined with HNWIs growing optimism about their ability to generate wealth into the future paint a positive picture for those wealth managers that can effectively address the needs of these individuals. According to the report the global population of HNWIs rose at its second fastest rate since 2000 - the fastest was recorded following the post-crisis recovery year in 2009 - to reach a record high of 13.7 million individuals. Meanwhile their collective wealth grew by almost 14% to reach a second consecutive record high of US 52.62 trillion building on a strong fiveyear trend. HNWI wealth is expected to reach another record of US 64.3 trillion by 2016 representing 22% growth over 2013 and almost US 12 trillion in new HNWI wealth. This growth is by no means even across Trust versus performance The World Wealth Report also included a revealing survey of 4 500 HNWIs in 23 countries who were asked about the nature of the relationships with their advisors. Starting from an already strong base HNWIs globally expressed strong trust in wealth managers and firms with levels increasing by 13.5 percentage points and 15 percentage points to reach 74.7% and 76.4% respectively. Despite strong wealth growth and confidence wealth management firm performance ratings decreased by 4 percentage points to 63%. The drop was strongest in the ultra-HNWI segment (those with US 30 million or more in investable wealth) falling by 8.6 percentage points to 64.6% from 73.2%. This disconnect between the high level of trust and the comparatively low performance scores suggests that significant opportunities may exist for wealth managers and firms to address unmet needs and is a strong indication that the performance of wealth managers is not just about achieving market returns. between US 5 million and US 10 million (68.5%) and those with more than US 20 million (62.0%). At 57.9% HNWIs with the least wealth (between US 1 million and US 5 million) are slightly below the global average. Age also plays a strong role in the desire of HNWIs to strive for social good and on the method they choose to achieve it. While 75.0% of those under 40 cite driving social impact as either extremely important or very important the tendency declines about 10% with each age segment reaching a low of 45.4% for those 60 and older. Meanwhile although 29.1% of HNWIs over 60 engage in ongoing charitable giving less than half (13.1%) of those under 40 do. Younger HNWIs are more inclined to adopt the newer approach of tying social goals into business decisions. Of HNWIs under 40 14.2% make business decisions this way compared to only 9.7% of HNWIs over 60. Going beyond market returns In managing their wealth many HNWIs seek to achieve more than just monetary returns and it is important that wealth managers are able to identify what those ulterior motives may be if they are to raise performance scores and justify the level of trust ascribed to them. One such motive investigated in the report is that of making a positive impact on society through thoughtful investments of time money or expertise. The numbers are telling 92% of those surveyed put some level of importance on driving social impact and it is either extremely or very important to over 60% of HNWIs. There was wide variety in the causes cited as important to the respondents from health and child welfare to poverty alleviation and arts and culture as well as in the mechanisms adopted to achieve social impact goals from charitable giving and volunteering to investment and business decision-making with social good in mind. The desire to make a positive social impact varies somewhat depending on wealth level. More HNWIs with between US 10 million and US 20 million rate it as extremely or very important (74.3%) compared to those with The competitive edge Social impact is just one example albeit an important one of the issues and drivers that wealth managers need to be cognizant of in strengthening their position as advisors. In fact the report identified a 14.6 percentage point shortfall between the support HNWIs currently receive and what they say they would like to have from their advisors. These figures are an encouraging indication that full-service financial services firms that can help to guide educate and support wealthy individuals on the issues that matter most to them are best positioned to weather any storm that the industry may face. AUGUST CONNECT 33 BANKING The fact that Jersey vehicles are widely used for crossborder investments in a wide range of jurisdictions is a comfort to family offices too. It gives them the reassurance that their families affairs are being held or conducted in a professional robust manner. Supporting a growing Jersey family office sector One interesting shift in the wealth management landscape in recent years has been the decision made by an increasing number of high-net-worth individuals to move towards a family office style set-up when it comes to managing their and their family s assets explains Mark Osment Head of Financial Intermediaries Deutsche Bank Channel Islands. n a post-financial crisis era family offices are having to adapt as the families they support are demanding increasingly complex and specialist guidance to help them steer a safe path. Having experienced a number of years of volatility and with a typical family s portfolio not offering the same returns today it did six years ago the focus now is on minimising risk and ensuring assets are structured securely and appropriately. is appealing to the family office sector as is their strong rule of law and court system mature professional infrastructure and political and economic stability. This is in contrast to certain other jurisdictions for instance in the Caribbean - where we have become aware of family offices being motivated to move away as a result of tighter regulatory constraints increased costs uncertainty around disclosure of information and a susceptibility to confidential data leakage. In addition the make-up of the modern family is vastly different now to what it was ten years ago. A family s business today is truly international with different generations typically living in multiple jurisdictions. This means that an offshore solution that is used to handling cross-border transactions efficiently is much more attractive than traditional onshore family office locations in Europe the UK and the USA particularly when it comes to tax estate and succession planning. Again Jersey s mature approach to transparency and confidentiality including growing networks of tax agreements and strong established links with emerging markets around the world such as the Middle and Far East is attractive for family office work. I Employing experts in a variety of fields to help them effectively manage their diverse array of family holdings estate planning needs business and personal affairs is becoming increasingly attractive to wealthy families. Growth We are beginning to see this phenomenon have an impact in the Channel Islands. The last couple of years have seen a subtle but steady climb in the number of single and multi-family offices relocating to Jersey attracted by its sophisticated private client landscape. In particular Jersey s sensible and proportionate approach to regulation The fact that Jersey vehicles are widely used for cross-border investments in a wide range of jurisdictions is a comfort to family offices too. It gives them the reassurance that their families affairs are being held or conducted in a professional robust manner. Complexity This added regulatory compliance and international complexity all adds up to a great deal more responsibility even for the highly skilled professionals typically employed by a family office. As a premium service families expect their affairs to be handled properly and without a hitch and for this reason we are seeing a growing amount of interest from family offices reaching out to draw on the international reach of an organisation like Deutsche Bank. This sort of global reach can be invaluable in meeting a family s demands. For instance with the nature of family office changing there is now a much firmer focus on emerging markets such as Asia. Getting up to the minute information on anything from investment opportunities right through to cultural context in such overseas markets can be extremely useful. Moreover the types of families using a family office arrangement are becoming increasingly diverse ranging from the successful single entrepreneur planning for their children s future through to the traditional deep-rooted multi-generational family to the internationally diverse family with business interests across the world. No two families are the same and as a result a family office needs to be highly flexible and offer a tailored service. In Jersey both single and multi-family offices are able to tap into Deutsche Bank s Group-wide specialist and wide ranging expertise which includes knowledge of how family offices operate and extends to all areas of asset management global custody and access to Deutsche Bank s corporate finance services in markets all over the world. Our independent international family office team take an open architecture and best-inclass approach in order to meet and satisfy the best interests of individual families. The trend for a growing family office sector in the Channel Islands looks set to continue and will form an interesting additional element to the islands wealth management landscape. Deutsche Bank understands this market and is well placed to support this exciting segment in the Channel Islands. AUGUST CONNECT 35 BANKING Jersey is often recognised as an excellent place from which to manage the listing process. Many companies use Jersey as a base for holding assets and investment funds which can be listed on the London Stock Exchange both the main market and AIM market as well as the Channel Islands Securities Exchange. Listing activity shows importance of banking sector in Jersey By Neil McCluskey Head of Offshore and Local Markets Barclays Wealth and Investment Management. rivate equity firms are cashing out in public markets with almost double the amount of money raised at the start of 2014 compared to the same period last year. That s according to a recent report from Deloitte stating that 17.4bn had been cashed out in the first quarter of 2014 alone. The report also states that twothirds of private equity firms anticipate increasing the pace of market exits and nearly one third expect to go through an initial public offering (IPO) in the next year. strong performer in terms of listing with the greatest number of FTSE 100 companies registered outside of the UK being registered in Jersey. The island has a total market capitalisation of 168.6 billion and worldwide Jersey has 100 companies listed on global stock exchanges from London to New York. The benefits of using Jersey as a centre for listings are based around the island s strong reputation and track record as well as the range of products and services on offer. Jersey s community of finance professionals can provide innovative and bespoke products while the island s system of regulation allows for swift incorporation including a 24 hour service that is particularly valued by investors. As listing activity increases this is positive for Jersey. The banking sector has a major role to play in ensuring that companies looking to list via Jersey can find the right banking partners to enable this activity. Specialist knowledge is becoming increasingly important in part due to the types of company that are most involved in IPO activity and in listings. Technology firms health care green energy all require specialist knowledge. One area that has proven particularly relevant to Jersey is natural resources. The island has already attracted some high profile companies to set up part of their company structure. With operations all over the world these companies might have a relatively P With the IPO market off to a strong start in 2014 what are the impacts for Jersey and for the banking sector in particular The most obvious is the increase in stock market activity globally which will likely mean an increase in this type of activity locally. Jersey is often recognised as an excellent place from which to manage the listing process. Many companies use Jersey as a base for holding assets and investment funds which can be listed on the London Stock Exchange both the main market and AIM market as well as the Channel Islands Securities Exchange. The Deloitte report suggests that deal activity will increase most heavily within the technology sector followed by health care providers and plans energy (both alternative energy and oil and gas) and banking and securities. Jersey Finance states that the island is a small footprint locally but their impact on our economy can be large. However as an industry natural resources brings its own challenges in to play. Clive Fisher Barclays senior natural resources relationship manager in Jersey said that the challenges can catch out banks that lack experience in this sector. Operations tend to be based in difficult geographic regions subject to complex political arrangements and technical and communication challenges. These can give banks a hard time when going through account opening or due diligence procedures for example if a banking partner is not experienced at dealing with this type of company this process can take longer than is acceptable for the client. Having a team that specialises in supporting these types of companies is important as they will automatically know what the priority for action is what the political or economic context is and how to react accordingly. Indeed following a recent mining industry conference in South Africa Wayne Gallichan Director of Inward Investment for Locate Jersey said We are hearing from more and more mining executives who are looking for financial expertise and business support that can both protect their worldwide assets and help their businesses grow. We are finding that Jersey increasingly fits the bill as a credible jurisdiction to locate the headquarters of exploration and mining companies which in turn is creating additional job opportunities for the local workforce. Barclays global network is also a contributing factor to this development with our network across the world facilitating better communication and cross-border management of banking functions. Our Jersey team is therefore well placed to offer banking services to international companies looking at Jersey as a home for their holding company. Jersey Finance is keen to highlight the benefits of this arrangement to these international corporates offering zero per cent corporation tax three CREST (the UK share settlement system) enabled share registrars the ability to trade shares directly through CREST the efficient management of share capital via treasury shares and the fact that the island is recognised as an approved jurisdiction for listing on the Hong Kong Stock Exchange. Movement in the markets is likely to increase in 2014 and potentially beyond. This should mean a growth in the numbers of companies seeking to establish themselves in Jersey in order to access a stock exchange listing and will mean an increased need for the skills and experience that can be provided by the island s banking sector. AUGUST CONNECT 37 T E C H N O LO G Y The critical thing underpinning and allowing this type of advanced research and development work that JT is doing is the world-class fibre infrastructure that we re investing in throughout the Island. Facial Recognition By Marcus Irwin Chief Operations and Technology Officer JT t has been almost 20 years since Tom Cruise first fooled bad guys (and audiences) with a latex mask in the Mission Impossible series. Since then it s become a staple of the blockbuster franchise with Tom and his IMF agent pals using masks to fool villains friends and retina scanners even upgrading to facial recognition systems in contact lenses for the most recent movie. I agencies and secondly because it s just the kind of technology that our revolutionary JT Fibre network is now enabling. For some time now UK police officers working at football matches have been using the systems to identify known football hooligans in huge crowds of fans (it s one of the reasons why so many European fans cover their faces with scarves at games). Furthermore staff at high-end casinos use it to identify their top spending clients when they are approaching the premises so that they can clear their favourite table for them and have their drink and chips ready in order to provide them with the best customer service possible. More broadly security systems across a range of organisations are now beginning to use facial recognition instead of pass cards to unlock doors and govern access to restricted areas. The component parts of these systems are relatively straightforward multiple cameras scan for faces feeding images back to a network video recorder capable of identifying hundreds of faces at any one moment in time and checking those images against a server that acts as a database for faces all supported by resilient networks like those JT provide. One single server can contain up to 5 000 000 faces and can even recognise a face in profile from a previously stored image. This is all possible as the facial recognition OK you re not Tom Cruise however the technology that he s using is a lot closer than you think. While over the last few years facial recognition software has mostly been utilised by people in the law enforcement and private security fields to track individuals or to identify people in crowds or across hundreds of hours of CCTV footage recent innovations have started to unlock commercial elements to its use. Closer to home as a leading operator JT is already trialling some advanced facial recognition software with a wide range of practical applications that could prove greatly beneficial for a range of businesses and organisations. Why now Firstly because the reduction of hardware costs have brought the systems within financial reach of more organisations as opposed to just top-secret international intelligence systems use many different measurements on a face as markers to check against the database of stored images. These include the distance between the eyes the space between the nose and the lips and the shape of the eye. That means that the systems are not easily fooled by a change of haircut or a newly grown beard. In fact during our own initial trials a member of JT staff was surprised to see that a partial match to his face had been picked up in a pub that he hadn t been to Initially he thought it might be a computer error when he checked he found that the real explanation was simple the server had thrown up a match for his son who was in that pub at the time and who s facial characteristics had an 85% match to his own. The critical thing underpinning and allowing this type of advanced research and development work that JT is doing is the world-class fibre infrastructure that we re investing in throughout the Island. This ubiquitous network of fibre connections allows the kind of rapid connections that the software needs to carry out checks and identify individuals in less than one second. The benefits are far reaching. It will enable for instance pubs and clubs to check quickly and accurately whether people on their premises are banned from pubs it would also enable them to track people who have been ejected from one set of premises to another. It will also enable sales staff to greet customers by name entering a store with some background on their purchase history and recent history of complaints or issues or recent activity that they should be aware of. In the UK meta-analysis of similar data through advanced systems that can detect the age and gender of faces is already allowing shopping centres to adapt adverts on video screens to the demographic passing through at different times of day that might mean Hugo Boss adverts in the late afternoon when business men are passing through or collecting something for dinner or adverts for children s clothes in mid-morning if that s when young mothers are passing through. Practically some of this may be some way off in the future. We re not yet at the point where facial recognition is a viable proposition for every single business but neither are we at the point at where the opportunities for innovation are still being developed by software developers only. What we do know today is that at JT we re constantly looking for new innovation and assessing how it could provide not only new opportunities but key differentiators for local businesses and our customers. Facial recognition systems are just one example of how JT could help turn Mission Impossible technology into an everyday reality. AUGUST CONNECT 39 T E C H N O LO G Y Having the best backend technology doesn t always mean it s a userfriendly system. Not all systems are created equal Peter Le Brocq Touchstone Managing Director in Jersey explains that years of listening to clients needs and understanding their challenges has led them to develop software and deliver training that makes everyone s life a little easier. s everyone knows in today s marketplace running an effective business means having effective IT solutions however as companies grow and merge many people are experiencing the headache of trying to run multiple systems that usually end up with operational inefficiencies high administration costs and unhappy staff all of which can ultimately lead to unhappy customers and loss in revenue At Touchstone we have always designed our system with the aim of helping our clients run their business operations more effectively. Our consultants have many years experience within the finance industry which helps us to understand the business regulatory and technological trends that impact their operations. We have found the main challenges when it comes to choosing the right internal systems usually fall into four main areas functionality innovation integration and cost. Having the best back-end technology doesn t always mean it s a user-friendly system. Above all being able to deliver a better service to customers means having a system that is easy to use. After many years trying to understand the pain points experienced by our clients we have found that the three most common are typically A Ineedtogointotoomanysystemstodomy job Therearejusttoomanyclickstocarryouta simple task Itisnotsimpletoextractdatainthe reporting format that I need Microsoft defines the user experience as Designing for end users means reducing the complexity and amount of information that users are faced with. It means designing with people s pain points in mind and giving more priority to that than the database layout. So in simple terms we believe great user experiences can be summed up in three points Onesystem forallyourtasks Lessclicks tocarryoutyourjob Providestheinformationyouneed whenyou need it With this in mind and following many enhancements to our previous software version over the past year we have recently launched NavOne. Built on the latest version of Microsoft s business software platform Microsoft Dynamics NAV2013 we believe NavOne is a world-leading system for the wealth management industry. The new role-tailored interface is intuitive and familiar is driven by the latest technology that can be tailored to users needs and provides a great user experience. We believe when businesses choose NavOne they gain much more than a software system. They join a community of wealth management and IT professionals who are committed to improving standards and operating practices across the industry. NavOne really does take our software to a new level. From humble beginning to Microsoft Partner From its humble beginnings in 1997 the Jerseybased wealth management division of Touchstone Group was started as a joint venture between Icelandic company Landsteinar and The Jersey Electricity Company. It then grew to a team of 15 and was acquired by the Touchstone Group in 2005. Fastforward to today and Touchstone s wealth management division now has 34 staff with offices in Jersey and Australia and a customer base in over 20 global jurisdictions. Touchstone is a Microsoft Gold Accredited Partner meaning that we are recognized as offering best in class solutions . In 2014 we have been recognized for our abilities within the wealth management software arena through the accolade of winning CityWealth Technology Vendor of the Year. Our relationship with Microsoft not only means we have access to the latest resources and developments it means that our clients also benefit from the billon dollar investment Microsoft invests annually in ensuring its Microsoft Dynamics technology is future proof. Never stop listening and learning So we will continue to listen to our clients and are committed to improving our systems so that ultimately they can improve operational efficiencies and deliver better service to their customers. Technology should be harnessed to make our lives easier not to cause stress and headaches AUGUST CONNECT 41 Unplugged. Forecast It s cold outside... Economic forecasting is clearly a risky business. With the publication of Jersey s 2015 Budget the Island woke up to a predicted deficit of 75m over this year and next rising to 95m when you include 2013. That meant the Treasury needed to urgently find some extra money and make savings just to keep the Island s current account (better known as the Consolidated Fund) in the black to do otherwise would be illegal. If income tax receipts are as soft as predicted but the Treasury can make the necessary savings and find the extra funds the balance on Consolidated fund next year will be.... zero. So right on the line meaning every pound matters. Immediately. On that basis it is true to say the Island is banking on economic growth so we can get more money in from income tax than the eminent forecasting group estimates. So what measures were in the 2015 Budget to help deliver that growth James Filleul put the question to Robert Kirkby Director KPMG Channel Islands Limited and Chairman of the Chamber of Commerce Finance Committee Rob Kirkby The 2015 budget is part of the second Medium Term Financial Plan that s been issued by the Treasury and I suppose what really jumps out at you is the 30million and loose change deficit that is being projected for both 2014 and 2015. This is of some concern as how do we plug that and what is the position going forward in to 2016 onwards What is apparent from the document and the other budget material is that that there is a drive for economic growth which its hoped over time will cover the deficit. But whilst that aspiration is very positive there is very little in the proposals to support incentivise or accelerate that economic growth. We all know the various initiatives that have been undertaken in the last few years such as Gigabit Jersey and the establishment of Digital Jersey. They re fantastic initiatives to launch a new industry in the Jersey economy but they require substantial support to get them off the ground and up and running. That support can be financial in terms of incentives or grants to start ups and yes we do have the recently founded Innovation Fund. But we perhaps need a number of different types of incentives at all levels of the business cycle. Also we need to invest in nonfinancial incentives such as broader skills in digital innovation to reach a muchneeded critical mass. Therefore there needs to be investment into education...significant investment into education primary secondary and tertiary. But also into immigration so by bringing over perhaps 20 to 40 of these bright inquiring minds from the UK or further afield then you can start to stimulate more of a digital type economy and cluster. Perhaps that investment may take the form of housing licences subsidised accommodation etc. but its probably even more than that. Do we actually understand what it would take to get those people here and what is the potential upside of them driving the digital economy I think digital is just one possible aspect. Broadening financial services further could be an additional possibility. Perhaps the introduction of a Freeport at the Airport or 42 CONNECT AUGUST AUGUST CONNECT 43 44 CONNECT AUGUST UNPLUGGED Harbour which is gaining traction in places like Switzerland Singapore & Luxembourg. This service complements our existing financial services and high-networth services but also provides jobs and employment for other skill sets in the island. It would have added benefits of boosting tourism airport traffic all of which helps us fund the infrastructure up there. So whilst moving from a solely one year budget to a three year budget is a great achievement one has to wonder whether actually we need to be moving to a twenty or thirty year budget and looking at truly long term horizons. very different world now where the economy is more constrained now. We operate in a more globalised environment which is not only more competitive but technology is rapidly changing the way we interact on all levels be it family social or business. We ve got to work harder we ve got to be more competitive and the days of lots of money to provide many different services are gone. So I think what we need to do is grab a clean sheet of paper and ask some relatively simple questions. What as Islanders do we need the Jersey government to provide What is the absolute bare essential raft of services required Then we need to say what else would we like and then we have to look at whether we can afford the desired services. For example a health service I suspect would be on most Islanders list. As a typical western population we face a hugely increasing burden of health costs due to ageing the rapid rise of Western chronic diseases and rising medical costs. So the States commissioned a significant review and they have determined how they need to change the provision of those services so they are affordable. But we need to do that across government it s not just Health it s Social Security it s Education it s all the assets and services that government provides and holds. At the end of the day it s just like managing the household budget. We might want a new car or a holiday in the sun but if we can t afford the new car or holiday we compromise or do without. And we need to replicate that in government services and actually say these are the absolute bare minimums that we have to have and then there are the nice to haves . Perhaps for some of the nice to haves we move towards a pay-as-you-use service. JF Is the answer to the problem more about addressing the expenditure side and then leaving the income to solve itsel RK At a basic level there are only two levers you can use. If we look at the income side we ve as an Island numerous times discussed the 20 means 20 debate and agreed that 20% is a desirable income tax rate that we live with so that seems to be very much set in stone. We introduced Goods and Services Tax originally at 3% which increased to 5% and there is significant reluctance across all communities to increase that any further. Impots the fags and booze tax etc. people seem broadly comfortable with that but don t appear to want significant increases. Stamp duty again people are happy (if I can use that word) with it so it seems there are very limited ways to increase the income apart from user pays type services so for example when you park your car or when you come through the Ports etc. Therefore you have to look at expenditure and you have to actually decide what you want to do with expenditure and can you do things in a different way. So things such as the e-government initiative will help government interface with their customers the Islanders in a very different way which will drive changes within government. But there are other things that can be done as well in terms of what services are we providing. Some services may not be necessary any more. Some services may have dwindled over the years and not be used by that many people. Or there may be a fundamentally different James Filleul Did you hope to see more in the way of the Enterprise Investment Incentives in the UK RK Both Chamber and the IOD have pushed hard on introducing some form of enterprise investment scheme or equivalent over the last few years and despite these repeated requests it is a disappointment that this or something equivalent is not in the budget Over the years the Island has changed dramatically and ten fifteen years ago the States of Jersey had very much surplus cash and it was very easy to provide all the services the Island and Islanders required and desired. We re clearly in a Both Chamber and the IOD have pushed hard on introducing some form of enterprise investment scheme or equivalent over the last few years and despite these repeated requests it is a disappointment that this or something equivalent is not in the budget AUGUST CONNECT 45 UNPLUGGED way of providing them. Should all States services be means tested Or should it only be a few And it s looking at each of those points and determining exactly how we do that. Just like you would manage the household budget. JF If you were presented with these accounts from a client what would be your assessment of their financial position RK If these were the financial statements of a client you would look at it from two aspects really there s the profit and loss account prepared on an annual basis and there is the balance sheet and in many ways Jersey is in a very fortunate position by having a very strong balance sheet. We have very limited debt considerably less compared to many Western governments which is a great position to be in. It gives us some room for manoeuvre. When you look at the profit and loss account that s when you have more concerns about how we balance this budget going forward and you may raise the question of whether the current deficit is a cyclical deficit or a structural deficit However perhaps that is a question best left for economists. For me the question really is how are we moving out of that deficit going forward If that s relying solely on economic growth then where are the levers to incentivise that economic growth There are some funds out there that are seeking to do that but I think they need considerably more support. They need wholesale States support. That is support from other departments in delivering that growth. You can t develop a new tech sector unless you make sure that the graduates and the school leavers are coming out with the relevant skills. As such that needs education support. You need housing support to make sure the relevant licences are available to those individuals who need to be brought here. And lets not forget those skills sets will look very different from people say who come for the finance industry. We have to ensure the infrastructure is in place and is affordable and you have to pull all those levers simultaneously and rapidly to drive something forward which ultimately will increase the top line your income line by driving more profits in the Island. JF Do you think it s a fair statement to say that the Island is now banking on economic growth RK I think the Island needs to embrace risk which will lead to economic growth. The Island needs to appreciate that significant investment may take place and needs to take place but actually losses may arise from that. We won t back the right horse every time and this isn t gambling but this is educated investment and certain investments will fail but others will succeed and we need to take forward steps. We cannot be passive or indecisive about what we do. We cannot take the short-term view. We must look long term for the future of children and our own elderly futures JF What would you say to States members who are looking to increase income by increasing tax RK Well I think actually what I would say is more to the people voting in October. If you re voting for someone you need to sceptical. If they re promising a service or something different and new the question has to be how will they fund that service If it s a new tax how much will it raise and do you want that tax and does that tax just become an easy way to raid Islanders hard earned salaries And If no tax rise then what service will be cut Or what would be really great is if there is a new way in which to provide the service which gives the States the ability to provide both services for the same price... a 2 for 1 deal I m sure that there s many great ideas out there that would be worth pursuing but as voters we need to be much more rigorous in our assessment of who to vote for and who will deliver the best for the long-term future of Jersey. 46 CONNECT AUGUST When you look at the profit and loss account that s when you have more concerns about how we balance this budget going forward and you may raise the question of whether the current deficit is a cyclical deficit or a structural deficit AUGUST CONNECT 47 Connect s insider in the finance industry sits at a desk somewhere near you. He s unspinnable unbiddable and very strictly anonymous. Don t expect marketing speak don t expect a rosy feeling inside and don t expect to like him (we re not entirely sure about him ourselves). Only expect this every month he ll bring you the unvarnished truth from the heart of the finance industry... A Matter of Trust Thieves respect property. They merely wish the property to become their property that they may more perfectly respect it GK Chesterton As part of the senseless desire for the material trappings of success I will scheme embellish and if the occasion demands it even lie if it suits my personal interest. The fact that my chosen career tolerates or even rewards this behaviour of course makes it no less abhorrent. Feeding the rest of the family s addiction to new footwear and the bank s expectation of their monthly pound of flesh is how I justify my behaviour. social contract. This dictates that either explicitly or tacitly we surrender some of our freedoms to a government in exchange for the protection of our remaining rights. In other words I agree not to exercise my freedoms to plunder rape and murder if everyone else agrees to do the same. We in turn agree not to overthrow our government and in return they agree to exercise their powers in such a way that we avoid a life which the English philosopher Thomas Hobbes forecast would be solitary poor nasty brutish and short . In this way both the government and I receive a consideration for keeping our side of the bargain. And from this contract springs our own political credo. The degree to which you believe the government should involve itself in protecting your rights will largely dictate whether your friends and enemies get to mock you as a lefty a righty or perish the thought a centrist . Now as part of its role in protecting your rights the Government of Jersey has recently decided to hand the National Trust of Jersey 3.5m quid to help them buy a few acres of land on the north coast. This has been justified on the basis of saving our natural heritage and whatever political banner you choose to hide your inner tyrant behind it would be hard to argue that this isn t a worthy sentiment. But in the cold light of day what have we the public (yes I know criminal confiscation fund and all that but it s all public cash) actually got for our money Where is our consideration 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. But one thing I do not expect and indeed this has been the subject of more than a few barbed words in earlier columns is something for nothing. If I m offered a free lunch the spidey senses start twitching and this serves to remind me that I m paying in one way or another. A corollary of this and trust me this is as true for you as it is for me is that if I give of myself I expect something in return. And this needn t involve money in any way whatsoever. If you choose to dedicate a precious few minutes of your time to read the Fool s ramblings each month hopefully you do so in the expectation that amongst the cynicism and bile you might experience that warm glow of agreeing with the odd sentiment. In this instance you ve given your time and have received in return the comfort of knowing that when the time comes there will be at least two of us manning the barricades. In our own special way we have a contract because you have received something (what the law chooses to term consideration ) for your effort. The most important bargain that most of us enter into is something called the 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 . 48 CONNECT AUGUST for keeping to our side of the bargain The National Trust are an important guardian of the island s natural resources and they dedicate themselves to their tasks for the benefit of the island. The degree to which they conduct their valuable work means that they are reliant on members charitable donations and bequests in order to function. Their website confirms that they are a local self-funding charity totally independent of the States of Jersey . According to their last report and accounts they have assets of around 6.5m around 5m of which is termed investments and 600 000 of which is cash at the bank. And last year they managed to spend 141 000 more than they took in. Which despite the modern propensity for spinning away bad news I believe we are still quaintly referring to as running at a loss . And give or take a few quid we have handed them without strings 3.5m of our money on the promise that they will raise the other 3.5m to buy clear and maintain the Plemont headland in perpetuity. I may at times be a liar cheat and general ne er-do-well. But if I was giving away your money to a private landowner to make an investment I d insist that 1) you got something tangible (like I don t know a share in the ownership perhaps) in exchange for your hard earned 2) that the person receiving your money was able to come up with a pretty good business plan to show how they were stumping up their share of the cash 3) that the recipient s business was financially viable and that they wouldn t come back looking for more of your money in the future no matter how worthy their plans. 35 of the people in the States who you have contracted with to protect your rights decided none of the above was necessary. Perhaps it s only me but a bit of consideration appears to be lacking somewhere There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him. Robert A. Heinlein The Moon Is a Harsh Mistress AUGUST CONNECT 49 Viewpoint. In the 30th anniversary year of Jersey s trusts law how can the island stay ahead of the game That s the question we are posing this month in the first of new series of features. Viewpoint will put forward a key question facing one of the Island s main industry sectors and then a group of leading practitioners will give their take on the answer and what it means for the Island. If you would like to be included in a future panel of experts just e-mail editor And so this month we start with the Trusts sector with their origins in the 12th century Crusades Trusts have been a key part of the island s wealth management industry for thirty what does the future hold David Dorgan senior associate Collas Crill Jersey s trust law has never stayed still. It has been consistently updated in the last thirty years to improve its attractiveness and performance. Recent amendments in 2013 and 2012 saw the Jersey law relating to the rule in Hastings-Bass and the doctrine of mistake enshrined into statute and the introduction of extremely helpful clarification in relation to for example trustees contracting with themselves a long-stop limitation period and the ability of trustees to enforce covenants in their favour when not party to the contract. Further amendments may see the introduction a statutory lien to further improve its performance. However many jurisdictions now have trust legislation which equals Jersey s trusts law. What therefore distinguishes Jersey from its competitors is the quality of its financial regulation and its judiciary. Jersey has the highest of regulatory standards and of judicial competence. Its regulator is pro-active in its enforcement of standards whilst its judiciary has extensive trust case law to draw upon both of which are key factors to providing clients with confidence that Jersey is the best choice for the administration of their private wealth. NEXT MONTH... In next month s Viewpoint we ll be looking at the new discrimination law. If you d like to take part contact editor bailiwick 50 CONNECT AUGUST VIEWPOINT Sally Edwards Partner Ogier As the Jersey trust industry reaches its 30th anniversary ironically many consider its future lies in a return to basics . The regulatory and political climate make it clear that the days of trusts being used merely as products for tax avoidance are over. The future undoubtedly lies in bespoke drafted trusts to achieve wealth preservation and succession planning. Settlors and beneficiaries are increasingly only seeking tax neutrality instead placing the emphasis on stability security and the trustees skills adding value. Jersey is ideally placed to take advantage of this change. The Trusts Jersey Law 1984 (the Law ) has been regularly up-dated and is continually monitored to ensure the legislation meets modern settlors needs whilst maintaining the core duties of trustees that are the backbone of Jersey trusts. The law is very flexible allowing settlors and beneficiaries to become involved in trusts through the use of reserved powers. Foundations have also been introduced allowing family members to become involved as Council members. As trusts are increasingly used again for long term succession planning involving the retention of family businesses this ability for families to become involved can only help the Jersey trust industry to face the future. Additionally in an increasingly volatile world Jersey s political stability and highly skilled professional industry workforce will be a major way for the trust industry to add real value for settlors and beneficiaries. This will allow settlors to place assets within Jersey structure with confidence giving the Industry a strong future ahead of it. John M Brimacombe CEO Jobstream Group Trust companies will increasingly need to adopt automated workflows to be able to deal with the demands of clients and regulators. The offshore trust sector is coming under pressure to perform to ever higher standards. Clients are looking for more value and personal attention but at lower fee levels at the same time regulators are testing the industry s ability to respond to this demand while meeting FATCA l and compliance obligations. The industry is also very competitive possibly more so than it has been at any time in the last 30 years and we expect that trend to continue. The difficulty facing trust companies therefore is reducing risks and cutting costs through greater efficiency to allow focus on client service and product innovation. To combat this dilemma we expect trust and private client practitioners to invest in software solutions that will enable them to streamline their business by being operationally efficient. These systems typically need to be fully integrated and industry specific automating core business processes and workflows within the company. Companies that employ this generation of software will have more confidence in their ability to operate in a compliant and efficient manner with sophisticated reporting allowing staff to focus on service quality without loss of fee income. AUGUST CONNECT 51 VIEWPOINT Giles Corbin Partner Mourant Ozannes What s the common denominator between Mac computers the Ghostbusters movie and the Trusts (Jersey) Law 1984 The answer is that they each have their 30th birthday in 2014. Of course trusts were created under Jersey law for a long time before the 1984 Law but it was a major milestone for the trusts industry because for the first time they were given a firm statutory footing which clients and their advisors found very appealing. Jersey can stay ahead of competitor jurisdictions by continuing to invest in the quality of the professional services providers in the trusts industry and by ensuring that opportunities to keep the 1984 law in tune with the demands of the market are quickly taken. Jersey already has a remarkable strength in depth in the professionals involved in trust work. The STEP Jersey branch has over 1000 full members and 300 students. Nowhere else in the world has this concentration of expertise and sophistication. The work of the Jersey courts in issuing rulings on trust matters is influential throughout the trust world. The 1984 Law has already been amended on 6 occasions and these amendments have introduced many innovative features such as non-charitable purpose trusts and trusts which can last indefinitely. There will certainly be a need for further amendments in the next 30 years to enable Jersey trusts to stay ahead of the game. Stephen Baker Senior Partner Baker & Partners In recent years some of the most significant developments in Jersey s trust law have been as the result of decisions from the Royal Court rather than legislative changes which after 30 years has only been amended 6 times. In the last two years alone we have seen the Royal Court s willingness to develop the law to provide remedies to victims of fraud and breach of trust in complex asset recovery cases and this trend is set to continue. One of the other likely frontiers for development and refinement is the issue of disclosure and confidentiality. Transparency has become a watch-word in larger jurisdictions since the start of the financial crisis and intergovernmental cooperation on 52 CONNECT AUGUST matters of tax in particular have become far more common. The confidentiality of trusts is also under assault in matrimonial litigation as well. It is likely that we will see legislative moves to make automatic exchange of information in relation to trusts more common. This environment presents a serious practical difficulty for trustees who may be caught between preserving the confidentiality of their trusts and compliance with foreign requests for information and orders for disclosure. The standard approach for trustees in such a predicament is to seek the direction of the court as to what to do but this is a costly and time consuming exercise which relies ultimately upon the discretion of a judge. GLASS HALF FULL Glass half full with... By Yolanda S ez Castell TAPITBETTER decided to give it a go - with stunning results. It really is true what we are always being told - that stress can cause a wide array of seemingly unrelated symptoms says Yolanda ...all of which I have found tapping can alleviate. I am just pleased that I finally decided to open my mind to something so out of the mainstream. Tapping was developed in the 1970s by clinical psychologist Roger Callahan PhD who was frustrated by the lack of progress he was achieving with some of his patients. He found tapping on certain acupuncture points on the face and torso could relieve pain trauma phobias - and in particular stress - in a matter of minutes. Extensive research has been done since then which has led to the American Psychology Association (APA) recognizing tapping as an evidence based intervention. One recent study by Dr. Dawson Church showed that an hour of tapping can reduce the levels of the stress hormone cortisol by nearly half - far more than any other intervention tested in the same trials. And it is the perfect treatment for the corporate environment for more than just its ability to help with stress. Contact is minimal with the client simply mirroring the practitioner s actions. Critically there is no need even to tell the practitioner what is causing the stress as long as the client is able to focus on the issue while tapping. One session can have a profound effect and clients rarely need a second one. Having become fascinated by the technique and the consistent results she kept seeing on family and friends Yolanda decided to train over a twoyear period and qualified to a level reached by only 200 practitioners worldwide. She has now set up her own practice in Jersey and has helped clients with many types of issues and nearly in every continent as she delivers online sessions to clients all over the world. For her it is just a simple truth The better you get at managing stress on a daily basis the better your health and your performance - will be. Performance appraisals demanding targets complex work relationships pre-client meeting nerves - these are just a few of the challenges that corporate life presents. For many these can cause serious stress and anxiety and that is before you add in other issues such as back pain jet lag fear of public speaking and any chance of having a life outside the office As a London banker for ten years Yolanda S ez Castell has been there. Her life included most of the above plus a hefty commute. Following a Masters in Finance at London Business School new challenges and promotions kept coming but so did a sustained increase in her stress levels. Like so many in demanding jobs her health began to suffer. Being told by a Harley Street physiotherapist that she should try complementary therapies felt far too alternative. But having tried more mainstream treatments for over a year with little or no progress she finally AUGUST CONNECT 53 Photography by Gary Grimshaw 54 CONNECT AUGUST N O O R D I N A R Y DAY J O B No Ordinary Day Job. Back to the future Most articles you read on Jersey s economy will feature the words innovation and diversification frequently most likely they ll also talk about exporting to global markets and perhaps using technology to cut costs. The sector in question is probably digital or financial right Wrong. This time it s oysters. Archaeological evidence shows that this small mollusc was eaten in Jersey 6 000 years ago millennia before work commenced to build the pyramids. It is now a very successful part of our economy (the island now produces more Pacific oysters than the whole of the UK) but one that is often over-looked. Paula Thelwell went to meet shellfish farmer Tony Legg of Jersey Sea Farms who re-introduced the native oyster to local waters more than 100 years after it had disappeared. This is not the first time in history that oyster farming has been a big earner for the Island. Roll the clock back to the 19th century and with the exploitation of the natural native oyster fishery in the Royal Bay of Grouville it is estimated that between 1810 and 1871 two billion oysters were exported to the UK. At the time oysters were a staple part of the common diet of the population of cities which were rapidly expanding as the modes of production concentrated on factory production and workers moved from the land to manufacturing centres. By 1866 over-fishing had reduced exports to 6 000 tubs (a tub equaled about 1 000 oysters) and by 1871 there were only six working oyster boats left. It took another century before aqua-culture began to re-establish itself in the Royal Bay of Grouville and other areas in the Ramsar site off the east and south-east coasts. And that s where Tony Legg grew up on the lunar landscape off Jersey s smallest parish. If anyone can say their day job is far from ordinary then it is this Jerseyman blessed with the same sense of adventure and love of the sea that temps pass sent intrepid Islanders across the Atlantic to fish the Newfoundland cod banks. Tony returned to the Island straight from university with a BSc in Zoology with Applied Zoology and his future wife Elspeth. Today they live in a secluded traditional Jersey farmstead parts of which date back to the 13th century surrounded by open farmland with their own wood the ancient feudal rights of Chef Tenants and fabulous views of the French coast. After a mutually disasterous attempt at the civil service Tony started a trout farm in Trinity as one of the first people to acclimatise rainbow trout to seawater. He then branched out to farming clams and Jersey Sea Farms was up and running developing new techniques that are now standard industry processes. But without warning clams seeded in one of the Venetian lagoons provided a new low-cost fishery and the Italians were able to flood the market and force down prices - so Tony turned his attention to oysters. His horizon was widening and he became involved with shellfish farms on the west coast of Ireland. Today Ireland produces 6 000 to 7 000 tones a year and is the second biggest producer in Europe next to France. Tony is now at the forefront of domesticating the native or flat oyster for commercial farming as an alternative to the Pacific oyster the production of which was hit by the Oyster Herpesvirus type 1 (OsHV-1) in 2009. Tony lost 80% of AUGUST CONNECT 55 N O O R D I N A R Y DAY J O B his oyster seed virtually overnight. What we have done is change the economics of farming the native oyster. The native oyster has always been more valuable than the Pacific oyster but there were major problems with costs and production. What we ve managed to do is reduce the labour costs by generating technology that takes all the work from it. In the last year we have set up a nursery in Lochnell near Oban to produce ten million part-grown oysters per annum to set the Scottish shellfish farming industry into production and we re doing similar in Northern Ireland he said. Being a fickle mollusc by nature compared to its more easily farmed Pacific cousin shellfish farmers had not considered the native variety worthy of exploitation as it was not efficient to cultivate according to the standard intertidal method in fixed locations readily accessible at low water. This is where Tony s ingenuity came into play. Donning his thinking cap he retired to his workshop and emerged some time later with the ORTAC Oyster System pausing to patent it for good measure. It is now licensed and being sold by agents throughout the aqua-culture industry. The ORTAC is best described as a moving plastic basket with holes attached to staples sunk securely into the seabed - for cultivating native oysters where they like to be in the inter-tidal zone. When the oysters are nearing maturity they are placed on the sand in bags between the rows. It takes its name from the Ortac Rock off Alderney. From the Norse it roughly translates in polite parlance as a rock stack covered in gannet droppings. The ORTAC is a natty little device that not only keeps the oysters happy it is also more cost-effective than farming them in bags fixed to beds. The basket moves with the natural flow of the tide and the sophisticated through-flow system encourages growth rates. Unlike with the production of Pacific oysters there are no regular trips back to shore for sorting as they grow. Tony just didn t come up with a working solution he also managed to reduce the growing process from five years to three-and-a-half. I don t think people realise exactly what we are doing said Tony. We (in Jersey) are producing more Pacific oysters than the whole of the UK. We have got more per capita production of Pacific oysters than anywhere else in the world. Now we have got the native oyster in production as well. We have more in culture than anywhere else in I don t think people realise exactly what we are doing we are producing more Pacific oysters than the whole of the UK. We have got more per capita production of Pacific oysters than anywhere else in the world. Now we have got the native oyster in production as well. We have more in culture than anywhere else in Europe and they are being grown to full size in just three years. 56 CONNECT AUGUST N O O R D I N A R Y DAY J O B Europe and they are being grown to full size in just three years. I will have produced 70 tonnes by 2016. As a Jerseyman he would have dearly liked to set up a large-scale production in local waters but from a commercial point of view it made more sense to focus his production in Scotland and Ireland because it was more viable. In addition it is Ireland where his ormer farming business which also started out in Jersey and which is aimed at the high-end food dining market - is concentrated. He is after all a businessman first and foremost and one with bigger plans. I am working on a project with the Shellfish Association of Great Britain to trial my system on 40 sites across the UK to not only expose the new technology to other farmers but also to trigger the hatcheries to change from producing just Pacific oysters and try native oysters as well he said. His site at Green Island is small in comparison to the vast beds in the Royal Bay of Grouville covering just 1.5 hectares. Nonetheless he expects to harvest 70 tonnes of native oysters. Native oysters were first farmed at Green Island by Joseph Sinel in the 1890s. He went out of business after bad publicity when typhoid linked to English oysters resulted in the death of the Bishop of Winchester and a number of his dinner guests Also on the horizon is a partnership with Jersey Oyster and Seymour Oysters to acquire for the local industry accreditation from Aquaculture Stewardship Council. Founded in 2010 by WWF and the Dutch Sustainable Trade Initiative the council is an independent notfor-profit organisation with global influence. It aims to be the world s leading certification and labeling program for responsibly farmed seafood. The ASC s primary role is to manage the global standards for responsible aquaculture which were developed by the WWF Aquaculture Dialogues to transform global seafood markets. Then there s an opportunity of doing business with North Korea all above board off course so no chance of Jersey Sea Farms finding itself on some global blacklist. It came through my Scottish connections when North Koreans came to see the operation near Oban so I could become the first Jersey businessman to sell equipment to North Korea Silly question but it had to be asked So Tony do you enjoy your job It s what I do and I love the variation in it. Everyday is different but what I particularly like is being able to have the flexibility of scientific investigation commercial development and then practical he said. He recalled an event when his children were young that illustrates what his son Edward thought his father s job entailed When their children were little Elspeth was taking one of our sons Edward and friends to a party. As she drove the boys conversation got round to saying what they wanted to do when they grew up. The son of an Advocate said he wanted to be an Advocate and the son of a doctor said he wanted to be a doctor. Edward said he wanted to be an oyster famer as he would only have to go to work when the tide was low And with the traditional Jersey farewell - bi -he was off. 58 CONNECT AUGUST 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. WELCOME TO THE SILLY SEASON To you this may the hottest sunniest month of the year. It may be the month where you see Jersey at its busiest and most vibrant. August may also be the time you go away on holiday with the family for that much-needed break. For journalists across the island August means only one thing. Silly season. August is their winter their bleak and barren season of no-news the month where nothing happens where government doesn t sit where decisionmakers are away on their holidays where those who usually shake-up the system and set the agenda go AWOL. The saving grace is the Battle of Flowers. Roll-out the preview pieces on what it ll mean for tourism the day-in-the-life of the float builders the profile pieces on the Miss Battles of years gone by. Then there s the on-the-day stuff great footage for the TV hours on endless fillers for the radio a gift of pictures for the newspaper. But beyond that it s pretty slim-pickings. Whatever your choice of media expect stories tenuously linked to national or international events expect it s six months since... articles and reports expect otherwise mundane events to be hyped and exaggerated beyond their journalistic worth. It s not a Jersey thing. It s an August thing. And if you re a media watcher it s always a treat. iSPY will be listening viewing and reading with interest. I ll report back with the best (and the worst) of the month. AND THE WINNER IS... Given it s the silly season it s a chance for us to take stock of the year so far and hand out some virtual awards. In other words the iSPY budget is just the wrong side of zero and the Editor won t cough up for some actual gongs. So here goes. Headline of the year this sort of award should really be won by a newspaper. Yes websites do have headlines on their stories but they re often on the more functional end of the scale in order to tick all the right key words to maximise their searchability on things like Google. Newspapers don t have such concerns. They just want to make you read on. And it was the JEP who came up trumps with the story of a dog on the loose in Gorey. It was a story and a headline which went on to gain national recognition. JEP I salute you for the genuine headline Fugitive sausage dog causes mayhem. Journalist of the year this award goes to a reporter who has grown to embrace her role the island s political agenda and the fine-line balance of reporting versus opinion in super style over the past few months. Lucy Stephenson of the JEP has really stepped up a gear in her political analysis but it s particularly in her use of social media where I feel she s really scoring. During the recent equal marriage debate it was Lucy s online running commentary of the States speeches that really captured the moment as did her personal exasperation at the outcome when she tweeted States of Jersey u have let yourselves and Islanders down with such a waste of time delaying tactic on gay marriage debate. You tell em Lucy Non-story of the year this one was a toughie as in the real world much of the stuff we see reported as news isn t really worth the paper it s written on. So much of what the radio tells us is agenda-setting stuff (when it s wishing us a good morning Jersey every flaming two minutes) is actually nothing of the sort. That report out today came out last week. That exclusive was actually nicked off a blog. And that we can reveal was cut and pasted off a press release. But every now and then there s a true piece of original journalism I ll leave you to decide whether you consider it news. Our non-story gong goes to BBC Radio Jersey who led a news bulletin with the story that an islander had to go a different way home to avoid driving past the site of a tree that had been chopped down in St Aubin as she was so upset about it. News No. Top story Surely you only did that for a bet The judges special award well there are a number of contenders for this one. Should it go to a news outlet or an individual Should it be awarded for a specific story or a portfolio of work Or as I decided in the end should it go to one person for their overall approach to their job Well in this case it goes to a reporter who quietly gets on with reporting the news day in day out and who regularly reports fast-developing political stories in a completely unflappable way. Ladies and gentlemen may we present to you ITV Channel TV s Leah Ferguson. Every report is a masterclass in clear precision reporting. And she is an utter pro even when she s live in the Royal Square interviewing politicians while surrounded by noisy drinkers at the Cock & Bottle by screaming kids chasing pigeons or (as we saw recently) conducting a ding dong with two leading States members while a fire alarm was blaring in the background. Leah thank you Of course there were many other deserving nominees in many more categories than I could muster the spirit to create. So we ll re-group at the end of 2014 for a proper look back on the year. 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 AUGUST CONNECT 59 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 democratic disaster is unfolding before our eyes and there s nothing that we can do about it. There s no candidate that we can vote for to fix it no policy solution that could possibly work in time and no way to work around it. We re staring down the barrel of a major major problem that could affect each and every one of us and there is literally no politician who will even admit that it s happening. A At the moment we ve got 11 ministers running departments and they re not bad people as far as politicians go. The glory of Jersey politics is that we accept a drop-off in capability but in return we don t get the same cultures of greed and venality that other parliaments have and overall that s not a bad deal. I d say that three of that 11 have done an excellent job over the last three years Ian Gorst as Chief Minister holding the team together Francis Le Gresley as Social Security Minister pushing through workplace legislation and employment schemes and Andrew Green as Housing Minister who s probably the only politician anywhere ever who has done his best to make his own job redundant. There s another three over whom there s a question mark to a lesser or greater degree Anne Pryke the Health Minister who appears no closer to mastering her job now than the day she took it on six years ago Rob Duhamel the Environment Minister who mixes insideout-crazy with cheerful obstructionism and Pat Ryan the Education Minister who has got some improvements through but hasn t been able to get over the major hurdles for reforming the school system. Here s the thing. The problem isn t about having the wrong kind of policies or voters or politicians it s about not having enough decent ministers to fill the jobs. This isn t a statement about ideology or politics it s a judgment on competency. There is a worrying lack of politicians who are both a) close enough to the political centre of the States Chamber to get elected to a ministerial post and b) capable enough to do the job without mucking it up. If you re thinking that all of this is a little unreasonable and that needing 11 people who fit that description out of 47 elected politicians isn t that tall an order - then hi welcome to Jersey you re obviously new here. 60 CONNECT AUGUST And then there s five who have done OK. Don t be confused about that doing OK is perfectly respectable in politics especially when the economic tide is running against you as it has been for the last six years. In an environment where very few people actually manage to get anything done at all doing OK is actually something to aspire to. You could go so far as to say that most politicians don t reach the lofty heights of average and it is a fractional tiny few that reach the point of actually making things better. Part of the problem is that we re losing two good politicians this year the aforementioned Senator Le Gresley and Home Affairs Minister Ian Le Marquand who has had a quiet three years (mostly because he got most of his work done in the 2008-2011 term). But what we don t have is a rush of obvious candidates to fill in the gaps. Yes Andrew Green is gunning for promotion from the Housing brief to Health and that would be a step in the right direction. But as far as replacements for Senators Le Marquand and Le Gresley go we re struggling. There s some candidates within the States at the moment and its Deputies Jackie Hilton Eddie Noel and Tracey Vallois as well as St Helier Constable Simon Crowcroft who leap to mind as potential ministers but they ve all been reluctant to get too involved for one reason or another. And you might ask why they should the election results of the last few years suggest that ministerial office is dangerous to electoral health (we ve lost a Transport Minister an Education Minister a former Housing Minister and a former Health Minister all of which goes against the flow of pretty heavy incumbency rates) and there s a not-entirely-unreasonable point that it s a huge amount of extra work and accountability for no extra reward. But is that enough The point of the ministerial reforms whatever anyone says was to speed up the glacial pace of the old committee system and make sure that the responsibility for running departments was concentrated into the hands of those capable of actually doing a decent job of it. That all stops making sense if some of the most capable politicians would rather sit on the bench and spend their time pointing out that the first XI aren t doing a decent job. AUGUST CONNECT 61 My Secret Life. Charity begins with homes If you re in the residential property market in Jersey chances are you ll know Nigel Pascoe. He s the Director of Lending at Skipton International one of the Channel Islands leading mortgage providers. What you might not know is that Nigel likes to get his suit off and his kit on. Football is one of his overriding passions and he s turned his love of the sport into a charity Goal 50 which is helping disadvantaged children in one of South Africa s most run-down areas. Gwyn Garfield-Bennett went to meet a man whose quiet and gentle manner hides his true determination. Nigel Pascoe is a busy man with a hectic schedule. He ll be at breakfast meetings at least four times a week and that will be the start of a busy day. Although based in Guernsey Nigel spends a day or two in Jersey every week meeting mortgage brokers estate agents advocates and mortgage applicants. Skipton International started lending in Jersey in 2005 and they ve gone from zero to being one of the leading mortgage providers. Having been top of the pile in Guernsey for the past four years their Jersey lending has just taken over their Guernsey level and their ambitions don t stop there. Earlier this year they launched a UK buyto-let mortgage for Channel Island residents and in the last few weeks they ve taken another leap with a range of buy-to-let mortgages for British expats worldwide. As Director of Lending Nigel is the man responsible for all this which means his weekly schedule is now taking in visits to the UK. Nigel is originally from Cornwall where he was brought up in a little fishing village. He went to work in Guernsey in 1983 met his wife and never left but he still retained links to the West Country I kept returning back not just for my family but to watch football. I d always had an interest in football and the nearest professional club was Plymouth so my father used to take me along to matches. Ironically it was in Guernsey that Nigel s links with Plymouth were to flourish and become the catalyst for establishing Goal 50. I was with some lawyers and one of them knew the Chairman of the Plymouth Football club he said he d introduce me next time he came to Guernsey and he did. He invited me to meet the other directors of the club and we became good friends. I was then invited to become a Vice President of the club. It wasn t long before Nigel was getting involved in charity initiatives at Plymouth FC We created football leagues for kids in some of the run down areas of Plymouth just to give them something to do. We also created literacy schemes in the schools where we d get the professional footballers to go and sit with the kids and get them to read. Even lower league players are relatively well paid and get plenty of spare time. The man running this in Plymouth was a South African and it was in the last World Cup in 2010 that we decided to go to Cape Town and see what the infrastructure was like in some of the soccer academies there and whether we could be of any assistance to them. 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 AUGUST CONNECT 63 The pair visited three soccer schools in Cape Town but it was the GCU a Christian soccer academy for boys and young men set up by Mario Van Niekerk which captured Nigel s attention. Mario is a former street gang leader who recognised the damage that violence drugs and alcohol are doing to the young generation. When I met Mario I realised that he needed some support. The school had 500 pupils and 400 of them didn t know who their father was. The typical family is where the father is inside on a murder charge or killed in gang warfare or from Aids their mother is a prostitute and the children are being brought up by the grandparents. There s a missing generation because the family unit has broken down. With no father around the children run riot and join gangs often out of desperation to get some protection. I met children as young as 7 and 8 who were gang members. They don t go through the initiation process until they re 14 but they still have the protection of the gang before then. What I found hard initially was seeing kids as young as 7 8 and 9 hooked on crystal meth. The age expectancy is only 15 years. Emotionally the first time I visited this was all a shock to me but I ve grown to expect some of these uncomfortable situations. Soccer is what gives these kids a focus away from gangsters and drugs. Unlike many people who witness poverty and hardship in a foreign country Nigel didn t just donate some money and then get back to his normal routine he came home to the Channel Islands and set up a dedicated charity Goal 50 to initially fulfil one of Mario s dreams which was to create an orphanage under the soccer school banner. We ve expanded it since then Nigel unassumingly adds. That expansion means that the charity is currently in the process of purchasing land where they hope to build a day-care centre a property where Mario will realise his dream of the first orphanage and a feeding programme that provided more than 35 000 meals last year. We did our first feeding programme in 2013 where we set up a meal for 300 people. Some of them hadn t eaten a proper meal for days and so when I got back home we worked to fund this on a more permanent basis. All of the money raised is from the Channel Islands. Since 2010 Nigel and his volunteers at Goal 50 have raised 175 000. We also sponsor some of the coaches by providing salaries and kit which is donated by CI businesses. Plus we have a job creation scheme. Unemployment is 80% and there are no benefits so there s widespread stealing and violence all just to put bread on the table. We are helping to give a focus and some simple skills to some of these people to help them and the local community. Nigel s business experience has helped him with the charity work Dealing with the South African jurisdiction is difficult. The land we want to buy for the daycare centre is owned by the government and although they are very supportive of us there are lots of in depth discussions and it takes a long time to get anywhere. Having a business brain also helps with liaising and discussing with potential sponsors and the contacts I ve built up come in handy. Likewise I have made some good contacts through the charity that have been useful for my work with Skipton International so it s a twoway street. I do spend most of my holiday time going over there though. I tend to go twice a year and spend time meeting businesses to get funding and meeting with the Government and church groups there. My family have all been out too. When I m at home I will probably spend around 20 hours a week in the evenings and at weekends working on Goal 50. Nigel has a group of volunteers who help support him in the Channel Islands and it means they ve been able to hold a variety of fundraising events including golf marathons open gardens quizzes white collar boxing and a gala dinner each year in both islands. This year s Jersey dinner is on Saturday 6th September at the Royal Yacht Hotel and will feature the singing voice of international sport Martin Toal. Of course concentrating on the day job and keeping the charity going means that something has to give and that s been Nigel s first love Plymouth football club. I used to go to every other home game but with Goal 50 being more demanding of my time my trips have been less frequent. Last year I only went six times. Plymouth s loss has been the disadvantaged children of Cape Town s gain. If you would like further information about the Jersey Gala dinner or how you can support Goal 50 email npascoe or visit the website 64 CONNECT AUGUST AUGUST CONNECT 65 MUSINGS OF A MARKETER It s life Jim but not as we ve known it 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. How old would you be if you didn t know how old you were It s a brilliant question posed by baseball legend Satchel Paige. The reality When asked friends answered on average twenty years younger than they actually are or the majority no age at all but a product of experience and beliefs. I d be unstoppable years old says Cat. Ageless said Matt. And summed up beautifully by Vanda I am not an age but an attitude . Amen. For this is today s reality. As marketers we have got to face up to the fact that the world has changed and targeting our markets based on the traditional age location and demographics is only going to tell you half the story you need to know. Technology the economy family dynamics media influence and a shrinking world have turned things on their head. We are thinking behaving and consuming with a mindset far younger than our predecessors and as individuals rather than with a herd instinct. If you re in B2C marketing that means you need to approach targeting in an entirely alien way. Daunted Don t be. Excited You should be. Perhaps a good place to start is by getting your head around two trends that are gaining particular momentum big data and personalisation. the company to ignore traditional segmentation techniques and go straight to the pain in a very targeted and cost-effective way. Personalisation In the past market research would be used to identify the characteristics of a group of people who would broadly make up a target market. B2C marketers would then build a profile of their customers based on this research. But the devil is in the detail and perhaps I can sum up the difference between the old and the new with this analogy customer profiling of old would give you a mannequin identifiable in shape and form as a human being with limited functionality and facial detail but recognisable nonetheless to a mass market today s profilers can draw a target sharper than a Pixar 3D animator identifying unique characteristics and behaviours for each customer. With data and the analysis of online behaviour we can respond and plan campaigns that are relevant and useful to whole nations or to individual citizens we can be that specific. Today s successful campaigns are tailored around drawing people in (inbound) based on providing a solution for needs and desires rather than the traditional mass-market interruption techniques (outbound) that hope of sticking in the mind of a percentage of recipients. This is where big data becomes personalised. New research from Yahoo suggests consumers are craving more personalised online content 46% are comfortable with sites collecting basic demographic details and 48% with the collection of information based on topical and personal interests. Leaders in this field are arguably Amazon. Every single one of their 244 million customers is served up a different personalised home-page based on their preferences and buyer behaviour. Their targeting is first and foremost based on behaviour not demographic (be that age location or income). Dreamworks Chief Executive Jeffrey Katzenberg says Think personal connections not mass marketing. Advertisers are learning a completely different style of interaction. It s a much more personal experience. You learn about people follow people and become friends with them. There is a much deeper connection. These consumer brand leviathans with huge budgets will always plot the next new course. But that doesn t mean smaller fish cannot swim in the same pond. So even if you still rely on mannequins don t dress them in the same clothes paint each one with unique characteristics and let them be the individuals they were born to be. Big Data You have to be as agile as your customer they are always logged on. Caring. Sharing. Connecting. Commenting. With the digital age comes a torrent of big data. The beauty of this data is that it provides insights incredibly valuable insights that give us a richer understanding of the beliefs opinions and behaviours of our customers than ever before. As a business you have an unprecedented opportunity keeping a close eye on what is being said and done and harvesting the information to improve your performance in the marketplace. Look at what Kimberley-Clark did for its Kleenex brand with stats garnered from Google search trends around colds and flu meshed with tracking of call levels to government health helplines Kleenex could predict flu outbreaks as they happened and focused marketing spend in those geographic areas avoiding the flu-free zones. This use of big data and real-time insights enabled If you have a question for Sam please e-mail sam bailiwick 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. THE ADVISOR Liquidation of Companies We are all aware that as a result of the current difficult financial times some businesses have failed. Well-established companies have had to reduce staff numbers and tighten their business belts while others have completely collapsed. My firm receives many enquiries from companies that are insolvent they cannot pay the debts they owe and need to cease trading and fold . They are right to make that decision because it is an offence to continue to trade when insolvent. But how do you properly wind up such a company The answer is that it depends on how much money the company has in its coffers because as I ll explain if it falls below a certain amount there is very little a company can do to effectively wind-up. In Jersey there are two principal ways in which to wind up a company. The first is a declaration en desastre the other is a winding-up under the company law. Unfortunately both require money. In desastre proceedings the application is made to the Royal Court but before any application is made discussions need to take place with the Viscount s department. In the majority of cases the Viscount is not going to support any such application unless there are sufficient funds to (a) pay the Viscount s legal costs that will be incurred for the whole of the process and (b) there are realisable assets that can be shared amongst creditors. Accordingly if a company s bank balance is below a certain amount a desastre application will not be viable. It will be pointless. Pretty much the same thing applies to a windingup. Although a creditors winding-up sounds as though it is an action taken by creditors it is in fact a decision of the company and not the creditors at all. The same problems presented in a desastre application are encountered here too. In a winding-up a liquidator is appointed who takes over the company s assets calls meetings of creditors and shares out the company s assets. A liquidator requires payment just like the Viscount and so again if there are insufficient funds to pay the liquidator s fees no liquidator is going to accept the appointment. Nothing will happen. It is a very unfortunate situation. An example can demonstrate this Imagine a company that has five creditors each owed 2 000 totalling 10 000. The company has 5 000 in assets. The fairest way to deal with this situation would be for all creditors to receive 1 000 each 50% of the debt owed. But without either a desastre or a winding-up it is unlikely that can be arranged. The unfortunate result is that it is unlikely that any organized compromise is going to be achieved and it is probably best for the directors to simply walk away . The company will sit there and the creditors if they choose can obtain judgments for the debts owed. Within time the company will be struck off for failing to pay its annual registration fee. There will be no formal closure. It is for this reason that Jersey has so many dead companies floating around in a limbo-land something I consider a very untidy and unsatisfactory state. Like a box of frozen fish fingers sitting in a deep-freeze which no one is going to touch. You would have thought that some form of arrangement could be made with creditors but even that is fraught with frustrating red tape. As a business owner myself I know that in the above example I would rather receive 1 000 of a debt owed to me than nothing at all. There are schemes known as arrangements under the company law where creditors can be called together and a compromise reached but to do this properly and in accordance with the law an application has to be made to the Royal Court another expensive exercise which may exhaust all of the company s assets so that the cupboard is bare for the creditors. However there is one other option but extreme care has to be exercised. There is nothing to stop a company (or any person) reaching an agreement with a creditor (a contract) under which the creditor agrees to reduce the debt owed in full and final settlement. If this can be achieved with all the creditors then the assets can be divided and the company can then file a statement of solvency no assets owned and no debts owed and then close. The problems with such an approach are that first it is akin to an arrangement and directors need to tread carefully that they are not circumventing the law secondly there is a risk that a creditor may later complain that they were forced into accepting a lower amount or did not fully understand the arrangement and lastly directors need to make sure that no preferences are given whereby one or more creditors are preferred over others. It is a real shame that Jersey does not provide a cost-effective bankruptcy procedure for such situations. In the UK there are more efficient ways to close down a company which benefits the creditors. Currently Jersey is lacking and in the current economic climate a better solution would assist everyone. 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 AUGUST Financial Services training at BPP Professional Education Certificate in Offshore Banking Practice International qualification badged by the Chartered Banker Institute. Suitable for existing banking staff looking to broaden their knowledge. Face to face and online options available from Autumn 2014. Financial Services Online Qualifications Unable to attend a face to face course but need to attain a Financial Services qualification Our extensive range of online courses includes the CFA IMC IOC and many more of the CISI qualifications. IAD Revision Days Need help passing your IAD qualification Use our online products plus our 1 day intensive face to face revision course. International Funds Certificate Suitable for junior staff and new entrants into the funds industry. Face to face online live or online courses available from Autumn 2014. Call 01534 711 836 Email janegolding Or visit JERSEY Visit BPP Professional Education at Whiteley Chambers 39 Don Street St Helier Jersey JE2 4TR. 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 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 AUG HT