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FREE Please take a copy IN MARCH S EDITION Social Media - essential or just nice-to-have o Read online at Jersey s business magazine 8 Y BLACK HOLE time to stop diGGinG DIGITAL JERSEY GrowinG pains or GrowinG pain Duncan Stuart Director PEOPLE YOU We ve been dynamically growing over the past 40 years so we can offer you experience you can trust combined with the innovation of our team delivering a fresh and energetic approach. CAN COUNT ON 01534 785200 accounts Thomas Edge House Tunnell Street St. Helier Jersey JE2 4LU Rosscot Secretaries Limited is regulated by the Jersey Financial Services Commission Accounts Preparation Management Accounts Audit & Assurance Taxation Services Bookkeeping & Administrative Services Payroll services Business Start-Up Advice Company Secretarial Services Accounting Software Installation & Support Outsourced Accountancy Support Business Valuation Forensic Accounting o Editor James Filleul 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 the latest news and classifieds straight to your inbox visit and subscribe to our daily news service. EDITOR James Filleul editor WRITERS Ben Qu r e ben Gwyn Garfield Bennett gwyn Martha MacDonald martha Julien Morel julien ADVERTISING Mark Ferns Telephone 01534 510309 markferns SUBSCRIPTIONS info DESIGN AND PRODUCTION Mark Jackson mark Artwork under 10Mb in size may be sent to this address. EDITION35 GET IN TOUCH... Please email editor I n politics timing is supposed to be key. Someone really should mention that to Senator better stop digging now just in case. In this edition (page 20) we take a look at how Senator Maclean plans to tread carefully around the twin traps of tax and spend and what that might mean for local businesses. The answer will lie in investment whether that is by the government in island infrastructure by overseas companies choosing to build their operations here or by local businesses deciding to open expand or employ. Which is why on the cover of this edition you will have seen Glenda Rivoallan someone who has made that decision to invest locally and in a sector which sits right in the middle of the Island s work hard play hard ethos but which doesn t tend to get much recognition leisure and fitness. You ll find her story on page 56. That theme of investment carries on through the Unplugged feature on page 46 and ViewPoint immediately following it. Both focus on the digital sector is it on the right path Given it s importance to both the way we live our lives and our chances of diversification within and to support the financial services sector that is a necessary question to ask and discuss continually in a spirit of continual improvement. As the industry insiders in these features will tell you failures must be expected accepted and mitigated to negate debate by insisting all is always well is the real mistake. Stop digging and read Connect. 01 Maclean. For the second time in his career he has taken over the reins from Senator Ozouf at just about the worst possible time. The first was his ascension to Economic Development Minister on the cusp of the global financial crisis which is still shooting its malevolent repercussions through our economy. And then a few months ago he became Treasury Minister just after the 2015 Budget Please recycle this magazine. suggested we had a serious black hole in our finances and just before the States Like Bailiwick Express economic experts warned we wouldn t truly know the true scale of that hole for another few years but we really had connectjersey jsy CONNECT February 2015 Contents NO ORDINARY DAY JOB 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. SEll me a life in... 56 REGULARS LOC AL NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05 LEGAL MAT TERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 TR ADING PL ACES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 SELL ME A LIFE IN . . . NEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 PICTURE THIS CCA Galleries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 GL A SS HALF FULL Steve Bailey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 BUSINESS ADVISER John Shenton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 UNPLUGGED Rob Dudley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 VIEWPOINT The Digital Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 WHO S THE FOOL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 NO ORDINARY DAY JOB Glenda Rivoallan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 HERE S THE THING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 DEADLY DIARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 THE ADVISER Olaf Blakeley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 02 March 2015 jsy CONNECT 26 FEATURES ACCOUNTANCY ROSSCOT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAGE 36 ADVISORY SERVICES HATSTONE LAWYERS . . . . . . . . . . . . . . . . . . . . . . . . . PAGE 38 PwC CI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAGE 40 Special Report For many the most recent report on States finances finally drowned out the deceptive refrain that everything is fine in Jersey (so move along there s nothing to see here ) It has been the repetitive political dogma expressed at all relevant opportunities with those who challenged it variously branded as wreckers antiJersey the anti s lefties or most recently (and laughably) radicalised. And then came Budget 2015 which revealed the likelihood of an imminent black hole followed just a few weeks ago by a report from the Fiscal Policy Panel which crisply set out the problems facing the Island s finances and pointed the States in the direction they need to go to find the solutions. Ben Qu r e takes a look at the road ahead... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAGE 20 You can read this magazine plus the latest local UK and business new online with UNPLUGGED 46 52 38 30 42 54 jsy CONNECT March 2015 03 Turning it up to 11 Starts March on Boosh Used to express awesomeness NEWS Business flows at ogier Ogier has been giving legal advice on a multi-million pound deal to buy the UK company that provides mains-fed water purification and dispensing systems. The law firm advised the lenders through the 122.6 million acquisition of LSE-listed Waterlogic plc. The lenders include GE Capital HSBC ING Santander and Societe Generale and together they provided 113 million of senior debt facilities supporting the take-private by private equity fund Castik Capital of the UK-based provider of mains-fed drinking water purification and dispensing systems. Managing associate Edward Scott led on the transaction with managing associate Sara Johns advising on the listed acquisition elements. Mr Scott said The transaction was unusual because the practicalities of taking Jersey law security over the shares in Waterlogic plc needed to dovetail with the process for acquiring Waterlogic plc an LSE-listed company by Courtapproved Scheme of Arrangement. Carey Olsen is leading offshore law firm in AIM rankings Carey Olsen has maintained its longstanding position as the top ranking offshore legal adviser for the number of AIM clients it advises according to the latest AIM Advisers Rankings Guide. The January 2015 guide pushes Carey Olsen decisively up to second place overall based on the number of AIM clients it advises with 45. It continues to be the only offshore law firm to feature in the top-five table with the other four places being taken by international onshore law firms. Carey Olsen retains fourth place for client market capitalisation at 3 929 million for the period under review. The firm is in first place in the industrials client table in terms of market capitalisation and for client numbers Carey Olsen ranks second in the financial table third in industrial fifth in basic materials and consumer services and sixth in the consumer goods. Carey Olsen senior partner Graham Hall said The rankings demonstrate the strength of our corporate offering and reaffirm our position as the legal adviser of choice for AIM companies. Charitable foundation support enables CAB to employ specialist adviser Portuguese speakers can be assured of receiving the same service as English speakers thanks to the appointment of a nationality adviser at the Citizens Advice Bureau. The Portuguese-speaking adviser is available to provide free support and advice Monday to Friday between 10 am and 4 pm either over the phone or in person at the bureau s St Helier offices. A donation from the Lloyds Bank Foundation for the Channel Islands of 20 000 has contributed to funding this post in 2015. Malcolm Ferey Chief Executive of the Jersey Citizens Advice Bureau said The Lloyds Bank Foundation has offered us great support over the years and we are very grateful for this recent donation. A large percentage of our clients are from non-English speaking backgrounds so our Nationality Adviser is there to support them in understanding their rights their options and how to integrate into the Jersey community. This boost to our core funding is well received and ensures the service continues to serve all of our community and helps to break down the language barriers. The Lloyds Bank Foundation for the Channel Islands is one of the largest sources of charitable funding in the islands dispensing almost 1 million a year in the Bailiwicks of Guernsey and Jersey. Executive Director of The Lloyds Bank Foundation John Hutchins said We are delighted to have been in a position to assist the Citizens Advice Bureau who without fail always go the extra mile when providing counselling and advice. 05 jsy CONNECT March 2015 NEWS Hautlieu win the battle of BASE Business-savvy students from Hautlieu School have won this year s Jersey heat of ICAEW s national business and accounting competition BASE. Hautlieu beat seven teams all from the Island s sixthforms. BASE links schools students and employers to develop employability skills and provide an insight into what a career in accountancy business and finance might be like. Assuming the role of ICAEW Chartered Accountants the students had two hours to analyse a business situation before presenting their ideas to a panel of top business professionals. Head judge Andrew Quinn said In the presentations the judges looked for well thought out recommendations supported by ethical and financial considerations. During the competition the winning Hautlieu team showed excellent teamwork and role allocation which resulted in the presentation of a very comprehensive recommendation. A second team also from Hautlieu School were the runners up and all teams can be rightly proud of their achievements in dealing with a very challenging business situation. This was one of 46 heats attracting nearly 3 000 students around the British Isles. Jersey has tasted success before as current reigning national champions come from Jersey College for Girls and now Hautlieu School will defend the region s title at the national final in Birmingham in June. 1 TAKE FIVE Five thinGs accordinG to deadly diary we will be talkinG about in Future Hospital. Let DD spin you a yarn about the elusive hospital from the future where nurses and doctors commute via jetpack because it s 2016 and this is the way we do things now. Diagnosing a fatal disease There s an app for that. Yes indeed plans for fully refurbished ultra aerodynamic now with added Bluetooth General and Overdale hospitals are set to be in action by January 2016. Aside from white-washed walls and a general spaceship vibe what else will these new refurbishments bring to Jersey s health care Nobody knows. But will it at least be covered by the 297 million budget that Ministers have allocated Of course not DD predicts this Star Wars-esque monstrosity will set the town a-twittering come 2016. It s all about construction construction construction. States Members (and other animals). If DD has learned one thing it s that we ll always be talking about the dearly beloved States Ministers and why they can never quite seem to get anything right. In education will spare the Rod Bryans spoil the child anyway Will planning and development be as Fast and Luce as it has been this year And will the Treasury stay Maclean or will its dealings be a bit more Mafilthy than that DD knows for a fact that you are looking forward to the antics of these States Members in 2016. Buying with a conscience. As more and more corporate chains clutter King street DD reckons ethical shopping will become more important in the minds of our future selves. Although it s easy to walk into one of these sprawling superstores and buy 10 different outfits for 10 without even considering how they were made this in turn makes you a bit of a rubbish human being. DD reckons buying with a conscience is definitely something we should be talking about as 2016 comes around the corner. Even if you don t want to. Oh did DD not mention that free will has already been eradicated in 2016 Really we should be talking about this now but DD will be kind and give you a bit of time to think about it. Whenever you fancy bringing it up DD wants local businesses to become part of the conversation in order to encourage ethical produce and fair treatment of workers. Public Transport. DD is going to be honest with you all public transport in Jersey is pretty dire. If you re going anywhere aside from Gorey you ll be lucky to wait less than 40 minutes for a bus. Not only does this 9 by 5 mile island have the highest ratio of cars to people worldwide but also in DD s opinion the highest taxi prices. DD s only hopes of getting around via taxi involve actually becoming a taxi driver. So if you re at least a little bit eco-aware aren t a taxi driver and prefer the West of the island your ways of getting round are pretty much nil. You should just give up hope now - or rent a fun bike. DD hopes for everyone s (and the environment s) sake that public transport is at least discussed in 2016. The Weather. Everyone loves talking about the weather. Something falling from the sky People will be talking about it. Nothing falling from the sky Even juicer gossip. The weather is like the world s biggest celebrity who never goes out of fashion no matter what it does. Think about it it s got it all the anarchy of John Cooper-Clarke complete with Bill Nighy charisma and it carefully treads the line between terrifying and charming just like Judy Dench. No matter what changes the future holds you can be assured come rain or shine humans will never stop talking about the weather and 2016 will be no exception. 2016 2 3 4 Want more read deadly diary on paGe 66 06 5 March 2015 jsy CONNECT Works the way you work. The only system you need for wealth management. NavOne is the world-leading wealth management system delivered by Touchstone and powered by Microsoft Dynamics NAV technology. Used by small to large trust and fund administration companies family offices private equity firms and specialist legal and accounting practices across 20 global jurisdictions NavOne helps increase operational efficiencies and reduces administration costs. For more information call 01534 818900 or visit Delivered by Powered by NEWS Hello Yellow Brick road The Yellow Brick Graduate Internship scheme is calling for graduates to register for opportunities that are available now or later this year. The scheme lets candidates earn a salary while gaining experience and training. Positions are for a minimum of three months but many will lead to permanent job opportunities for the right candidates. To be eligible for the scheme interns will need to be locally qualified be educated to degree level and have graduated within the last two years. And it is not all about the finance industry - one of the most recent roles on offer is at an international development project management consultancy which is looking for a newly graduated project officer. Montrose joined the Yellow Brick scheme after trying for months to find a suitable candidate. Managing Director Dr Graham Root said We re not looking for someone with much experience just a person who is bright ambitious and eager to learn from ourselves and our project managers in Asia and Africa and who might eventually be happy to travel the world with the job working on projects that really make an impact on people s lives. Yellow Brick Programme Manager Sally Gallichan said We want our graduates to realise that Jersey has a range of careers to offer. We currently have positions like the one at Montrose plus others in engineering agriculture education and if there s nothing on our books that a graduate finds interesting we ll try to source one they will. JTC to open office in Mauritius JTC (Mauritius) Limited has recently been granted a licence by the Financial Services Commission to provide corporate fund and private client services from Mauritius. team which has been working with clients and their advisers in East West and Southern Africa for over 25 years during which time it has advised multiple client structures ranging from funds to private trusts. Philip Burgin Group Head of Client Services said Obtaining this licence and investing into Mauritius reinforces our commitment to providing our clients and investors with a truly international service. Many of our clients are based in Africa and have shown a keen interest in Mauritius as a service centre. We are now able to fully meet their requirements. JTC is able to provide a global service to clients via its network of local offices in Argentina Brazil British Virgin Islands Cayman Islands Guernsey Jersey Luxembourg Mauritius New Zealand Switzerland and the UK as well as USA representative offices in Miami and New York and alliance offices in Hong Kong Labuan Malaysia Malta and Singapore. The Mauritius office will build on the firm s existing fund corporate and trust services for private and international clients. The focus will be on establishing and servicing 08 March 2015 jsy CONNECT Mauritius global business companies funds listings of securities on the Stock Exchange of Mauritius and private client structuring. JTC has a dedicated Africa Investment Outcome Preparing them for the World United Kingdom N51 31 45 W0 7 38 Where will your investments take you Your world isn t confined 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 office 2 Grange Place The Grange St. Peter Port Guernsey GY1 2QA. ADVERTORIAL NEWS Game On for eGaming business and what Jersey can offer that is new or unique as the latest emerging jurisdiction. Part of this has been highlighting Jersey s position as a leading tier-one jurisdiction for Listing or place of IPO. Jersey eGaming has also been responding to a large amount of interest from industry press and local press. Jersey eGaming received more than 100 enquiries in 21 days following the Island s launch as an eGaming jurisdiction with several licence applications already in process. In response to enquiries since its January launch Jersey eGaming has been demonstrating how the eGaming industry has become a regulated global multi million-dollar Andy Jarrett Director at Digital Jersey said That Jersey eGaming has achieved so much interest in such a short space of time is a clear indication of the quality of what the Island has to offer the eGaming industry and also the industry s appetite for a fresh cost-effective jurisdiction which combines legislative innovation and solid experience. It s clear the momentum around Jersey eGaming is continuing to grow and Jersey can provide the whole package for eGaming companies from world-leading Listing IPO purchase possibilities to expert legal advice and excellent technology services. Our message is that Jersey is well and truly open for eGaming business and has all the resources to be the next global hub for eGaming operations. Banking online Our promise to you Our Secure Banking Promise gives complete security for our personal and business customers who bank online with us or through our mobile app. Easy. Fast. Secure. Secure Banking Promise online Search for the NatWest offshore app The Royal Bank of Scotland International Limited trading as NatWest (NatWest). Registered Office PO Box 64 Royal Bank House 71 Bath Street St. Helier Jersey JE4 8PJ. Regulated by the Jersey Financial Services Commission. Network charges may apply. jsy CONNECT March 2015 11 NEWS Jersey joins Normandy at top agricultural show Jersey and Normandy shared a stand at at the 2015 Salon International de l Agriculture held in Paris where Genuine Jersey cream teas were served to visitors. WHAT HAVE YOU BEEN READING a Quick look at the biG stories last month on bailiwick eXpress Dangerous sexual predator given life sentence for years of abuse A paedophile who police say subjected his young victim to the worst campaign of sustained abuse against a single victim that the Island has ever seen has been given a life sentence by the Royal Court. jsy news dangerous-sexual-predatorjailed-years-abuse Is our famous wildlife park on the brink of extinction It might have enlisted the help of a superhero but Jersey s world famous wildlife park could be on the brink of extinction. jsy news our-famous-wildlife-parkbrink-extinction The annual event is one of the world s largest and most important agricultural shows. Jersey and Normandy came together to reinforce their strong political economic and cultural links currently codified in a three-year agreement. The Minister for External Relations Sir Philip Bailhache said the collaboration was indicative of our firm and enduring commitment to the relationship Jersey enjoys with Normandy and to continuing efforts to sustain our important political economic and cultural links with France. In addition to cream teas the Jersey section of the stand showcased Genuine Produce food and drink products including wines and spirits from La Mare Wine Estate the Jersey Royal potato and hand-crafted local beers from Liberation Brewery. Representatives from La Robeline Cider - which produces cider and local apple brandy also attended. Economic Development Minister Senator Lyndon Farnham (pictured) said Last year the Paris show attracted nearly 700 000 visitors and is considered to be one of the key events in French political circles so it s an excellent opportunity to build awareness of Jersey as a tourist destination and to promote Jersey produce and identify possible export opportunities. Get this latest news & classiFieds straiGht to your inboX Every day we send our top stories directly to the inbox of each of our subscribers that database includes a diverse readership or thousands from senior professionals looking for business news to house hunters in the property market. Our current email services are DAILY NEWS EMAIL Goes out everyday to our largest database keeping them up-to-date with our top stories. WEEKLY RECRUITMENT EMAIL Getting the right staff is key to all local businesses and our Wednesday e-mail is just what they are looking for. WEEKLY PROPERTY EMAIL Targeted at our readers looking specifically for property. Published every Friday it catalogues open viewings over the coming weekend so property-hunters can plan their itinerary. WEEKLY MOTORING EMAIL Goes out every Tuesday to everyone looking for a new set of wheels. Our weekly e-mail makes sure they know the latest deals and are up-to-date with what s on offer. GUERNSEY BUSINESS NEWS EMAIL Goes out everyday to a Guernsey database keeping them up-to-date with our Guernsey business news stories. 12 March 2015 jsy CONNECT Storm in a teacup over free supermarket drinks You can still enjoy a cuppa while you re doing your weekly shop in three of the Island s supermarkets. http jsy news storm-teacup-over-freesupermarket-drinks NEWS News RE view Investec delivers brighter future for Island children Investec Private Banking has covered the 11 650 cost of a programme to improve the education and wellbeing of young children in Jersey. Growing Together is a 48week scheme operated by the charity Brighter Futures to support parents role as the first and most important educator by providing the environment so prenursery children can explore prime areas of learning and development. Dr Kevin Kelly CEO at Brighter Futures said At home there can often be distractions with older siblings and sometimes a lack of routine. This group provides a stable environment for parents to socialise have one-on-one time with their child and pick up parenting skills. Thompson Darcys and Matt Gillan from Matt Gillan at The Pass. Eight colleges from around the UK two students and one lecturer from each have been given the opportunity to work in the kitchen on the night at the event with an allocated chef. In November 2014 Mr Smith was named Head Chef of the Year at the Hotel Cateys 2014. Bohemia was also named as one of the best restaurants in the UK in The Sunday Times Top 100 Food List 2014 and in the Open Table Top 100 Best Restaurants 2014 in December as well as being awarded four AA Rosettes and receiving a top score in the Good Food Guide 2015. principles will require the JFSC to consider amongst other things how serious the alleged contravention was what aggravating or mitigating actions had been taken by the regulated business and the ability of the regulated business to bear a financial penalty. The consultation also sets out the processes that the JFSC will follow when a regulated business is accused of having seriously contravened a Code of Practice and as a result the JFSC is considering the imposition of a financial penalty as the most appropriate regulatory sanction. The processes are designed to ensure that the regulated business is given a proper opportunity to see the evidence against it and to make representations to the JFSC and for those representations to be considered fully and fairly. The Consultation Paper can be viewed on the JFSC s website. Hard copies of the Consultation Paper are available upon request expressed by Jersey s organic farmers about low market returns the difference between government support for organic farmers in Jersey and neighbouring regions and the subsequent need for transitional support whilst the new rural polices for 2016 and beyond are being negotiated. A review of organic farming in Jersey recommended the development of an action plan for the sector. The Jersey Organic Association together with officers from the Department of the Environment has drafted an action plan which will be included in a forthcoming consultation on the next Rural Economy Strategy. Deputy Luce said The development of an organic action plan will set out the next steps for the industry and its partnership with government but in recognition of a number of factors outside of the sector s control we want to provide support to farmers so they can go on to build demand and grow their businesses. It is estimated that the payment will total a maximum of 16 682 based on claims by commercial organic farms for approximately 1 325 verg es of certified organic land. A fine idea from the JFSC The Jersey Financial Services Commission (JFSC) has issued a Consultation Paper setting out the principles it will apply and the decision-making processes it will follow under the new civil financial penalties regime. This new regime will give the JFSC the power to impose civil financial penalties on regulated businesses that seriously contravene regulatory requirements set by the JFSC in Codes of Practice. The consultation sets out the principles that the JFSC will apply when determining whether to impose a financial penalty and if so in what amount. The Jersey chef to feature at national charity event Bohemia s Head Chef Steve Smith will be appearing at a culinary festival at the historic Corpus Christi College Cambridge this month to raise money for the NSPCC. Mr Smith will be among a number of notable chefs taking part in - A Passion to Inspire s Fishy Feast including Adam Simmonds from London s The Pavillion Phil Thompson from 14 One-off payment for organic farmers Jersey s organic farmers will receive a one-off extra payment this year following a decision by the Planning and Environment Minister. Deputy Steve Luce has approved a payment of 12.59 per verg e for all organic-certified agricultural land farmed commercially in Jersey between 1 January 2015 and 31 December 2015. The extra support is in recognition of concerns JT s effort for Autism JT staff have raised over 74 000 in its three-year commitment to support autism charities beating the original fundraising target by 50%. JT s staff March 2015 jsy CONNECT NEWS Email us on editor Got News based in in the Channel Islands London Boston and Melbourne joined together over the three years to take part in fundraising activities with their efforts matched pound for pound by JT. kept warm so heating bills can rise quite substantially. We will also be able to help with the cost of flights and accommodation for immediate family when a child is having treatment. We have several families who would very much like to see their wider family but have not been able to due to the cost so hopefully we can help with that. It is fantastic to know we ll be able to help in instances like this and we d like to give a heartfelt thanks to all the staff at RBC that gave of their time to raise funds for us. pooling robust regulation and tax neutrality. Paul Clark Africa equities specialist at Ashburton Investments in Jersey said as Africa s political and macro-economic environment improves and business conditions get better in general across the continent it is important not to allow some of the negative situations to cloud ones view of the bigger picture. Africa is reforming from within and improving its operating environment and as investors across the world look for investment opportunities the improvement in Africa s infrastructure challenges will be a key area for future returns. In the World Bank s latest Doing Business report they point out that out of the top ten improving countries globally over the previous year five were from SubSaharan Africa he said. reduce their electricity bill. He says that companies that use a lot of electricity during the day and have a large open roof space can stand to make substantial savings the typical pay-back period for the initial investment can be just six or seven years offering anything up to 19 years of free energy. And he says that his work supported by Jersey Business Ltd who have been giving the company advice and support since it was first set-up is looking increasingly promising over the next 12 months. The 60 panels on the roof of the Co-op are enough to power around four Jersey homes for a year but Mr Brandon said that while the numbers stack up very well for businesses they don t make as much financial sense for homeowners yet. Most people are not at home during the day when the sun is shining and the power needs to be consumed at the point of generation he said. So what we do at the moment is targeting businesses that have a high day-time power consumption so they can use all of the electricity that they generate. At the moment if you generate more than you use it goes back into the grid and the JEC pay you 6.5 pence per kilowatt-hour but that isn t enough to effectively subsidise the owner s bill for a good return on investment. We are expecting a big year this year. We re looking to offer a new sector of employment as this grows we re looking to recruit in 2015. 15 RBC clicks with its Charity of the Year RBC Wealth Management has raised the largest amount ever for its Charity of the Year CLIC Sargent Jersey. Through a range of fundraising events including bake sales and car boot sales a World Cup sweepstake Jersey Marathon sponsorships charity shopping nights and the most successful activity Wigs to Work RBC staff raised over 52 000 a record-breaking amount for its Charity of the Year initiative. CLIC Sargent Jersey has been helping Jersey families since 1974 with support for children or young people with cancer. Working alongside teams at the hospital and other agencies the charity provides financial and emotional support to affected families and is currently supporting 14 families. Dee Farrow Chairman of CLIC Sargent Jersey said We are over the moon to receive so much financial support from RBC Wealth Management employees. It will enable us to provide the rapid response that families need such as helping with unexpected bills. In these coldest months of the year a child with cancer must be World Economic Forum underlines Jersey s value to Africa Key messages from the recent World Economic Forum Annual Meeting held in Davos have reinforced the role the Island s finance industry can play in the growing African market according to Jersey Finance. Jersey Finance Chief Executive Officer Geoff Cook believes well-regulated international finance centres like Jersey can play a key role in routing that investment. International finance centres have a fundamental part to play in facilitating this kind of investment and Jersey is in a prime position to offer the continent the assistance it needs by providing protection for investors protection for African wealth access to capital markets efficient cross-border investment Jersey catching on to a bright idea The Co-op is the latest business to take advantage of Jersey being the sunniest place in the British Isles with the installation of solar panels. The roof of the new Co-op Locale in Grouville is covered in solar panels installed by Sun Works (CI) Ltd a local firm that specialises in solar panel installation. And managing director Mark Brandon says that more and more businesses including some in the finance sector are coming around to the idea of renewable energy to jsy CONNECT March 2015 LEGAL NEWS Legal Matters Appleby act in IFM Praxis merger Appleby acted as Jersey and Guernsey counsel to the IFM Group in relation to its merger with Guernsey based Praxis Holdings Limited. The merger is subject to regulatory approval. The newly created group to be named PraxisIFM will have combined revenues of over 23 million more than 30 billion assets under administration and employ over 200 people in nine offices around the world making PraxisIFM one of the largest independent and owner-managed financial services groups headquartered in the Channel Islands. The new group PraxisIFM will be able to significantly increase the range of products services and jurisdictions offered to its clients. The group will have offices in Jersey Guernsey Switzerland Malta Luxembourg South Africa New Zealand Mauritius and Dubai and representation in the UK. The Appleby team was led by Wendy Benjamin Partner and Appleby s Corporate Practice Group Head in Jurys inn For oGier Jersey who was supported by Jersey Senior Associate Danny Cole. Kate Storey Counsel led the advice in Guernsey. Commenting on the acquisition Wendy Benjamin said We are pleased to have assisted IFM in the merger and believe that the combined group will continue to develop and grow. Ogier recently advised on the 680m sale of the Jurys Inn hotel group to US private equity firm Lone Star. Ogier acted for the seller Jurys Inn Holdings Limited which is owned by Oman Investment Fund Mount Kellett Capital Management Ulster Bank Westmont Hospitality Group and Avestus Capital Partners following a significant debt restructuring in 2013. The transaction which is subject to approval from regulators in Ireland is expected to close by the end of March. Jurys Inn which runs 31 hotels employs 2 000 people and operates over 7 000 rooms is expected to report record revenues and profits for 2014 and was named winner of the Best Small Hotel Company at the 2015 Business Travel Awards. The Ogier team consisted of partner Nathan Powell managing associate Richard Daggett and associate Amy Galley who worked alongside English advisers Ashurst LLP. Nathan Powell said We have been acting as Jersey counsel to Jurys Inn since 2008 assisting with the restructuring and refinancing of the group so we are delighted to have worked with them again in relation to the sale to Lone Star and wish them continued success under their new ownership. Promotions at Ogier Ogier have announced five promotions in its Guernsey and Jersey offices with lawyers promoted to managing associate and senior associate positions. Sally Peedom from Ogier in Guernsey is promoted to managing associate. Sally joined Ogier in 2010 from Minter Ellison Lawyers in Queensland Australia having qualified as a solicitor in New South Wales in 2000. Her practice covers a broad range of matters involving a number of commercial disputes including contentious insolvency matters trusts 16 disputes and construction disputes. Ogier has also promoted four associates to senior associates Emma Hill in Guernsey and Christian Lawler Corinne Barnes and Lisa Floris in Jersey. Global Managing Partner Nick Kershaw said Congratulations to all our newly promoted lawyers across the Channel Islands. These promotions underline our commitment to training and developing our people and we are delighted to see our home grown talent promoted to senior positions. March 2015 jsy CONNECT jg From strategy through execution we help clients close the gap between ideas and results. Tap into our deep experience global connectivity and industry insights right here in the Channel Islands. Our Advisory areas of expertise Project Management People and Change Financial Services Risk and Regulation Risk Assurance Services Administration Listings Business Recovery Services Growth and change are two realities that no business can afford to ignore. Sustainable strategies that help your business innovate and grow while reducing costs and leveraging talent are just as essential as having the agility and creativity to respond to rapidly changing environments. By taking time to understand your business irrespective of size and industry and the issues and challenges you are facing our Advisory team uses local and global knowledge to help you challenge conventions and introduce and deliver strategies that work specifically for you. To find out how our Advisory team can help your organisation please contact neil.howlett 01534 838349 nick.vermeulen 01481 752089 david.x.obrien 01534 838228 2015 PricewaterhouseCoopers CI LLP. All rights reserved. PricewaterhouseCoopers and PwC refer to the Channel Island firm of PricewaterhouseCoopers CI LLP which is a member firm of PricewaterhouseCoopers International Limited each member firm of which is a separate legal entity. PricewaterhouseCoopers CI LLP a limited liability partnership registered in England with registered number OC309347 provides assurance advisory and tax services. The registered office is 1 Embankment Place London WC2N 6RH and its principal place of business is 37 Esplanade St. Helier Jersey JE1 4XA APPOINTMENTS Trading places Equiom appoints Senior Yachting and Aviation Manager the establishment of group offices in Malta and in the UAE. He also launched an offshore crew employment business and played a lead role in the implementation of a payroll and asset management platform. Equiom Group Client Services Director Aidan Davin said Edward has a wealth of experience in the offshore financial services sector. He will play a key role in defining the strategic direction for the Yachting and Aviation business lines as well as identifying opportunities to develop this area of the business in terms of product offering and jurisdictional reach. Mr Leigh is a fellow of the Institute of Chartered Secretaries and Administrators having qualified in 2004 and he became a trust and estate practitioner in 2006. He is also a member of the Chartered Institute for Securities and Investments. Jeffrey Giovannoni International trust and corporate services provider Equiom Group has appointed Edward Leigh as the Senior Manager of its yachting and aviation business lines. Before joining Equiom he was Managing Director of the Marine Aviation and Intermediary Divisions of a large international trust and corporate services provider where he had responsibility for strategy and business development. This included Voisin law firm makes two senior promotions A dvocate Jeffrey Giovannoni has been made a partner and English solicitor Katherine Guillemot has been promoted to manager of the probate and estates department at Voisin. Advocate Giovannoni joined the firmin October 2000 and qualified as an English solicitor in November 2002 and was sworn in as an Advocate of the Royal Court of Jersey on 16 February 2012. Mrs Guillemot gained a firstclass degree in Educational Studies from the University of Hertfordshire and she joined Voisin in August 2000. She qualified as an English solicitor in February 2010. New committee for Channel Islands PR professionals The professional body that represents the public relations industry in the UK has elected a new islands committee for 2015. At the AGM of the Channel Islands Group of the Chartered Institute of Public Relations (CIPR) held in January Adam Riddell was reelected as Chairman Guy Le Maistre was re-appointed treasurer and Mark Oliphant retained his role as secretary. The seven other committee members covering both Guernsey and Jersey are Jim Anderson Harriet Black Lisa Downes Leah Dunford Natasha Egr John McCarthy and Nichole Sweetsur. Mr Riddell said The group had a really successful year last year including hosting a talk on social media for business with proved to be the best attended workshop the group has ever 18 Adam Riddell held and I m excited to maintain this momentum into 2015. It s the tenth anniversary of the CIPR receiving its charter this year and we ll be reflecting that through our programme of events which will cover everything from crisis and internal communications to technology and ethics so there will be something of interest for all communications professionals across the islands. Katherine Guillemot March 2015 jsy CONNECT APPOINTMENTS Visit for all the latest business news or subscribe to get the latest news straight to your inbox Looking for more Business News New trustees at Jersey Hospice Jersey Hospice Care has appointed three new trustees to its council. They are are Dr Calum McClymont Stewart Rowney and Stephen Hunt. The main role of the council is to consider policy and strategy issues as well as receiving managerial statements including reports from the Chief Executive the investment committee and the boards of the fundraising and retail entities. Dr McClymont is a consultant in anaesthetic and pain medicine. He has been practicing for 21 years and moved to Jersey in 2014. Mr Rowney is a director of a project and business consultancy who was involved with the recent major development project of Clarkson House. Mr Hunt is a marketing projects director for a local law firm who will also be taking over as Chairman of the fundraising committee leading fundraising initiatives for the charity. Dr Gari Purcell-Jones Chairman of Jersey Hospice Care said I am delighted to welcome our new Trustees to the JHC Council. All of our Trustees provide skills and expertise that is vital in helping to continue to build the specialist services care and support we wish to provide for all Island patients requiring end-of-life care. Ogier Partner Simon Schilder joins Jersey funds team Senior appointments at AFM Ogier partner Simon Schilder has moved from the BVI to the Jersey office to strengthen the European funds team and help respond to client demand for BVI services in the European time zone. AFM has made three senior appointments following an increase in the number of contracts. Phil Le Claire Adrian Milon and Colin Bromley have all joined the facilities management company s senior management team. Mr Le Claire previously worked in the construction industry. He will be developing new business relationships and expanding AFM s hard and soft services in Jersey. Mr Milon has more than 25 years of technical building services expertise which will enhance the support teams while Mr Bromley will use his 20 years of finance and administration procedures to align management processes across the islands. Mr Schilder s practice covers investment funds cross border and multijurisdictional mergers and acquisitions corporate finance equity capital markets including listings of special purpose acquisition companies and joint ventures. He will continue to remain involved with Ogier s BVI office and advise North American funds clients in relation to BVI law. 19 jsy CONNECT March 2015 C utting our coat For many the most recent report on states Finances Finally drowned out the deceptive reFrain that everythinG is Fine in Jersey (so move alonG there s nothinG to see here ) it has been the repetitive political doGma eXpressed at all relevant opportunities with those who challenGed it variously branded as wreckers anti-Jersey the anti s leFties or most recently (and lauGhably) radicalised. and then came budGet 2015 which revealed the likelihood oF an imminent black hole Followed Just a Few weeks aGo by a report From the Fiscal policy panel which crisply set out the problems FacinG the island s Finances and pointed the states in the direction they need to Go to Find the solutions. ben Qu r e takes a look at the road ahead... 2 words Ben Qu r e In 2007 the States made what was on balance one of their better decisions. Responding to the lack of an authoritative expert and independent source of advice on economics they established a Fiscal Policy Panel a group of economic sages who would advise the States on how to avoid ruining the economy. Given that the global financial crisis was 12 months away it has turned out to be an outstanding move. The panel is chaired by Joly Dixon (a former top EU economics adviser) and includes Christopher Allsop (the founding Editor of the Oxford Review of Economic Policy) Tera Allas (the former Director General of Strategic Advice at the UK s Department for Business Innovation and Skills) and Kate Barker (a former member of the Bank of England s monetary policy committee the powerful group that sets UK interest rates). They re not household names but they are heavyweight brains who offer expert analysis guidance and experience. Their latest 56-page report sets out a blueprint for how the States should take on the apparently impossible task of setting the Island up for economic growth while simultaneously dealing with a deepening black hole in States finances. To summarise they say there s almost certainly a structural gap between how much the States spend and how much they can get in tax because of the fragility of the economic recovery we should fill that gap with money from reserves until the economy gets back to a solid level in the meantime the States should do everything they can to drive economic growth and to do things as productively and efficiently as possible that means that if there are capital projects 20 March 2015 jsy CONNECT SPECIAL REPORT SPECIAL REPORT that would be of long-term value we should do them as soon as possible even if that means borrowing money once the economy is back on track the States need to turn their attention to two major projects firstly balancing the books in the short term and secondly ensuring that we know exactly how we re going to pay for the next problem in line which is the enormous cost of looking after the ageing population. Senator Alan Maclean speaking at a recent Chamber lunch b they are sayinG that eFFectively there is a Q&A The Man in The Hot Seat The Fiscal Policy Panel s report shows everyone what the problems are and what we ve got to do about it. For the Island s new Treasury Minister Alan Maclean the report s findings and recommendations will shape his job for the next three-and ahalf years. The Fiscal Policy Panel has gone further than ever before in saying that it s very likely that we ve got a structural deficit. What s your take on that They are saying that effectively there is a high probability of a structural deficit but we won t know that until 2018 19 when the economy returns to capacity. Of course the government will influence the various probabilities depending on what our spending plans are. We have got to continue to invest they are saying that it s important to invest but that there s a difference between expenditure that s good and expenditure that s not. hiGh probability oF a structural deFicit but we won t know that until 2018 19 when the economy returns to capacity. jsy CONNECT March 2015 21 Financial Forecasting The numbers that just didn t add up... So how did the States end up with this black hole The story is all in the initial forecasts made by the States from 2012 on which they based their plans and which turned out to be ludicrously optimistic. In July 2012 the States were forecasting a 25 million surplus across 2014 and 2015 that s tax revenues exceeding spending and money going back into the bank. By the end of 2013 the civil servants who do the forecasting had revised that figure down to a surplus of 4.5 million not quite as good but still in the black nothing to worry about. In the middle of 2014 the forecast was revised again but somehow in the space of a few months a surplus of 4.5 million had turned into a deficit of 67 million. To wrap all of that up between 2012 and 2014 the civil servants who do the tax forecasting turned out to be off by something in the region of 92 million largely down to tax receipts not being as much as they d expected. But it s not just tax forecasts that are proving difficult. In July 2012 the same group of civil servants made a series of predictions about the Island s economy and forecast an early return to growth in 2011 with predictions of economic growth measured by GVA that looked like this 2011 1.2%. 2012 1.4%. 2013 2%. What actually happened Well we didn t return to growth in 2011. The actual figures were 2011 -1%. 2012 -4%. 2013 0%. So growth totalling 4.6% becomes a reduction of 5%. Spotted a trend here The forecasts weren t just wrong they were utterly crushingly wrong. SPECIAL REPORT b as a Jurisdiction we re wealthy and we have a siGniFicant amount oF assets. we talk about the strenGth oF our balance sheet which means that we own a lot oF stuFF buildinGs property a telecoms company For eXample and we ve Got cash in the bank. there is a certain proportion oF that which is unrealisable in real terms so that s Got to be put into perspective there s some thinGs that you Just can t sell. They re also saying that until the economy is back up to capacity we should be dipping into reserves to fund the deficit and that s a new message... We have used savings before we used the Stabilisation Fund and it was set up for that specific purpose. The total amount that we spent there was 140 million in various tranches but it is now empty. In the past the panel has supported construction not just to help the construction sector but because it was felt to be an effective way to get money into the economy. But there are other ways of doing that for example investment in skills. It is critically important to developing new industries in new sectors such as the digital sector that we can grow our own talent. Yes but the point that they make is that with a net position of 5.6 billion in assets we can afford to swallow a few years of deficits. Do you think that s right As a jurisdiction we re wealthy and we have a significant amount of assets. We talk about the strength of our balance sheet which means that we own a lot of stuff buildings property a telecoms company for example and we ve got cash in the bank. There is a certain proportion of that which is unrealisable in real terms so that s got to be put into perspective there s some things that you just can t sell. We could spend a lot less and not have a deficit and that sounds good until you realise where some of the spending pressures are. Health is a great example in the Medium Term Financial Plan they have a request for an extra 50 million over that four-year term. That s growth in real terms to cope with the rising cost of drugs and the ageing population. That doesn t mean that while Health and Education are priorities that they don t have to drive efficiencies. Any and every organisation can look at how it operates and find more effective and efficient ways of doing it. Another new point in the report was a call for big ticket capital projects that would support the economy the authors said that if the numbers stack up we should just go for it and not get hung up about borrowing costs. Agreed. There has got to be a revenue source and a way to pay the money back. Liquid waste investment is a good example. I have said from the beginning that taxes are a no-no until we have been through the process of squeezing out waste and inefficiency. There is a case for some ring-fenced charges to be debated with the community for things such as health and waste but there is a long way to go before we get to that. This is really important that is not putting What does Jersey s black hole mean for . . . Chief Minister Ian Gorst... It s not good. Any ideas that Senator Gorst had about the new direction for the next few years are going to be swallowed up by the Island s continuing economic problems. If the Island gets back to growth soon (and that s pretty likely) he ll still be left with the question of how to balance the books in a couple of years. That s on top of a new debate on population the question of housing and (somehow) making sure that the finance industry has a future. That s a tough tough gig. jsy CONNECT March 2015 23 b at the moment we operate out oF somethinG like 23 diFFerent locations. iF the states were to consolidate into one buildinG as an eXample that s somethinG any larGe private sector orGanisation would consider. the public sector with the number oF people that we employ has to be a leader in productivity Growth and workinG in one buildinG would without doubt chanGe the culture and chanGe workinG practices and drive those eFFiciencies. What does Jersey s black hole mean for . . . Treasury Minister Alan Maclean... It s not good. Like Senator Gorst he s walked into a huge job at precisely the wrong time. Senator Maclean s instinct as Chancellor will be to meet a structural deficit through cuts and making the States more efficient. But with the unions in increasingly militant mood and the future uncertain his job is not an easy one. On top of that he s got to find the money for the abuse inquiry which looks to be much closer to 20 million than the 6 million budgeted and is likely to be forced into charges for sewage investment and health which doesn t marry up well with his pre-election promises. really important. And it s why we need to see skills as an investment if someone loses a data input job because of the e-gov project we don t want them going to Social Security. We want to reskill them and get them a job at a higher level and with greater value which is better for them and better for all of us. What kind of things could you do to drive greater productivity in the public sector At the moment we operate out of something like 23 different locations. If the States were to consolidate into one building as an example that s something any large private sector organisation would consider. The public sector with the number of people that we employ has to be a leader in productivity growth and working in one building would without doubt change the culture and change working practices and drive those efficiencies. If we were going to invest in one thing I would invest in an office building. And I would move the whole lot. I have no doubt that there could be significant savings in terms of the work that the public sector does. That would be an investment and it would be interesting to see the view of the FPP if it was presented with a business case to support that. Are you concerned about forecasting it s clear that there has been a problem for a while now especially given the fact that the States figures up taxes it is not money going into the pot. There are opportunities to consider following advice from the FPP such as ring-fencing some funding for economic growth. Increasing productivity is a big theme in the report but it s not something often discussed here. What does it mean in practical terms It is about squeezing more out of existing resources whether that s in terms of people or structures or whatever. Utilising technology can be a good example. All industries in all sectors can drive higher levels of productivity it s the reason that the e-gov project is important it s 24 March 2015 jsy CONNECT SPECIAL REPORT What does Jersey s black hole mean for . . . Former Treasury Minister Philip Ozouf... It s not good. There was a massive drop-off in the States financial position and the economic growth forecasts on his watch and the decision to cut tax in the last Budget before the election now looks very odd. When the truth finally emerged about the deficit he launched a package of emergency measures that basically involved raiding utilities and leftover funds but that s not a sustainable solution. It s hard to avoid the impression that he s left his successor with a very tough job indeed on his hands. You... It s not good. A structural deficit in States finances can only be filled by more taxes or cuts to services. On top of that there s also a fresh problem we need to find more money for the health service partly because the cost of looking after people s health is getting higher as we get better at it and partly because we re living longer. The bottom line is that the tax burden is likely to rise in the next few years and it s most likely that Social Security is going to be the bit that goes up. were significantly out and that the GVA growth figures forecast in 2012 were hugely optimistic. We re adding some additional people to the Income Forecasting Group. There will be an external representative on it to make it broader and there will be a range of controls around it that did not exist previously which will hopefully ensure consistent outcomes. Ensuring that we have accurate forecasts in a difficult economic climate is essential. Clearly I cannot guarantee [that we won t see the same huge changes again] but I would certainly hope that the new Income Tax Forecasting Group its methodology and the controls around it will ensure that the forecasts produced are far more robust. END Businesses... Actually it s pretty good. The report recommends a temporary measure of dipping into reserves to fund the deficit which will be welcomed as an alternative to increased charges taxes. It also recommends a full speed ahead approach to economic growth and any capital productivity projects. The States bottom line isn t a massive concern for businesses (what s more concerning is that politicians tend to treat the public sector finances as more important than the economy overall) but an expert report that focuses the attention of politicians on the real problems will be very welcome news. 25 CAREERS Sell me a life in... o By MARTHA MACDONALD Corporate Law to ask the question What can this industry offer me So if you re fresh out of school or university and you feel as shocked and lost as I did when suddenly no one was structuring my time for me anymore this feature will hopefully show you the diverse ways in which you can arrive at the same employment goal. And who knows - this might be the career for you maybe you just don t know it yet. This month s interview took place at the law firm Ogier where I asked Advocate Bruce MacNeil Partner and Senior Associate Robert Dobbyn to sell me a life in Corporate Law. (A question I don t think many people would dare utter especially in the company of Corporate Lawyers). Shuffling around the revolving door I make a rather clumsy entrance into the most sophisticated office building I have ever seen. Feeling as though I have stepped onto the set of some highpowered legal drama I look down at my skinny jeans and Dr. Marten boots. Would I ever trade them in for a trouser suit and a pair of brogues Well let s see if they can convince me. W ith the mounting pressure on young people to get better grades go to university and climb the career ladder I decided as a real life young person to go out into Jersey businesses and investigate the employment opportunities available in the Island. The world of work can be a scary place contrary to popular belief career paths aren t always neat and tidy. I ve done the school thing the PE lessons the cringeworthy proms I ve worked hard for my grades and now I m claiming my right as a school leaver Bruce MacNeil Position Partner at Ogier Area of expertise Banking and Finance Corporate and Commercial Derivatives Restructuring & Insolvency Structured Finance Studied Law at University College London It s just a bit random. Some people might enjoy trusts or litigation or property. I think that it s important to have an interest on the financial side and a commercial side but there s a personal element as well. MM You mentioned working with London law firms does your job allow for many travel opportunities BM Mostly to London. There are crossovers with other jurisdictions such as Guernsey or Switzerland but most of the connections are to London. MM So you ve had experience in the English and Jersey sector what would you say are the main differences BM In London it s a long hours working culture and it s probably more stressful and competitive than working in Jersey. London attracts the top lawyers from around the world so it was tough when I was applying for training contracts but it s even tougher now. For me the motivation of moving to Jersey was I was getting married and in the run up to partnership and I fancied a bit of a change. I was 29 or so when I made the change but the years before then it was an excellent experience to be working in London. MM Let s talk about the hours would you call them anti-social Is that something you think puts people off this industry BM In London it was not particularly unusual to have to work until midnight or perhaps even later. London is essentially the financial capital of Europe so as a London MM Why did you decide to go into Banking and Finance Law BM Personally I enjoy working on large financial transactions just feeling like I m at the heart of the deal. When I was a student I became interested in the Financial Times and seeing what was going on in the markets and I enjoy that commercial element. 26 March 2015 jsy CONNECT CAREERS MM And what kinds of things can Ogier in particular offer law graduates BM One of the good things here is that we at Ogier can offer English law training contracts we are on of the few firms in Jersey that does offer that so that means you do pretty much a training contract that would be similar to what you would do in London. You do six months in four different seats and then you would end up qualifying as an English Solicitor. MM What about the money That must be a big motivator. BM The money beyond a certain point shouldn t be the main motivator. I ve seen people go into it just kind of going through the motions but you ve really got to be happy to do it day to day. Obviously it s good and it s nice for me and others as you progress up the chain and seniority and salary goes up but beyond a certain point you have got to enjoy your work or it s pointless. The money is good in commercial law but I do not think that it should be your main motivator. The most important thing is that you enjoy your work. MM So what would you say are the best things about your job Why should young people like me consider a career in Corporate Law We do want to convince the good students who are genuinely interested in law to come. It would come back to that fact that you have got to work on large commercial transactions with interesting and varied work. Dealing with the London lawyers and have a great time with colleagues that you re working with day to day. Martha s verdict So straight from the horse s mouth there is no doubt that this is an intensely competitive field. From the high academic expectations to the commitment of working long hours it seems that commitment is key. There s a lot of hard graft involved to get to the top but it s clear that the rewards are definitely in place if you re willing to put the work in. From the outside it s easy to condemn Corporate Law as being a faceless 27 About Ogier Legal services delivered to 99 countries 350 employees including 44 Partners 32 awards won since 2012 Works across 16 languages lawyer you are managing lawyers from different jurisdictions and working with the US and Asia so in addition to the long hours culture there s the international element. I thought that I got good experience working in London and I enjoyed it despite the working hours. I thought it was great particularly when I was newly qualified. You re young you re single you re in the Big City and there is lots of people around you at a similar stage to you and it s a really good experience. For Jersey students who have the opportunity to work in London and get a good training contract it is worth doing that. In Jersey it s a bit more reasonable...I would say my usual working day might be 8 am to 7 pm. And I probably work too hard but I have been like that throughout my career I have been dedicated to work and I ve become a Partner which is good after all of the years of hard work. MM What can young people do to maximise their chances of getting a good training contract BM Maybe the tip would be make sure you work hard and get academic results. If you go to a good university and get a good result then you have got a good shout at least at being considered for places at the top London firms and also in Jersey. But if you have got a 2 2 or below most people end up leaving the law because they find it so hard it s hard to get your foot in the door. I think that most employers are probably unduly focused on all of their associates or trainees having at least a 2 1 degree and to me it seems slightly unfair in that it is quite different doing a law degree versus a non-law degree and it s quite difficult going to a top university compared to a less prestigious university. But it seems that there is a blanket requirement for a 2 1. Academics are probably the most important but after that getting good work experience and doing summer placements is good for your CV and it gives you a taste for the work so you know what you might go into eventually. jsy CONNECT March 2015 CAREERS industry with minimal human interaction but I was surprised to hear how personal Bruce finds his work. Who knew He spoke of the importance of teamwork and working with London lawyers thus providing this career with a social dimension that I had never really considered before. I absolutely agree with Bruce that loving what you do is of vital importance but it seems that passion in a career as demanding as this makes the difference between a job being fulfilling or souldestroying. Luckily it s obvious that Bruce loves his work clear from the glint in his eye as he spoke of being at the heart of the deal . Qualifying as a lawyer How to qualify as an advocate and be called to the Bar in Jersey Obtain a recognised law degree or a Graduate Diploma in Law (one year conversion course for non-law graduates) Pass the Bar Professional Training Course or the Legal Practice Course in England and Wales (or equivalent professional courses in Scotland or Northern Ireland) Enrol on Jersey Law Course and pass Jersey law examinations Complete two years practical experience in a Jersey law office How to qualify as a solicitor in Jersey Obtain a recognised law degree or Graduate Diploma in Law (one year conversion course for non-law graduates) Enrol on Jersey Law Course and pass Jersey law examinations Complete three years practical experience in Jersey law office Robert Dobbyn Position Senior Associate at Ogier Area of Expertise Private Client and Trusts Studied History at Cambridge MM What position were you in when you left school RD I had no idea what I wanted to do and I would probably say to any readers who don t know that s OK I was most of the way through my history degree before I really started to think about what I wanted to do. I did history because I loved it and it was very interesting and it sets you up for all sorts of jobs because it s about obtaining information and arguing points. MM And how did you get from there to thinking about Corporate Law RD Probably through lack of imagination rather than anything else the main options seemed to be strategy consultancy accountancy banking and law. Not just because they tended to pay a lot of money and seemed quite glamorous but because there is a lot of that sort of work around whereas its quite hard to find your way into niche areas. MM So you followed a slightly less conventional path by not studying Law at undergraduate 28 level is this something you would recommend RD Not all degrees are as difficult as each other. I had a really good time doing history and my lawyer friends next door were certainly working hard. I think that the statistics were about 50% of lawyers at the big firms did not do law as an undergraduate degree. So I really would not be put off. If you have begun already something that you want to do I would say that getting a good degree is more important. You want a 2 1 ideally so I would not abandon a subject that you really enjoy to do law even if you do want to be a lawyer. MM Law is a very broad industry how did you go about specialising RD After doing a bit of digging it became clear that for me at least private client work was more interesting. I think that I like it because I m quite nosy about what people get up to. The big transactions themselves do not really get to me but I quite like knowing the gossip. You can t tell anyone about it I m afraid so I can t give you any names MM Where did you do your training contract RD At Withers. I knew that I wanted to do private client work and Withers are extremely good at trying to give their students what they want to do. They have a number of departments so I did Family Law which is not at all soft and cuddly as you might think it is it s pretty hard litigation working on big ticket divorces. I worked on the domestic private client department for six months handling estates and wills and trusts and I did six months in probate which is what happens when people have died and I did six months in residential property. MM Where did you go from there When did you decide to come to Jersey RD I qualified at an appalling time to qualify there were so few vacancies. Ogier has got huge strength in depth on the corporate side it also has a non-contentious trust practice that sits March 2015 jsy CONNECT CAREERS do is stick to what you love and you can t go wrong. Salary Approximate salaries for corporate finance lawyers in the Channel Islands 3 years PQE around 60 000 p a 4 5 years PQE 65 000 to 80 000 p a 6 years PQE 80 000 to 90 000 p a 7 years PQE 100 000 PQE - Post Qualification Experience Figures supplied by Taylor Root Global Legal Recruitment. Taken from Taylor Root brochure Living & Working in the Channel Islands . Figures accurate at the time of the survey (August 2014) As Robert talked me through the process of qualifying I could feel the ghost of A-level anxiety rising in my stomach. There s no hiding away from the volume of exams involved in becoming a lawyer so if that doesn t phase you congratulations you are made of stronger stuff than I. It s slowly dawning on me that despite my namesake I m no Martha Costello mainly because I m not a fictional character in a BBC drama but also because this industry demands a huge amount of responsibility. If that kind of right in the middle thrill is what you re all about then I may have just found your perfect career you re most welcome. alongside the litigation practice and that s what I applied for and where I have been for the last four years. MM And did making this move involve any further qualifications If you are serious about doing law in Jersey you will have to do Jersey exams having also done the STEP diploma which is a two year part-time course that you do. MM What other advice would you give to young people who are considering going into law RD Something that people should really look at is the Chambers s Student Guide which has a really useful feature called True Picture Reports which is a really frank and informal inside view about the different law firms and the different work that they do. The headline salaries of the big corporate firms are very attractive and at that stage you might not consider other things to be more important. MM And what s next for you are your sights set on making Partner RD I am certainly serious about my USEFUL LINKS career here and I think even if ignore the internal policy aspect which is that a partner needs to have an Advocate s qualification I do not think that I would feel comfortable advising a client on Jersey trust law without being a Jersey Advocate even though it s partly superficial I think that you just need to do it if you are serious about it. You could start it quite quickly if you wanted to for me it s a personal question about how you fit it in with your personal circumstances. We have one young child and another on the way but I thought that it would not get any easier so I decided to bite the bullet and start doing it. I really thought that I was done with exams but apparently not Martha s Top tips Get good grades There is no doubt that every sixth form student has had this message drilled into them since primary school. As much as I d like to tell you that this doesn t matter as much as everyone says it does I can t. The pressure to succeed academically is not only increasing but it s now expected for everyone to have As and A s. As much as I disagree with this academic inflation there s not much you can do but make it easier for your future self and study hard (even if your present self just wants to watch cat videos on YouTube.) Apply for work experience bursary schemes There are so many placements and bursaries available for local students looking to go into law you just have to look for them. Information about these schemes are available on individual firm websites and they really have a lot to offer you. As important as good grades are they are now not enough. You have to show your commitment outside of school in order to land a good training contract. It s not about the money money money The perks come thick and fast when you re going into something like Corporate Law but I suppose this can t be your main reason for going into the industry. A healthy bank balance is no substitute for being happy (but it some say it helps). Martha s verdict I was so glad to hear Robert readily admit he had no idea what he wanted to do with his life by the time he left school. It s okay not to have everything figured out before you can legally drink in a pub. If you re still not sure it doesn t mean that you won t be successful - as shown by Robert s example. The best thing you can Ogier http Institute of Law http Chambers Student Guide http jsy CONNECT March 2015 29 PICTURE THIS CCA Galleries International Royal Court Chambers 10 Hill Street. This historic building (circa 1870) was officially reopened by Sir Peter Blake CBE on 4th June 2013. picture this CCA helped to establish original prints as a major art form in their own right. A PICTURES in this Feature you won t Find any tired old clich s about pictures beinG worth a thousand words. oh no. we won t mention it not even once. instead we will simply tell the story oF a local business usinG only pictures (well ok and a Few captions) because here at connect we believe that the visual imaGe counts many times more than written lanGuaGe. Quite a lot more in Fact you could probably say about... a thousand times more. doh there you Go we ve said it. this week CCA GALLERIES show us Just what it means to display the very best in contemporary british art From sir peter blake to sandra blow damien hirst and sir terry Frost. in Fact Given what they do they couldn t be a better subJect For picture this. open your eyes and enJoy. Gary Grimshaw 30 March 2015 jsy CONNECT PICTURE THIS Royal Academicians such as Sir Terry Frost Sandra Blow Barbara Rae are regularly shown in the Gallery. jsy CONNECT March 2015 31 PICTURE THIS 32 March 2015 jsy CONNECT PICTURE THIS The Gallery is currently showcasing 101 pieces of contemporary British art by renowned internationally acclaimed artists including Bruce McLean Dan Baldwin Donald Hamilton Fraser Storm Thorgerson Damien Hirst and emerging artist Lucy Farley. CCA Galleries our UK counterpart has over 40 years experience as one of the world s leading publishers and galleries. jsy CONNECT March 2015 33 PICTURE THIS CCA s original limited edition silkscreen prints are made at Coriander Studio in London. 34 March 2015 jsy CONNECT PICTURE THIS Godfather of British Pop Art Sir Peter Blake has been collaborating with CCA since 2003 producing spectacular original prints. jsy CONNECT March 2015 35 FEATURE NEW UK GAAP WHAT DOES IT MEAN FOR JERSEY AND ARE YOU READY co-authored by director tim brown and senior manaGer GeoFF liron From rosscot chartered accountants. United Kingdom Generally Accepted Accounting Practice (UK GAAP) for companies not currently preparing their accounts under International Financial Reporting Standards (IFRS) has changed for accounting periods beginning on or after 1 January 2015. Since Jersey generally follows UK GAAP being United Kingdom Accounting Standards and applicable law the financial reporting regime for local companies will change. The existing plethora of Statements of Standard Accounting Practice Financial Reporting Standards and Urgent Issue Task Force abstracts will be replaced by a single Financial Reporting Standard (FRS 102). However there could be some confusion for those smaller companies (currently with a turnover of less than 6.5 million and total assets not exceeding 3.26 million) preparing accounts in accordance with the Financial Reporting Standard for Smaller Entities (FRSSE) as the new version of the FRSSE also effective from 1 January 2015 is to be withdrawn and replaced by FRS 102 with reduced disclosures the chanGes which we believe are most likely to have an eFFect on Jersey companies include the accountinG treatment oF investment properties and basic Financial instruments oF which we have speciFically identiFied shareholders loans. in respect of accounting periods beginning on or after 1 January 2016. With the recognition and measurement criteria for items to be included in the accounts of smaller companies following FRS 102 from the start of 2016 should the move to full FRS 102 be brought forward a year to avoid adopting the new FRSSE for only one accounting period The transition from existing UK GAAP to FRS 102 will have similar but hopefully not as onerous additional matters to consider as the transition to IFRS. For a company with a 31 36 March 2015 jsy CONNECT FEATURE Accountancy December financial reporting date the transition date is 1 January 2014 so its balance sheet at 31 December 2013 will have to be restated in accordance with the requirements of FRS 102. This allows the comparative 2014 figures in the profit and loss account (or income statement) included in the initial FRS 102 accounts for the year ending 31 December 2015 to be presented in accordance with FRS 102. Since the company s balance sheet (or statement of financial position) at 31 December 2014 will also have to be restated in accordance with the requirements of FRS 102 it could be a useful exercise to compute the FRS 102 figures at the time of completing the accounts for the year ended 31 December 2014 under old UK GAAP. Accounts will need to include a cash flow statement - until the reduced disclosures for small companies from 1 January 2016 - and the primary statements could be renamed as the statement of financial position and income statement. However we believe that most companies will continue to adopt the UK Companies Act terminology for individual items within the accounts especially in the balance sheet. Time will tell whether tangible fixed assets become property plant and equipment and stocks are replaced by inventories The first accounts prepared under FRS 102 will require a transition reconciliation note summarising the effect of transition on previously stated balance sheet amounts at 1 January 2014 and 31 December 2014 and income and expenses for the year ended 31 December 2014 for a company with a 31 December 2015 reporting date. What will the adoption of FRS 102 mean for Jersey The changes in recognition and measurement of items under FRS 102 which we believe are most likely to have an effect on Jersey companies include the accounting treatment of investment properties and basic financial instruments of which we have specifically identified shareholders loans. Under FRS 102 the definition of investment properties now includes property let to and occupied by another group company. Investment properties will be included in the balance sheet at fair value with any changes in fair value recognised in the profit and loss account and not direct to the revaluation reserve via the statement of total recognised gains and losses. A cumulative record of unrealised gains or losses arising on annual revaluations of investment properties included in the retained balance of the profit and loss account will need to be maintained. The future accounting treatment of loans from shareholders is currently causing some concern as it was hoped that such interest free loans with no specified date of repayment would be specifically excluded from the scope of section 12 of FRS 102 and identified as basic financial instruments thus avoiding the need for annual fair value measurement through the profit and loss account. Under the current provisions of FRS 102 it would seem that such interest free long-term loans have to be discounted at each balance sheet date using a market interest rate to compute the present value of future cash flows. A task made more complicated by the unknown nature of future movements on a shareholder s loan to his her company. A possible solution to the annual remeasurement of interest free loans from shareholders is to treat them as repayable on demand. However this could result in a weakened balance sheet with the repayable on demand loan included under creditors payable in less than one year creating a net current liabilities position. Alternative solutions being considered are to designate the loan as repayable in a year and a day so that it remains under creditors payable in more than one year with any discounted amount being deemed immaterial or attach a market rate of interest to the debt which alleviates the need for any discounting adjustment. This topic is likely to remain fluid until an accepted treatment becomes locally established during the initial practical application of FRS 102. How ready are you for the introduction of new UK GAAP Will your staff be sufficiently trained to start preparing accounts in accordance with FRS 102 from the beginning of 2016 Should accounting information and documentation necessary for the restatement of figures contained in the 2014 accounts be obtained in conjunction with the preparation of such accounts in 2015 to facilitate the computations required for the transition accounts Have you decided on the accounting framework and terminology to be used full FRS 102 from 1 January 2015 or FRSSE (2015) replaced by FRS 102 with reduced disclosures (if a small company) from 1 January 2016 Should you change accounting policies in advance of transition to FRS 102 and review agreements contracts and other issues for possible beneficial amendment prior to transition Have you established pro-forma FRS 102 accounts including a cash flow statement for preparation of clients accounts The final whistle is fast approaching so a timetable for the staged implementation of new UK GAAP over the course of the next 12 months should now be in place and should include sufficient time to roll out training for all accounts preparers. 37 jsy CONNECT March 2015 FEATURE What makes a good private client advisor carol-ann le boutillier associate hatstone lawyers Whenever I meet a successful private client advisor I am drawn to ask this question. I am consistently surprised by the variety of responses I have had over the years some of which were completely contradictory I have worked in the Jersey finance industry for ten years now first in trust administration and now as a private client lawyer. I have my own list of qualities that I think make an outstanding advisor. My list is drawn from the feedback I ve received from my own clients and from being lucky enough to have worked with and observed some truly outstanding wealth professionals. Here are my top five rules 1 . Be available Being a trusted advisor comes with responsibilities one of which is being available. Yes we know that in some cases perhaps all too often this can impact on life outside the office. Many of us have had telephone calls late in the evening. It is flattering to know that your opinion is respected but being available doesn t have to mean being on-call 24 hours a day seven days a week or responding to your emails within ten minutes of receipt. To me being available means effectively communicating your availability in a way that manages your clients expectations and needs. If the situation calls for immediate action then yes I am sorry you are going to have to shake yourself awake when the phone rings at 1 am but how often does that happen really In the same way your client respects your advice your client will also respect that you have a life outside of the client relationship. You may live in a different time zone and you will undoubtedly have other clients to contend with. If you can t respond immediately give an indication of when you will be able to respond. If your client calls late at night and the matter is not urgent arrange to follow-up in the morning at a time convenient for both of you. Make it a goal to always return missed telephone calls the same day. If you really cannot call back send a text or email to let your client know why and if 38 March 2015 jsy CONNECT FEATURE Advisory Services possible give an indication of when you will be available. When you do call give your client your undivided attention. This will help prevent them from feeling disappointed frustrated or resentful. In situations where you know you are not going to be available for a long period (when you are tracking up Kilimanjaro for example let your regular clients know who they can contact in your absence. your behaviour to achieve collective goals. It s not a popularity contest but you do need to rely on your interpersonal skills as negotiator diplomat and peacekeeper. degree of professional distance. I am not suggesting that you should decline to attend the weddings or any other social occasion you are invited too. I m simply saying that you should never loose sight of your role. You are first and foremost an advisor. Why do professionals find themselves compromising their professional integrity I have read the decisions of the Solicitors Disciplinary Tribunal and all too often it s due to an inability to say no (perhaps due to confusing client with friend) or a desire to give a client the answer they want rather than delivering a hard truth (for fear of loosing a good client or ones job). How often do we see the phrase we have a can do attitude Loose statements like that always come back to haunt you. Other times it s simply greed pride internal or external pressures. Too often professional advisors seem to loose perspective. A good advisor must weigh up their duty to the client their organisation the professional bodies to which they may belong and themself. Often these duties can conflict and it can be difficult to see the right choice . Maintaining professional integrity will always be a reflective process - both subjective and objective - measured in the light of context knowledge experience and information. Honesty to yourself and others is the foundation of good advice. I hope that if you walk away with any message from this article it s this To be a private client advisor you will obviously need technical skill knowledge and experience that s a given. But to be a good private client advisor I believe you need to take the time to truly understand and know your client put effort into maintaining that relationship and never compromise your professional integrity. 39 4 . Be patient Patience is not just a virtue it s a necessity. The antithesis of patience is frustration. So as an advisor you need to find ways to keep calm and if you can keep your client calm. Avoid arrogance and insensitivity. Difficult people can be infuriating and exhausting. When you start getting wound up take a breath and change tack. If you are too busy being irritated you may fail to hear vital information that can help you make your point or you will simply fail to get your message across at all. If your client is becoming irritated ask yourself why. Are you really hearing what they are telling you Do you really understand the issues Show that you understand their point of view and find another way to put your views across. 2 . Always be polite It seems a bit obvious doesn t it For me being polite involves addressing the client correctly being courteous and open in the way you communicate. I have clients who have asked me to address them by their first name and those that I would never think to speak to with such informality. I try to let the client set the social boundaries. There are clients that think lawyers are stuffy people and would prefer to chat through the issues by telephone rather than receiving a ream of paper. Equally there are clients who prefer the pen-topaper approach. As a good advisor you need to adapt your behaviour to your client s preferences. 5 . Never compromise your professional integrity I think this is probably the best advice I ever received when I was training to be a lawyer and it s a lesson that really resonates with me as a wealth professional. We all have special clients who look to us not only as advisor but also as a friend (therapist and relationship counsellor). I have often found that the richest people financially can be the loneliest. It is therefore not surprising that what starts out as a trusted advisory relationship can morph into a pseudofriendship. However the fact remains that you are being paid to do a job. Your clients are not truly your friends and it is important to maintain a 3 . Do not patronise Whatever you do don t patronise the client. They will not always have all the information available to them to understand your point of view. Equally they may be focused purely on something you have discounted as inconsequential or irrelevant. In order to give good advice you must first understand their position and aims. The way in which you give advice will depend on the person you are advising. For me the art of being a good advisor is wrapped up in being a good people person reading situations with emotional intelligence and moderating jsy CONNECT March 2015 FEATURE Taking the team with you when brinGinG about chanGe in your business GettinG accordinG to l ara should be a hiGh priority your people on board haskins advisory team at pwc ci senior manaGer in the With growth high on the agenda of most businesses in the Channel Islands many will need to evolve and adapt to achieve it. Whether change is through innovation new technology new markets new products or new clients success will above all - be down to the organisation s people. Although managing people through organisational change or transformation is often referred to as the soft side of change don t be fooled into thinking that it is therefore easy. In fact it is often the most challenging and critical component. People make change happen The bottom line is that change relies on people - it takes people to accept adopt drive and sustain changes to behaviours and processes in order to realise intended benefits. We have seen a real shift in core values of employees over the last few decades - values such as accountability ownership and empowerment are increasingly important. When change threatens any of these values and it undoubtedly does the natural response is to be initially wary and even to challenge it. It is how we manage people s experience that will make the difference people are more likely to embrace change if they feel part of the process. In the Channel Islands we have seen and will continue to see mergers and acquisitions restructurings changes in regulatory requirements and not forgetting the required changes in processes and systems all with the intention of delivering better value to customers capitalising on synergies improving operational efficiencies and even creating a culture of risk management and governance. All of which is now overlaid with the pace of technological and technical change of course. Recent feedback from the local market suggests that although we as a collective group are skilled technically - with legal and financial specialisation - at making change happen we are not nearly as good at managing projects and people through those changes. This appears a little contradictory given that it is the people that are central to businesses continued success. In fact according to PwC s 18th Annual CEO Survey launched in January talent 40 March 2015 jsy CONNECT FEATURE Advisory Services Sustaining the change clearly iF individuals don t make chanGes to their day-to-day work an orGanisational transFormation will not deliver results. From research and eXperience we know that successFul chanGe occurs when there is commitment throuGh the orGanisation a sense oF urGency or momentum a clear vision For the proJect that is understood and accepted robust stakeholder enGaGement openness clear communication stronG leadership and a well-eXecuted plan. How are you going to embed the changes into your day-to-day work and ultimately your culture Do you need to make changes to your organisation s performance metrics or how you recognise and deliver rewards Do you need to consider adjustments to your organisation design because there are physical barriers to working by these new methods Delivering Success diversity and inclusiveness are no longer seen as soft issues but rather as crucial competitive capabilities. To achieve the intended benefits people must be included as part of the change process and in many cases a solid strategy and plan needs to be put in place. That is why organisations that implement effective change management programmes are much better placed to outperform those that don t. Change management planning Simply put change management is a collection of processes tools and techniques focused on managing the people side of change in order to achieve the required business outcome. The change activities come together in the form of a specific plan that shadows and is integrated with the overall project plan. Examples of some key elements that would normally form part of a change management plan may include Change readiness review For some projects building an understanding and awareness of where your organisation is in terms of ability and readiness to change may be critical to your ultimate success. Have there been other major changes recently that could have a negative impact on your project Do you have the necessary resources both in number and expertise to bring to the project Questions similar to these can form a useful diagnostic tool to identify risk areas for your project. The more ready the organisation is to change the lower the risk of failure of the change initiative. Engagement Who do you plan on involving and how Identifying your key stakeholders sponsorship team and making sure you are involving the right people at the right time will be critical. Remember not everyone needs to be engaged all the time even if they think they do. The level of engagement should be consistent with the extent of the change. Communication plan Ensuring the right messages are reaching the right people in the right way. Making information meaningful to employees in their particular role can be challenging but will pay off in the long run. Look at your different audiences and identify what might be important to them based on how they see the business. Keep in mind that you are trying to bring people along emotionally and have them connect with the vision. A substantial amount of research has been done focusing on the impact a strong organisational change management programme has on the likelihood of project success. In statistical terms there is a significant positive correlation between the strength of the change management programme and meeting or exceeding project objectives as well as expected return on investment. Clearly if individuals don t make changes to their day-to-day work an organisational transformation will not deliver results. From research and experience we know that successful change occurs when there is commitment through the organisation a sense of urgency or momentum a clear vision for the project that is understood and accepted robust stakeholder engagement openness clear communication strong leadership and a well-executed plan. Regardless of the change at hand the message remains the same - focusing on the people side of change increases the likelihood of success. Being able to manage the soft side of change is fast becoming a required competency in business today and in many cases an independent change manager can bring the right blend of experience and objectivity to support your organisation through transformation. 41 jsy CONNECT March 2015 GLASS HALF FULL An amazing week that we will all remember T GLASS HALF FULL WITH Steve Bailey he 16th NatWest Island Games is tantalisingly close and the whole Island can look forward to a week of top sporting action on our doorstep. Games director Steve Bailey wants everyone in Jersey to embrace its positive spirit With just over 100 days to go to the opening ceremony on 27 June business is picking up in the Games office as all the Member Islands start their final preparations in earnest. Here in Jersey the organising committee and its ever-growing band of volunteers have been getting ready for the big day for the past 18 months or so. Jersey will be playing host to 23 islands during the week from as far away as the Falklands in the south to Greenland in the north. Including Jersey 2 800 athletes will be competing in 14 sports across 37 venues around the Island. The Jersey Games will be the largest held to date and our aim is to make it the best Games ever. We are in a good place and slightly ahead of the curve - hotel bookings for the visiting islands are almost complete. To date 3 844 rooms have been booked by our partner tour operator Channel Island Travel Group. 42 The hotel and guesthouse owners have worked hard with CITG to come up with a range of accommodation types at very attractive rates. In all more than 30 400 bed nights have been booked and confirmed so far. The commercial benefit that the Games will bring will be evident. The States have been supportive of the Games from day one and have funded them with an investment of 1.8 million. It is anticipated that the return will be in the region of 3.2 million. There will be other commercial benefits during the Games and it is hoped that tourism and associated industries will benefit because of the extra profile. Moving 3 000 athletes and officials around the Island twice a day will be one of our biggest challenges. Andy J han the organising committee s Logistics and Transport Director is working hard with many of the transport providers to design a system that is robust enough to meet the Games demands. A plan to run a loop service around St Helier which will serve seven of the venues every 20 minutes is almost complete and other innovative ideas are being discussed. As we get closer to the Games we will start a campaign to encourage Islanders to leave their cars at home during the Games to reduce traffic congestion especially at peak times. Our message will be to take the bus walk or jump on the bicycle. It s a good message that will hopefully become a legacy after the Games. It will certainly help us all to become a bit fitter. Making the Games inclusive is one of my key aims because I have always wanted the Games to reach out and touch every part of the Island. We are achieving this ambition for example we are currently working with the La Moye Prison workshops. Inmates are busy constructing all the rostrums that will used at the medal ceremonies. Similarly all the flowers and plants that will be used to decorate the Games venues and medal rostrums are being grown at the Prison. We are also working with schools on various exciting projects so far 30 Island schools are taking part in an adoption programme with a similar number of schools from the member islands. The Waitrose Games Maker project is the biggest community project we are working on jointly with Waitrose. We are currently training 400 volunteers who come from all age groups and March 2015 jsy CONNECT GLASS HALF FULL from every parish in the Island on the World Host customer service programme. 150 of them are also receiving basic first-aid training from St John Ambulance. The Waitrose Games Makers will be the Welcome of the games - they will be everywhere and involved in every aspect of hosting the Games. The Waitrose sponsorship is evidence of the can-do attitude of local business we are very grateful to the company for their valued partnership. We are working with many other local sponsors big and small their support is essential to the organising committee. JT have offered incredible support and are our technology partner - installing wi-fi at every venue and in the heart of the Games Village in Howard Davis Park. The NatWest Island Games are coming to Jersey soon. Even though the Games week will flash by it will undoubtedly be a memorable experience and the whole Island will continue to benefit for many years to come. The NatWest Island Games will take place at various venues around Jersey from 27 June until 3 July. BUSINESS ADVISER Business Adviser GET IN TOUCH... If you ve got a business question you would like to put to John please email editor Is really an essential strategy social media for business rapid viral exposure for products getting your website ranked higher achieving qualified leads increasing awareness of your company and potentially increasing sales. But is social media necessarily the right strategy for your business For some businesses most definitely for others most definitely not Just because everyone else is Instagramming Facebooking Tweeting Yammering and Linking in doesn t mean that you should. Successful marketing communication strategies have always used the old adage that marketing is saying the right thing to the right people at the right time and in the right way and I do not think the world has changed so much that this should not still be relevant today when deciding on social media strategies. Does Facebook really work in the business market Can you really attract new prospects via Facebook Would a business owner be won-over as a result of liking you on Facebook It might work for some segments but not all - so the first thing to consider is does it fit Does it fit with your company your image your product your type of customer your employees your method of distribution The wrong online brand strategy can help ruin a company overnight as the communication speed is so fast. Associating your brand with an inappropriate communication channel can be disastrous and virtually impossible to stop. Segmentation and selective targeting is growing fast in Social Media World but it is at an early stage of development and you cannot be certain that you are In our everyday lives we cannot avoid social media. If I wanted I am sure I can find out what Joey Essex had for breakfast this morning or the deepest thoughts of Katy Perry who has the equivalent of every man woman and child in the UK following her every tweet. Social Media can be a fantastic tool in any marketeer s tool box and the communications world is overflowing with marketeers talking about their social media success stories. However nowhere near as many talk about the pitfalls that can be associated with it. Only recently did the CEO of Twitter admit publicly that they suck with dealing with twitter trolls who spread abuse throughout the social network. It cannot be disputed that in some areas there can be advantages in achieving 44 March 2015 jsy CONNECT BUSINESS ADVISER saying the right things to the right people. Many major brands are guilty of promoting themselves to huge swathes of the market who in reality are never going to connect with them. They are spending money actually to dilute the value of their brand. I am not sure that the overused saying that all publicity is good publicity is actually true. One has to be aware of any new medium to create a dialogue with your customers but it is a fine line to tread. You have to commit and getting it right is not always simple. A high-street bank recently used Facebook to promote retirement products to the over 70s and they suffered severe reputational damage not only from the segment they were aiming at but also the segment they weren t as they were made to look out of touch with their customers both young and old. Others have launched their social media offerings in a blaze of glory and then lost their way through a lack of commitment. There is nothing worse than going to visit a corporate blog in March and the last post was wishing you a Merry Christmas. If we fail to keep things current once committed it surely tells potential customers that if you are too busy to maintain our social networks then you are probably too busy to provide them with the customer support they need. If as a company you cannot commit at least six hours a week to social media then I would suggest do not bother with it. Social media is a living breathing beast that is growing every day. If you feed the beast then the beast can work for you but you need to feed it often with a varied and exciting diet. Content in all media should be relevant and should be written and published in the style of the company and not be the thoughts of many disjointed individuals. Many marketeers forget this and think that they are the blog or the feed. Corporate blogs and feeds should be agnostic - they need to be interesting and a shop-front representing the company. Social media for most business is marketing tool that needs serious content and deals with issues that are important to your clients and potential clients and not you. Marketers are often criticised for understating costs (and time) and overstating the expected returns. Getting social media right is very time consuming and someone needs to be accountable for it dedicated and have a clear vision of what image the company wants to portray and how this should be achieved. You need to understand the company and its ethos to constantly feed your pages with relevant content monitor comments and respond to questions. For small companies this can be a serious problem as they need all hands on deck 7 to keep the company afloat. This commitment of time is why many small companies choose not to engage in social media to boost their marketing efforts. They realise their limitations and simply do without. A specialist outside consultant can help but he has to know your business and be as enthusiastic as you are about it poor social media is far worse than none. If you want expertise how much does it cost How do you measure its success How long will it take to wash its face The truth is that social media marketing must be a long-term strategy. Facebook Twitter etc are here to stay. Seeing a return could take anywhere from a few months to a year (or even never) before a company sees the benefits of increased customer loyalty and sales. What are the risks Poor social media will most definitely lose you clients. Another big issue is the risk of negative comments social media can expose you to billions of people and the risk of criticism or negative comments about a product or service is significant. It is estimated that TripAdvisor receives an enormous amount of fictitious reviews by people just wanting to distort the market. As with everything do not trust all you read. Ultimately deciding if you should employ social networks as part of your marketing plan comes down to what is right for your business. Can you afford to commit the time and effort to reap the rewards Does it fit Social media is definitely not a band aid solution to a poor marketing plan or to give you a sudden surge of sales. Rather social media is a committed effort to building relationships and a client base for the long haul. As the market grows the benefits and disadvantages will grow at a similar rate. It is just as quick to post a negative comment as a positive one remember those emails you have drafted and decided not to send at the last minute any slip and you are exposed globally. Negative comments travel just as quickly as positive ones actually probably faster. Social media is not only about clients it is about oneself and ones employees so be careful what you post and in what form. The same message should be relayed to your staff. Your employees are an extension of the corporate brand so provide them with the same health warnings as you give your business. As with everything only enter the fray if you can be certain of quality and discipline. Ah nearly lunch time ... now I wonder what Joey Essex is up to jsy CONNECT March 2015 45 Business o Columnist JOHN SHENTON Grant Thornton RobDudley o Photography By Gary Grimshaw Bridging the digital divide UNPLUGGED Y Unplugged I n January a group of local technology experts released an open letter to Digital Jersey detailing constructive criticism of its progress and way of working. The letter was from TechTribes an informal online community with five named authors Robbie Andrews Simon Brown Matt Chatterley Rob Dudley and Charles Robertson. Gwyn Garfield-Bennett went to the Digital Jersey Hub to meet Rob Dudley local software developer and co-founder of Race Nation a sports technology start-up. She started by asking him if in hindsight he was glad they d written the letter. ROB DUDLEY Fundamentally the letter has done what we wanted it to do. It has promoted an open dialogue with Digital Jersey. The primary goal for us in writing and publishing the letter was to actually make sure that these issues were aired but also to make it clear to other community members that they could come forward with similar issues because a lot of this had simmered for quite a while. To that end it has done exactly what we wanted it to do. The door while it was never exactly shut is now firmly open and the conversations that needed to be had are now happening. b the letter has done what we wanted it to do. it has promoted an open dialoGue with diGital Jersey. the primary Goal For us in writinG and publishinG the letter was to actually make sure that these issues were aired but also to make it clear to other community members that they could come Forward with similar issues because a lot oF this had simmered For Quite a while. GWYN GARFIELD-BENNETT What feedback have you had from members of the tech community in Jersey RD The feedback I ve personally had has been generally positive. They ve not been quite congratulatory but certainly they ve been pleased that this step has been taken that these issues have been raised. As I said many have taken the opportunity to actually bring their own issues forward independently which was always what we wanted this to be. At the same time we ve had a handful who have queried whether or not we should have published it at all. I suppose the point of it is that this was never meant to be a banner under which we expected the whole jsy CONNECT March 2015 47 Got a story to tell Get in touch email us at editor Island to rally. It was a reasonably sized group of people expressing their views on Digital Jersey s performance and it was designed to start this debate. So those who feel Digital Jersey is doing a fantastic job are absolutely free to say so. Those who agree with us likewise are free to get behind that message. GGB One of your criticisms is that ...Digital Jersey is using traditional processes that are ineffective and producing slow progress. Isn t it difficult to create something new and still try to fit into an established culture and government system as we have in Jersey RD It s incredibly difficult. The question we would ask is would you need to The building of Jersey s digital economy and associated ecosystem is a process that probably represents an opportunity to do things in a completely new way. Now that s not just experimentation for experimentation s sake. There is and I hope that this comes through in the letter we ve written a very real bias towards doing things in a certain way that exists in the technology industry versus say the finance industry. A lot of Jersey s processes and culture is driven by its finance heritage. It is by definition a very careful Island - it doesn t rush into decisions. It is considered and conscientious in everything that it does it is very risk adverse. Those things are 48 March 2015 jsy CONNECT great if you want to be an international finance centre those are absolutely the qualities that are required. Technology doesn t work like that. It is a much faster process. Risk is something that is embraced and almost sought out. Failure is not a bad thing in technology. The only time that failure becomes bad is when the process that causes that failure is ineffective at dealing with it - and this is where when we talk about agility about speed about iteration of concepts and ideas in the technology world. We know that we re likely to fail a lot so we make sure that the actual cost of that failure is minimal. So if an idea fails it fails taking with it a couple of weeks worth of work not 18 months. It fails maybe taking a couple of thousand pounds worth of budget not an entire year s worth. GGB Let s talk about the support behind Digital Jersey because we ve got Senator Philip Ozouf now responsible for the digital industry in Jersey. Have you had conversations with him Do you think that he is the right person to be leading this RD To quickly place this in context. As it says at the beginning of the letter Digital Jersey received a copy of it about a week before it was published. At the same time Senator Ozouf received a copy of the letter in his new role as Assistant Chief Minister with responsibility for Finance and Digital. I believe it was 24 hours after receiving UNPLUGGED b it he extended an invitation to the authors and some other industry members to sit with him and a senior civil servant. That conversation was achieved very very quickly. It was a little fraught but at the same time it did demonstrate firstly that Senator Ozouf is absolutely on the pulse of what is happening in the local digital industry which is of itself fairly admirable considering that he is two months into that role. As to whether or not he is the right person for the job my personal and this is strictly my personal view is that he absolutely is the right person for the job. He s got the sense of drive. He s got the attention to detail that s needed. He s certainly got the passion for technology and for growing Jersey s economy. GGB Isn t that that the trouble though Some of the criticism that you level at Digital Jersey is about monetising the tech community. You ve now got the former Treasury Minister who is effectively looking after the industry. Isn t there a fear that it s all going to be about money money money RD It s an interesting way to look at it. When we spoke about monetisation specifically in the letter we were actually referring to some fairly specific instances of the hub membership system and the fact that has been priced. It s not so much about the price that s been levied - diGital Jersey received a copy oF it about a week beFore it was published. at the same time senator ozouF received a copy oF the letter in his new role as a ssistant chieF minister with responsibility For Finance and diGital. i believe it was 24 hours aFter receivinG it he eXtended an invitation to the authors and some other industry members to sit with him and a senior civil servant. that conversation was achieved very very Quickly. that s perfectly fair it s more about the way that process was undertaken and the packages that were then offered. There were probably some areas that had there been more consultation within industry then we could have actually steered it to be a more beneficial model. In terms of growing Jersey s economy my view is that the Digital Jersey initiative is not altruistic. It is about economic diversity and therefore it is all about growing the economy. All about money. While e-gaming and gambling may not be everybody s favourite subject is an incredibly lucrative global market and Jersey is well set to take advantage of it. Likewise developments in financial technology e-health marine conservation technology etc. are all areas where Jersey can actually specialise and demonstrate real expertise and they re not going to do that just for the love of it. jsy CONNECT March 2015 49 UNPLUGGED RD Absolutely and while it may seem as if we pay it short thrift in the opening of the letter in the introduction we acknowledged those successes specifically referencing the hub and a number of the larger events that were organised last year as being fantastic successes for Jersey. At the same time the core fundamental of what actually happened to make a lot of those events successful is that there was a lot of work done both by Digital Jersey but also by community members. A number of events that have been held up as successes were directly developed in partnership. The hub is a fantastic space. It remains a space unless it has people in it and Digital Jersey have a great job of attracting local start-ups to populate the hot desk area and it is starting to become the kind of space that it needs to be but we still think that there is probably more work that can be done to turn it into a true nexus for the community rather than just digital industry. So the successes are GGB Digital Jersey has responded in another open letter. Do you feel they ve addressed your concerns RD On the face of it Paul s response was well rounded. It was considered and in some areas both his public response and also the new Digital Jersey Business Plan which was unveiled a couple of days after the letter of response was published went some way towards addressing some of the very specific concerns raised in our letter. At the same time there were certain areas that were left a little bit open. We never expected this to be a list of demands that would be met. It was rather a starting point for working around the areas that may be in process and this goes back to the concept of transparency. As it turns out there are some specific issues with regards to start-up funding and investment etc. that were immediately addressed in the Business Plan. Digital Jersey have clearly been working very hard on those areas for a number of months in order to get the Business Plan items together. We just weren t aware that the process was under way. Paul s response was also very open in that it invited further discussion and that s an invitation that I know certainly the core group of authors will be accepting and also we would hope that other industry leaders would follow suit and take the opportunity to sit down and talk to Digital Jersey about the issues that aren t immediately addressed either in the response or in the Business Plan. GGB It was always going to be a tough job setting up something like Digital Jersey but they have had successes. Do you recognise those successes 50 March 2015 jsy CONNECT absolutely fantastic. At the same time there s a lot more work that needs to be done. GGB Do you think that this new digital Jersey and I m not talking about the organisation now I m talking about Jersey with a digital economy - is realistic RD Jersey has traditionally shown itself to be - and I ll lift a phrase from Senator Ozouf s speech at the Business Plan event - very good at punching above its weight . When it puts its mind to achieving something as it did with the development of the finance industry and everything aligns so government industry legislature etc then it absolutely can achieve more or less everything it wants to do. So to that end Jersey can become a successful digital hub. GGB Do you think it will RD As to whether it will depends very much on how some of the issues raised in the letter can be addressed and also how successful Senator Ozouf and others can be at managing some of the disconnect between finance and digital as two very different industries trying to co-exist in the same space. I think that we ve got a great team of people involved and in charge. I think that we ve got a great community who are now starting to push some of those ideas forward. We have ticked more or less every box in terms of requirement. The rest of it will come down to a lot of hard work and a little bit of luck. END Unplugged You can read the TechTribe letter in full here https techtribesje an-open-letter-to-digital-jersey-134a9f49ad49 You can also read Digital Jersey s response here http je blog an-open-response-from-digital-jersey-to-techtribes VIEWPOINT E Viewpoint Graphic supplied by Digital Jersey What do we need to do to build a thriving digital sector in Jersey viewpoint puts Forward a key Question FacinG one oF the island s main industry sectors and then a Group oF leadinG practitioners Give their take on the answer and what it means For Jersey. iF you would like to be included in a Future panel oF eXperts Just email editor T Grahame Lovett chieF eXecutive oFFshore canaccord Genuity wealth manaGement o build a thriving digital sector in Jersey the finance sector needs to continually invest in technology to ensure they have the relevant infrastructure in place to maximise business efficiency but also to enhance services as clients become increasingly digital. Investing in technology is critical for all businesses and wealth management is no exception but there have been widely different approaches and experiences. Whilst some have procrastinated others have failed despite all their effort to implement new systems often at vast expense. Successful businesses have tackled the issue head on and continue to invest over time to stay ahead of the competition. For a business such as ours where the service to clients is paramount technology should be used to enhance the client experience not just replace the human touch. Canaccord Genuity Wealth Management has just successfully migrated to a new system to upgrade not only the way our business operates internally but it will also dramatically improve the service to our valued clients. Our ongoing investment in technology to further develop functionality to clients through our client portal will demonstrate our commitment to providing marketleading services coupled with investment expertise. 52 March 2015 jsy CONNECT VIEWPOINT W ould it be a cop out if I simply answered immigration immigration aged between 21 and 29 that we can teach and invest in to create an even greater digitally-native workforce. People willing to move from their home country tend to be aspirational and hungry by default otherwise they would not be willing to relocate. Take down the barriers for this age group and proactively market to them -whether they are digital specialists creatives or not. Just let some young blood into the Island and I will guarantee that in 20 years those that have stayed will have made an incredibly positive impact and helped to rebalance the ageing demographic and education skills gap. There are other essentials for sure don t mess with the tax system reduce States costs and make sure that the Health and Education system is accessible to all. But these all depend upon a healthy economy and not a diminishing workforce. immigration I think we have some major issues around education but we are not unique in these challenges - the European education system simply cannot keep up with the pace of technological change so how can we turn this on its head to Jersey s advantage Immigration. Controversial perhaps but actually is it If you step back for a minute and ask a simple and grown-up question who do we want to move to and work in Jersey the answer might encourage the thriving digital sector. Bright young things is the non-PC ageist but honest response. We want to be able to employ aspirational and hungry people Chris Clark chieF eXecutive oFFicer prosperity 24.7 T Mark Loane chieF eXecutive oFFicer c5 alliance o build a thriving digital sector in Jersey we need synergy between the States and the digital industry. There is additionally a critical need for the States to progress delivery of eGov to benefit not only the digital sector but also everyone in the Island. Individual companies in Jersey also have a responsibility to grow their sector for the good of the Island. For example at C5 we provide a range of free learning and training for graduates and members of the community as well as free support for a number of charitable organisations to digitally enable the way that they operate. It is a matter of everyone and every company needing to do their bit Jersey faces serious competition as a potential digital centre but it is a huge marketplace and we only need a small piece of the available business to make a significant difference. Digital Jersey needs to assist in the streamlining of laws and policies and in driving service innovation that enables our industry to thrive much like the process that is already in place for the financial sector through Jersey Finance. The States need to seriously commit to proper funding and support and to invest in building a home-grown digital skills base over the longer term. In the shorter term we need to close the digital skills gap though supporting inward investment and bringing over the right companies to create a cluster of digital businesses with international expertise that will also in turn support local industry. TAKE PART Would you like to be one of the industry experts contributing to Viewpoint If so please contact us via e-mail on editor jsy CONNECT March 2015 53 WHO S THE FOOL Who s The Fool So sue me o Illustration By Mark Jackson I f you paid any attention to last month s illconceived tirade the publisher and I laughingly refer to as a column you will know that amongst many facets of modern life the Fool fears the growing influence of mob mentality upon government policies. Doing something or not doing it purely because a sufficient number of shouty people can be distracted from their own turpitude to publicly vent their spleens at others is the thin end of a very thick metaphor. And yet in the last month alone the barrage of those who seek to influence our lives according to morality rather than by the rule of law grows unabated and the vein above my right eyebrow continues to twitch. Legality and morality can of course often make strange bedfellows. Whilst breaching either can often at times be fun the sanctions for doing so are very different. Get caught breaking the former and the State will look to deprive you of your money your liberty or if you ve done something particularly egregious both. Breach the latter and assuming you can bear the tutting and disparaging looks you are as The Man said free to go about your business. 54 March 2015 jsy CONNECT WHO S THE FOOL When it comes to conflating legality and morality Jersey undoubtedly has form. We have spent many years both literally and figuratively fishing in other people s waters. Whether it was liberating Newfoundland of its cod stocks whilst enjoying the protection of His Majesty s Royal Navy or depriving ship owners of their cargo in the name of (illegal) piracy or (legal) privateering playing the game appears to be something that is hardwired into our DNA. So it should probably come as no surprise that when it comes to offshore finance we are one of the biggest and one of the best around. The industry has worked hard over the last 50 years to transform itself both in terms of the business it attracts and the way that business is regulated. If the IMF OECD and numerous other regulatory bodies believe that despite offering certain legal tax advantages to certain people we run a pretty tight ship then that should be the legal box pretty well ticked. Of course the approval of global regulatory authorities makes absolutely no difference to certain people who believe that the offshore industry exists for no other reason than to rob governments of their ability to buy the votes of sufficient interest groups to secure their next election. When the baying mob consist of ill-informed grandstanding multi-millionaires such as Russell Brand their supposed moralising is easy to dismiss. When political parties and especially one which might actually get to run the country for the next five years look to get in on the act however we should be more concerned. Ed Miliband s recent threat to crack down on the immorality of UK s offshore territories aiding tax avoiders does of course make great copy ahead of an election. As a UK voter who wouldn t be attracted to the supposed holy grail of suddenly swelling the government s coffers with billions in previously avoided taxes The reality however of being elected on the basis of getting something for nothing is presently being played out in another EU country - Greece. The far-left Syriza party has recently been elected largely on the back of promises to end austerity measures imposed upon the Greek people by the EU. These austerity measures were introduced by the country s creditors to ensure that Greece began to reduce its ruinous levels of public spending and to begin repaying debts owed to the EU which were accumulated by previous governments. And here we have the classic morality versus legality standoff. Syriza s position is that it is immoral for the population to continue suffering austerity. Which is a fair point. The country s creditors however insist that legal agreements exist which the country is bound to honour in order that lenders who have given the country money in full expectation of being repaid receive what they are due. And somebody is going to come out of this unhappy whether it is the Greek people who have voted for a party who have promised them something they can t deliver or taxpayers in the rest of Europe who have enabled the Greek government to spend way beyond its means and face higher future taxes to pay for another country s profligacy. Now there s a moral dilemma. The UK presently has a national debt approaching 1.5 trillion and that number is growing by approximately 100 billion per year. If the UK population believe that a Labour party (who have already committed to higher public spending and thus more debt) is able to resolve that sort of problem on the basis of challenging the morality rather than legality of an offshore finance industry that is less reliant on UK business than ever before that will be a proper Greek tragedy in the making. What s more Miliband s comments raise their own moral question is it right to make empty promises to sweeten the deal for voters with spending that their kids will have to pay for or to pretend that he can bend the laws of economics and create something out of nothing WHO S THE FOOL 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... DEFINITION The Fool A privileged position held at an ancient king or queen s court the fool was not taken seriously by the high and mighty but was the only person able to speak the truth to power. The Greater Fool Theory The belief held by one who makes a questionable investment with the assumption that they will be able to sell it later to a greater fool . jsy CONNECT March 2015 55 g No Ordinary Day Job The haus that Glenda built poke your head outside on any sunny day in Jersey and evidence oF the island s love oF sport won t be lonG in JoGGinG cyclinG or power-walkinG into view. For many Jersey oFFers a prime opportunity to both work and play hard. now one local entrepreneur is takinG that combination to whole new (and healthy) level. Glenda rivoallan combines her role as vice principal oF hiGhlands colleGe with overseeinG the island s newest health club GettinG a perFect insiGht into what the island s economy needs to Get Fit in the process. Julien morel duG out his sweatbands and leG warmers and went to meet her. o Words By Julien Morel I f there s one Islander fit to preach about the importance of having a healthy body and mind it must be Glenda Rivoallan. In working hours the 41-year-old mother-of-one is the recently appointed vice-principal of Highlands College with responsibility for life-long learning in essence the adult side of the college. But when her day is done it s on to her other passion managing the affairs of Jersey s newest health club Healthhaus which Glenda co-founded and opened last March. Rest assured that Glenda is not your academic stereotype of out-oftouch awkwardness. A former national gymnast and sports teacher she is brimming with enthusiasm for both of her passions which she believes are as complementary as exercise and rest. Having Healthhaus is a real benefit to my job at Highlands because I get to meet so many different people who can give me an insight into what we need to do for Jersey s economy she said. It feeds right back into what I do and keeps me at the coalface. In order to realise the college s key o Pictures By Gary Grimshaw 56 March 2015 jsy CONNECT NO ORDINARY DAY JOB BIO name Glenda rivoallan title vice principal oF hiGhlands colleGe & Founder oF healthhaus company healthhaus would just put a leotard on and do it themselves it is more complex than that. The individual needs a tool box of support mechanisms that they can utilise at different times. We see Healthhaus as educating the client to make them independent of us. It sounds easy but it is quite a complex thing to do. For too long the industry has said Give them a good offer and they ll come in. Well actually they need a lot more than that. With the right education they will be able to release their grip from you and continue when you re not there. We do a huge amount of education at Healthhaus from our clinics throughout the week to our health checks and nutrition courses which every member gets. One of our members recently said that we ve taken the gym out of gym and I agree. So how exactly did the vice-principal of Jersey s largest college become the owner of Jersey s newest top-end health club If you thought it might be a spur-of-the-moment decision of someone desperate for a challenge then think again because Healthhaus is incredibly the 227th club that Glenda has opened. havinG healthhaus is a real beneFit to my Job at hiGhlands because i Get to meet so many into what we need to do For Jersey s economy aim of producing employable Islanders I need to know what employers need. Healthhaus which is in the Hotel de France is a new concept that Glenda devised after years of close observation of the health industry. I have a problem with the fact that the industry traditionally wants fit people to come into fitness clubs - but actually the people that need it the most are those who haven t engaged before. So the whole idea behind Healthhaus was the concept of nonintimidation. It is creating a home-from-home environment and promoting a 360-degree approach to your health. Gone are the days of the self-help gym where we assumed people diFFerent people who can Give me an insiGht Born and raised in Lanarkshire the netball football and gymnastics enthusiast left university with a B.Ed. in physical education. She started teaching but was soon managing health clubs for the local council. It didn t take long until a private-sector partner of the council was impressed enough to offer her a job. Gyms were pretty basic then but Pulse Fitness was at the forefront of developing turnkey packages for clubs finding processes which encouraged gym-goers to want to come back. This was a whole new era of club membership - one year contracts members lounges etc - so I became their regional sales director and started moving around the country and setting up or refurbishing clubs. But soon Glenda s entrepreneurial spirit something that had burned brightly since childhood prompted her to take the next step on her career. One day I was looking through a magazine and I looked at all the equipment manufacturers with client support divisions which help the client to open the club and the one that jumped out was called Avanti Fitness. They were the only big company left that didn t have that part jsy CONNECT March 2015 57 NO ORDINARY DAY JOB one day i was lookinG throuGh a maGazine and i looked at all the eQuipment manuFacturers with client support divisions which help the client to open the club and the one that Jumped out was called avanti Fitness... so i went down on the train to newcastle and had my draGons den moment where i pitched the idea to the board oF directors. of the business. So I went down on the train to Newcastle and had my Dragons Den moment where I pitched the idea to the board of directors. They backed me and gave me 12 months to set a division up. And that was how Guardian Marketing was born the equipment would be installed and then we would arrive taking it from the original idea to opening and beyond. Little did Glenda know that a short trip to Jersey in 2002 would involve meeting her future husband J an and she eventually moved over first teaching PE at Les Quennevais and then at Highlands. I have been extremely lucky at Highlands College I started as a lecturer in the sports department and then I was fortunate enough to introduce fitness qualifications to Jersey. I ended up in higher education and wrote in partnership with a consultant our sport and management degree which I am really proud of. After that I became Head of Teaching and Learning which is around the time the HealthHaus idea started to grow. One day I woke up my son Kaden was a bit older then and started to think about the whole health industry and where it was going wrong. One of my pet hates is the myth is that fitness has got to be super-painful to work. It is rubbish but that is what we sell. I had an ambitious but realistic vision. I knew it was bold because I was turning the whole gym paradigm on its head but opening 226 clubs had taught me a lot. The average operator thinks I have fitness products which I am going to sell to the fit but that is not what we re about we are about lifelong health and fitness. I travelled around the UK and Europe and did a huge amount of market research including discovering Milon in Brussels which really is our secret weapon. I was blown away by its precision and efficiency. Healthhaus is for people who need time-efficiency and Milon provides that involving just two 35-minute workouts every ten days. How many clubs do you know which only has one treadmill After defining the idea and finding the technology I then jsy CONNECT March 2015 59 NO ORDINARY DAY JOB Highlands. I feel as though I am a maestro which allows me to look at the bigger picture and not get too involved. I can do what I do because I am surrounded by talented individuals whom I trust. When you give someone an appropriate level of autonomy and responsibility they will perform at a higher level than if you hold them back. But you have to be there when they need you. So who has inspired Glenda to achieve so much in a relatively short space of time I ve always been entrepreneurial. My parents taught me about tough-love and hard work and I believe that with hard work determination and passion then you can really make a difference. That said the only way that you could do what I do is to have a really supportive family. My husband is always there for me and he is a great role model to my eight-year-old boy. The weekends are my sanctuary. I dedicate at least one day a week to doing nothing and I mean nothing... that is family time. In actual fact what is really lovely is that my son is already showing signs of an interest in business. We always have our morning conversations on the way to work and I can see that he s developing the same values that were given to me by my parents. Just as Glenda has turned the gym paradigm on its head so is she helping to steer Highlands in a new direction. English maths and employability are our key priorities and we see ourselves as a central plank in creating a workforce that enGlish maths and employability are our key priorities and we see ourselves as a central plank in creatinG a workForce that will meet the needs oF the Jersey economy went out to seek investment and was very fortunate to go into partnership with [Hotel de France owner] Mr [Robert] Parker and Natalie Le Mott e who has vast experience of general management. It really has been a marriage made in heaven. So how does a busy vice-principal also run a busy health club The key is surrounding yourself with fantastic people. I have got very talented lecturing staff and managers at Highlands and I have got very talented staff at Healthhaus. They are similar in that they all have an absolute passion to change people s lives. I have always had the mantra that you should surround yourself with people that you think are as good or even better than you - and especially with people who are good at what you re not good at. I see myself as a visionary and a strategist but it is no good just being creative and having ideas - you need the other parts of the jigsaw to build a balanced team. With Healthhaus it was all about getting people who love people. It s important to stress that I m not involved in day-to-day operations at Healthhaus I m not a micro-manager here or at 60 March 2015 jsy CONNECT will meet the needs of the Jersey economy. But with budget restraints across the whole of the Island both public and private - employers will have to invest more in developing the right workforce so Highlands is looking to work in partnership with organisations to meet that agenda. And it s not only for those up to the age of 19 but also adults returning to education. One of my aims as vice-principal is to make the college more visible so more people know what we offer. And what next for Healthhaus The immediate goal is to keep reinventing what we do. You could argue that the first ten months has been our honeymoon and this is when the real hard work starts because our staff have to keep recreating the memorable experience. Taking fitness personally runs through everything we do because it is about each member having a bespoke journey. Even though we offer similar products and services it s our people and their relationships with members that makes the experience different. END Question What s the best business to business platform in Jersey (show working out) Answer High footfall areas x 6 000 print Delivered to 7oo key locations (inc. airports hotels etc) 10 magazine stands x 155 000 1 000 mailed direct to business leaders Online at www.bailiwickexpress.c om x 6 000 social media audience (2 000 business tweets) 2014 8 000 e-publisher edition readers 1 000 Guernsey business email subscribers 14 000 readers 7 000 Jersey daily news email subscribers (read online worldwide) CONNECT How business should be done If you d like to advertise in CONNECT magazine please contact Mark Ferns on 01534 510309 or email markferns 34 510309 4 510309 030 0309 30 309 Here s Here s the Thing Yawn. This isn t so much another stab at public sector reform as yet another half-baked can t-be-bothered lazy swipe at it the much-vaunted e-gov programme has already stalled the civil service are limbering up to run rings around ministers once more and we ll end up with more invest-to-save malarkey that ends up being heavy on investment and light on savings. Here s the thing. Not so fast there s a new Sheriff in town. If you want one reason to be sure that Kevin Keen is the perfect man to run the new cuts programme here it is the chief officers don t want him to do it and they re thoroughly hacked off about him being wheeled in to do a job that they were perfectly happy not doing instead. You can see why. The record of the States on all of this is essentially that yes they ve run efficiency programmes. The last one saved 65 million. Punctuation fans may have noticed a slight caveat there it didn t save the money in the classical or even the dictionary sense of the word. What the Comprehensive Spending Review really did was take money and shift it somewhere else. So not so much saving money as moving money. There s a billion squillion ways to count States expenditure and none of them make sense but the ministers favourite is to look at net spending by departments - probably because it misses out capital spending non-departmental spending spending covered by charges and the millions that are spent out of Social Security funds. Anyway. Take the ministers favourite one in 2011 net revenue spending was 598 million in 2013 at the end of this oh-so-comprehensive-spending-review it was 636 million. Even allowing for inflation over the period they were spending marginally more at the end of it than they were at the start. That is not saving money. It. Is. Not. Saving. Money. But that is funnily enough not the way that they like to talk about it in public. Mr Keen s record is slightly different. When he was brought into Jersey Dairy to run efficiencies and save money he responded by making 20% of the staff redundant. A few years later he was drafted in to Jersey Post to see what efficiencies could be made. The result was that 20% of staff ended up being made redundant or facing pay cuts. He didn t want to do those things and has spoken about how difficult those decisions were to take. But they had to be taken to save the organisations. He s not completely out of the habit either - this year as interim chief of the new tourism quango Visit Jersey he was hovering around when the Jersey Conference Bureau was closed down and three staff lost their jobs (although that decision was taken by the board not by him personally). The point is that his approach to all of this is markedly different to the way that the States have done it in the past they use it as a way to spend more money he takes tough decision saves cash and turns around struggling organisations. None of this is to say that Kevin Keen is going to sack 20% of the States staff. It ll be politicians that make those decisions not 64 March 2015 jsy CONNECT him and in any case that would be a stupid thing to do (and in fact the Fiscal Policy Panel made a specific warning large cuts in public expenditure... should be avoided. ) In any case the point about government efficiency is that it s not all about sacking people or making workers redundant. It s about making bold long-term decisions upfront to yield benefits later. And that is literally the opposite of what we ve seen so far weak short-term decisions with no consideration of the bigger picture. Treasury Minister Alan Maclean wants to take a different bolder approach underlined by his appointment of Mr Keen. He makes that point in the Q&A interview earlier in this magazine saying that there was potentially a case for moving all civil servants into one large building instead of about 23 smaller ones around the Island. He s also talked about fundamentally restructuring the way that we do things while Chief Minister Ian Gorst has been talking about whether the States needs so many chief officers when some are doing essentially the same jobs as each other. But there s an obstacle. The former States head of HR Mark Sinclair was the first big advocate for public sector reform at the States in 2011. He was the first to break ranks and say that the States HR systems and work practices were stuck in the 1970s and 1980s and that the States were haemorrhaging money as a result. That frankness did not go down well with certain senior politicians and officers and Mr Sinclair found his efforts blocked and left after two years in the job. Similarly the big recent hope of an e-gov programme to create things like online tax returns giving Islanders access to their own health and school records or a one-stop shop for notifying a change of address (in 2015 imagine it ) has hit a wall and has been delicately shelved. The October deadline for appointing a contractor to do the work came and went the chief officer running the project Mike King has been quietly shifted sideways and the target of having 75% of all publicgovernment interactions happening online has been scratched. If you re wondering what happened to the 7 million project then you re asking the right question. Mr Keen s appointment doesn t solve the problems of government inefficiency. It doesn t magically change anything. But it does show that ministers have accepted that they can t do this job or expect civil servants to do it because all the evidence shows that approach just doesn t work. And that s a step in the right direction. Have your say... 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 Do you want a more comfortable retirement If you are over 65 and you would like to raise a tax free cash sum to see you through your retirement you could sell your home through Lifetime Enjoyment and continue to enjoy living in your home until you pass away or until you need to move permanently into a care home. For more information about our service or if you have any questions please call us on 01534 888818 or email info A LOCAL FIRM PROVIDING A SERVICE FOR LOCAL PEOPLE 01534 888818 info DISCLAIMER does not provide any legal or financial advice and we strongly recommend that you take professional advice before proceeding with any transaction. Retail Sales Index Q4 2014 4 March value of retail sales in the Good news from Planet Retail Both the volume and had seen a drop by both period from July-September were up by 1% - that period years running. Retail follows a measurements in the third quarter for the last three from a low figure at the start similar pattern every year essentially a steady build the Christmas rush. That of the year up to a big increase in the last quarter for what actually matters is the year-onmeans these figures are likely to be high but r types tend to be a bit moany year comparisons. Bear in mind also that while retaile both already going on and and woe is me -ish that there is significant investment into the retail trade. If it was all planned by the likes of Alliance Next and the Co-op that bleak those guys wouldn t be spending their cash. States 10 March well they ve taken over the The People s Army of Reform Jersey have taken over... as DD sees it the first is that States Order Paper at least. There s two sides to this rds and giving people a day off healthy populist stuff like knocking a penny off payca s designed not to win but to for Liberation Day is pretty decent opposition politic argument and there is nothing wrong put your opponents on the wrong side of an sitions are good for a headline with that at all the second is that while these propo the next three years is to mark they re not good for much else and the job for RJ over defining who they are in the out a clear identity for themselves as opposed to just spout sixth-form nonsense about context of the Council of Minis ters. It s one thing to an alternative. This could be the austerity and right-wing Tories it s another to build year that Reform Jersey decide who they want to be. Chamber lunch Assistant Chief Minister P hilip Ozouf Wednesday 18 March Deadly Diary will be FlickinG careFully throuGh the Future calendar oF political and business events ...and chewinG over what it Finds there. st. Yes Reader those are all Humble. Accountable. Self-effacing. Altruistic. Mode because they re unlikely to words. DD mentions them now to give them an airing or Philip Ozouf is giving the Chamber of crop up in the context of this event - Senat every month connect 66 March 2015 jsy CONNECT mic boom is just around the Commerce lunch speech. Expec t to be told that econo tie dining. Do not expec t a corner thank s mainly to his globe-trotting and blackfor Bill Ogley any mention couple of hilarious anecdotes about the 546 337 payoff al forecasts and the deficit he at all of the 92 million difference between his origin sion of political ethics in the left States finances in as Treasury Minis ter or a discus g a property tax consultation context of offering voters a rates reduc tion and revisin in the last few days of an election campaign. Chartered Institute of Mar keting Awards 2015 Friday 20 March deconstructed dining experience Oh Lordy. The event will be... ahem... a non-seated S a deconstructed dining with a difference. That s it sold. DD absolutely LOVE anticipation of applauding experience and is brushing off the black tie in eager Interestingly for all that people Vicky Boarder s award as PR Genius of the Century. have to demonstrate using take the mick out of marketeers award-winners will nition. That s the kind of actual statis tical information on why they deser ve recog rarely gets to see. Let s get the commitment to facts not talk that DD loves but so ombing on the go mwah fully-integrated brand-recognition social media love-b daaaarlings States Tuesday 24 March pen to paper that means Three items listed for debate at the time that DD takes b) they re working so hard that either that a) States Members are slacking off or that decide. In the meantime this they ve got all their work done. DD leaves it to you to and Airport that s not the is the sitting to debate the incorporation of the ports gh a company and not a States same thing as privatisation it s just owning it throu the distinction. Last time there depar tment. Don t expec t everyone to understand ational Relations Minis ter was a bit of a minis terial rebellion on this with Intern don t expec t an automatic easy ride for Philip Bailhache joining the nay-sayers so minis ters. Want more read take Five on paGe 06 jsy CONNECT March 2015 67 A Matter of Public Policy J ust before the end of last year the Royal Court authorised the publication of a judgment ruling upon whether words spoken at a settlement meeting could be used in evidence in the main trial. In a previous edition of Connect I set out the Court s decision in that matter - but was unable to give details until the main action had been decided by the Court. That restriction has now been lifted. The parties to the main action had been in dispute for over six years and proceedings had been issued and preparations were underway for trial. In an attempt to settle the matter the parties agreed to a settlement meeting at which a professional mediator assisted. As is normal practice each party was invited to make an opening statement during which they would set out the case as they perceived it. My clients claimed that their opponent a Mr Kilbey had stolen confidential data from their company and then used that data to set up his own competing business. My clients recollection was that when they explained this Mr Kilbey became visibly agitated and shouted and said ... Of course I took the data and used it ... I have done everything I can to destroy the business and to destroy you ... My clients recalled that despite the mediator interrupting stating that Mr Kilbey should think about what he was saying he said words to the effect of There is nothing you can do about it. Mr Kilbey was correct the meeting was without prejudice and the parties had signed an agreement that nothing said in the meeting could later be used in evidence. However there is sometimes an exception to this rule when the protection offered is being used as a cloak for perjury blackmail or other unambiguous impropriety. The question that had to be asked was whether this case came within the exception. Sir Michael Birt who was then Bailiff ruled that it did not. Referring to previous English cases on the same subject he stated that strong public policy arguments existed which required parties to be able to negotiate openly without the fear that what is said will later be used against them in trial should the matter not settle. He went on further to say that in the present case Mr Kilbey was indirectly denying that he said what my clients alleged. Well I agree that English cases do emphasise the need for freedom in mediation and that without that freedom cases may not settle as often as they do but I simply cannot agree with that thinking. explanation of how the data was accidentally used and found that Mr Kilbey had lied to the Deputy Data Protection Commissioner during interview in relation to these matters. But the issue still remains that the only reason why my clients were successful on this point was because they managed at trial during cross-examination to unearth the truth. There will be many other cases in which such attempts are unsuccessful. There will be cases in which a party escapes liability by lying in evidence against a backdrop where all other parties involved (but not the court) know full well that that party is lying because he has admitted the opposite to them behind closed doors when protected by the cosy comfort of privilege. Yes by all means run legal arguments yes feel free to admit to facts but go on to demonstrate they do not impose liability - but do not openly lie. I can see the force in Sir Michael s reasoning. I fully accept that if there is a widening of the situations when things said can be used in evidence it may be difficult in mediation to know whether a particular thing you say may or may not be later used against you and so caution may trump and parties will be much more guarded in speaking. I can also see the force of the English cases decided previously on which the Jersey Court placed reliance but for my part I cannot say that the reasoning results in a preferred course. My clients held the same view and while not a true representative sample by any means other laypeople with whom I have spoken also share that view. For them like me there is something inherently wrong that people can be permitted to behave in this way simply in order to protect the sanctity of encouraging people to settle their disputes outside the Court. Settlement should be encouraged and is very important - but it s not that important surely My view is that to openly state (as in this case) in front of your opponent and legal advisers that you have taken someone s confidential data and used it and done so to destroy them but then stand up in the witness box take the oath to swear you will tell the truth and then go on to deny taking using the data is nothing short of repulsive. The Court said that public policy encouraging settlement was so strong that only statements coming squarely within the exception - a high hurdle - could be relied upon. My view is that the importance of telling the truth at trial is more important. In fact anything else makes a mockery of the judicial system. My clients would have to sit through a trial listening to Mr Kilbey give evidence that he took some data but had not purposefully used it despite knowing that previously while protected by privilege he openly admitted (as they alleged) the opposite. But the truth has a strange way of sprouting its shoots. As it transpired the Court in the main trial found that Mr Kilbey had taken data from my clients which allowed him to compete and it rejected his The Advisor 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 68 March 2015 jsy CONNECT Why not treat yourself (or somebody else) to a bite of something delicious. Only the crunchiest biscuits tastiest cakes most luxurious desserts and gooiest dipping sauces make it into our Seriously range. Community Matters Every month we give our time and money to local communities. We donate 1000 to be shared by three good causes that you choose. Waitrose Supporting the community