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FREE Please take a copy IN THIS EDITION Should you buy Jersey property o Read online at o Issue 42 October 2015 Is Jersey bouncing back Top business leaders give their views on growth Investment Outcome Making New Friends Bahamas N26 3 41 W77 20 59 Where will your investments take you Your world isn t confined to a single set of geographic coordinates. Neither should your investments be. We search the globe to find outstanding investment ideas 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. 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) 5 Bond Street St Helier Jersey JE2 3NP 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 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. o Cover image by By Glen Perotte EDITION42 GET IN TOUCH... Please email editor O k we should have expected it. In a month when Jersey s politicians debated gay marriage there was always going to be something said in public which caused jaws to drop hearts to sink and spirits to plummet. But Connect s candidate for asinine uttering of the month doesn t fall crashingly from that debate at all. First the context. We are just a few weeks away from the big Deficit Debate which will see States Members agree a plan leading to compulsory cuts in States jobs new chaxes (what you pay when a tax is called a charge ) levied on every Islander and reforms in the way the public sector works. Even if you had just stepped off the delayed (probably) sailing from Poole arrived on our fair shores and asked this is Jersey right...what s it all about then you would know that merit notwithstanding there was always going to be substantial although politically ineffectual opposition to those measures. Put simply to catch the Ministers drift you need to accept that the States need major change that the economy can t now support the glorious edifice which years of banking profits have constructed. And to get to that point you need to realise we have a problem in the shape of a sucking hole removing 145m every year from the public purse by 2019. The Ministers have finally accepted that and have staked their political reputations on being able to heal the hole with the program outlined above. There s a very thin taut strand which connects all of this that to make major change you have to accept there is a major problem. If you don t resolve to reform slips quietly (you hope) into the sand and actual real action is crushed under a brash onslaught of empty political posturing. The net effect is we all carry on largely as before with the Island s fingers crossed firmly behind its back. That strand snapped with loud ping during the presentation of the recent Innovation Review which effectively told us that the Island had lost it s innovation mojo. It snapped with a reference from the former Treasury Minister Senator Ozouf to the so-called deficit. Right so now it s no longer an actual deficit it s just a word beginning with d which some poor misguided people (not sure why ) have begun to use. Actually we should be talking about just how great our public finances truly are thanks perhaps to the wisdom of former Treasury Ministers In which case why are States workers losing their jobs Why are we going to have to all pay more money in chaxes People might understand if the deficit is real but if it s only so called then the whole ministerial action plan is at best pointless and at worst a con. It is exactly that sort of barefaced reality refusal which has clipped the wings of change in Jersey and slaked our thirst for innovation - Chamber and the IOD jointly caution against it in our Unplugged feature on page 36. Read helps with reality. 01 Please recycle this magazine. Like Bailiwick Express connectjersey jsy CONNECT OCTOBER 2015 Contents SPECIAL REPORT 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. my secret life 20 REGULARS LOC AL NE WS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 LEG AL MAT TERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Voisin Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 TR ADING PL ACES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 GUERNSEY NE WS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 TECHNOLOGY Lisa McLauchlan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 PIC TURE THIS . . . L A MARE WINE ES TATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 BUSINESS ADVISER John Shenton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 UNPLUGGED Wendy Dorman Wendy Lambert and Kristina Le Feuvre . . . . . . . . . . . . . . . . . . . . . . . . . . 36 TR AV EL Amanda Eulenkamp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 VIE WPOINT Is Jersey property still a good investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 GL A SS HALF FULL . . . Dave Edwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 MY SECRET LIFE Darren Moran . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 MARKETING FORCES Christopher Journeaux . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 HERE S THE THING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 DE ADLY DIARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 WORKING LUNCH N E W Dr Joanna Kumpin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 THE ADVISER Olaf Blakeley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 02 OCTOBER 2015 jsy CONNECT 50 L AW FEATURES INVESTMENT Barclays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Canaccord . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Ashburton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Stanley Gibbons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Hatstone Lawyers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Mourant Ozannes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Special Report SILENT WITNESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 A reclusive millionaire options trader with a history of mental problems and an obsession with firearms. An idyllic jungle retreat complete with a pet sloth millions of dollars worth of gems and a pair of AK-47s. A road-side kidnapping and millions going missing from a Trust fund. A haphazard murder investigation with just one witness and an astonishingly sloppy mess of ballistic evidence. It s no wonder that the trial of Ann Patton was in Costa Rica the trial of the decade if not the century. But the long troubled and sad story of the case can be boiled down simply - John Bender wasn t murdered he killed himself. You can read this magazine plus the latest local UK and business new online with UNPLUGGED 36 62 76 70 74 48 42 jsy CONNECT OCTOBER 2015 03 JERSEY NEWS Blacklisted There s one constant with the news it gets smaller. Back in the olden days national newspapers used to be great big things that spread out like roadmaps full of long-winded stuff about What It All Means instead of just being full of Stuff You Saw On The Internet Yesterday the radio used to be all about interviews and features instead of subMoylesian wittering and the less said about 24 hour news TV channels the better. But that s the way things are and no one can fight it. So Connect is going to go with the flow and imagine a world where every story comes down to a single 140-character Tweet. When this is how the entire news industry works in about six minute s time just remember that you saw it here first... Jersey has been placed on a US tax haven black list. The Island is one of 39 jurisdictions on the list including Guernsey the Isle of Man and Gibraltar which has been published by the US District of Columbia. The list includes jurisdictions that prevented the exchange of tax information lacked transparency or created a tax regime favourable for tax avoidance. It s not immediately clear what the implications would be or when the change will come into force. But the Chief Minister s department says that the listing is a mistake because it is based on out-of-date information. A statement from a government spokesman said The list compiled by the District of Columbia uses information that is not upto-date. We will be working with appropriate authorities in the District of Columbia to update the list as well as to challenge the outdated and 04 inappropriate label of tax havens they have applied to the list. The announcement comes months after US Deputy Assistant Attorney General Kenneth Blanco praised the Island s support in asset-recovery while he was here to sign a partnership agreement between the US and the Island s prosecution service. At the time he said The consistent and reliable cooperation we receive from our counterparts in Jersey has been indispensable to our efforts to recover many millions of dollars in criminal assets from abroad. Because a number of pending U.S. investigations and prosecutions involve assets located in this important international financial centre today s agreement can be expected to serve as a useful tool for asset recovery and sharing in the future. Jersey has had a Tax Information Exchange Agreement with the United States of America since 2006. Jeremy Corbyn o doesn t believe Labour elects leader wh or the concept in NATO God the Queen sed on his voting of Labour leadership (ba record) JezWeCan Back to the Future flat screen TVs Hoverboards FaceTime world to deliver - humanity waits for the ckToTheFuture2 on promises made in Ba Don tLetUsDownScience Wayne Rooney Rooney beats Bobby Charl goals record. Is he better No Got a suggestion for Tweet Me You know where we are... ton s England For all the latest business news follow connectjersey Follow us on Twitter OCTOBER 2015 jsy CONNECT INVESTING IN RELATIONSHIPS GETS THE BEST OUTCOME DON T JUST TAKE OUR WORD FOR IT. FIND OUT MORE ABOUT OUR AWARD WINNING SERVICE. CALL TIM CHILDE HEAD OF INTERNATIONAL & JERSEY OFFICE TEL. 44 (0)1534 506 070 OR VISIT WWW.QUILTERCHEVIOT.COM Investors should remember that the value of investments and the income from them can go down as well as up. Quilter Cheviot Limited is registered in England with number 01923571. Quilter Cheviot Limited is a member of the London Stock Exchange and authorised and regulated by the UK Financial Conduct Authority. PROMOTIONAL FEATURE Radisson Blu Waterfront Hotel The Radisson Blu Waterfront Hotel enjoys spectacular views and provides the perfect location for Christmas celebrations. As well as offering a range of party options for local businesses they also cater for family events with all the trimmings A festive lunch buffet will be served on Christmas Day inclusive of a succulent carving station. Enjoy crisp views out to sea and maybe even a Christmas Day walk around the marina after over-indulging at lunch New Year s Eve is a glamorous affair with sparkle glitz and glam. Ring in the New Year in the Waterfront Restaurant with a sumptuous three course dinner followed by a live band and DJ until the small hours - the perfect way to celebrate another year with family and friends. For those of you seeking to enjoy all the festivities you possibly can the Waterfront Restaurant also serves up a delicious New Year s Day lunch from 12 30 15 30. To make it even more enticing this year they are offering a special 2 for 1 offer Enjoy a three course lunch buffet for two people for just 35.00 If you are attending a corporate Christmas party or one of their joiner parties you can also swap the queues for ZZZs and take advantage of their special festive overnight rate of just 55.00 per room per night on a room only basis. For more information on these or any other Christmas events please contact the Radisson Team on 01534 671100 or email info.jersey Christmas like the ones you used to know. . . Served Friday 4th 11th and 18th December -12 00 - 14 30 Enjoy a delicious three course festive lunch followed by tea and coffee in our relaxed Waterfront restaurant. 18.95 per person Saturday 12th December and Friday 18th December 19 00 - Late Inclusive of a three course menu a Blu Snow Ball Quiz and entertainment from Little Big Band and DJ Will until the early hours. Return coaches to town are included from 12 15 - 1 15am. 38.00 per person Served 4th 5th 11th 12th 18th and 19th December -19 00 - 22 00 A sumptuous three course dinner with tea and coffee followed by entertainment from DJ Spencer Davies in the Elizabeth Room. 27.50 per person Festive Lunches at The Waterfront The Blu Snow Ball Festive Dinners at The Waterfront To make your booking call 01534 671172 or email christmas.jersey 06 OCTOBER 2015 jsy CONNECT JERSEY NEWS Bailiff lawyers should drop hourly rate charges firms have moved on from hourly rate systems some have not and he has used the occasion to call on the profession to reduce the costs of legal services. Mr Bailhache said From a business perspective it is necessary to know how much one should charge to ensure that the business makes a profit and does not head for the bankruptcy court. On the other hand the value of the job to the client does not normally depend upon the number of hours which have been spent by the lawyer and his employees on the job in question. That is so obvious when one thinks about it that it is perhaps surprising that difficulties have not arisen earlier. Charging by reference to an hourly rate alone ultimately will produce a business model which must surely fail because it is also inefficient the longer you take on a job the more you can charge for it. How much worse does it not become when the more employees you have working on the same job at the same time the more the fee increases I hope these remarks will set up a sensible debate in the profession about the appropriate use of rates the need to focus on the value of the job to the client and the need to use the growing number of lawyers reflected in genuine price competition. Lawyers have been told they should stop calculating fees based on an hourly rate by the Island s chief judge. In his first speech at the Assise d H ritage a ceremonial court event since taking over the role of Bailiff William Bailhache said that the business model behind basing fees on hourly rates must surely fail and that the end of the system is in the interests of the public and the profession. He says that while most Moore Stephens Fund Administration An offshore specialist bespoke service. Providing fund accounting and administration services across a range of asset classes for both private and institutional clients. We have long standing relationships with investors from multiple jurisdictions delivering high quality reporting that can be created to suit client needs and requirements. For further information please email fundadmin or telephone 44(0)1534 880088 Regulated by the Jersey Financial Services Commission. PRECISE. PROVEN. PERFORMANCE. jsy CONNECT OCTOBER 2015 07 JERSEY NEWS crestBridge to open new office in the cayman islands The new Crestbridge operation will be led by a team of three Cayman directors with extensive experience in the Cayman Islands working with fund and corporate structures including hedge funds multi-manager funds private equity debt and insurance structures. The team will develop the Cayman offering on joining Crestbridge with an initial focus on providing specialist corporate governance services to the alternative funds sector. Crestbridge Chief Executive Graeme McArthur said We are delighted to have such an experienced team joining us and bringing with them market leading expertise in the specialist sectors they will serve. Given the demand for Cayman based services from our existing client base Crestbridge opening its doors in the Cayman Islands makes sense not only for our existing clients but for our overall growth strategy. Crestbridge has offices in Jersey and Luxembourg and offers a range of fund real estate corporate capital markets and family office services. The firm has an 18 year pedigree in financial services administers over US 60 billion of assets across multi-jurisdictional structures and supports a broad range of blue chip corporate and institutional clients. Independent fund and corporate services provider Crestbridge has announced its intention to expand into the Cayman Islands in response to continued growth and client demand. Subject to regulatory approvals from the Cayman Islands Monetary Authority Crestbridge plans to offer a range of governance services to the international funds community with the office scheduled to open before the year s end. To the p int. We get straight to the point managing complexity to get to the essentials. It is a collaborative approach. We listen actively asking the right questions focused on what really matters. We deliver targeted pragmatic advice with absolute clarity. Legal services in British Virgin Islands Cayman Islands Guernsey Hong Kong Jersey Luxembourg Shanghai Tokyo 08 OCTOBER 2015 jsy CONNECT JERSEY NEWS Let in skilled staff and back innovation with cash - report Not enough talent not enough knowledge and not enough support from the government those are the key things holding back innovation in Jersey. WHAT HAVE YOU BEEN READING A QUICK LOOK AT THE BIG STORIES LAST MONTH ON BAILIWICK EXPRESS Police officers investigated for mocking woman with mental-health issues Two police officers are being investigated after a woman complained they mocked her and one said she would love to slap her when she went to A&E on Saturday night. http jsy news police-officers-conductunder-investigation Minister tells Condor Get a better ferry After a weekend of travel misery chaos and delays ferry company Condor have been told to sort themselves out and invest in a better vessel. http www.bailiwickexpress. com jsy news condor-needs-getanother-boat-says-minister Which Jersey restaurant has lost its Michelin star One Jersey eatery was left with a bad taste in its mouth after losing its coveted Michelin star in the latest edition of the prestigious guide. http jsy news which-jersey-restauranthas-lost-its-michelin-star That s the verdict of an in-depth report on innovation which calls for the States to relax restrictions on qualified and skilled people coming to the Island. The report also suggests that the Island should work to develop an intellectual property sector and that the States should buy in to successful UK government innovation funding schemes so that Jersey companies can apply to them for support. It concluded that the two big problems were access to skilled staff from outside of the Island because of restrictions on licenses for immigrant workers and the lack of government backing for innovation research and development. The report was written by Tera Allas a member of Jersey s panel of expert economic advisers who is a former Chief Economist at the UK Energy and Climate Change and Transport departments and a former Director General of the Department for Business Innovation and Skills. In her report she writes that supporting more fresh ideas and innovation in the private sector should be a key aim for politicians over the next few years. She said Jersey should aspire to be one of the easiest places in the world to set up run and grow a business. This means rethinking migration and regulation for example planning policy radically streamlining application processes benchmarking the government s performance and setting ambitious targets for improvement. For more on this story see the Here s The Thing column on page 58. 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. 10 OCTOBER 2015 jsy CONNECT Optimum wellness guaranteed results. Let us show you how Healthhaus Express can enhance your 9-5. Milon training circle Lunchtime and evening circuit classes Evening running club Free 6 week nutrition course Smoothie and healthy food take away service Membership of our NEW Healthhaus home online resource Private members login And much more... Have a lunch date stop off on your way home or simply take a screen break with Milon at Healthhaus Express 31 Gloucester Street St. Helier. Opening hours 6am - 8pm Monday Friday 8am - 4pm Saturday and Sunday. Corporate membership now available. Because your body is as precious as your time. Call 747212 or email info JERSEY NEWS News RE view Gorst confirms compulsory redundancies are coming States workers will be forced to take redundancy to help balance the books says Chief Minister Ian Gorst. He has confirmed for the first time that public sector staff will be forced to take pay-offs to leave their jobs as part of ministers programme of reforms to solve the 145 million black hole. The new Treasury Minister Senator Alan Maclean has already announced that 104 applications for voluntary redundancy have been accepted that up to 100 jobs could also be cut by not replacing some departing staff and that more money will be saved through a pay freeze. But those proposals have already led to confrontation with unions who are threatening industrial action Unite Jersey s biggest union are balloting members about how to fight the proposals and professional management Email us on editor Got News union Unison have voted overwhelmingly for industrial action. Senator Gorst now says that to meet the 70 million target for reducing the States paybill some States workers are going to have to be told that they re no longer needed. He said In some areas there will need to be Senator Gorst now says that to meet the 70 million target for reducing the States paybill some States workers are going to have to be told that they re no longer needed. compulsory redundancies. We said all along that we would go through voluntary redundancy and reorganisation and that we would have pay restraint and then we would consider whether compulsory redundancies were necessary and we thought that they probably would be. VISION 800 TALENTED PEOPLE Behind the facts and figures you will find one cohesive firm. Appleby one of the world s largest offshore law and fiduciary groups. With strong connections and skilled teams we deliver a seamless service across jurisdictions sectors and international borders. It s this combination of talent and global presence that sets us apart. CONNECTING THE RIGHT PEOPLE AND PLACES Bermuda British Virgin Islands Cayman Islands Guernsey Hong Kong Isle of Man Jersey London Mauritius Seychelles Shanghai 12 OCTOBER 2015 jsy CONNECT 8.30am - 4.15pm 17th November 2015 The Royal Yacht St Helier Discover the route to building a cloud strategy you can trust at this year s Offshore Cloud Conference. World renowned Co-Founder and Analyst William Fellows from 451 Research will deliver a keynote on the future of the cloud. He will provide insight in how to navigate current cloud challenges to maximise business value. The conference will also feature industry experts discussing the latest trends in data security regulatory compliance and software defined networking. You ll meet our partners that are collaborating with us to deliver the broadest range of offshore business solutions trust administration digital signatures compliance freedom of information (FOI) secure identity disaster recovery and more. Confirmed Speakers Include William Fellows Co-founder and Research Analyst 451 Research Emma Martins Data Protection Commissioner for Jersey & Guernsey Peter Groucutt Managing Director Databarracks Neil Stobart Director EMEA System Engineering Cloudian Mark Carnighan Sales Director UK & Ireland Arista Tim Pitcher VP International Solidfire Plus customer case studies and several special announcements. Encrypt. Share. Protect. Register free at register LEGAL MATTERS Legal Matters Collas Crill named Legal Team of the Year at STEP Private Client Awards Collas Crill s private client team has been named Legal Team of the Year (midsize) at the STEP Private Client Awards 2015 16. The awards now in their tenth year set the industry standard and highlight excellence among private client practitioners. The Presiding Judges commented Collas Crill impressed with the breadth of expertise they are able to offer with a highly experienced team of lawyers across a number of jurisdictions and an impressive list of sector specialisms. Their submission went beyond case detail to demonstrate how their thoughtfulness and ambitions should be expressed in IT training and business development. Collas Crill s multi-jurisdictional private client team spans both contentious and non-contentious matters and provides high-net-worth individuals private banks and trust companies with specialist advice on a range of issues including wealth structuring regulatory matters real estate private family funds and conflict resolution. Collas Crill Managing Partner Jason Romer said We understand that to lead the way we have to be different. Our team stands out above the rest because they re approachable pro-active and combine depth of expertise with a commitment to really understanding their clients individual circumstances priorities and goals. Stephen Baker the only Jersey lawyer to make top legal List Stephen Baker Senior Partner at Jersey-based law firm Baker & Partners has been ranked as one of the top lawyers in the field of asset tracing and recovery by Who s Who Legal. Advocate Baker is the only Jersey lawyer to have made the list and one of just five lawyers from Offshore jurisdictions to have been included being described as a famous name in the market. He was selected as one of 341 of the most highly regarded practitioners across 74 jurisdictions in this field. Stephen specialises in asset recovery actions particularly those involving political corruption and the unravelling of offshore structures. He is an expert in the interaction between civil and criminal law in fraud cases. Who s Who Legal is a legal resource that publishes in-depth reports identifying the world s best leading legal practitioners in different areas of law based upon comprehensive independent research. Advocate Baker said It is a significant achievement to have been included as the only Jersey lawyer in the Who s Who Legal Asset Recovery publication and a great honour to have been recognised among the top five leaders in this area within the offshore jurisdictions. This acknowledgement by a globally recognised publication reflects the level of commitment at Baker & Partners to refining our expertise in specialist fields of law. For more on the work of Advocate Baker see our lead feature Silent Witness on page 20. Ogier advises Elian on its conditional purchase of SFM Europe Ogier in Jersey has acted for Elian in connection with the Jersey aspects of its proposed purchase to buy SFM Europe a leading provider of corporate services with over 1 trillion of assets under administration. The deal demonstrates Ogier s expertise in M&As in the offshore fiduciary sector. The acquisition of SFM Europe which was established in 1999 and spans nine jurisdictions will significantly increase Elian s European footprint and enhance its corporate services and structured finance offering. On completion of the deal which is subject to regulatory approvals Elian will employ over 640 staff across 16 jurisdictions covering all major time zones and key financial markets. SFM Europe will operate as a separate division of Elian. Ogier partner Matthew Shaxson who led the Ogier team said Working alongside Elian on this exciting transaction is another demonstration of Ogier s capability and expertise in M&As in the offshore fiduciary sector. Matthew Shaxson was assisted by senior associate Dilmun Leach and trainee solicitor Ben Vickers. English M&A legal advisers were King & Wood Mallesons LLP for Elian. 14 OCTOBER 2015 jsy CONNECT LEGAL MATTERS Sex and Related Characteristics By Stephanie Sanderson Legal Assistant Voisin As most Islanders will now be aware the Discrimination (Jersey) Law 2013 (the Law ) came into force on 1 September 2014 prohibiting discrimination on the ground of race. On the first anniversary of the introduction of the Law sex sexual orientation gender reassignment pregnancy and maternity join race as a protected characteristic under the Law thereby prohibiting discrimination in the context of employment the provision of goods and services education and the disposal or management of premises on the basis of these new characteristics. Sex and the related characteristics have been added to the Law by the Discrimination (Sex and Related Characteristics) (Jersey) Regulations 2015. It is anticipated that next year will see the adoption of further regulations introducing age as a protected characteristic with disability being introduced in 2017. The types of prohibited conduct amounting to discrimination (direct discrimination indirect discrimination harassment and victimisation) remain in place under the umbrella of the Law. In short the newly protected characteristics are as follows Sex it is unlawful to discriminate against an individual on the basis that they are a man woman or an individual of intersex status Sexual orientation - it is unlawful to discriminate against an individual on the basis of their sexual orientation. A person s sexual orientation may be towards people of the same sex people of a different sex or people of both sexes Gender reassignment protects individuals who are proposing to undergo are undergoing or have undergone a process for the purpose of reassigning gender. What is key is that individuals intend to permanently live or are living in their preferred gender role. Medical intervention is not required before an individual becomes protected under the Law the process of gender reassignment is a social one Pregnancy and maternity protecting women against discrimination on the grounds that she is has been or may become pregnant as well as the direct consequences of pregnancy such as absences from work and maternity leave. The Jersey Employment and Discrimination Tribunal (the JEDT ) has not been overwhelmed with discrimination claims since the introduction of the Law last year. Figures revealed by the JEDT in its annual report published in April 2015 show that only three claims had been submitted to the JEDT since the introduction of the Law one of which was rejected by the Chairman. However it is anticipated that an increased number of claims will be heard by the JEDT following the introduction of sex and the related characteristics to the Law. If they have not done so already businesses are being encouraged to acknowledge the existence of the Law and get to grips with the new protected characteristics. Employers are liable for the acts of their employees towards each other and their clients and customers during the course of their employment therefore steps must be taken to curb any current culture or practices within the business which could leave it exposed to a discrimination claim. Having mechanisms in place to promote diversity in the workplace and prohibit discrimination is an extremely important step to take in protecting businesses against discrimination claims. Although the development of the Law may be considered by some as an unnecessary and overprotective measure to enforce in a small Island such as Jersey the world is becoming more alive to the need for diversity in business and this feature is now reinforced by legislation. Furthermore forward thinking companies have implemented diversity policies as a marketing tool to strengthen their competitive advantage. Consequently having such policies and procedures in place to rule out discrimination and encourage diversity may become more important to businesses from a marketing perspective and could also assist in creating a genuinely inclusive and respectful workplace which in turn may help businesses retain their most talented employees. Legal Matters Commercial Law Property Transactions Matrimonial & Family Law Wills & Probate Litigation Are you looking for a legal bursary Get a head start in the legal world by applying for the Voisin Bursary Scheme. If you are interested and want to know more please contact Emma Stewart - T 01534 500357 E emmastewart 37 Esplanade St Helier Jersey JE1 1AW Channel Islands. Tel 44 (0)1534 500300 Fax 44 (0)1534 500350 mail jsy CONNECT OCTOBER 2015 15 APPOINTMENTS Trading places Ashburton Investments has bolstered its Distribution Team in the Channel Islands by appointing Timothy Townsend as Intermediary Distribution Executive. Mr Townsend s focus will be on working with the intermediary and fiduciary markets in Jersey and Guernsey to open up access to Ashburton s range of investment opportunities. His appointment bolsters Ashburton s local distribution team which is responsible for developing new and maintaining existing trust company and other intermediary business. He brings with him over seven years experience in the international banking and wealth management industry with particular expertise in investment and portfolio management. Educated in South Africa post-studies Visit for all the latest business news Want more Ashburton Investments bolsters team to support Channel Islands intermediary market Mr Townsend qualified as a Certified Financial Planner. He is also a Member of the Personal Finance Society and of the Financial Planning Institute of Southern Africa. Peter Bourne Managing Director Ashburton Investments Jersey said Having previously worked for the international division of a large British bank servicing clients in South Africa and other emerging markets Tim brings with him a comprehensive understanding of both our traditional Multi Asset investment range and emerging market global equity products which we anticipate will be of benefit to the local intermediary and fiduciary community. Tim s appointment clearly demonstrates our continued commitment to the needs of our Channel Island-based intermediary clients. ANNA NORTON JOINS THE TEAM AT LAW AT WORK A New boss for Digital Jersey Digital Jersey Jersey s government funded development agency tasked with accelerating the growth of the digital sector has appointed Tony Moretta as the organisation s new CEO. Mr Moretta brings over 20 years of experience in a wide range of digital industries and roles including mobile online broadcast payments advertising and data analytics using the latest technological innovations to develop new revenue streams. As CEO of Digital Jersey Mr Moretta will be responsible for delivering the organisation s long-term economic social and reputational objectives together with meeting annual business plan goals to develop Jersey as a recognised digital jurisdiction. Paul Masterton Chairman of Digital Jersey said Tony s extensive 16 experience across the digital industries in the UK coupled with his tried and tested commercial and leadership acumen make him ideally placed to lead Digital Jersey as the organisation s new CEO. He brings with him a thorough understanding of digital culture which will be of immense benefit as he develops Digital Jersey. Mr Moretta added I m delighted to be appointed as CEO of Digital Jersey. This role presents a unique and exciting opportunity to bring together industry Government and the community to grow the digital economy on the island. Jersey has always punched above its weight in many areas and I look forward to continuing that tradition in the digital world. My family and I are also very enthusiastic about moving to Jersey and being able to call such a beautiful Island home . nna Norton has joined HR and employment relations specialists Law at Work as an HR Business Manager. In her new role Mrs Norton will be responsible for providing HR support services to clients as well as offering specialist advice. This will include HR administration drafting and updating contracts dealing with grievance and disciplinary issues employment document audits defining policies and ensuring compliance with existing and forthcoming laws such as the phased introduction of discrimination legislation over the next few years. Mrs Norton said The experience of managing my own businesses and staff has given me an invaluable understanding of the issues that directors and managers face. Different businesses differ substantially but the core principles of managing staff effectively while operating within the law remain constant. My job is to make sure that our clients understand these principles to help keep their workforce happy and the business out of the Tribunal. It is a really exciting challenge and I am already loving being part of Law At Work. Law At Work Executive Director Heidi Gibaut added We are delighted that Anna has joined the team. She brings with her a wealth of business and management experience. She will be invaluable in assisting our clients to meet their statutory requirements in a practical way. It is a pleasure to welcome her on board. OCTOBER 2015 jsy CONNECT IN MY LIFE ART AND FINE WINE ARE FOR ENJOYING. FOR INVESTMENTS I CHOOSE RARE COINS & STAMPS. Whether you re looking to protect and grow your wealth plan for retirement or create a legacy rare stamps and coins could provide a safe haven investment option for you - they are tangible asset classes with a history of performance. Begin to build your portfolio from as little as 10 000. Invest in History Find out more at connect or call 01534 766 711 Please note that the value of your investment can go down as well as up and you may get back less than you invested. Past performance is not a guide to future performance. Stamps coins and other collectibles are not Investments for the purposes of the Financial Services (Jersey) Law 1998 (as amended). Stanley Gibbons (Guernsey) Limited has registered with the GFSC under the Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law 2008 (as amended) as a financial services business and therefore is regulated by the GFSC in respect of Anti-Money Laundering and Countering Financial Crime and Terrorist Financing matters. Past investment performance or experience does not necessarily give a guide for the future. For full terms and conditions please visit GUERNSEY NEWS Grant Thornton Limited has announced the promotion of Ben Rhodes to Director Mr Rhodes joined Grant Thornton in 2012 as Senior Manager within the Recovery and Reorganisation team in Guernsey and has played an important role in maintaining its reputation as a leader in the field of insolvency and liquidations. He is a UK Licensed Insolvency Practitioner a Chartered Accountant and a Certified Fraud Examiner. He has worked on numerous high profile insolvency cases both in the Channel Islands and the UK. Dave Clark Managing Director commented We are delighted that Ben is joining our board and his success is well deserved. We have one of the largest dedicated Recovery and Re-organisation teams in the Channel Islands and this appointment underlines the strength of our expertise. Guernsey extends market access to EU countries under AIFMD Guernsey has extended market access to EU Alternative Investment Fund Managers (AIFMs) and Alternative Investment Funds (AIFs) doing business in Guernsey. The move follows the European Securities and Markets Authority (ESMA) s advice to the European Council the European Commission and the European Parliament that the EU Alternative Investment Fund Management Directive (AIFMD) passport should be extended to Guernsey. The States of Guernsey has now amended its Investor Protection regulations for AIFMs and AIFs based in EU Member States that have fully implemented AIFMD in order to enable easier movement between Guernsey and EU markets. Guernsey s Chief Minister Deputy Jonathan Le Tocq said When I met with EU Capital Markets Commissioner Hill in May I set out Guernsey s commitment to supporting free movement of capital and trade. Our amendment to Investor Protection regulation extends Guernsey market access to EU AIFMs a move that is both sensible and is a further demonstration of that commitment. Guernsey Finance Chief Executive Dominic Wheatley said industry welcomed both the recent ESMA recommendation and the amendment to the Island s Investor Protection regulations. This move by Guernsey s government to reciprocate market access under AIFMD is a clear demonstration of a belief in the benefits of increased trade and competition in the funds sector across the EU that the AIFMD passport facilitates. Motor Mall moves back to the heart of St Martin s Motor Mall in Guernsey has moved back into the heart of St Martin s bringing its multifranchise new and used car sales commercial vehicles department and fuel station onto one site. The move which has created nine new jobs at Jacksons and Motor Mall has been made possible by inward investment from its new Guernsey-based owners. It s a great feeling for Motor Mall to be returning to where it all began. We ll now have the space to grow the business and offer even more of a first-class service and even better value to our customers than ever. Motor Mall will be driving down the cost of motoring in Guernsey. I m looking forward to a great future for our multi-franchise dealership and all our valued customers said Motor Mall s general sales manager Gary Bynam. Jacksons and Motor Mall s servicing departments will remain at Airport Forecourt which will see the redevelopment of workshop facilities and provide improved aftersales support. We wanted to offer Motor Mall and Jacksons customers on Guernsey a unique and individual experience when it comes to choosing their next car. The timing is perfect due to investment from our new Guernsey-based owners with a dynamic brief to expand improve and take both of our businesses to a whole new level said Peter Campbell head of operations at Jacksons. You ll find we ve taken careful note of what our customer surveys tell us people want from a quality dealership. There will be better parking and an upgrading of our valeting and car preparation departments. Motor Mall will host a brand new commercial vehicle department and Jacksons will now have its own dedicated showrooms in which to display even more models of the 12 franchises it represents and with room to accommodate future additional franchises. We ll also be creating more jobs to service customer needs and develop even more aftercare services. 18 OCTOBER 2015 jsy CONNECT Silent Witness Courtesy of Alberto Font The Tico Times Ann Bender speaks with The Tico Times at the offices of her lawyer Fabio Oconitrillo hours after her 22-year sentence for shooting her husband to death was overturned by an appellate court on Thursday 19 February 2015. IT IS jUST BEFORE MIDNIGHT ON THE 7TH OF jANUARY 2010. IN A PALATIAL HOME SURROUNDED BY 5 000 ACRES OF PRISTINE COSTA RICAN RAIN FOREST A SINGLE GUNSHOT RINGS OUT. jOHN BENDER A MATHEMATICAL GENIUS WHO EARNED MILLIONS TRADING STOCK OPTIONS BEFORE RETIRING AT 34 TO A jUNGLE PARADISE LIES DEAD. YOU D THINK THAT FOR HIS DISTRAUGHT WIFE NOTHING COULD POSSIBLY BE WORSE. BUT FOR ANN BENDER THE NIGHTMARE IS jUST BEGINNING. BEN QU R E REPORTS ON A MURDER CASE WHICH TOOK A WELL-KNOWN jERSEY ADvOCATE TO THE COURTROOMS OF CENTRAL AMERICA. A reclusive millionaire options trader with a history of mental problems and an obsession with firearms. An idyllic jungle retreat complete with a pet sloth millions of dollars worth of gems and a pair of AK-47s. A road-side kidnapping and millions going missing from a Trust fund. A haphazard murder investigation with just one witness and an astonishingly sloppy mess of ballistic evidence. It s no wonder that the trial of Ann Bender was in Costa Rica the trial of the decade if not the century. But the long troubled and sad story of the case can be boiled down simply - John Bender wasn t murdered he killed himself. 2 words The problem facing Ann s legal team was proving it. And that s where Jersey Advocate Stephen Baker enters the story. Having already advised Ann in asset recovery matters relating to the theft of money from a trust set up by her husband he was called in to advise on strategy in her murder appeal. She had been acquitted at her first trial but convicted on the prosecution s second attempt when they appealed against that verdict. And then with a month to go before she went to court for the third time she reached out to Advocate Baker for help. His early career was carved out at the English Bar acting in the most serious criminal cases that evolved into a practice dealing with highly complex civil cases spanning the globe often Ben Qu r e A PICTUREs relating to asset recovery. He has acted for the Federal Republic of Brazil in a case against a corrupt former mayor who siphoned off millions of taxpayers money he s acted for the Islamic Republic of Pakistan and he s acted in hedge fund disputes worth millions and millions of dollars. But the Bender case would see him dragged back into criminal law where he developed his skills his courtroom knowledge and his reputation. Advocate Baker takes up the story. John Bender was a hugely intelligent man who was a mathematical genius. They claim that he could read six packs of cards - some of it is legend - but his friends will tell you that he would be kicked out of casinos. He made a fortune in trading very quickly. And he retired to Costa Rica in about 2000 and built this James Bond-style home in the jungle. GARY GRIMSHAW 20 OCTOBER 2015 jsy CONNECT SPECIAL REPORT But he had serious mental problems. He was extremely badly bi-polar and friends say that he was either mildly autistic or suffered from Asperger s syndrome. He was also terribly depressed at times. His wife too had suffered from depression and bi-polar disorder. And living in the jungle on their own they had retainers in houses around must have been very difficult for people with mental problems. Back in 2003 Bender was kidnapped some people who were suing him needed to serve papers on him in Costa Rica and they employed the local police to do it. The local police stopped the car that he was travelling in discharged a firearm and falsely imprisoned him for many hours before a process server served papers on him. And that incident had a profound effect on his mental equilibrium. He went from being wholly anti-gun to arming himself. From then on he always carried a pistol in a holster over his right pocket and he employed armed guards to protect him and he and Anne began to live a pretty solitary existence. That isolated existence included teams of armed guards and a trained German Shepherd guard dog. Security features were added to their windowless jungle hideaway and two AK-47s were purchased and left in the home. And although John and Ann had millions of dollars all of their cash couldn t help with their struggles against mental illness. He became more and more isolated said Advocate Baker. And in the last nine months of his life he barely spoke to b ...that incident had a profound effect on his mental equilibrium. He went from being wholly anti-gun to arming himself. From then on he always carried a pistol in a holster over his right pocket... jsy CONNECT OCTOBER 2015 21 Courtesy of Alberto Font The Tico Times b If ever there was a lesson that money does not cure all of your problems this is it. He may have been very successful financially but both he and his wife had problems which money could not resolve. SPECIAL REPORT anyone. It was at that time that he became aware a trustee must have been stealing from a trust fund because he was saying there were cash flow problems. Bender sent an email on 11 September saying that he wished that he was dead and that he was going to kill himself. He had been expressing those thoughts privately to psychiatrists at about the same time. If ever there was a lesson that money does not cure all of your problems this is it. He may have been very successful financially but both he and his wife had problems which money could not resolve. On the 7th of January 2010 it became too much. John Bender took his handgun and shot himself in the head. Ann has since told CBS News that she woke up moments before he pulled the trigger that she tried to grab the gun but she couldn t stop him. It took the police two hours to get to the scene. Once there they appeared to waste no time in making Ann their number one suspect. Traumatised she spent the next seven months in a psychiatric hospital. A year after her release she was charged with her husband s murder. At trial she was acquitted the prosecution had built their case around the fact that the single fatal bullet struck Mr Bender in the back-right of his head. As he had been left-handed they thought the position of that entry wound ruled out suicide. But during the trial it emerged that not only was he actually ambidextrous but he used to shoot guns with his right hand. The case collapsed and Ann Bender now known as Ann Patton walked free. But under Costa Rican law the prosecution have the right to appeal which they did. And on the basis of what Advocate Baker calls some highly suspect evidence from a ballistics expert she was convicted. It may be that the level of preparation had not been what it might have been he said. And the view was taken that the case against her was so poor that it did not really merit much attention. In fact the asset recovery matters that Ann Patton was involved in to recover the millions stolen from her trust fund were dominating her time. After she was convicted she appealed. A retrial was granted. And just a month before it started Advocate Baker was called in to help. I have been acting for Ann Patton for a year in certain asset recovery matters and I have been involved in affairs relating to Mr Bender for over a decade he explained. A couple of months ago they asked me to come and advise on the criminal defence in a murder trial. I went down there with a very senior American lawyer and I recruited an English Barrister to come with me who is a fluent-Spanish speaker. The American lawyer came down from Miami and there were two priorities for us to advise on strategy and tactics and to ensure that it was apparent that there was outside interest in the outcome of the trial. CBS instructed two of the worlds leading experts called Richard and Selma Eikelenboom who are a husband and wife team. He is a ballistics expert she is an MD and a former Coroner for the city of Amsterdam and an expert on crime scene analysis. The ballistics expert did a series of experiments with a similar handgun which showed the direction in which the shell would eject and the prosecution had alleged that Anne Patton must have put the discarded shells somewhere on the floor because it was so far from the body and he did experiments which showed it was not true. He also did experiments which showed that a tear in the pillow which the prosecution had relied on to suggest that the gun was a certain distance from the head when the trigger was pulled was not as significant as the prosecution thought because the tear in the pillow was in all likelihood caused by hot gas coming out of the gun rather than the bullet. That was all really important and Selma Eikelenboom gave evidence about blood flows and that the markings on the body - where you can imagine there was blood stains - suggest that the body was not in the position that the prosecution said it was when the bullet struck. All of this was going on in the Costa Rican courts where things are very different for one thing new witnesses could not be called and for another expert witnesses had the right to crossexamine one another. Courtesy of Alberto Font The Tico Times jsy CONNECT OCTOBER 2015 23 Previous Cases Beverley Allitt jAILED FOR LIFE IN 1993 FOR FOUR MURDERS OF BABIES AND TODDLERS AT GRANTHAM HOSPITAL Worked as a junior Barrister for the prosecution against Allitt who received 13 life sentences for the murders and attacks on nine other children. She was a nurse at the hospital and is thought to have injected the children with huge doses of insulin. She is unlikely to be released. Alvin BlAck jAILED FOR LIFE FOR TWO MURDERS Prosecuted Black who was found guilty of two murders one a German tourist and the other an alleged police informant and jailed for life. Has been told he cannot apply for parole until 2022. kenyAn corruption cAse Instructed by Kenyan AntiCorruption Commission to recover the multi-million dollar proceeds of allegedly corrupt payments paid to the Chief Executive of a Kenyan public company by substantial western engineering companies to get large public works contracts. FederAl repuBlic oF BrAzil v durAnt internAtionAl corp And kildAre FinAnce limited Won a multi-million dollar case brought by the Brazilian government against the corrupt former Mayor of Sao Paulo Paulo Maluf who siphoned off municipal funds. The initial judgment was for 22 million later increased to 28 million. SPECIAL REPORT There were other differences too. For one the press interest in the case was immense. They were camped out at the trial every day and CBS Producer Josh Yager an Emmy award-winning journalist actually sat in on legal strategy conferences. For another the whole legal team and especially Ann Patton were accompanied by armed bodyguards because the kidnap risk was deemed to be high. All of that is a far cry from a standard two-day trial in Jersey s Royal Court. Advocate Baker said that his role and that of his colleagues from the US and the UK was to advise on trial strategy and tactics. He said Our instruction and the instruction of the American expert meant that there was the most detailed analysis of the forensic evidence including ballistic evidence and crime scene evidence. And three sets of eyes rather than one meant that evidential points that could be taken for the defence were properly taken and articulated. My expertise is in dealing with highly complex cases this one happened to involve ballistic and medical evidence which led to the simplification of the points which we wished to make and their cogent prosecution to the court. After exploration of the evidence it was clear that Ann Patton should not have been convicted and she was acquitted unanimously by a tribunal of three judges. And she now need to turn her attention to assets which have been stolen from her by her Costa Rican trustee. It has been reported that those stolen assets are worth more than 100 million. Looking back on the case Advocate Baker says that it should never have gone to court in the first place and doubts that it ever would have done in Jersey. He said She should not have been charged in my view. There was not a close enough analysis of the evidence before a decision was made to charge her. And there was not a close enough analysis of Bender s mental state before she was charged. You would hope and expect that in our system the prosecution should properly have explored his mental state including his communication with his wife and also analysis of evidence more thoroughly before taking the hugely significant decision of charging a woman of her character with mental problems with murder. She is still in Costa Rica because in theory the prosecution can again appeal. And she needs her travel documents in order to travel. We are extremely hopeful that the prosecution will decide not to appeal. There was a full exploration of the evidence at this trial and it was plain that she is not guilty of the offence. There will be constitutional issues in Costa Rica if they succeed to try her again the Costa Rican constitution accepts the principle of double jeopardy and she has been acquitted twice now. Also there must be fundamental Human Rights issues as to cruel and unusual punishment. Throughout the trial CBS were present they were filming another documentary on the case. That will be shown in the autumn. The press were present throughout and I gave several interviews. It had been considered that it was in our client s interests that the press became involved because particularly when a media organisation as substantial as CBS shows an interest and makes prime time television programmes about it it shows that there is concern about the wellbeing of an American citizen and this was a classic case where the press shone a light where it needed to be shone. What I do is take on highly complicated work and most of it now is financial legislation and the skills that I bring to that have been developed over a long career dealing with very serious and complicated cases. I have a great deal of courtroom experience which was first developed at the English bar where I was in court daily. And I was involved in extremely serious cases and then in Jersey when I had a series of very high profile difficult high value cases. And so in the last decade I have acted for huge disputes over hedge funds and acted for Brazil in the asset recovery against Paulo Maluf the former Mayor of Sao Paulo. I act for many high-net-worth individuals and also for institutions in substantial cases. I learned my knowledge of the courtroom and of people from a very focussed training in criminal law and then the practice of criminal law including acting in the Beverley Allitt trial. I then shifted focus to being almost exclusively involved in high value civil litigation with the exception of the odd high-profile client. But in this case as I changed direction from acting for Ann Patton in asset recovery proceedings back to an extraordinary hugely serious criminal case which I really enjoyed. It was a great privilege to act for her given the terrible circumstances that she found herself in namely an innocent woman in a foreign jurisdiction - and to use the skills that have been my day-to-day tools in my early practice to secure her acquittal. END jsy CONNECT OCTOBER 2015 25 PROMOTIONAL FEATURE The Merton Suites A home from home For many business people travelling for work has become common and although the length and time away from home can vary it is not unusual to be away for weeks or even months at a time. If relocating from the UK or abroad a base may be required before choosing and setting up a more permanent home. If your home in Jersey is being renovated or you are between homes whilst purchase or long term rental is arranged then a home from home is ideal. Today s visitors for whatever purpose are increasingly finding serviced apartments offer convenience and excellent value for money. The Merton Suites part of the Seymour Group are certainly no exception. Winter Let and Corporate rates are available making the Suites more desirable than staying in a hotel for a number of reasons. The Suites are designed in such a way that they can interconnect to offer spacious accommodation for anything from 2 12 guests. Children are welcome. Each Suite is equipped with twin or double beds fully equipped kitchen telephone free Wi-Fi the latest flat screen TV technology including smart phone and laptop connectivity and free in-house movies. There s a stylish modern bathroom with separate shower iron and ironing board hair dryer in-room safe and southfacing balcony. The Suites also provide guests with secure parking and on-site laundry facilities. Business guests may like to hold private meetings or entertain colleagues in the privacy of their spacious apartment which reduces costs of hiring a separate meeting room or entertainment space. Longer term guests spending weeks or months away from home appreciate relaxing with a home cooked meal which they have been able to prepare themselves in their own well equipped modern kitchen. The serviced apartments can offer twice as much space as a standard hotel room with scope to work and entertain. Guests have the freedom to come and go as they please with no rules and regulations choose whether to cater for themselves (which is excellent for any dietary requirements) or dine out as they please. They have the benefit of peaceful and quiet surroundings without the distraction of the hustle and bustle of a hotel. Whilst guests can enjoy the independence and flexibility associated with a serviced apartment they also have the added benefit of being able to enjoy the different restaurants bars live entertainment and services of the adjacent Merton Hotel. (Open until 13 December and re opens on 24 March.) All guests have all year round free entrance to the Merton Aquadome and Leisure Club which has a fully equipped gym sauna and steam room. There s an indoor and outdoor pool and the exciting Flowrider surf wave machine. With all these leisure activities on hand guests will have no trouble unwinding after a busy day. The Merton Suites adjacent to The Merton Hotel provide the perfect place for business visitors to the Island and local guests who are looking for flexible stylish accommodation that offers independent living and true value for money in the heart of St Helier. The Suites are within walking distance of St Helier s main business hub and its amenities and only a short drive to anywhere else on the Island. If you are looking for a long term let or your company regularly brings clients or colleagues to the Island the Merton Suites can offer special rates for a stylish and flexible home from home environment. For more information on Corporate rates please contact Monika Gottlid on 01534 751 608 or for Winter Let enquiries or reservations please call 0845 800 5555 or email reservations 26 OCTOBER 2015 jsy CONNECT PICTURE THIS Royal Gin is La Mare s premium London style gin made with Jersey Royal Potatoes and distinguishable by its unique botanicals. What s that you say There s somewhere in Jersey where you could get a job as a quality controller for chocolate shortbread and fudge And you might also be able to help produce the perfect glass of wine cider or brandy Have I died and gone to Heaven No you have just pulled up at the gates of La Mare Wine Estate in St Mary where some of the best things about life on earth sit waiting patiently for your tastebuds. Since they say that the first bite (or perhaps in this case swallow) is with the eye (er actually on second thoughts don t try that at home) we thought this month s Picture This might whet your appetite. Enjoy. PICTURES Gary Grimshaw 28 OCTOBER 2015 jsy CONNECT PICTURE THIS A picture this.. La Mare Wine Estate La Mare s fully equipped chocolate kitchen offers viewing windows for tours to watch the delicious chocolates being made. jsy CONNECT OCTOBER 2015 29 PICTURE THIS In charge of flavours Daniel de Carteret expertly blends the wines to get the perfect bouquet. 30 OCTOBER 2015 jsy CONNECT PICTURE THIS Tours enjoy a full tasting of the wines and an insider view of the production kitchens and bottling process. jsy CONNECT OCTOBER 2015 31 PICTURE THIS La Mare grows six varieties of grapes. Join a public tour of the estate to learn about the wine making process. 32 OCTOBER 2015 jsy CONNECT PICTURE THIS La Mare s signature preserve Black Butter boasts its own range of products including shortbread fudge chocolates and most recently the La Mare Ale with just a hint. Apples are picked from the estates orchards to make their unique products. jsy CONNECT OCTOBER 2015 33 BUSINESS ADVISER Business Adviser GET IN TOUCH... If you ve got a business question you would like to put to John please email editor How not to run a successful business A lthough one tends to look at successful brands and businesses for inspiration when running one s own business there is potentially far more for one to learn from a failed or failing business. A successful business is more about not repeating the mistakes of the unsuccessful one and acting quickly and decisively to deal with change be that product economic regulation costs or competition. A business needs to concentrate on what it is good at what it needs to provide and what it has the ability to deliver. The fundamental starting point is that any business should provide a satisfactory return (be it monetary or otherwise) for the time and capital invested. If the business does not provide the return then it is simply not worth carrying on. One has to change with the times to ensure that this fundamental point is never lost. To highlight some of the issues maybe one needs to look no further than a well-known local enterprise (let s call it Business G) and see how it has dealt with change over the years and whether what they have done should be an inspiration to new businesses or an example of where other businesses can learn from their mistakes. Actually the example is going to be truly accurate as Business G does not have to comply with large swathes of over-regulation in Jersey. However Business G is a sizable player and all businesses have potentially a lot to learn from what they have achieved though unfortunately there is very little to seek inspiration from. As with any organisation one should start at the top. There should be a clear strategy and a decisive message flowing through the business and its staff. The Board should demonstrate unity collective responsibility decisiveness agility and expertise in their field. The Board of Business G could not even decide on the constitution of itself even though it sought guidance from outside. Not a good start. The Board should be the strategic focal point of any business. It should set a clear direction for the business to follow and ensure that the business is pulling collectively together. 34 The next level should be the powerhouse of the business the senior management team. This should be lean and decisive. They should be pulling together to deliver the collective goals not working in silos trying to create their own little empires within the business. They should keep the business up-to-date by adapting with the times. They should be ruthless where necessary. They should not hide behind external consultants and thousands of pages of reports. Consultants are useful and should be used where expertise is lacking. A consultant is not an excuse to do nothing. Internal management should have the ability to manage. Management should be lean so as not to allow distraction from the services that need to be provided or slow down the ability to reflect changes in the marketplace. The journey from coal face to the decision makers should be short and not tied up in internal regulation and red tape. There should not be swathes of business. Businesses need to look carefully at the services they offer are they still relevant today is there a better way of doing something is it cost-efficient can we outsource it to save money and concentrate on our core services or is it just nice to have and the market is being better served by someone else. There is no shame is recognising that someone may be doing things better it actually demonstrates that you understand your business sector. So how has Business G fared in relation to good management practices economic changes regulation cost control product delivery and competition. Business G did not downsize in the economic downturn it still provides an eclectic mix of services and products (many of which are totally unnecessary pure luxury and better provided by someone else). They have been incredibly resistant to change (although it has been suggested for decades) and have rafts of drifting middle management. Their working practices lie in another century and their speed of change is unnoticeable with the naked eye. Their attitude to regulation seems to be to increase it (though not follow it themselves) in an attempt to make other businesses as inefficient as they are. Their attitude to cost control seems to be empty rhetoric spoken in a foreign language. Unfortunately nearly all of the rest of us in business have to act decisively as we cannot simply fleece the taxpayer for more cash or push a deficit onto the shoulders of our children and grandchildren. Fortunately at Grant Thornton we see few businesses run like Business G and with the right professional input and expertise we have seen many of our clients thrive and grow. Alternatively by being decisive and truthful we have also helped many of our clients control their losses and ultimately cease to trade. Running a successful business is not easy but if you have the right people the right tools the right product the right attitude and the right advisors then there is hope one can provide a satisfactory (return monetary or otherwise) for the time and capital invested. This includes achieving a profitable return for the enormous amounts of capital we have all invested in Business G. 7 o Columnist JOHN SHENTON Grant Thornton Business middle management confusing and delaying the overall strategy and efficiency of the business. Running a business is like operating a team everybody has a part to play. If people are unwilling to play collectively then unfortunately they need to either be coached back into the team or transferred out at the earliest opportunity. As economic conditions change the business needs to evaluate its costs. Recently as economic conditions worsened most successful businesses reduced their costs to survive and protect the majority of their workforce. Businesses continue to need to look to save whatever they can in order for the business and its workforce to continue to thrive. Working practices need to adapt with working conditions and pension arrangements consistent with 21st century OCTOBER 2015 jsy CONNECT Would you work with this business TWITTER FACEBOOK LINKEDIN Put a face to your business. We all know the importance of creating a good first impression. At Photoreportage we bring fresh photography to the world of advertising and PR. Working with many of the Channel Islands top corporate companies to produce high quality images that not only support their communication and creative teams but enhance the perception of their business. If you re looking to raise your profile... Contact Gary Grimshaw on info or call 01534 858 571 CO RPORATE C OMM ER C IAL WEDDING JOURNALISTIC In each edition of Connect we enable someone in the news to speak directly to you in their own words... Unplugged. What you are about to read is a transcript beyond minor changes to punctuation and syntax to aid clarity these words come directly from the person who uttered them. Point 1 We all know there s a big black hole approaching in Jersey s finances. Up to 145m each year by 2019. We know that the Ministers have put forward a plan to tackle it through a combination of taxes charges (delete as appropriate) States reform and cuts in public spending. Given the inherent support for the Council of Ministers within the States that plan will be agreed this month. Point 2 Much of Jersey s plan for future economic success is based on innovation in the financial and digital sectors yet a recent government review concluded that we might have a bit of a problem here as actually we re not very innovative. Rather than being the innovation nirvana that senior politicians have often described (insert the rusty chain from privateering to ship building to knitting to agriculture to tourism to financial services to digital here) in reality there are some major boulders in the way like the States own immigration policy. So with the autumn well underway and those two major features dominating the business landscape we thought it was time to take the pulse of the three main business groups in the Island. James Filleul spoke to Wendy Dorman (IOD Chairman) Wendy Lambert (Chair of Jersey Business Ltd) and Kristina Le Feuvre (President of the Jersey Chamber of Commerce). Y Action this day Wendy Dorman Wendy Lambert & Kristina Le Feuvre Wendy Dorman I think the general feeling is very much that business is in a better state than it has been for a number of years now. Business is on the up. There is growth and there is a cautious optimism about the future at the moment. Wendy Lambert I would say the same from our perspective as well. At Jersey Business we re seeing an increase in the number of businesses coming to us - both existing businesses and also new businesses starting up. So to the end of July for example we ve assisted over 200 new start-up businesses and over 178 existing businesses in their growth plans and that is marked increase certainly from 2014. James Filleul Is that from any sector in particular WL Well there has been quite an increase in businesses setting up in the construction sector but actually it s across the board. Unplugged Got a story to tell Get in touch email us at editor UNPLUGGED o Photography By Glen Perotte WD Yes construction definitely. Although the finance industry is quite a complex group of different business lines by and large there is growth in that sector particularly in the funds sector but trusts is quite buoyant too. There are sectors that perhaps are less buoyant and some that I think are quite constrained by the ability to take on the right staff with the right skills hospitality being one. Kristina Le Feuvre I would agree. There is a cautious optimism. They are exactly the words I would use. There is certainly growth potential for businesses at the moment. I d say the two constraints are skills and licences. JF How would you solve the current difficulties in getting skilled staff KLF I think education has to be a solution. I know that it is being worked on but perhaps not quickly enough and apart from education it s going to be getting the right people for the right job and that s going to be a licence issue. I mean the key buzzword at the moment is productivity but if you re trying to put a round peg in square hole then you re never going to get the levels of productivity that your business needs if it doesn t have the right staff. WL There is some training though that can be 38 OCTOBER 2015 jsy CONNECT done within the existing business community and that s something that we ve been helping with. For example do you know about the retail ambassador programme It s where the customer service levels are being improved through a training programme which we ve been helping coordinate in the retail sector and there has been a survey recently in St Helier which has shown that customer satisfaction has significantly improved. Whereas a year ago we were behind the UK on customer satisfaction in the retail industry we re now 1% higher than the UK on customer satisfaction in retail and that s through the training programme. So there are things to be done. Obviously in certain sectors. KLF I think it s about telling our children that they ve got options. That there isn t just one industry and that each industry has got its own level of importance. Businesses have got to take a certain amount of responsibility for training but for example in the hospitality industry what you re dealing with effectively is a lot of staff movement because they re aiming to go into finance because it s seen as an easier option. It is very difficult spending having a huge training programme when you ve got a movement of staff or your industry isn t seen as a career move. UNPLUGGED b JF Education is a long-term plan though. How do we solve things in the next two years WD The other short-term answer is immigration. Whilst in the digital sector and in the finance sector by and large people are getting the licences they need to grow their business outside of those two sectors I think it s still a real problem and we re hearing that from our members. Their growth is constrained by the inability to bring in people that they need or they feel that they need and they can t find them on the Island or if they do find them on the Island there s so much wage inflation because they re having to poach them from their competitors. JF So what would you say to Ministers who have this net growth figure of 325 people per year Do you think that needs to be relaxed WD Yes I do. Yes I believe that passionately. KLF 100%. if businesses are going to become more productive they need to have the ability to source the best employees for the role. JF And what if that causes the population to grow WD I think we have a huge issue with an The other short-term answer is immigration. Whilst in the digital sector and in the finance sector by and large people are getting the licences they need to grow their business outside of those two sectors I think it s still a real problem and we re hearing that from our members. ageing population and immigration is part of the solution to that. We need to have young productive workers in the workforce. KLF We don t want it to go down do we There will be an increase in population it s just a question of which industries are going to benefit from it I think. WD And the point about us not wanting it to go down is a very pertinent one. I think in Guernsey they re facing de-population and that s a dangerous spiral to be on particularly with the ageing population issue as well to deal with. It would just be a massive burden. You could see a downward spiral with increased taxes with more emigration of our young people and more and more problems - so I think an increase in population is the least evil. KLF One of the things that Chamber keeps saying is that we need to give people the information. I mean there is an anti-immigration jsy CONNECT OCTOBER 2015 39 UNPLUGGED stance in the Island but we need to give people the information ...this is how much you will pay in taxes if we don t have immigration. I don t think people fully understand the issue. WD There are businesses that have either moved to the UK or set up a back office in the UK because they can t get the right people with the right skills here - and that can t be good for Jersey. I think if we relax the immigration policy the feeling is that the population will just expand and expand but I m not sure that that s the case. You know most people that come here will be coming here because they want to work. They have some skills that are needed in the Island. We re not going to see a population of 150k any time soon. We just need a bit more confidence that if we open the doors a bit more and relax the policy that it will benefit the Island it won t lead to all these massive problems that people are envisaging. KLF There are still natural barriers like accommodation which is a key one. I agree if we opened the doors there wouldn t be a flood it s just a question of people being able to bring in the right people to increase their productivity and to effectively make their business model work better and contribute more to the taxes and social security. JF Is more support needed from the States or does business need to sort its own house out WL I think it is important to give support to businesses and I think that is where Jersey Business can play a role because if a business starts up from scratch it might not necessarily know how to make it a sustainable business for the medium and longer term. And that s where bodies like ourselves can step in and try to 40 OCTOBER 2015 jsy CONNECT provide that level of support at the right stage of growth to the business. We make sure that they understand where they want their business to go. Then if they re an established business they might come to a stage in their business life where they need some help to get to the next level - whether that is efficiencies in what they do or support in making an application to the bank for additional financing or to the Innovation Fund. What Jersey Business does is support businesses in their applications to those bodies that can provide funding. Some businesses benefit from having a mentoring service where they can have a senior person in business who will help mentor them through the next stage of their productivity growth. JF The innovation review also commented on the need to streamline the process for setting up a business something that Chamber and IOD have raised repeatedly over the last few years. How do you actually motivate change WD Well that s the million-dollar question and sometimes it seems as though the government just keeps commissioning more and more reviews to tell them what we ve been telling them for years - and the difficult thing is actually following through and delivering. Take cuts in States expenditure we ve been saying for a long time that they should do that. You know in 2007 they said they would do it and yet it keeps going up and up. So I think the delivery is really important and that s really got to be down to the civil servants. KLF They re making the right noises. They re picking out the right things from the reports and saying ...yes this is what we need to do but as Wendy said it s the delivery that s important and it s no good identifying the issues if they re not actually going to find the solution and fairly quickly. And it can happen quickly we ve got over six thousand civil servants in the Island you know so they can do it quickly and I still don t quite understand why that is not happening. JF Most of the concerns in the Innovation Review have been raised many times before seemingly with little effect WD Maybe they need to look at how they incentivise the senior civil servants. That might be one area where change can happen. You know if you re in a business and you had objectives then you know you get rewarded for following them through. KLF Or maybe move people around a little bit more so you get new ideas and new vigour and new excitement in a role. JF What are your views on the Ministers plan to address the forthcoming annual deficit through a combination of higher taxes (billed as charges) and States cuts WD I think when you put all those charges and taxes that they re putting forward together it s a massive increase in the tax burden and whilst the headline tax rate is still very low compared to some of the other jurisdictions in neighbouring countries it s still expensive to live in Jersey. Housing is expensive. Everything is expensive here and if the tax burden is going up significantly then it just reduces the attractiveness of Jersey to the skilled workers that we need to attract - so that is a concern. I think the cuts that they have specified you know if they can follow that through that will be an enormous step forward. JF Do you think they will KLF I do think there s momentum. I do think that things do seem to be moving quicker than they have done in the past and I do think we have to give the current Council of Ministers some credit. They are moving forward. They do seem to have a stronger mandate than has been available in the past. I think it just needs to move quicker and faster and there s still a lot of work to be done. I mean you hear of many people who have worked within Departments or who move from the private sector to the public sector you know and they re flabbergasted over how long or how many processes they have to go through to get something done. WD I m confident that they will take steps I m just not confident that they will achieve everything they want to achieve in a reasonable time frame. END jsy CONNECT OCTOBER 2015 41 Wendy Lambert Wendy Dorman Kristina Le Feuvre VIEWPOINT E Viewpoint Is Jersey property still a good investment 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 BAILIWICKEXPRESS.COM Over the last 12 months there has been increased activity in Jersey s commercial property market both in terms of international and local investors acquiring existing assets and with several significant developments coming out of the ground in particular around the St Helier Waterfront and Esplanade quarters. attract new business to relocate to Jersey will continue to provide tenants for these new developments. If Jersey maintains and builds on its open for business stance then there is every chance that confidence will continue to grow in the Jersey commercial property market. There has also been significant activity in the Jersey residential market over the last 12 months as a result of the banks starting to lend again and confidence returning to the market. Many of the new residential developments on the island are receiving significant interest from local purchasers looking to acquire an investment property to rent. With interest rates on savings still at very low levels and a very active rental market clients with cash are showing an appetite for buying off-plan a trend which I think will continue to grow. Chris Philpott PARTNER CAREY OLSEN These developments will provide the market with a supply of high quality office retail and hospitality premises. Once completed and let these are likely to continue to be of significant interest to investors many of whom see Jersey as adding an element of diversity to existing real estate portfolios with solid yields and good tenants. It is hoped that Jersey s reputation as an international finance centre together with the political drive to 42 OCTOBER 2015 jsy CONNECT VIEWPOINT Peter Seymour MANAGING DIRECTOR THE MORTGAGE SHOP The local property market has been dented badly by the recession which saw prices start to fall from 2009 continuing through to 2015 but with signs in recent months that the market has finally bottomed out. With any market one will experience fluctuations which means that anybody investing in Jersey property must acknowledge that they are going to be in it for the long term. The Jersey House Price Index prepared quarterly by the States Statistics Unit paints a much more positive picture. In 2002 when the Index was first launched the average cost of a one bed flat was 170 000 this has risen to 216 000 by the second quarter in 2015 representing an increase of 27%. A three bed house in 2002 averaged 330 000 and this has now increased to 503 000 an increase of 52%. In recent months there has been a lot of activity created by buyers who with greater perceived job security and rising salaries are now returning Jersey has seen a boost in confidence from investors in recent months following the slight dip experienced during the recession. Transactions in the Island have demonstrated a return to pre-recession levels of confidence in the market which can only be good news for Jersey. Recent and upcoming transactions are indicating a renewed interest in both prime office and retail spaces. Significant office spaces in key locations are achieving yields of approximately 6.5% while mixed-use spaces are achieving in the region of 7%. The mixed-use scheme at Liberty Wharf is currently on the market with a price-tag of 70m and if it achieves this asking price it will reflect a yield of 7.04%. The availability of such quality office and mixed-use spaces in Jersey together with that of blue-chip to the market for the first time in nearly seven years. There is currently a good supply of stock available from all estate agents and house prices are unlikely to rise until that stock starts to diminish. When that stage has been reached demand will start to exceed supply and house prices will begin to rise. How soon we reach that stage is uncertain although with low interest rates continuing to be available for the medium term anybody investing in Jersey property should be very pleased with their investment. There is currently a good supply of stock available from all estate agents and house prices are unlikely to rise until that stock starts to diminish. When that stage has been reached demand will start to exceed supply and house prices will begin to rise. Paula Thompson CLIENT SERvICES DIRECTOR FIRST NAMES GROUP global banks and financial services businesses as tenants make it a very interesting proposition for global buyers. The level of yields for prime stock is also making Jersey a competitive alternative to the UK s regional centres such as Bristol Birmingham and Leeds. In addition the Island has seen some rental growth recently achieving between 34 and 35 per square foot which serves to strengthen developers interest in the Island. This interest is evidenced by the return of pension money to the Island through Standard Life s recent acquisition of 44 Esplanade and renewed interest from Middle Eastern buyers who acquired 18-22 Grenville Street last year. Jersey certainly remains a strong proposition for investment and looks set to remain so for the foreseeable future. jsy CONNECT OCTOBER 2015 43 VIEWPOINT I think Jersey Property is a better investment now than it has ever been. The reasons for that are as follows 1. The base rate is at an all-time-low and will remain low for a long time. Its cheaper to borrow money now then it ever has been and there is a great choice of mortgages to choose from. 2. The expected return on a commercial investment is between 7 to 9% and residential is around 5% - that s a far better return then most low risk investments can offer. 3. It s a very low risk investment. Throughout the recession there have been very few repossessions and negative equity situations. The property market slowed but was steady and is picking up. People very rarely lose on property in Jersey and there is always some capital appreciation over time. 4. Jersey is a fantastic place to live and conduct business in. There is limited space for residential and commercial units so the demand will Firstly I would like to clarify investment . Most people buy a house as a home and putting your money into paying off a mortgage is generally a more sensible longterm option than paying rent that doesn t result in you owning anything. Recent house price figures suggest that the market here is on the up after a period of correction during the economic downturn. House prices are generally not at their peak but that is a good thing for buyers. The recent rise in the number of premises being sold is the best indicator of a healthy housing market and over time this should be a driver towards increasing prices. Affordability is a challenge in Jersey and wage growth returning will be welcome to many potential purchasers. Property has historically seen long term price inflation and again I would clarify this. If you are after a quick investment then property may not be for you unless you have a way of always outstrip the supply. Rental demand is very high and residential lettings need more stock desperately properties fill quickly. 5. The professionals involved in property in Jersey eg lawyers IFA s estate agents and developers have a great wealth of knowledge in the local market. I don t believe there is a better investment in Jersey then property in the short term it provides good returns your capital is secure and it should increase in the long term. Paul Scally SOLICITOR NOTARY PUBLIC AND PARTNER OF LGL The base rate is at an alltime-low and will remain low for a long time. Its cheaper to borrow money now then it ever has been and there is a great choice of mortgages to choose from. adding value to it. Property in the UK and Channel Islands has been a good long-term investment and should continue to be so. In Jersey it is simple supply and demand our population is rising but there is a finite amount of properties available. While there might be initiatives underway to find new building sites the options are limited and supply can t increase to the extent that prices are likely to drop substantially. All in all owning your own home is still in my view a good investment. Jim Coupe MD SKIPTON INTERNATIONAL If you are after a quick investment then property may not be for you unless you have a way of adding value to it. Property in the UK and Channel Islands has been a good longterm investment and should continue to be so. 44 OCTOBER 2015 jsy CONNECT call 0845 800 5555 or email reservations James Lawrence PARTNER vIBERTS PROPERTY TEAM If the UK is anything to go by yes. Details released in September by the RCIS (the professional body of surveyors in the UK) revealed that house prices there were expected to rise by 6% this year. The explanation behind the figures seems to be that general confidence is returning to the housing market there is a shortage of housing stock and more buyers are chasing fewer houses. Could the same be said of Jersey The local statistics show that the market here is currently flat and that houses prices are fairly static. The number of contracts (and wills) registered at Jersey Public Registry between January and August 2015 was 1 360 which is 15 less than for the same period last year. There is little difference in volume. Autumn this year however promises to be busy and all legal practices in Jersey seem to be hard at work. Stamp duty for the more expensive properties was increased earlier this year. Interestingly the stamp duty recovered between January and August 2014 was 11.6m whereas this year over the same period it was much higher at 14.9m. This suggests that the higher stamp duty charges (particularly for the more expensive properties) do not seem to have discouraged purchasers and volume appears to have remained unchanged. So although some may see the market today as a buyer s market property in Jersey remains a solid investment. Stamp duty for the more expensive properties was increased earlier this year. Interestingly the stamp duty recovered between January and August 2014 was 11.6m whereas this year over the same period it was much higher at 14.9m. This suggests that the higher stamp duty charges (particularly for the more expensive properties) do not seem to have discouraged purchasers and volume appears to have remained unchanged. C0 M11 Y65 K0 C0 M24 Y94 K0 C0 M48 Y100 K0 C100 M79 Y0 K0 jsy CONNECT OCTOBER 2015 45 TRAVEL Sometimes its good to be all at sea GET IN TOUCH... If you ve got a travel question you would like to ask Amanda please e-mail amanda.e T hink outside the boardroom and be inspired by your surroundings leave the stuffy office behind and experience the beauty of the sea. If you re responsible for arranging your company s annual conference or management meeting and you need to source venues how about using a cruise ship for your next event More and more companies are taking this option with the all-inclusiveness of cruising offering significant savings over land-based itineraries accommodation food (and often drinks) entertainment and conference meeting space is all included so it is easier to plan and contain costs. And of course you have a captive audience which often results in greater participation. Cruising also builds in social time networking time relaxing time - time that is often needed to clear the head generate fresh thinking and create a bond with colleagues that is difficult perhaps to replicate in a land-based conference room. Entertainment is always of a high quality and often cruise lines feature well-known celebrity guest artists. Gala dinners can be arranged and why not invite the Captain who will often be available as a guest speaker as well CLIA (Cruise Lines International Association) has seen a growth over recent years in meetings at sea not least because hosting a meeting or corporate gathering on a cruise ship offers an experience for attendees that is intriguing cost effective and highly efficient. In 2012 CLIA created a dedicated meetings events and incentives task force which is made up of 15 cruise line members who promote meetings at sea and focus on developing a strong relationship with the meetings and incentive industry. In addition the cruise lines themselves are adding more well-equipped purpose-built meeting space to both new and existing ships. Modern cruise ships are designed with meetings in mind including conference centres board rooms and the ability to convert theatres and a variety of other spaces into the perfect site for your event. Modern cruise ships have state of the art media suites even down to their own television and video 46 OCTOBER 2015 jsy CONNECT w editing suites. All these and other AV equipment can be made available. Since most audio visual equipment is typically free of charge and transfers to entertainment venues are not necessary cruise ships offer great value for your meeting in addition to a phenomenal memorable backdrop for your event. Of course the size and type of meeting may determine the ship the duration and the location of the cruise. Don t forget incentives too the requirement for both guests and hosts is to minimise out-of-pocket expenses which cruises with their contained environment ably achieve. Many companies also take partners and even children with them and again cruises offer something for everyone with activities excursions and children s clubs on offer. In 2016 the two largest independent travel consortia in the UK are holding their conferences at sea - Advantage in April 2016 on MSC Fantasia from Barcelona for four nights and The Travel Network Group in May 2016 from Southampton on Celebrity Eclipse for two days (which TravelSolutions will be attending) evidence that the travel industry is embracing fully this growing trend. As a company TravelSolutions has itself held a number of small internal management meetings on cruise ships mainly two night mini-breaks from Southampton the most recent of which was earlier in July this year on the Queen Elizabeth. Charlotte Mitchell the company s Compliance Manager says Having our meeting at sea was a fantastic experience A wide variety of facilities were available to us and there were multiple ways to relax and unwind after a day of meetings with access to the spa pools and fitness centre for example. In addition evening meals were easy to navigate everyone was seated in the main restaurant which offered an assortment of choices. If this sounds good to you TravelSolutions would be delighted to help you get on board. Travel o Columnist Amanda Eulenkamp Director of TravelSolutions Get moving Take a step in the right direction search for your next property with Jersey s best new property website jsy property You ll find everything you need all in one place from dream homes to legal advice mortgages to removal services - Bailiwick Express property is your one stop shop for everything you need. JERSEY NEWS & CLASSIFIEDS GLASS HALF FULL DWE Digital GLASS HALF FULL WITH Dave Edwards this in the coming months when we re-launch their global online presence. Having spent time in London and Jersey I am fortunate to be able to see both sides of the coin. Jersey is a great place to live the views are second to none the outdoor lifestyle is brilliant and there is a great community feel on the island. With regards to digital there is a great community that is growing and wanting to make a difference to the island s Digital Economy and there is real passion. With the appointment of Digital Jersey s new CEO Tony Moretta there is newfound excitement and speculation as to how this seasoned digital veteran can really bring the step-change that is needed for the Island s digital agenda. As a place to do business there are not many places where you can be in London meeting a new digital start-up by 10am and be back in time to have a beach BBQ with friends and family. I continue to be very lucky to call Jersey home - but now count myself even luckier to be able to call it my workplace. I moved back to Jersey after working and living in London for seven years. Whilst in London I built a career in digital media & marketing and worked for a FTSE 250 company. Whilst in London I was working for large global clients and was managing online advertising for adidas Reebok Nokia and Coca-Cola to name a few. After getting married my wife and I decided to move back to Jersey to get a different pace of life. I loved London with its atmosphere and the networking opportunities but after seven years I was starting to miss the place I call home Since moving back I have worked for a couple of small independent digital agencies which greatly helped me in understanding Jersey as a market and gain some insight into the digital economy that is growing over here. It was great to work with the people I met through these agencies as it showed to me there are pockets of passion and proper understanding of the global digital 48 industry on-island. After getting my feet under the table and gaining a level of confidence with Jersey as a place to carry out international business I set up my own digital consultancy DWE Digital. My aim was to use my existing contacts within Jersey and the mainland to secure digital consultancy contracts. Over the last 8 months I have now built up the business and have secured several long-term retainers in the UK and France. My work varies by clients and their needs but mostly covers digital marketing analytics agency sourcing & procurement and project management for large-scale web development projects. My most recent project is taking an 140-yearold Parisian luxury brand and bringing them in to the modern age through this work I have also been fortunate to work with some of the best creative talent within Jersey to produce truly world class work and look forward to announcing more on OCTOBER 2015 jsy CONNECT We advertised for new staff on Bailiwick Express and were really delighted with the number of excellent CV s we received in fact we got so many we had to close the campaign early. Express was really effective and delivered excellent value for money. Alistair J. Rothwell Bracken Rothwell Reach 1 000s of Jersey jobseekers for just 25 per week Getting the right employees is key to all businesses and our jobs website and email is just what they are looking for. If you need to recruit simply go to jsy jobs create and post your jobs online TODAY JERSEY NEWS & CLASSIFIEDS s Chairman of the board 2 words My Secret Life 2 PICTURES Julien Morel GARY GRIMSHAW NO ORDINARY DAY JOB F or Darren Moran the desire to act as well as think creatively burned for many years until a chance meeting with an anti-whaling campaigner in Bali set him off on a fascinating path. For when the 49-year-old isn t managing a team in the financial services industry he is shaping and riding wooden surfboards - the only person to do so in Jersey. When so much of modern surfing is about taking on the wave his craft is more about a return to board-riding s passive sustainable roots. Julien Morel donned his board shorts and went to meet him. Originally from a family of carpenters in St Ives in Cornwall Darren Moran has surfed for most of his life but it was only five years ago that his passions for waves and wood dovetailed into one. When I started surfing in the mid-1970s it was definitely a counter-culture and at school the few of us who surfed Fast-forward to five years ago and Darren s employer in the finance sector gave him an extended period of leave to travel to Bali to surf some of the island s famous breaks. There he had another chance encounter meeting a surfer called Natalie Fox who was involved with the direct action conservation group Sea Shepherd. With the International Whaling Commission meeting in Jersey that year Darren invited her and fellow Sea Shepherd activists to the Island. It was funny because I came home from work one day and all the people from Sea Shepherd including its founder Capt. Paul Watson were sat in my living room. It was a little unexpected but they were more than welcome. Some of them were from California and were real throwback hippies. They saw some of the work I had done and said Man you should start making wooden surfboards. I researched it and there was a guy in Cornwall who was giving workshops so I went over for a week. When I made my first board and I decided to carry on. I hadn t really touched carpentry since I left Cornwall but I knew it was in my blood and it would really fill a hole. I had never grown up in a nine-to-five world so it was great to have something to supplement my job. At work I manage service delivery so interact between the back and front offices to make sure clients get what they need. It is creative because you are constantly coming up with solutions and it is certainly challenging but there is nothing tangible at the end of the day. You might have an empty mailbox but you don t have a pile of wood shavings or pieces of wood that you can pick up and move around. Just making things is a release from those day-to-day challenges. I remember as a boy seeing my dad in the workshop standing back in silence in a flat cap with a pencil behind his ear just thinking. I asked him What are you doing and he replied I m just making sure that I have progressed today . Not long ago I found myself working on a roof and doing exactly the same thing which made me smile. It is important to always move forward. Darren has set up Woodshed Surfboards and has a workshop in St Peter where Connect interviewed him among his tools and boards at various stages of production - but it is definitely a passion rather than a business. From those first outlines on a piece of paper to completing a board is about 60 hours so it is labourintensive and of course I can only do this in the evenings and weekends. I m not going to change my life radically to make this a full-time thing because that defeats its object of escapism. Most of the boards I ve made have been donated to charity friends and good causes it is more of an altruistic thing and I just cover my costs. I d say three or four people are riding my boards in Jersey but plenty of people have asked me for a go on mine. You ll also see one in Mange Tout in Conway Street and I m currently making one for the Boardroom at El Tico. So what kind of surfer wants to ride a wooden surfboard as opposed to a modern one jsy CONNECT OCTOBER 2015 51 Just making things is a release from those day-to-day challenges. I remember as a boy seeing my dad in the workshop standing back in silence in a flat cap with a pencil behind his ear just thinking. I asked him What are you doing and he replied I m just making sure that I have progressed today . were often threatened with expulsion. I remember being called into the headmaster s office with my parents who were told unequivocally that I would amount to nothing if they didn t stop me surfing. Thankfully my older brother let me use his board and his dream of that long hot summer of 1976 to own a Beetle and live in California really inspired me. That dream was overtaken by rugby and both of us played at representative level for Cornwall and SouthWest England. I played a lot of rugby into my mid-20s but the scene in St Ives was a bit cliquey and there was a welltrodden path to injury settling down kids and retirement. I remember thinking at the time There s got to be more to life than this so one training night I just picked up my boots walked out and just gave it up there and then. A friend had just returned from a surfing trip to Asia so inspired by his experience I went off to Sri Lanka for six weeks met a Jersey girl and moved here. Like many before me I was just going to work here for the summer to get some cash together to go to Australia ... but here I still am. NO ORDINARY DAY JOB My boards tend to be made of cedar and are hollow which means that they ride higher in the water. When I rode my own board for the first time at Le Braye I thought Wow this feels like a canoe or a rowing boat They tend to be interested in the link between surfing and nature. When you think about that board over there [Darren points to a large photo of Natalie surfing one of his boards in St Ouen s Bay] the wood I used had been washed up on the beach so she is now riding the energy that drove it there in the first place. It is not spiritual in a religious sense but in the spirit of 1976 it is more cosmic and ethereal. The interest in wooden surfboards is also a reaction to the modern mass-produced board that have been spat out of a machine. My boards are always bespoke and I will work alongside whoever wants one from the beginning. I have eight standard plans which is a cross-section and looks a bit like an aircraft wing but even these are cut by hand so no two boards are the same. I do use software to design the shape so if someone says they want a slightly longer or wider board I can just stretch it without having to go back to square one. It is a different kind of riding because wood suits a longer board so people who want one tend to be more in touch with ... dare I say it ... the hippie retro lifestyle as opposed to the 12-year-old grommet who wants to be the next Gabriel Medina or Kelly Slater. They tend to be so focused on the competitive side of things. My boards tend to be made of cedar and are hollow which means that they ride higher in the water. When I rode my own board for the first time at Le Braye I thought Wow this feels like a canoe or a rowing boat because it was so high up. But being higher and heavier means that they have more traction and momentum people who ride them tell me they are more enjoyable and more like getting back to how surfing should be. Making and riding his own boards has meant that the wheel has come full circle for Darren in many respects. My first surfboard as a legitimate surfer when my parents allowed me to save up for one was a Freedom board bought in St Ives but shaped by Steve Harewood in Jersey. In Cornwall most of the boards were Freedom jsy CONNECT OCTOBER 2015 53 NO ORDINARY DAY JOB One of the joys of surfing is once you strip everything away it is just a way of communing with nature. It is about riding a wave that has come thousands of miles and sharing the blue sky and ocean with everyone else. boards in those days because no one made them locally. Now that I m shaping my own boards Steve has been down the beach and cast his expert eye over them. And coincidentally Natalie now manages Freedom Surf Shop in St Brelade and the board that I gave her is now on display there. When I go in I still get a bit of a chill because a board that I made is now on display in the shop founded by the man who shaped my very first. I still can t believe it But do finance shaping and surfing fit together Lots of people in the finance industry surf. When I was in Bali I met a Cornish guy running surf tours who referred to Jersey as the land of the wedged surfer . There is a perception that everyone here has loads of money but we know that s not the case and while there are wealthy people in the Island it is mostly like everywhere else. One of the joys of surfing is once you strip everything away it is just a way of communing with nature. It is about riding a wave that has come thousands of miles and sharing the blue sky and ocean with everyone else. I travel to London every week for work and every time I walk across London Bridge I stop halfway along and remember my headmaster saying that I d never amount to anything because I surfed. I ve been back to Cornwall and bumped into old teachers and when I tell them where I work they are surprised and pleased in equal measure. And I m pleased to remind them that I still surf and even shape my own boards. Again it is the wheel coming full circle. END 54 OCTOBER 2015 jsy CONNECT NO MEERKATS. NO TOY ROBOTS. NO MEN IN HIGH HEELS. JUST THE MONEY YOU NEED AND A REPAYMENT PLAN YOU CAN AFFORD. You can now apply for a loan with Jersey s leading lenders at Simply go to jsy finance JERSEY NEWS & CLASSIFIEDS I was robbed last week. Not an assault or a burglary. No this robbery took place in front of my eyes and with hindsight it appears to have been going on for some time perhaps for time immemorial. My Damascene moment occurred when I opened a large packet of crisps. A bag large enough to share so the advertising recommends. On opening the bag I pushed my hand in to grab a crisp only to have the sensation that it was now lost in a black hole of nothingness. After a good few seconds of searching my fingers alighted on a crisp tucked away in a corner. I knew at that moment that I had been robbed. The larger bag was merely a ruse an unwanted potato treasure hunt that bore little resemblance to the expectation created by the advertising. My face was not showing the same ecstasy displayed by the D-list celebratory paid to extoll the virtues of the larger option. I will not try to hide my naivety. Burgers appear to shrink somewhere between promotional poster and my tray holographic bracelets fail to imbue me with special powers of healing and sports clothing has yet to deliver the elite sportsman-like qualities I want to secure from the comfort of my sofa. It would appear that I am not alone though and join a merry band of the aspirational the desperate and the gullible. We accept at some point that there will be a disconnect between what the advertising promises and what it actually delivers. This seems to be limited to low price items fastmoving consumer goods. They lie we know they lie and they know we accept they lie not so with the more pricey items. Take jewellers for example. The high prices they require are built on scarcity of materials (or controlled supply) the artistry of the jeweller and an unspoken rule in society that something has value because it does. Kind of like old stamps. So long as we all basically agree that small pieces of paper have great value the Emperor continues to have a fine new set of clothes. If a jeweller s advertising is spurious the whole product offering fails. Promotion is the element that sets the scene the context in which we will buy. Leonardo Di Caprio wears that watch so it must be something of great taste. Why would he buy anything else So what if the advertising does not exactly lie but fails to set the right scene Can we accept that Prime example a select Jersey jeweller. The window displays speak of the highest quality and this is confirmed by prices being either absent or slightly obscured. Walk in though and here the Y Marketing Forces o Columnist CHRISTOPHER JOURNEAUX magic of simple but skilfully deployed decor finds home. The shop interior colours are opulent the lighting gentle and welcoming and the cabinets obviously locked but seductive - the jewels within are sirens beckoning attention from our credit cards. The staff are attentive but likely able to assess our price range within seconds of entering the shop and their sales pitch concealed within a professionalism that used to permeate all retail. They offer an experience to be relished. Where then can it all fall down The advertising. I was told once by a retailer that graphic design was a dying profession because software readily available meant anyone could create an advertisement. To prove the point he showed me some of his promotional material all produced thanks to that software and the skills of his nineyear-old son. This meeting told me two things looking at the artwork his son clearly needed some kind of intervention from a behavioural specialist but more importantly he failed to understand the importance of good advertising well briefed and designed to inspire inform and create brand vision that persuades us to purchase. The advertisement in question was a quarter-page JEP spot featuring watches. A good start. Might as well make clear what it is you are selling. Here the good stuff ends. It was mono so some cost-saved but we are selling jewellery things that sparkle and dazzle. Black and white struggles to do that. And so many watches crammed into that small space. A quarter page packed with watches just ends any hope that mono will cut it. So black and white loads of watches no one famous smiling out a fictitious (or fatuous) grin and little design. What does this say I would venture it says cheap discount massmarket and most damning of all not special. The disconnect here is not a lie we can accept it is not a lie at all. It is a lack of understanding of what the customer is buying. Sure the watches but also the values of the jeweller s brand the exclusivity the subtle dazzle of high prices and well-known brands. That is not to say that bargain basement advertising cannot deliver sales. It can but the cost to the advertiser is high because they are throwing off their brand values and chasing the quick sale. There is rarely a way back from that. There is some advice buried in this somewhere spend some money on your advertising and use a professional designer. Meet your customers at their expectations and sell them a watch and a lifestyle. That s what designers help you do. Bad advertising is a simple failure to greet stroke and caress the aspirations and dreams of your customer. 57 jsy CONNECT OCTOBER 2015 Here s the Thing Here s Innovation INNOVATION You can t tell us about innovation. We ve knitted jumpers we ve built ships we ve bred cows we ve dabbled in piracy we ve based a tourism industry on cheap booze and cheap weddings and we ve built a sophisticated worldleading financial services industry in the space of a few decades who could be more innovative than us Here s the thing. Little hint for you - the fact that people tend to go back to the 18th century to cite examples of innovative thinking in Jersey should tell you a little story about our recent track record. Put frankly it s nothing to celebrate. For all of the talk about diversifying the economy over the last ten years we re long on chat and short on action. All of that is about to change. Apparently. In a move dangerously close to admitting that Jersey doesn t have a surplus of innovation experts the States called in an expert from outside to carry out a review of what s going on. Tera Allas is an economist who has worked at the highest levels of the UK public sector including a role on the governing board of Innovate UK and stints as Chief Economist at the Department for Transport and Deputy Head of the UK Government Economic Service. Her findings delivered surprisingly enough for an economist in near-fluent human boiled down to the following there s a lack of skilled people available to businesses there s no government support for research and development there s a risk-averse culture there s too much red tape there s too little co-ordination between the likes of Jersey Business Digital Jersey Locate Jersey etc and while there are great strategies and policies in place there s little in the way of practical support to back them up. The attentive reader will have picked up a theme developing there. For every one of those issues the potential solution lies not with the private sector but with the government. Put less gently the whole problem is the States the population policy a lack of funding risk-aversion over-regulation lack of co-ordination of government-funded agencies and lots of words from the States and no action. The critical example of this is the Crystal Island fiasco. The lasting damage from the-film-that-never-was isn t the 58 OCTOBER 2015 jsy CONNECT 200 000 that the Economic Development department gave to a bloke with a track record of defrauding investors through film projects after all it takes the Health and Social Services department just nine hours to burn through that amount. The lasting damage is the reinforcement of the risk-averse mentality of civil servants who d rather not risk success if the price is (the horror ) someone saying something mean about them in the media. The idea of being held accountable for failure (not that anyone has been) and the potential damage to their career prospects far outweighs in the minds of civil servants the potential fruits of success. And so they find it easier to bitch and moan about media coverage than just man up and deal with it the smartest investment for innovation might end up being a crate of adult-sized nappies for chief officers. Similarly moves to develop crypto-currencies were quietly nixed over concerns by the banking sector. The problem is that innovation has been presented as a fantastic rosy option for the Island the magic bullet that solves all of our problems. And all of that is true. But the story doesn t end there because there s a cost in terms of investment in terms of the inevitability of failure on the way to success in terms of challenging existing sectors and in terms of squaring the impossible challenge of importing the skills needed at a time when the Island s public seem vehemently opposed to immigration. It s going to take more than a review some warm words and a few selfies to address those challenges and pay that cost. But those challenges are not for the private sector or for potential innovators to address they re challenges for the government. If there is innovation in Jersey the review by Tera Allas found that it s happening in spite of the best efforts of the States not because of them. 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 Tune in to Jersey s online radio station ...And best of all NO ADS Listen to six non-stop music stations at radio This is where music lovers in Jersey can listen to the best of the 60 s 70 s 80 s 90 s 00 s and very latest chart music. To listen via your mobile download the tunein App JERSEY NEWS & CLASSIFIEDS 6 October States Nothing much to see here. Just 70 million worth of cuts to the public sector payroll another 10 million out of benefits and new charges on health and sewage worth 45 million per year that s charges by the way in the sense of money that the government forces the public to give them by law. Almos t like there s another word for that now that DD thinks about it but it escapes me completely. Anyways all of that sounds too (ahem) taxing for States Members who are far more likely to bang on about a Christmas Bonus than anything actually serious. It s almos t as if that was the Gorstmeister s secret plan all along... and optimism (something to do with the 25% profit increase possibly). Expec t that to stay the same. And maybe start digging out the black clothes and Cure CDs for the die-hard miserablist s in the retail sector. 14 October Labour Market Report Right. This is actually quite big. It is on the one hand another good indicator (in terms of the number of people actually in private-sec tor employment) about the state of the economy and on the other it s a good indicator (in terms of the number of people in the public sector) about whether the Gorstmeister s plan to fix the deficit by clobbering the States workforce is actually happening or not. Overall employment is likely to be higher than it has ever been which is nice. Expec t the attention to focus on the relative forecasts of the private and public sectors. 7 October Business Tendency Survey Every three months every business in Jersey holds hands gazes deep into each others eyes and talks earnestly about their feelings. And that s what we call the Business Tendency Survey. Awww w bless. It s all just as gooeyeyed and lovestruck as you d expec t it to be especially with the green shoot s and all of that. Profit s new jobs rosylooking GVA figures around the corner it s like a spring time weekend trip to Paris expressed in percentages. Or something. Last time out the finance sector was the most flushed with hope 15 October Chamber of Commerce lunch speech by CICRA chief executive Michael Byrne Lovely stuff. Everyone loves CICRA at least everyone whose business has never had anything to do with CICRA loves them which is almos t the same thing. The people that have actually encountered them well... not so much. Deadly Diary WILL BE FLICKING CAREFULLY THROUGH THE FUTURE CALENDAR OF POLITICAL AND BUSINESS EvENTS ...AND CHEWING OvER WHAT IT FINDS THERE. EvERY MONTH CONNECT 60 OCTOBER 2015 jsy CONNECT The thing is they re not a bad lot. They ve done some good work on petrol prices which is nice. But my God do these guys hate the telecoms sector don t expec t a lot of hugging with the guys on the JT table in particular. If it all gets a little bit Montagues and Capulets then it might be best not to be sitting between them. 20 October States And it s a ho ho ho it s back to work we go for those political types. On the menu this week is the continued evisceration of the Economic Development depar tment which seems to have had anything to do with the actual economy ripped out of it and replaced with the sport and culture stuff that the Education Sport and Culture depar tment never really got round to anyway. And the creation of a new little empire for Philip SoCalled Deficit Ozouf who is to become Assistant Minis ter for Tweeting Pictures of Himself if DD has read that right. In other news it s Snoop Dogg s birthday. Wonder what he s doing Any chance they could swap out prayers for a sing-along of Gin and Juice But they re a bit more impor tant now in the context of union strife following the announcement of the pay freeze. The unions appear to be gearing up for a bit of action on the indus trial front and their case is largely built on the real-terms pay cut that public sector members will be taking. If the RPI gets higher then that pay cut gets bigger and that will add fuel to the fire and to the rhetoric. Expec t this to be taken a bit more seriously than usual... 23 October RPI RPI stats come out every three months and frankly they re not that exciting. Michael Byrne jsy CONNECT OCTOBER 2015 61 W e tend to go to the doctor s if we re ill but a visit to the dentist is different when it comes to the health of our teeth and gums prevention is far better than cure. Getting that message across can be difficult though especially when you re fighting against the widely held view that even a simple check-up is expensive. But Dr Joanna Kumpin of The Dental Spa wants to convince the Island otherwise that going to the dentist is not only essential but it can also be affordable a calming experience and positively influence your wider wellbeing. The Polish-born 41-year-old owns the 11 David Place practice. It provides far more than a conventional dental service (hence the spa reference) as Dr Kumpin has ambitions to bring together a varied mix of wellness practitioners to heal and strengthen the mind and body not just the teeth. 62 In the first of a new series of features Connect took Dr Kumpin out for a Working Lunch at Bohemia to find out how it will all fit together. Just before we dig into our starter please tell me a little bit about yourself... I come from the north coast of Poland and studied dentistry in Gdansk. After working at a practice in Poland I decided to travel and improve my English so moved to the UK in 2005. A year later I joined Dr Jane Bracken s surgery in Jersey where I worked for nearly five years. But my dream was always to be more than an associate practitioner and one day Tony rang me and invited me to have a look around his practice. We got on straight away and I took it over in August 2011 although Tony worked with me for another three years. Change has been very gradual because Tony s practice was well established and popular and I am fortunate to have kept most of his patients. I now have another dentist in the practice Dr Mina Bassily who joined me in October 2014 and we have a hygienist and hope to take on another one soon. Could you describe what you do My primary interest is in orthopaedic orthodontics and The Dental Spa performs the whole range of general dentistry including root canal treatment cosmetic dentistry and whitening. These days there is a trend ideally not to veneer or crown teeth but rather to maintain healthy natural teeth. On top of that we carry out cosmetic non-invasive facial aesthetics including Botox and fillers. We are also about to launch a laser clinic having invested in a hair-removal laser for both dark and light skin. It will also be able to remove tattoos varicose veins on the face and legs and pigment spots. We want to create a wellness environment that is why we are called The Dental Spa. Do you find that some people are still frightened of going to the dentist Dr Tony Forbes who I took over from OCTOBER 2015 jsy CONNECT V Working Lunch with Dr Joanna Kumpin Owner of The Dental Spa at the practice when he retired had a reputation for being a gentle and caring dentist and I have worked hard to continue that tradition. A dental surgery can be a very stressful environment but our patients are fully supportive. For instance the dental smell can be an anxiety trigger so we burn scented oils we use a subtle light our d cor is calming and people often comment that it feels like a home. It is elegant and clean without that hospital feel. Do you find the cost of going to dentist perceived or otherwise can be another barrier Regular visits to the dentist are very important but we all have pressure on our budgets and can sometimes struggle to afford a six-monthly visit. To help we have introduced a monthly dental health plan. We have various options starting from 17 a month which equates to just 40p a day not even half a cup of coffee. It includes two examinations two visits to the hygienist and a fluoridation varnish which is coating the teeth in a see-through varnish where the jsy CONNECT OCTOBER 2015 63 At Bohemia Jersey WORKING LUNCH fluoride builds into enamel. People on a plan also get a ten per cent discount on further recommended treatment and we have special plans for children and family plans which offer extra discounts. Is it normal for a dental surgery to offer facial aesthetics Dentists are the preferred practitioners worldwide together with cosmetic surgeons because we study anatomy of the face and head thoroughly. People trust us with their mouths so it is natural to trust us with their faces. I qualified to carry out cosmetic aesthetics in 2006 so have done it for many years. With facial rejuvenation such as cheek implants or lip augmentation I always recommend starting very subtly at the beginning and progressing slowly because you have to work with what people have been given by nature. My approach to aesthetics is very simple nothing overdone nothing flashy and work that is only harmonious with the rest of the body. Where do you see The Dental Spa in say five years time 64 I would like to see it becoming more of a wellness centre so the practice would operate alongside chiropractors physiotherapists perhaps yoga practitioners and other professionals in one building that would be accessible to all. I would also love to work with a counsellor or psychologist who deals with people s fears. Fear of the dentist is a common problem perhaps due to bad experiences at school or having teeth pulled out but it is often linked to other fears and I would love to create an environment where people can overcome those anxieties. I want to support the general health of our patients so for example I ve recently started supplying a supplement called Juice Plus that is only made from fruit berry and vegetable extracts. I want my patients feel in charge of their own mouths and bodies. You cannot impose treatment on anyone but if people are comfortable and feel in control then their overall wellbeing will improve. OCTOBER 2015 jsy CONNECT On the menu Dr Kumpin and Connect had a Working Lunch at Bohemia in Green Street. They had the set lunch menu. They opted for two courses which was just 19.95. Three courses is 24.95. Dr Kumpin chose the Ham Hock Raviolo with Peas Broad Beans and Gruy re while Connect had the Lobster & Watermelon Salad with Wild Herbs and Flowers. For their main course Dr Kumpin chose the Braised Lamb Neck with Roscoff Onion Pea & Mint and Rosemary while Connect opted for the Plaice with Cauliflower Shrimps and Pistachio. If they had had a little bit more room they could have then chosen a Selection of artisan cheese from Jean-Yves Bordier Apricot with Almond and Basil or Lemon Verbena Cake with Peach and Champagne. To book please visit or call 01534 880588 PHOTOGRAPHY Gary Grimshaw TECHNOLOGY e-GAMING breathing new life into small economies BY LISA MCLAUCHLAN Head of Commercial Operations Sure I n the year since Sure purchased the Jersey-based data services provider Foreshore we have seen a real shift in confidence within the data centre industry as public and private sectors have worked effectively together to stimulate international interest in the facilities and services that Jersey has to offer. The motivation behind this co-ordinated effort is the benefit that we have seen eGaming bring to similar jurisdictions around Europe and the potential for it to rapidly strengthen the island s economy even as other sectors face constant challenges. In the Isle of Man eGaming has now replaced insurance as the largest economic sector delivering nearly 17% of GDP. On the other side of Europe Gibraltar sees eGaming generate over 20% of GDP and three thousand jobs whilst in the more diversified Maltese economy the sector generates more than 10% of the national economy. Alongside the boost in GDP another strong reason for developing our eGaming industry is that it will use a whole range of services that we have an excellent reputation for delivering including accounting law finance IT and data centres. eGaming is a potentially transformational industry and with Digital Jersey Locate Jersey and the private sector working hard together to attract companies to the island we may not have to wait another year to feel the benefits that it can bring. Can 4G replace broadband 4G mobile internet was introduced to the Island at the beginning of this year and in that short time it has changed the way we use our mobile phones because the faster speeds enable the use of a wider range of Internet services. As well as giving us more freedom to use Internet services in the way that we want to 4G delivers Internet speeds that rival traditional fixed line broadband - and this raises the question of whether it is possible to save some money by using only 4G as your main broadband service. The truth is that in certain 66 OCTOBER 2015 jsy CONNECT circumstances it is definitely possible to reduce the number of broadband subscriptions you have by getting rid of your traditional broadband connection. For certain types of internet user 4G is more than sufficient and the opportunity to cut your costs by 20 per month or more should not be ignored. Going forward with 4G If you are thinking about operating entirely with 4G broadband then the first thing you need to do is assess the way you use the internet. 4G delivers more than enough bandwidth for browsing using social media and checking emails plus you can download images and audio with it. However if you are a regular user of video streaming services such as Amazon Prime Netflix or YouTube then 4G probably won t be able to give you the quality of service that you need meaning that it will be worth staying with traditional broadband. If you think your usage profile is appropriate for 4G then your next step will be to check the signal strength in your area. If you don t already have a 4G SIM card then you can ask your operator for a test SIM to try TECHNOLOGY Gadget DOWNSIzE AND UPGRADE THE BRILLIANT SONY XPERIA z3 PLUS Sony has upgraded the popular Xperia Z3 with a Plus version that offers faster processing and download speeds (up to 50% faster) and fits all of the features that wowed Z3 users into a smaller frame. The Sony Xperia Z3 Plus is light and thin weighing in at 144g and just 6.9mm thick but keeping the smooth style of the Z3 design with its 5.2 inch screen smooth edges and metallic sheen. By taking a minimalist approach Sony has created a phone that s as attractive as it is immensely practical. Strange as it sounds practicality is what makes the Z3 Plus truly stand out from the crowd. Whilst making a statement with its looks the phone is both waterproof and dust resistant so it can be used almost anywhere and unlike virtually every other handset on the market it is easy to clean because you can let water splash all over it. Powered by a battery that lasts for two days the Z3 Plus and its 20.7mp camera deliver a brilliant multimedia experience that lets you seamlessly switch your gaming from your PS4 to your phone or throw your pictures and videos onto your TV with just one touch. w Technology before you buy. Once you know that the signal in your area is strong enough you will just need to insert a SIM card into 4G ready devices exactly as you do with a mobile phone. For everything else you will need to buy a 4G wireless router they are available in a range of types and sizes from very small units such as MiFi though to a 4G home router for greater power and range. Speak to your mobile operator to see what they suggest for your use. Once you re set up with the router you should be ready to use 4G throughout your home but remember that if you regularly use streaming services or often download audio and video then it will be best to stay with traditional broadband which is certainly not redundant and is going to be with us for a long time to come Visit for all the latest technology news or subscribe to get the latest news straight to your inbox jsy CONNECT OCTOBER 2015 67 Looking for more Technology News OU THE ARE Y INESS EST BUS FITT ERSEY IN J isit To Enter v tt jerseysfi ION COMPETIT THE gym 000 sq ft s st busines ess again ill pit busin l battle a physica s Fittest w Jersey dividual in as taken against in on that h idual n indiv phenome ies raised a fitness tly all mon ed on bas . Importan Les Amis. ld by storm al charity e wor th ntastic loc aid of a fa ym are in arehouse G sq ft w d new 6000 r test to fin Fit s brand Cross y s premie ey Jerse Held at Jers sFit games test will be elling Cros ersey s Fit J s ing gru in St Helier the world Jersey. Us a test for mpany in o as . the fittest c renowned spectators rience for uts world o expe style work a thrilling letes and th toughest a ssFit s 6 ersey Cro HERE J W ovember 14 & 15 N WHEN am 45 per te ession Entry Fee Saturday s FEE hirt and a -s Includes T rossFit t Jersey C a 2 Teams of TEAMS Welcome w omen are aled to allo Men & W iciently sc WHO en are suff Wom petition for fair com fore hand. 7 days be be posted Note 2 will unds 1 & e day. Saturday ro l will be notified on th y s fina Sunda Supported by In Aid of THE ADISOR - OLAF BLAKELEY Time for our second Liberation I am lucky to have a private pilot s licence which gives me the most incredible amount of freedom. And it was reflection upon the notion of freedom that sparked this article. I have just returned from a long trip piloting a small private plane through France to Cannes across the Mediterranean Sea to Elba Island down the Italian coast past Rome and Naples to Sorrento across to Dubrovnik in Croatia up the Dalmatian Coast and across to Vienna and from there onto Prague. During that trip I witnessed a lot of different cultures and rules and I wondered if Jersey could learn from some of the practices of those countries if perhaps regulation and legislation here should be relaxed. Let s start with Prague. Just around the corner from the famous Charles Bridge there is a hotel restaurant pub which serves pints of beer like they are going out of fashion and which cost about 1.00 per pint. It becomes so busy that people sit by the sides of the road and on the pavements drinking. It is al fresco without chairs and tables. It is mobbed by locals and tourists alike. Not once during my visit did I witness anyone shouting not once did I witness a fight or argument or tussle not once did I witness anyone being sick or exhibiting anti-social behaviour. Why is it then when people hit the pubs in Jersey there is trouble A local explained to me that she thought it could be the beer itself. It is consumed so rapidly by residents that it contains no chemicals or preservatives it is natural. Yes you get intoxicated but perhaps the additives in alcohol served in the UK and elsewhere could have an ill-effect I prefer to think that it is freedom. You can buy the beer when you want. Yes if the weather is nice you can take it outside and drink your beer. That freedom suddenly removes the necessity to order 5 pints at once. It also causes people to disperse at different times of the day night. It also prevents any arguments because I believe people are not confined together in a sheep pen and are generally more relaxed. It is merely a group of people socialising. Could Jersey introduce something similar Could the licensing laws be relaxed so that things become less controlled and people are given more freedom I would like to see a trial. I think it would take time for people to become used to it but it may work. At least 30% of the minor criminal matters I deal with in my practice are alcoholrelated. How good it would be if that could change for the better. I would welcome that freedom and once given it I would be slow to want to surrender it. Next Prague again but also many other popular cities like Rome Budapest and Vienna. If you are a tourist you cannot help but notice groups of people zipping around the city on Segways. For those of you unfamiliar with the trademark name they are electric motorised scooters on which you stand and which operate via a gyroscope so that manoeuvring is accomplished by transferring your body weight. I ve been on them a few times and I have to say they provide bags of fun. They are swift quiet small and efficient. They are also incredibly easy to operate and drive. Everyone I spoke to who had been on one became instantly hooked they just simply didn t want to stop riding them. One owner operator was explaining to me the cost and other technical aspects of the Segway Oh no you can t use them in the UK unless it s on private land. Why not I haven t checked the local laws but I am guessing that they would not be allowed in Jersey. Again why not I get quite frustrated with brick walls of you can t do that and you can t do this. It is as if giving freedom means a loss of control for the legislature. Oh relax for goodness sake They have them in San Francisco and Washington DC as a public mode of transport we should have them here. We have people on pedal bikes on loud scooters and 50cc lawnmower-like bikes (except 10 times louder) e-bikes cars vans skateboards disability buggies (with flags attached and go-faster stripes) and those small pedal scooters that have recently become popular. Why not have Segways They are clean and quiet efficient and fun. Is it perhaps the fun aspect that provides the prohibition Why not allow people to have Segways and ride into work Okay if you must keep some control put number plates on them if that would make it work. Tax them if you really must. But we have to be more relaxed in this island. I love Jersey and I am always happy to return after being away. But I do feel a slight oppression. I can t help but feel that if laws and regulations were more relaxed and there was less red tape and prohibition the problems that those things try to resolve would actually resolve themselves. We need to be a liberated Island once more. 69 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 jsy CONNECT OCTOBER 2015 A balanced portfolio diversified across asset classes and geographies remains the best defence against the always unknowable future By Christopher Golding Portfolio Manager Barclays After the stomach churning volatility seen at the tail end of the summer data suggesting both European and US economies remain on improving trajectories has encouraged investors tentatively back into risk assets. We d be wise to expect nervier times ahead - investors will be hypersensitive to any further news out of China and the debate about the first US interest rate rise and its ramifications for the world economy is likely to become (if possible) more hysterical yet. This latest bout of volatility has reinvigorated the legion of talking heads who have long thought the modern world economy and therefore its capital markets is founded on little more than massive debts and central bank largesse - calmer voices may well struggle to be heard for a while yet. 70 OCTOBER 2015 jsy CONNECT We re suspicious of this caricature of the world economy. The admittedly dramatic increase in global debt seen since the liberalisation of the 1980s in particular has not been accompanied by a dramatic increase in global economic growth. The aftermath of the crisis of 2007 and 2008 may have made us forget the important point that the world economy s collective wealth is ultimately not financial in nature. Financial assets and liabilities are entitlements and obligations they do not actually produce anything. Mankind s stock of productive capital likely continues to rise much as it has done for most of recorded history. It may simply be that this stock of productive capital is becoming harder to accurately measure as we move further away from heavy industrial assets and towards more intangible FEATURE INVESTMENT sector. Data out over the last couple of weeks has given us even more confidence that the prospects for consumption and investment remain attractive for the second half of the year with an acceleration from already very respectable levels still on the cards. In Europe too this week provided further evidence that the private sector is in improving shape. This economic warmth will likely spread through the rest of the world particularly to the more trade sensitive areas such as Asia. This in turn may help Chinese authorities a little in their unenviable task of continuing to try and nudge the economy away from its dependence on the heavy industry and construction that marked much of its incredible ascent. Investment conclusion technological advances. It is also worth remembering that the world cannot be meaningfully insolvent collectively - there is no net debt. One former colleague would regularly point out that mankind has surely not yet managed to persuade the so far undiscovered inhabitants of distant planets to lend us money just yet (or vice versa). This does not mean that there is nothing for global investors to worry about just that many of the answers offered by commentators in the wake of capital markets volatility lack nuance and an appreciation of the real underlying drivers of global economic growth the factors of production. An over-reliance on data that has by and large failed to keep up with the modern economy combined with a widespread belief that optimists simply lack intellectual rigour has led many to miss much of the post-2009 rally in equity markets. It is these same commentators who are gleefully telling us that now is the time to sell everything and stock up on tinned food. Economic backdrop We still suspect that there is further to go for the current economic cycle. More often than not recessions come along to iron out instances of economic arrogance - from the tulip bulb that sold for over ten times the annual income of a skilled craftsman in the mid-17th century to the more recent belief that clever structuring had eliminated the credit cycle mankind s hubris is always punished one way or another. As we look around the world today we see insufficient signs of such hubris to warrant a significantly more cautious stance in portfolios. Recessions can of course rain from clear blue skies but that is why we continue to recommend clients hold investment portfolios well-diversified across asset classes and geographies with a proportion in cash aimed at buffering against the worst excesses of some of the more flighty parts of the portfolio. We would continue to urge investors to keep their attention trained primarily on the US economy and more specifically the US private A balanced portfolio diversified across asset classes and geographies remains the best defence against the always unknowable future. We still have a slight preference for developed markets equities within that mix in deference to the sense that there remains juice to squeeze from this current economic cycle as suggested above. Within emerging markets equities where the equity market pullback has been notably more severe and longer lasting we still see investors being best served by focusing on Asian emerging markets in particular Korea Taiwan and China (offshore). With regards to the fixed income complex we continue to recommend that clients tread carefully and lightly across the wider asset class. The prospects for inflation may look a little more distant in the wake of China s decision to weaken the yuan and continuing weakness in commodity prices. However we still suspect that the developed world is not quite as far away from generating more durable levels of inflation domestically than is implied by markets. 71 jsy CONNECT OCTOBER 2015 FEATURE By Nigel Cuming Chief Investment Officer Canaccord Genuity Wealth Management There have been significant falls in riskier asset classes recently and certainly some of the moves have been dramatic especially in emerging markets. Even in more developed markets we have seen equity markets decrease by between 6% and 10%. Other headline grabbing moves have come in the commodity area with the Bloomberg Commodity index reduced to levels not witnessed since 1999. China s symbolic move to devalue the yuan has also resulted in some severe turbulence in the foreign exchange markets. Conversely classic safe haven assets such as high quality government bonds and gold have appreciated in value. With such a range of large falls in a wide range of assets and an obvious flight into safe haven assets investors may be forgiven for being nervous. The most widely followed measure of stock market volatility the VIX index which measures the volatility of the US equity market saw its largest ever weekly increase in August. When examining whether this nervousness is justified we need to understand the reasons behind these sharp movements. Firstly during the summer volumes in markets are notoriously low with many investors and traders on holiday. This tends to mean that movements can become exaggerated when they occur as liquidity is limited. Low volumes have been apparent in currency markets in equities and in some areas of the bond market. Secondly after several years of strong rises the valuations ascribed to a number of asset classes have become elevated. This is perhaps most clearly the case in equities but also applies to some areas of the fixed income market. This left prices susceptible to a pull-back even on the back of small changes in real world fundamentals. Up to the middle of June we saw very sharp rises in Chinese equity prices rises out of all proportion to sensible valuations. As this bubble popped 72 OCTOBER 2015 jsy CONNECT FEATURE INVESTMENT The Return of Volatility the face of the worries surrounding Greece. Although China is slowing down absolute levels of official GDP growth remain well above developed world levels and India is now growing robustly. This global growth although relatively modest in total will continue to support company revenue growth. Quantitative Easing continues apace in both the EU and Japan with little to stand in its way at least for the next year or so. This will help banks in these regions to rebuild their capital ratios and over time encourage investors into riskier assets such as equities. In the face of the economic slowdown China is already cutting interest rates reducing bank sector reserve requirements and directing state investment into infrastructure projects all of which should support economic growth in the medium term. For the most part company balance sheets are strong which allows them to continue to grow dividends even if earnings stall. Strong balance sheets also allow companies to continue to buy back shares and engage in takeover activity all of which should support prices over time. Low energy prices provide a significant boost to consumer finances and spending and are good for low growth oil importing countries and regions like Japan and the EU. More generally low commodity prices mean inflation is unlikely to be a threat to central bank rate setting committees. If the effect is to drive prices into reverse this should be seen as a good deflation because of the wealth impact it provides to consumers. This then supports lower interest rates for longer prolonging the extended shallow recovery that we have experienced. Even so despite these long term supports the markets may remain skittish and volatile for a while longer. 73 investors have increasingly focused on a lack of growth in the wider Chinese economy and a number of stresses within it. The Chinese authorities stepped in to support the equity market but even this caused some nervousness as their concerted action tended to reinforce fears about the seriousness of the situation rather than assuage them. These fears were further increased by China s decision to implement a relatively limited devaluation of the yuan. This caused a ripple effect of further devaluations in emerging markets across the world. Elsewhere the Greek debt crisis may re-emerge as an issue for markets much earlier than many had hoped. The last few months have also seen markets become increasingly concerned about the impact of a rise in US interest rates. Rising interest rates make high equity valuations more difficult to sustain and by attracting capital flows into the US dollar cause flows out of emerging market assets. Finally there has been a pick-up in geopolitical tension notably in Russia and Ukraine which although relatively less significant than the other factors serves to increase nervousness amongst investors. Looking forward it is important to emphasise that even after recent falls equity valuations remain rather high but these are supported by a number of factors. The absolute level of interest rates is still historically very low and rises are not anticipated to occur quickly. This continues to make it easy and cheap for companies and consumers to borrow both to invest and to spend. Economic growth across the world although coming down is still only slightly below the long-term average. In the US and the UK it is moderate with low unemployment encouraging signs of real wage growth and considerable potential to improve productivity. Europe (with the exclusion of Greece) is also recovering albeit slowly. Recent indicators have shown resilience in jsy CONNECT OCTOBER 2015 What happened to the emerging markets dream By Tristan Hanson Head of Asset Allocation Ashburton Investments One does not have to look back far to find a time of unbridled optimism for emerging markets. Unprecedented GDP growth rates vast foreign exchange reserves a rapidly growing middle class and a host of other arguments were used to explain why emerging markets would both drive global growth and offer the most exciting opportunities for investors. How different things seem today with a time of widespread pessimism about prospects facing these same countries. EM growth rates are down their currencies have plummeted and emerging market equities have been a great disappointment. With the exception of India it is hard these days to find someone with a positive outlook on growth prospects in the other BRICS nations. Coming out of the 1990s crises the subsequent EM boom was built on increased globalisation depressed exchange rates (a policy goal via persistent central bank currency intervention) and higher savings rates which provided the basis for current account surpluses. Macroeconomic policy became much more orthodox governments tightened their belts and inflation targeting caught on as it had in developed countries. Macroeconomic resilience was achieved. As globalisation accelerated China s enormous economic success and its sheer scale fuelled a commodity super-cycle benefiting producers in much of the emerging world. The result was a golden era for emerging markets collectively. Between 2001 and 2008 emerging economies grew at an average annual rate of 6.6% compared to 3.7% over the previous twenty years. The mistake of many analysts and governments - was to extrapolate this success rather than recognise it as a uniquely positive period for emerging So what happened to the emerging markets dream 74 OCTOBER 2015 jsy CONNECT FEATURE INVESTMENT countries. Some reversion to the mean was more likely clearer still with hindsight. Meanwhile credit booms in several countries most notably China began to create their own vulnerabilities. As events have since made clear hubristic and complacent policy in the good years left certain economies poorly equipped to sustain growth once the tide of rising commodity prices went out. The problems in China today are the unfortunate consequence of the policy response to the 2008 Global Financial Crisis. Faced with collapse in the US and Europe Chinese policymakers dragged up the rest of the world with an enormous stimulus programme increasing domestic credit by more than twenty percentage points of GDP in 2009 alone. Inevitably the massive credit boom has come home to roost as the authorities deal with problem loans in the infrastructure and property sectors as well as corruption among Party officials. All this has occurred when China is ageing rapidly which will itself cause future growth to slow further. The silver lining to the cloud overhead is that fixed exchange rates are mostly consigned to history. In years gone by pressure on capital flows would sharply tighten monetary conditions forcing a severe contraction and probably a banking crisis. Today in most countries the exchange rate takes most of the strain lessening the impact on the real economy. Moreover despite some deterioration macro imbalances are generally not as large as twenty years ago and inflation remains low in most countries. The latter point is important as low inflation allows greater policy flexibility. A challenging road ahead As with much else discussion of the outlook must start with China. It seems inevitable that Chinese growth will slow substantially in the future the real question is whether it does so smoothly or in a chaotic manner. While China still has much room to catch up with the richest countries the country faces some considerable headwinds an unbalanced economic structure a shrinking working-age population of workers and the challenge of institutional and political reform. China might continue to grow faster than many countries in the decade to come but its growth rate will be lower than in the recent past. The fate of China and of the developed world will determine the external environment facing other emerging countries. In turn how each country fares will depend on the policies their own governments choose. Consideration of what drives growth over the long-run makes it clear that assuming all emerging markets are alike is a mistake. As Harvard s Dani Rodrik puts it The real lesson from the collapse of the emerging-market hype is the need to pay closer attention to growth fundamentals and to recognise the diversity of circumstances among a group of economies needlessly lumped together. To sustain robust long-term growth policymakers in many emerging countries need to improve the economic environment for businesses and households to thrive whether that be through better education more competition improved regulation or any host of possible policy areas. Circumstances will differ by country. We are hopeful that bright spots such as India or Mexico can reap the benefits of positive reform. India in particular merits attention because of its size on a PPP basis it is already the world s third largest economy. A young and growing population improved macro policymaking and a reform-minded government should give India a better chance than most. Weak exchange rates or a cyclical global pick-up may provide a shortterm stimulus but countries unable to generate policies that encourage investment and entrepreneurial activity will face mediocre long-term growth at best punctuated by crises. One concern for the long-run outlook noted by Rodrik (2015 ) is the premature deindustrialisation of a number of developing countries. Each of the growth miracles in East Asia relied on shifting the economy towards manufacturing. Therefore the decline of manufacturing s share of output in many countries either suggests a new path to rapid growth must be found or that growth miracles will be harder to come by. Conclusion Emerging market optimism has come full circle to the point of widespread pessimism. The good news this time around is that floating exchange rates provide much more of a buffer in contrast to the 1990s. That might seem little comfort to GEM investors at present but it will be for many citizens. In the near-term much rests on what happens in China. In the long-run for most countries it will be the environment policymakers create that will determine economic success. On that front there is at least much room for improvement although whether the opportunity will be taken is not clear in many cases. 75 jsy CONNECT OCTOBER 2015 Investing in a smoother ride Do you like roller coasters Perhaps you enjoy the thrill of being carried high on the ride before plummeting earthward It s all very well getting an adrenaline fix in your leisure time but do you want the same experience for your finances Keith Heddle Managing Director of Stanley Gibbons Investments looks at where you can find a smoother investment ride. Between 23rd and 28th August the Dow Jones Industrial Average moved up and down by 5 612 points. Meanwhile the FTSE lost 6.7% during August as stock markets across the globe followed China s slide. Volatility has been the name of the share index ride this year and it s not looking like it has reached the end of the rails yet. The much anticipated interest rate rise has been creating uncertainty in the markets all year as investors and their advisors try to guess when it will come. However in early September the International Monetary Fund issued a warning to central banks not to raise their interest rates in the near future as China s economic struggle could have far-reaching consequences. This means the will they won t they and if so when debate is set to continue for some time. One of the surprises so far has been that traditional safe haven assets like gold haven t seen much of an upturn in interest. During financial turmoil the yellow metal has been historically seen as a protector of wealth but at the time of writing it is still trading below its psychological barrier of 1 200 showing investors haven t been lured so far. That could be because gold has been falling since a peak of 1 900 an ounce in September 2011. Four years on and it s 700 to 800 lower which means it s failed to protect let alone grow wealth. One of the lessons from our recent global recession has been to ensure diversity in a portfolio. This includes non-financial assets tangibles 76 OCTOBER 2015 jsy CONNECT FEATURE INVESTMENT a larger percentage of their wealth as cash in order to find some kind of stability and security albeit at the risk of inflationary devaluation. Most volatile is the art market with gold a close second and the FTSE third. Coins and stamps were less volatile than the entire index in the last decade providing stability as well as growth. Overall the index has risen 205% over the past 10 years with stamps up 195% in that period. Another index the Coutts Index on passion investments reflects similar results. Whilst cars again came out on top for 2014 coins rose 9.3%. Fine watches were the worst performers falling 17% in value with fine wines down 9.4%. At a time of paltry interest rates we continue to see lots of interest from the wealthy in finding somewhere worthwhile and out of the ordinary to put their money Head of Financial Advice and Investment Solutions at Coutts Mohammad Kamal Syed said in a news release. Passion assets maintain their appeal indeed the majority of passion assets we ve tracked have risen over the past 12 months. Aside from the returns these assets can bring a sense of excitement and the thrill of acquisition is a clear motivation for lots of collectors. Also motivating is the overall 80% rise (in local currency terms) of the various Coutts index categories since 2005. The latest Stanley Gibbons GB30 and GB250 indices show continued growth for stamps during the last twelve months. Listed on both the Bloomberg Professional service and Thomson Reuters the GB250 index tracks the prices of the top 250 investment-grade stamps of Great Britain and has risen 2.05% from 2014 to 2015 clocking up an impressive 10 year growth of 165.7% and 10 year CAGR of 10.27%. Meanwhile the Stanley Gibbons Rare Coin Index shows an average compound return of 12.75% over the last ten years. We are seeing record after record broken at auction. Past performance doesn t of course guarantee future returns but the stable growth of stamps and coins is an enviable record. With interest rates likely to remain at all time record lows for the foreseeable future the growth rate of stamps and coins is definitely not to be ignored. Stanley Gibbons is head quartered in Jersey and our team is ready to answer your questions. We are not financial advisers but one thing we are is experts in stamps and coins. We have been serving stamp collectors since 1856 and have held the Royal Warrant for services to philately since 1914. Through Baldwins one of the world s largest and longest established Numismatic dealers in the world we have been serving coin collectors since 1872. In fact we re so confident of our expertise that our investment products come with no fees upfront we will only make money if your portfolio rises in value. Diversification in your investment or retirement portfolio will give you peace of mind and negate the need to keep jumping from one investment to another with the resulting cost in fees. Is it for everyone The short answer is no. Alternative investments are for those who want to diversify their portfolios sophisticated investors who already have other financial bases covered. There is of course the added benefit that owning a tangible heritage asset your very own piece of history is a lot more enjoyable than an electronic share certificate. 77 such as antiques fine art classic cars wines rare stamps and coins. Sometimes called investments of passion these are uncorrelated to the financial markets and are used not just for protecting wealth but for also growing it. For example an investor that had diversified across The Economist Valuables Index Fruits of passion would have achieved 211% nominal growth since 2003 with stamps and coins outperforming every asset class in the index besides classic cars. The Knight Frank Wealth Report also shows strong growth for classic cars whilst rare stamps and coins show the lowest volatility (and are easier and cheaper to store and insure). This low volatility is very important at a time when it s been reported that investors have been choosing to keep jsy CONNECT OCTOBER 2015 FEATURE Underneath the Radar By Steve Wauchope Senior Associate at Hatstone Lawyers As an Advocate one of my core obligations is to stay up to speed with changes in the law so that I can properly assist my clients and on occasion the Court. It is perhaps surprising that it was not until May 2013 that our Law Society s Code of Conduct was amended so that members must prove that they undertake at least 15 hours of continuing professional development (conferences and private study) each year. This requirement is modest. Clients understandably expect that we keep up to date with changes in the law that might affect them and their businesses. However some changes are more obvious than others and a long anticipated change might have little practical impact. At other times what at first appears to be a modest tweak of a regulation or an innocuous decision of our Courts can have unexpected results. It is our job to be alert to these changes and to always attempt to assess their likely impact on our clients and their businesses. Here are a few examples of some changes that might be relevant to you or to your business. The Financial Services Ombudsman The introduction of a Financial Services Ombudsman ( FSO ) for Jersey and Guernsey was in the pipeline when I first came to the Island in 2007 but it is now imminent. The doors of the office of the FSO will open on 16 November 2015 and the laws establishing the FSO s jurisdiction are already in place. The FSO is empowered to investigate complaints made by individuals charities and small businesses from anywhere in the world against Jersey-based providers of financial services. There are some important exemptions. For example the FSO 78 OCTOBER 2015 jsy CONNECT FEATURE LAW will not investigate complaints against Jersey trust company businesses unless the complaint relates to types of business such as certain pension and funds business. Although the FSO will not be investigating complaints before 16 November 2015 a complainant can notify the FSO of a complaint now and a complaint might relate to conduct that goes back as far as 1 January 2010. Complaints must be brought within 6 years of the conduct complained of or if the complaint relates to something that occurred more than 6 years ago within 2 years of when the complainant should have known that they had cause to complain. When determining a complaint the FSO will be able to award damages of up to 150 000 to a complainant which will bind the financial services provider if the complainant accepts the determination. Awards of compensation can be made for both financial losses and for distress caused to the complainant by the actions of a financial services provider such as a complaint about how a complaint has been handled. Awards of compensation are funded by levies on the financial services industry. The FSO can also award costs and it is notable that costs can only be awarded against a financial services provider in favour of either the complainant or the office of the Financial Services Ombudsman itself. It is difficult to know how many complaints the FSO will be required to investigate when the office opens in November. It is likely that the FSO will attempt to resolve complaints wherever possible by mediation. When the FSO s first contested determination is published it is sure to be widely read by the legal community. Amendments to the Employment Law In contrast to the creation of an Office of the FSO amendments to Jersey s Employment Law appear with less fanfare. For example on 1 January 2015 the minimum period that an employee must be employed in Jersey before they can make a claim to the Jersey Employment and Discrimination Tribunal ( JEDT ) was doubled from 26 weeks to 52 weeks. The publication of the JEDT s annual report for 2015 should provide us with an indication of the impact of this amendment. The JEDT s annual report for 2014 shows that 30 complaints were brought to the JEDT in 2014 by people that had been employed for less than 26 weeks. There were 173 complaints in total but not all of these complaints would have been about unfair dismissal. The largest proportion of complaints to the JEDT are brought by people employed for more than 5 years. A little publicised amendment to Jersey s Employment Law was made on the 1st of September this year that might have a more far-reaching impact. Article 57 of the Employment ( Jersey) Law 2003 sets out how an employee s qualifying period of employment is calculated. In recent years in Jersey there has been a notable shift towards zero hours contracts of employment. There can be many reasons for adopting a zero hours contract model. However one advantage of a zero hours contract for employers has always been that an employee that is not contracted to work for 8 hours or more weekly could not claim unfair dismissal even though the employee might have worked much more than 8 hours per week for a long period. On 1 September 2015 the requirement that an employee must have a contract to work more than 8 hours per week was removed. Employers that adopted or might have been tempted to adopt a zero hours contract model in part by this exception may now wish to reconsider their employment contracts and documentation. Fogarty v St. Martin s College Limited What we think we know about the law can also change because of interesting judgments. Until earlier this year my advice to a purchaser of Jersey property would have been to be extremely cautious to establish their boundaries. In the past when mistakes have been made a person with buildings that encroach on their neighbour s land has been at the mercy of their neighbour. Where a neighbour insisted upon it the offending structure had to be demolished because no amount of compensation was thought to be an adequate remedy for the infringement of property rights. On 10 April 2015 a judgment of Jersey s Bailiff was published that might signify a substantial departure from this approach. In this case although the Plaintiff established that their neighbour s wall encroached onto their property the Court determined that where justice requires the Court may choose to award compensation for an encroachment rather than to order demolition. My advice remains that it is far better to be very very pedantic when establishing boundaries. However this case is a very good example of how the law (or at least what we think we know about the law) evolves and of the importance of keeping up to date. 79 jsy CONNECT OCTOBER 2015 Preparing for the introduction of family friendly rights is your business ready By Helen Ruelle Partner Mourant Ozannes Jersey On 1 September 2015 a number of family friendly rights were introduced into the Employment (Jersey) Law 2003 (the Employment Law). In effect the amendments provide for maternity parental and adoption leave as well as the right to request flexible working. It s been a long time in the making and Jersey has most certainly lagged behind other jurisdictions in the provision and recognition of family friendly rights. So is your business ready to deal with these new rights or are you concerned about the effect these rights will have on your business The introduction of family friendly rights may seem daunting for some businesses at first. There is a lot of hype around these new benefits given that they provide new statutory protection. As is the case with many new legal developments this tends to lead to apprehension as to what changes these amendments will actually bring or how they will operate in practice. Although legal rights relating to maternity parental and adoption leave have been introduced in statute for the first time many businesses have developed some form of maternity or parental leave policy or practice in the absence of statutory guidance. Therefore the introduction of these rights is unlikely to substantially impact many businesses. The first thing for businesses to do to prepare is to review all relevant policies. An organisation should check and ensure that its policies are at least compliant. However please do not presume that because your business has a policy in place that it is lawful. There are particular quirks to be aware of and it is not just a case of providing Jersey employees with the same benefits that are provided to UK employees Remember your policies can be short and sweet there is no need for reams of paper A policy should include clear simple wording rather than complex and lengthy legal language and 80 OCTOBER 2015 jsy CONNECT FEATURE LAW necessary to dangle the carrot of additional rights to make an offer of employment attractive. Businesses should consider whether they wish to offer enhanced benefits and if so how these will operate in practice including any eligibility requirements. The next thing for businesses to consider once their policies have been reviewed and amended (if necessary) is to think about rolling out and communicating these changes to employees. Policies should be clear digestible and easy to understand so that any employee is able to ascertain what benefits they are entitled to. An organisation s policy should be easily accessible and employees should be notified of where a copy of this policy can be found. Furthermore employees should be notified of whom to contact in the event of any questions regarding the policies. Depending on the roll out plan it may be necessary to educate your workforce about the specific rights who they apply to and the process for applying for leave and or flexible working. Appropriate training for your employees (particularly managers who will have to deal with these requests) may therefore be beneficial to help them understand the rights fully and to address any questions or queries at the outset. In our experience employee feedback can be a very useful way of ironing out any issues or potential pitfalls before the policies go live. This will therefore make the transition as simple as possible and the business and its management team could be well informed and ready for when these rights begin to be utilised. Mourant Ozannes offers specialist training on all areas of employment law including the introduction and practical impact of family friendly rights. We regularly provide training to the management teams of many global and local businesses who can then in turn share this knowledge with all employees. If you would be interested in training then please do get in touch with a member of the Jersey employment team. Once employees are familiar with family friendly rights and what they entail a business should concentrate on its preparation. There are specific processes and deadlines which must be adhered to in order for rights to be provided and or refused. To avoid unnecessary breaches organisations could create a checklist or a simple process guideline to ensure that all deadlines are fulfilled. This will then make the process as smooth as possible when requests for leave or changes to working arrangements are made. In addition it may be useful for organisations to create standard documents to acknowledge for example maternity leave or a right to request flexible working. Often failure to meet a deadline isn t because of a lack of awareness but rather uncertainty as to how to deal with the matter or what to include within the requisite letter or notice. Creating precedent documents which can be tailored easily will help to ensure consistency but also that matters are adequately dealt with within the time frame required. If your business didn t feel prepared before reading this article it should do now Remember make sure you review all policies as soon as possible ensure managers are familiar with family friendly rights and how they will operate in practice and finally prepare checklists to ensure all required deadlines are met. Family friendly rights are not burdensome as long as businesses get to grips with them early. If you follow these golden rules your business will be at the start line raring and ready to go 81 or terms. In global or multi-lingual organisations you should also consider ensuring that translations of policies are available. If in doubt take advice. In addition to complying with legal obligations some businesses wish to provide enhanced family friendly rights that is to say they provide benefits which are over and above what is required under the Employment Law. In an environment where being an employer of choice is an objective for many organisations the provision of additional benefits will set businesses apart. In order to be perceived as an employer of choice a business needs to be progressive. Brand values which support employees well-being flexible development and career prospects will make companies attract the cream of the crop Organisations should consider and determine to what extent they wish to provide enhanced benefits if any. If your business wishes to attract and retain the right people in a competitive environment it may be jsy CONNECT OCTOBER 2015 PROMOTIONAL FEATURE Healthhaus Taking fitness personally By co-founder and director of Healthhaus Glenda Rivoallan The Healthhaus brand was born out of the shared vision of myself and co-founder Nathalie Le Mottee to provide a more personalised health and fitness offering in a comfortable environment. We wanted to introduce a health club that would surpass all expectations or anything the Island had seen previously or currently offered. The brand is built on three important promises a concierge mentality that delivers personal service a non-intimidating concept that turns the ordinary gym paradigm on its head and the promise of technology to deliver state of the art fitness solutions. Factor in a 5-star hotel location and a whole host of extras in terms of physical appearance like ambient lighting sounds and soft furnishings and the end result is something we are extremely proud of. The brand promise has been tastefully and beautifully translated into a memorable and eye-catching set of marketing promotions. But what is it about Healthhaus that makes it a highly talkedabout customer experience winning four major awards in its first year and one that has enhanced many lives by way of delivering personal results We think one of the defining moments for the brand was in being brave enough to develop a unique concept and vision at odds with the conventional fitness club 82 OCTOBER 2015 jsy CONNECT model. It s very tempting to offer what your competitors do and play it safe but to be a real market leader involves thinking differently finding new solutions for age-old problems and clearly articulating your uniqueness to clients. We were very aware that one of the biggest issues in our industry is that health clubs can put off the very people who need our products and services the most. With this in mind we designed the club from top to bottom with the new-toexercise de-conditioned and de-motivated market at its core. Our thinking was simple with the pace and pressures of modern living we believed that there was a need to provide an effective and time-efficient fitness solution leaving the customer the opportunity to indulge in a 360 approach to wellness. Our partnership with the award-winning Ayush Spa helps us to incorporate a world-class fitness offering with worldclass spa facilities. It is a perfect fit with our brand complementing the brand experience. Partnerships can be difficult but in selecting wisely they can be an invaluable way to help add value and expertise to your business offering. Healthhaus has always put the customer at the forefront of the business. Our taking fitness personally promise may seem quite simple but this is made up of layers and layers of business processes that allow us to deliver that promise. From our mentoring program gym supervision integrated medical services and complimentary nutrition course on-going education to excellent customer-centric staff we aim to make each and every visit memorable The Healthhaus way . Technology has really empowered us to achieve a seamless customer experience. With only one card the Healthhaus membership card allows the member to check-in utilise their locker and it also holds their bespoke gym programme. The club delivers on its time-efficient promise using the worldrenowned Milon equipment - the only club in Jersey to have this - creating a strong USP. Yes it s true - you only need to train twice every ten days for 35 minutes or even four times x 17.5 minutes per week for guaranteed results. It was a huge decision to purchase such expensive equipment but it s like anything in life you get what you pay for. The Milon equipment is 30 per cent more effective than ordinary gym equipment which ultimately helps our members to gain serious long-term results in less time. The equipment even gives the client the ability to monitor their progress straight from their iPhone or computer. With all their training information and settings on the card our members feel confident that their workout is safe efficient and above all else effective. In just 15 months Healthhaus has gained the perception of Jersey s premium club of choice and tremendous success stories among its members cite concept service staff and technology as real strengths. Healthhaus now operates a waiting list and has just expanded its brand in opening its first Healthhaus Express club the main difference being that the Express brand is for people who value service and support but also want time-efficient and effective fitness solutions which can be incorporated seamlessly into their working day in a convenient town location. Nathalie and I have changed how people perceive the traditional gym environment. We have developed a brand that resonates with a target audience who would often choose not to exercise. We have proved that if the proposition is compelling customers will pay. So what lessons have we learned along the way For me it s about starting with the why not the what and the how . It is imperative to fully understand why you want to provide a product or a service why is it needed or why is it a problem that needs fixing If you are clear on why you are in business and what your values and beliefs are then you are more likely to deliver on the what and the how . For me it s about starting from the inside out and not the outside in. If you can do that you are on the way to providing something that people will want. Our story proves that with the right research unique product and services can still be developed in what is a mature market. Our premium pricing reflects the quality of the product and the service level we provide. But this isn t as easy as it sounds. If you enter the premium end of the market then customers will expect premium service. And why not - they are paying for it after all. We have to work hard every day to reinvent our vision and get it right. We may not always succeed but its then we have to work even harder learn from our mistakes and do better next time. We wouldn t have it any other way. The Healthhaus journey has been incredible and worth all the hard work but it doesn t stop here. jsy CONNECT OCTOBER 2015 47 Increasingly sophisticated banking support for Jersey fiduciaries By Gary Drinkwater Deputy Head of Corporate Banking Business Development HSBC Channel Islands and Isle of Man The prevailing sentiment across Europe remains one of uncertainty albeit in the UK there are more positive signs. As a result regulated intermediaries in Jersey are understandably increasingly looking for specialist support advice and guidance to help steer them and their underlying clients through difficult times and make the most of new opportunities that are presented to them and that includes banking support. Having consolidated its trust legislation in 1984 Jersey has over the past 30 years really established itself as a specialist centre for wealth management family offices estate planning and philanthropy services globally. Currently around 1 2 trillion worth of assets are held in Jersey trusts foundations and special purpose vehicles meaning that the banking support required by the high value internationallydiverse underlying clients of local trust companies must be sophisticated highly knowledgeable 84 OCTOBER 2015 jsy CONNECT and truly global in its expertise. It is with this in mind that HSBC s Corporate team in the Channel Islands already one of the Bank s most experienced teams across the islands has been given renewed impetus recently. A growing demand for specialist banking services from the local fiduciary sector has resulted in further significant investment in the Bank s capabilities in this market and this is in line with HSBC Group s global strategy with the fiduciary sector being regarded as one of the key strategic growth areas for the Bank. Overall the team of experienced professionals across Jersey and Guernsey has more than 560 years banking experience at HSBC alone from which clients may take a welcome degree of comfort. Sophisticated In expanding and taking on its renewed focus particular attention has been paid to the structure of the PROMOTIONAL FEATURE Alongside these improvements there have been enhancements to the procedures for welcoming new customers. These changes mean that the Bank is now able to be more flexible and bespoke in its approach and can consider offering tailored deposit rates (for larger deposits) and foreign exchange rates. Further relationships in the trust sector are absolutely vital which is why HSBC s Corporate team places such an emphasis on gaining an indepth understanding of the needs of each of the trust and intermediary clients it works with to establish strong relationships. In addition the Bank s integrated approach means it is able to call on the expertise across a whole range of complementary areas in order to meet the high expectations of fiduciary firms. Trust and Intermediary team at HSBC in the Channel Islands. Against a backdrop of persistently challenging conditions in the local market and further afield local trust companies are looking for the support of a banking organisation that can give them and their clients the confidence and reassurance they need - and we are finding that the team s tailored local approach combined with the Bank s global expertise increasingly fits the bill. The team structure has been designed so that individual relationship managers can devote a greater amount of time to welcoming new clients and servicing existing ones. This has been made possible by increasing the size of the team in the Island in recent months and reducing the relationship managers respective portfolio sizes to allow for a consistent and focused service something that is so important as fiduciary companies look for increasingly sophisticated banking services. Equally and particularly important in the current environment where regulation and high standards of corporate governance are key supporting regulated fiduciary firms responsibly is about proactive risk management and adopting a tailored approach. For instance whilst some trustees will adopt a steady cautious strategy against the backdrop of the current economic environment some may well be looking for higher returns while also ensuring they are meeting the objectives of the trust. Adapting banking support to reflect this is absolutely vital. rating and financial strength. Given the increasingly global nature of their business the value trustees place on being able to rely on the Group s strength and global reach cannot be understated both give them confidence that their objectives can be met effectively. And in the current market confidence is everything. The reach of HSBC s global network meanwhile with some 6 100 offices in more than 72 countries and territories means it is able to draw on the expertise of specialists in the right markets all around the world in a timely fashion. With fiduciary firms needing to access specific knowledge about international markets for their underlying clients who are living increasingly multi-jurisdictional lives this is becoming more and more important. Many companies in the fiduciary sector also have interests in multiple jurisdictions which means they need cross-border and international services beyond the standard provision of bank account and deposit facilities. Foreign currency services and a Treasury proposition to mitigate currency exposure or hedge a foreign exchange position for example are increasingly important too. This is all complemented by the Bank s other dedicated Corporate teams which are geared up to service the requirements of local businesses through to corporate institutions. Investing in dedicated resources committing to forging strong relationships with the fiduciary sector and striving to add value through local and global expertise has all meant that HSBC is well placed to support trust companies in Jersey via a full spectrum of banking requirements. 85 Global Against this backdrop HSBC has seen a rise in demand this year from the many Jersey fiduciaries and their clients who are increasingly showing a desire to access the Bank s support by drawing on its experience its track record its long term presence in the Island and of course the HSBC Group s credit jsy CONNECT OCTOBER 2015 Advice which stands the test of time By Tim Childe Quilter Cheviot s Head of Jersey Office and Head of International The ability to forge lasting relationships with clients has given the team here at Quilter Cheviot the edge in Jersey s investment management market. With our Jersey office marking a new era of international reach and a number of our team members celebrating more than 20 years with us it shows how longterm employee satisfaction is essential when it comes to lasting client satisfaction. Employee retention is hugely important to us because our business is built upon long-standing relationships. Length of service is a fundamental part of our bespoke offering and the Jersey office exemplifies that. Our clients place an enormous amount of faith in us and so it stands to reason that they are looking for familiar and consistent points of contact they want an investment manager who genuinely cares about them. Having loyal employees enables us to build relationships with clients based upon stability and trust and some of these relationships span generations. Knowing that a client trusts us enough to hand us down as advisers to the next generation of their family is hugely rewarding and only goes to strengthen our connections further. In a world where longevity of service is a rare commodity we work hard to retain talented staff. This goes way beyond pay levels. Incentivising employees is absolutely essential and we know that financial remuneration is only part of what keeps them here at Quilter Cheviot. Reward and recognition will always be a driver of course and we operate a fair and transparent reward strategy that is designed to reward and motivate individual employees. Recognition can and should come in various forms and we place a focus on effective internal communications to enable successes to be shared and individual achievements to be celebrated. Importantly we recognise that passionate driven individuals 86 OCTOBER 2015 jsy CONNECT PROMOTIONAL FEATURE continue to grow its presence in both the domestic and global markets. Our acquisition by Old Mutual Wealth offers an excellent opportunity in terms of accessing client networks overseas and I m delighted to be leading the international arm from our office in Jersey. We are looking forward to taking our discretionary portfolio services - a bespoke highend service for high-net worth and ultra-high-net-worth individuals to a broader market than ever before. What really excites me about this development though is the potential it opens up for members of our team to grow their own horizons and capabilities. Things are never staid here we work in a constantly shifting marketplace so there is no fear of falling into a rut but having new international opportunities to explore is providing our team with enhanced impetus. Again this means people stay with us and develop rewarding careers which feeds back into our ability to foster those long-standing client relationships. I ve been with Quilter Cheviot myself for more than 25 years and have built a number of very close and rewarding relationships with clients during that time but I ve also been able to develop a stimulating and varied role. This combination of enriched professional experience and loyalty is something that we hope will continue to filter down to clients as we grow. Quilter Cheviot Jersey is the largest discretionary investment management team in the Channel Islands. Nationally the firm operates across 12 locations in the UK Ireland and the Channel Islands. The firm has 17.2 billion of funds under management. FTSE 100 company Old Mutual Wealth has c. 100 billion of private clients funds under management. 87 seek continuous professional development. So we invest heavily in nurturing internal talent through a dedicated training scheme. We ensure all employees have the technical and professional skills (including professional qualifications) required to enhance their career path and achieve their full potential. Work life balance is a priority too and we aim to provide a flexible approach to work that means people don t have to sacrifice a personal life for the sake of their career. Making people feel valued is our ultimate aim. It s an approach that has enabled us to benefit from years of service from accomplished members of our team. Of course we have to recognise that the types of people who want to come and work for us are highly motivated individuals who will flourish in a role that enables them to achieve results for clients every day. Experience and longevity counts for an awful lot but can raise the potential of a business becoming old-fashioned or set in its ways so how do we avoid this Here at the Jersey office we stay dynamic thanks to our international reach. Being based in the Channel Islands means we have developed a team that is very experienced in the international as well as the local sectors. We have expertise in dealing with multicurrency solutions and a track record in developing investment management relationships in new regions such as Eastern Europe. We always strive to expand our horizons so we can offer our clients the best investment solutions possible and this is why my new role as Head of International is such an exciting development for the office as well as for Quilter Cheviot as a whole. My appointment to this role came as part of an executive team restructure following the acquisition of the firm by leading wealth management firm Old Mutual Wealth earlier this year. Along with the rest of our leadership team I now focus on ensuring that we jsy CONNECT OCTOBER 2015 How to plan That is the question. By the team at Jersey Business If you surveyed companies across Jersey there would be a very mixed attitude towards the need for and value of that common document the business plan. Many people when starting a business will have an idea a list of things to sort out and then just want to get started. Once established businesses often find it hard to give the time to reassess how the reality of actual business performance compared with the original idea. Similarly many companies will never undertake ongoing business planning unless they are forced to when for example looking for finance or taking a major decision about the business. Are they missing a trick Research conducted in 2011 by Cranfield University School of Management and Warwick Business School showed that whilst there are highly successful businesses that have never written a business plan those that do increase their growth by a factor of 30%. Importantly the research concluded that the existence of a plan was not the deciding factor but rather that the creation of a plan enabled the business to think be realistic and adapt to its changing business environment. Having worked with a range of companies large and small established and starting up at Jersey Business we know that every business needs 88 to plan but how this is done and the format of the end result can vary considerably. Take TLC Hair Salon for example. When Tina Harvey and her colleagues Liz Boleat and Christina Kingsland decided to set up their own hair salon they knew lots about hair but very little about business. We thought all you had to do was find the premises print flyers and open up Tina admits. We had no idea about things like registering a business or social security or manpower returns. We didn t even know you needed a lawyer to write contracts. Working with our Head of Client Relations Nick Steel the hairdressers developed a business plan picking up business skills knowledge and confidence at every step. Tina said Nick helped us focus on what was realistic and helped us with almost everything from how to write a business plan to how to finance the business and even how to work out the costings for the water and electricity we would use. Since the salon opened in March 2014 TLC has consolidated its business attracting new clients from across St Brelade. Bookings are busy and the salon has taken on an extra member of staff for Saturdays and employs a book keeper. Tina and her colleagues have remained in touch with Nick and continue to receive advice and support to help the ongoing development of their business. Nick said When Christine Liz and Tina came to Jersey Business they had lots of experience working as hairdressers but no experience setting up or running their own business. Their starting position was simply the ambition to set up their own salon. Our objective was to help get them to think about how they could commercialise their technical skills and then once they had a solid business plan how to look for investment and how to go about securing a property and opening the business. The salon would not have been set up the right way if we hadn t gone to Jersey Business said Tina. They also made us more aware of what you need to do to keep a business running smoothly. It has made us better at shopping around for services for the salon and in thinking about what it is that will make clients happy. I would recommend other small businesses go and see Jersey Business because even if you re well established you can learn so much. So for us at Jersey Business the question is not whether to plan but how to plan and because we recognized that every client is different we will work with everyone we see to develop the plan that will be right for their business into the future. OCTOBER 2015 jsy CONNECT Your commercial ambitions achieved Hawksford is an international and award-winning corporate private client and funds business. Our dedicated team of thought leaders are always innovating no matter where they are. We are committed to giving our global clients the best service and solutions confirming the respected position we hold in the industry. Headquartered in Jersey and with offices across the world clients range from small and large corporates to ultra-high net worth individuals. Jersey British Virgin Islands Cayman Hong Kong New Zealand Singapore Switzerland United Arab Emirates Hawksford Group 15 Esplanade St Helier Jersey JE1 1RB Channel Islands T 44 (0) 1534 740 000 Hawksford Group (and Hawksford International) are the Registered Business Names of Hawksford Trust Company Jersey Limited which is regulated by the Jersey Financial Services Commission. WWW.HAWKSFORD.COM End your IT frustration with one simple solution. Whatever your IT requirements our bespoke IT service gives you the freedom to take care of your business whilst we take care of the rest. To work effectively your business needs a robust IT solution which is secure reliable tailored to your needs and able to support key business activities such as driving growth. However managing IT is a specialist skill which can be time consuming and confusing but when outsourced to Logicalis we take care of it all leaving you with more time to focus on what you do. 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We deliver your core Business Applications E-mail and Microsoft products to your users seamlessly in a secure and protected manner directly from local highly resilient data centres where data recovery is easy and we exceed regulatory expectations. e business bene ts Your IT - Complete Secure and Managed Flexible scalable - Private Cloud A Turnkey Solution to your IT Big System benefits for Small Businesses No Hidden Costs Your Data stays on Island Enhanced Security Access Anywhere Anytime from any Device Consistent User Experience Improved Disaster Recovery Knowledgeable and Friendly Support If you would like more information on how Logicalis can assist you in providing secure and bespoke IT solutions for your business call our experts in Jersey on 288088 or in Guernsey on 737000 for a no obligation and con dential discussion. Guernsey 44 (0) 1481 737 000 Email solutions Jersey 44 (0) 1534 288 088 Email solutions