BL Magazine

BL MAGAZINE ISSUE 42 JANUARY/FEBRUARY 2016 

Fintech in 

the channel 

Islands 

COULD IT be the way 

of the future? 

finance 

The human face of financial crime, 

P2P moves into investment trusts, and 

how to target business in emerging markets 

business 

The cost of hiring the wrong person, 

the benefits of employee ownership, 

and just what is change management? 

ISSUE 42 JANUARY/FEBRUARY 2016 

technology 

Is your job really going to be taken 

over by a robot? And how to spot 

the tech companies of the future


Fintech in 

the channel 

Islands 

a case of all talk and 

probably not much action? 

finance 




business 




technology 



the tech companies of the future 

ISSUE 42 JANUARY/FEBRUARY 2016

A BL event 

Jersey Trusts Conference 2016 

Where disruption 

meets opportunity 

Wednesday 25 May 

Pomme d’Or Hotel, Jersey 

5 Hours CPD available 

Delegate rate: from £245 

Supported by: 

Places can be booked by visiting www.blglobal.co.uk/events 

or emailing carl.methven@blglobal.co.uk

Welcome 


Fintech in 

the channel 

Islands 

COULD IT be the way 

of the future? 

finance 




business 





technology 





Fintech in 

the channel 

Islands 

a case of all talk and 

probably not much action? 

finance 




business 




technology 





How on earth did 

that happen? 

The headline above is a phrase that has been 

bouncing around ‘BL Towers’ quite a bit in the 

past few months. Just how did 2015 pass by so 

quickly? And how did we find ourselves in 2016 

already, having hardly caught our collective 

breath during the previous 12 months? 

There’s no doubt that 2015 was a remarkable 

year across the whole BL enterprise. In May, 

we rebranded the business – from businesslife.co 

– and relaunched the magazine in the size and 

with the look that you see now. We held four 

conferences that drew a record number of 

delegates and speakers. And we launched our 

writing course – ‘How to write perfect copy’ – 

a totally new departure for us. We also started 

working with major Channel Islands firms, 

supporting their editorial needs. 

We’re already optimistic that 2016 is going to 

be a great year. The magazine will see a new 

property section launched in the next edition, 

followed by our annual Wealth Edition, which 

will hit the streets (and shops and airport stands) 

in early May. Our full conference schedule for the 

year has been announced and kicks off with an 

NED conference in March. And we have writing 

courses scheduled until June. 

The first major development of the year is 

going to be the redesign of our website, which 

we are currently working on. We look set to 

launch this in the first half of the year, and we’ll 

keep you posted on how that’s going. Another 

development is going to be the introduction of 

a ‘How to write for the web’ course, which is 

likely to land mid-year. 

And we’re kicking off this year by doing 

something we’ve never done before – two separate 

covers for the same issue – representing the two 

sides of the debate on fintech in the Channel 

Islands. We hope it won’t cause confusion! 

Of course, it’s not all about us. The Channel 

Islands had their own successes and challenges 

in 2015, and that looks set to be no different in 

the 12 months ahead. In the finance industry 

alone, the Common Reporting Standard has just 

come into effect, creating a new reporting regime 

for affected firms. And there’s the possibility 

that there will be further developments on 

third-country passporting under the Alternative 

Investment Fund Managers Directive (AIFMD). 

To steal from Donald Rumsfeld, these are the 

known knowns and the known unknowns (or 

something along those lines). But, as always, there 

will be plenty of things we really don’t know. 

How successful will tourism be in 2016? How 

is technology going to be disrupted? And what 

could a potential exit of the UK from the EU 

mean for the islands? 

If there’s one thing we can be absolutely sure 

of, however, it’s that – as always – there are many 

things we can’t be sure of. 

The BL team 

The Channel 

Islands had 

their own 

successes and 

challenges 

in 2015, and 

that looks 

set to be no 

different in 

the 12 months 

ahead 

www.blglobal.co.uk january/february 2016 3

Xxxxx 

ogier.com 

Resp nsive 

Legal services in 

British Virgin Islands 

Cayman Islands 

Guernsey 

Hong Kong 

Jersey 

Luxembourg 

Shanghai 

Tokyo 

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. 

4 January/february 2016 www.blglobal.co.uk

indings from the 21st edition of the Guernsey Fund 

Report from independent fund research company 

Monterey Insight reveal the market shares of all 

service providers in Guernsey’s funds industry. 

For fund administration services of domiciled and 

non-domiciled funds, Northern Trust remains the largest 

by total net assets ($63.8bn), with Ipes ($45.5bn) and Apax 

Partners ($31.7bn) ranked second and third. For funds under 

custody services of domiciled and non-domiciled funds, Northern Trust also 

maintained its lead position with $20.5bn. Kleinwort Benson ($9.4bn) stayed 

in second position ahead of BNP Paribas Securities Services with $6.3bn. 

Of the legal advisers, Carey Olsen advised 724 funds, followed by Mourant 

Ozannes with 264 and Ogier with 120. For auditors, PwC was auditing 350 

funds at the end of the period, ahead of KPMG with 343 funds. Among fund 

management companies, the largest fund promoter of Guernsey-domiciled 

schemes was Apax Partners ($32.4bn), followed by Partners Group and EQT 

Partners (with $23.5bn and $18.5bn respectively). 

“The report shows a fall in total assets for the first time in five years,” said 

Monterey Insight MD Karine Pacary, adding: “Guernsey continues to attract 

business: 106 new sub funds were launched (domiciled and non-domiciled), 

71 serviced funds were launched (including 48 new Guernsey schemes) and 

15 new promoters have chosen Guernsey to establish their funds.” n 

Guernsey Finance’s China Representative, Wendy Weng, who is 

based in Shanghai, will use the office to carry out further 

promotional activities concentrated on the wider south-east Asia 

market. It will also be utilised by the Guernsey Financial 

Services Commission to provide regulatory advice to 

those in the region who might be considering 

Guernsey-specific ventures. 

The central location at Three Pacific Place in 

Admiralty ensures Guernsey Finance is well 

positioned to meet Hong Kong-based 

practitioners and others from Asia. 

The office is expected to be operational 

during the first quarter of 2016. A formal 

launch event and a Guernsey-hosted masterclass 

is scheduled to take place in Hong Kong during 

the first week of March. n 

Countering Financial Crime and Terrorist 

Financing, on the use of technology in the 

customer due diligence process. 

The changes to the rules and guidance 

in the Handbooks provide for the use of 

technologies such as digital signatures and 

electronic verification in the client take-on 

process and when due diligence 

documentation has to be updated, including 

where this technology is delivered through 

the internet or by tablet and smartphone 

applications. 

Each annex encompasses new rules 

stipulating that a firm must understand 

this technology if it is to use it and that it 

has evaluated that its use will result in 

compliance with the relevant regulatory 

requirements. The revisions to existing 

rules are intended to provide positive 

affirmation that new technologies have a 

part in this important process. 

The GFSC hopes that these changes 

will give firms the confidence to use new 

technologies. It doesn’t require firms to 

notify the Commission that they intend to 

use new technology. However, it will 

monitor take-up through the disclosures 

firms are asked to make in the annual 

financial crime risk return. 

“Guernsey is the first offshore 

jurisdiction to introduce such guidance. The 

GFSC should be congratulated in listening 

to industry and recognising that regulated 

businesses can introduce smart technology 

while continuing to apply the same 

rigorous standards the island has based its 

reputation on,” said Dominique Carpentier, 

Director at KYCme (Guernsey). n 

68 January/february 2016 www.blglobal.co.uk 

Collated by the Jersey Financial Services 

Commission (JFSC) for the quarter to September 2015, 

the statistics show the net asset value of regulated 

funds under administration in Jersey increased to 

£218.8bn, the third highest level since December 2008 

and 6.5 per cent up on the September 2014 figure. 

Within the funds sector, alternative asset classes 

continued to perform well, with total alternatives 

business, including hedge, private equity, real estate and 

infrastructure funds, growing by 11.5 per cent year-onyear, 

and real estate and private equity values both 

increasing by four per cent on the quarter. 

The total number of regulated collective investment 

funds increased by 13 from 1,298 to 1,311 – there 

were also 126 active unregulated funds 

The banking sector displayed relative resilience 

despite ongoing global pressures in the quarter, with 

the total value of deposits in Jersey banking institutions 

falling by about one per cent to £131.8bn. 

Meanwhile, the corporate market was very active, 

with 717 company incorporations during the quarter – 

the second highest quarterly rate of incorporation in 

seven years. There are now 33,739 live companies on 

the register, the highest total figure since June 2009. n 

ollowing the enactment of the Aircraft 

Registration (Jersey) Law 2014, 

Jersey’s first aircraft registry became 

indings from independent fund research 

company Monterey Insight, released at 

the end of November 2015, reveal the 

market shares of all service providers in 

Jersey’s fund industry to the end of June 2015. 

For fund administration services across 

domiciled and non-domiciled funds, State Street 

remained at the top of the table with $50.2bn in assets, followed 

by Aztec Group with $44.3bn and Saltgate with $33.4bn. 

Again, for domiciled and non-domiciled funds, BNP Paribas 

maintained its top position as the largest custodian, with $30.3bn 

in assets. JP Morgan, with $13.7bn, climbed to second (up from 

fourth last year), and SG Hambros Trust ranked third with $10bn. 

Among legal advisers, Mourant Ozannes remained in top spot, 

advising on 817 funds, followed by Carey Olsen with 479 and 

Ogier with 328. PwC is the largest auditor, with 472 funds, ahead 

of KPMG (259) and EY (172). Among fund managers, BlackRock 

Financial Management took the lead of Jersey domiciled schemes 

with $16.1bn of assets, followed by CVC Capital Partners 

($15.6bn) and ETF Securities ($13.6bn). 

“Jersey had a rather stable year in terms of total growth of 

assets, and actually showed a slight increase in the number of 

newly launched funds and new business coming to the island,” said 

Karine Pacary, Managing Director of Monterey Insight. 

“Additionally, in excess of 30 new promoters have chosen Jersey 

to establish their funds. Jersey continues to attract new investment 

and is regarded as a specialist in private equity funds, and is also 

competitive in alternative funds and real estate funds.” n 

● Neutral nationality registration prefix 

ZJ- followed by three characters of choice 

● A competitive Scheme of Charges. 

operational in November. 

The Jersey Aircraft Registry (JAR), 

Minister for Economic Development, Senator 

which will focus on registering new or Lyndon Farnham, said: “The Jersey Aircraft 

nearly new high-value private and corporate Registry… will enable local businesses to 

aircraft, registered its first aircraft, a private broaden their offerings, which already 

jet. JAR will offer: 

includes the registration of companies, ships 

● Registration of private and corporate and other security interests. Revenue will be 

aircraft 

created through the fees charged by the 

● Registration of commercial aircraft engine Registry, and we hope to see new jobs created 

mortgages 

in financial, fiduciary and legal services. 

● An online registration system, available 24 “There is also a longer-term goal of 

hours a day (to be launched in Q3 2016) creating roles in technical positions, as we see 

● A safe and comprehensive regulatory maintenance and management organisations 

framework 

relocating to Jersey.” n 


Contents 

INSIDE 

BLguernsey 

Monterey Insight reveals 

market share of funds 

F 

Guernsey Finance to open 

Hong Kong office 

uernsey Finance is to open a representative office in Hong 

Kong in the first quarter of this year. 

G The office will be the promotional agency’s second overseas 

outpost, in addition to its Shanghai office, which opened in 2008. 

GFSC issues 

guidance on 

electronic CDD 

Guernsey Financial Services 

Commission has issued annexes to 

Tthe Handbooks for Financial Services 

Businesses and Prescribed Businesses on 

68 bl guernsey 

The latest financial 

and business news 

and views from 

the bailiwick 

BLMAGAZINE 

BL is published six times a year 

by Chameleon Group 

+44 1534 615886 

www.blglobal.co.uk 

CEO, CHAMELEON GROUP 

Carl Methven 

carl.methven@blglobal.co.uk 

EDITOR-IN-CHIEF 

Nick Kirby 

nick.kirby@blglobal.co.uk 

ART DIRECTOR 

Angela Lyons 

SUB EDITOR 

Kate Wheal 

BUSINESS DEVELOPMENT 

CONSULTANT 

Jane Gregory 

jane.gregory@blglobal.co.uk 

ADVERTISING 

sales@blglobal.co.uk 

NEWS AND EDITORIAL 

news@blglobal.co.uk 

29 

7 News 

A round-up of the 

latest business news 

from the Channel 

Islands and beyond 

12 Appointments 

Recent key hires for 

Guernsey and Jersey 

businesses 

16 Interview 

Sheila Dean, Global 

CEO of Equiom Group, 

talks business 

Finance 

20 P2P investment 

How peer-to-peer 

lending is moving into 

the wider market via 

investment trusts 

24 NEW BUSINESS 

If you’re planning to 

move into emerging 

markets, should you 

be targeting old or 

new money? 

29 financial crime 

Cyber crime may be 

stealing the headlines, 

but ‘traditional’ methods 

remain a big problem 

32 CRS 

The challenges posed 

by the arrival of the 

Common Reporting 

Standard 

34 fintech 

Is it the next big thing 

for the Channel Islands 

or are the possibilities 

being overplayed? 

business 

40 CEOs and CSR 

Do CEOs who have 

daughters run more 

responsible companies? 

44 RECRUITMENT 

How hiring the 

wrong person can be 

a costly mistake, in 

more ways than one 

40 

48 employee ownership 

What are the benefits of 

staff owning all or part 

of a company? 

53 change management 

‘Change’ is often seen as 

a buzzword, but getting 

it right can mean success 

or failure for a business 

technology 

59 automation 

Amid all the hysteria 

about machines taking 

over our jobs, are 

robots really destined 

to rule the workplace? 

62 small tech stocks 

Looking to get in on the 

action with the big tech 

companies of the future? 

Then tread carefully 

66 APPs 

Five apps that can help 

make your life easier 

and more enjoyable 

BLjersey 

Stable Q3 for 

finance sector 

unds and corporate activity in Jersey’s finance 

industry remained buoyant and banking business 

Fwas stable in the third quarter of 2015, according to 

the latest figures for Jersey’s finance industry. 

jersey Aircraft Registry takes off 

F 

Monterey Insight issues 

funds review 

70 bl Jersey 

Finance industry 

updates and figures, 

plus latest business 

developments 

73 

The Agenda 

From tequila with 

George Clooney to 

high-end speakers 

wearing coats, it’s 

a fascinating start 

to 2016 

F 

GENERAL ENQUIRIES 

enquiries@blglobal.co.uk 

contributors 

The BL Global Discussion Forum 

Follow us @blglobalnews 

Office: Floor One, Liberation Station, 

Esplanade, St Helier, Jersey JE2 3AS 

© Chameleon Group Limited, all rights reserved. 

Reproduction in whole or in part without written 

permission is prohibited. Views expressed by our 

contributors are their own and do not necessarily 

represent the views or policies of Chameleon 

Group. While every effort is made to achieve 

total accuracy, Chameleon Group cannot be held 

responsible for any errors or omissions. 

DR LIZ ALEXANDER 

Our Texas-based scribe 

Liz takes an up-closeand-personal 

look at 

whether we’re all going 

to lose our jobs to robots, 

and discovers that 

being human is the one 

characteristic that 

simply can’t be replaced. 

DAVID BURROWS 

Business writer David 

heads off to emerging 

markets to see whether 

Channel Islands firms 

looking to capture new 

business should focus 

on entrepreneurial 

start-ups, existing wealth 

or a bit of both. 

BEN JORDAN 

John Lewis may be 

the best known company 

where staff own a share 

of the business but, as 

our writer Ben discovers, 

it’s a trend that seems 

to be growing 

and benefiting 

everyone involved. 

DAVE WALLER 

It’s another triple-header 

for BL stalwart Dave, 

who looks at the 

potential of fintech in 

Guernsey and Jersey; 

newly launched P2P 

investment trusts; and 

the human face of 

financial crime. 


MALCOLM 

THE FIRST NAME IN 

CORPORATE SOLUTIONS 

We are one of the world’s largest independent providers of trust, 

fund and corporate administration services. 

We are committed to helping our clients protect, 

nurture and grow their wealth. 

Above all, we are a people business. 

To find out more about our services 

and to get to know us better, visit 

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in the NEWS 


Sign up for email updates at www.blglobal.co.uk 


JERSEY NED FORUM 2016 

A BOARD’S 

EYE VIEW 

BL Events launches 

Jersey NED conference 

FOLLOWING A SERIES of 

successful conferences in 2015, 

BL Events has launched its first 

conference for 2016, aimed at 

non-executive directors in the 

Channel Islands, with a particular 

focus on Jersey. 

Entitled ‘A Board’s Eye View’, 

the event, which is in partnership 

with Deloitte, sponsored by BNP 

Paribas Securities Services and 

Optimus Group, and supported by 

Rossborough, will take place on 

16 March at the Pomme d’Or in 

St Helier from 9am-12.45pm. 

The conference will bring 

together speakers and delegates 

from the Channel Islands and the 

UK, and will address issues facing 

NEDs right now, and those likely to 

arise in the near future. The event 

will cover a wide range of subjects: 

● What should be on the NED 

agenda in 2016? 

● Board dynamics and dynamic 

boards 

Wednesday 16 March 


3.5 hours CPD available 

DELEGATE RATE: FROM £195 

In partnership with: Sponsored by: Supported by: 

● Directors’ duties and relief from 

liability 

● How to address innovation and 

digital skills 

● Managing strategy and risk 

● The independent NED toolkit. 

Carl Methven, CEO of BL Events, 

said: “We’re not only looking 

forward to our first event of 2016, 

but also to our first NED forum in a 

number of years. Having enjoyed a 

great year in 2015, we were asked 

by a number of companies whether 

we had considered an NED event, 

and we are really happy to be able 

to deliver what they wanted.” 

Speakers are currently being 

lined up for the event and a full 

timetable will be published in due 

course. More details are available 

and places can be booked by 

visiting www.blglobal.co.uk/events 

or by emailing carl.methven@ 

blglobal.co.uk. Three-and-a-half 

hours of CPD are available. n 

Offshore 

PE activity 

heading 

for high 

PRIVATE EQUITY (PE) 

activity represented more 

than a quarter of the total 

value of offshore M&A 

transactions in the third 

quarter of 2015, putting it 

on pace to generate the 

biggest annual amount in the past five 

years, according to a report by offshore 

legal and administrative services 

provider Appleby. 

The findings are in a sector spotlight 

edition of Appleby’s Offshore-i report, 

which looks at transactions in the PE 

industry in offshore markets in the year 

to date. It analyses PE investment in the 

form of buyouts and exits, whether via 

initial public offerings, sales to other 

private equity firms or trade sales. 

“With 92 PE transactions worth a 

combined US$56bn in the first three 

quarters, [2015] is well on its way to 

surpassing 2014,” said Andrew Weaver, 

Jersey-based partner in Appleby’s 

corporate group. 

The third quarter of 2015 saw 

$16.1bn in PE deals across jurisdictions, 

representing over a quarter of the 

$61bn of total offshore activity. The 

report said 2015 is set to overtake the 

record exit total of $41.2bn, set in 2014, 

with market conditions proving highly 

supportive for exits. 

Other key findings include: 

● There were 41 investments by PE 

firms involving offshore targets to 

September 2015, and 55 exits. The 

exits typically command more value, 

with the average value of an 

investment in 2015 $490 million and 

the average exit worth $673 million. 

● There were seven PE investments of 

$1bn or more involving offshore 

targets to the end of Q3. These 

accounted for 79 per cent of the 

year’s PE deal value to date. n 



Hawksford granted 

Cayman Trust Licence 

HAWKSFORD HAS BEEN granted a Trust Licence by the Cayman 

Islands Monetary Authority, enabling the firm to provide a full range of 

trust services to private and corporate clients in the islands. With this 

expansion into Cayman, Hawksford can now offer fiduciary services to 

clients from Europe, Asia and the Caribbean. 

Hawksford Director Steve Robinson, who will oversee the Cayman 

operation, said: “We are delighted that Hawksford now has operating 

capabilities in the Cayman Islands. This is a significant development for 

the company and our clients.” 

Hawksford is an international corporate, private client and funds 

business offering a range of comprehensive services to trusts, companies, 

foundations, partnerships, family offices and investment funds. n 

PwC opens KYC Centre of 

Excellence in Alderney 

PWC HAS OPENED its Know Your Client (KYC) Centre of 

Excellence (CoE) in Alderney. The new hub will service 

financial institutions (FIs) operating within the Bailiwick of 

Guernsey. The company chose to pilot its concept on the 

island because of the availability of labour, and because 

of full support from local politicians. 

Globalisation, increased trade and money flows, the emergence 

of new technologies and the financial crisis of 2008 have collectively 

compounded the threat posed by global organised financial crime, which 

continues to increase year by year. For FIs, the costly business of keeping 

pace with the required compliance, monitoring and control of financial 

transactions has similarly continued to increase. 

The technologically enabled CoE will perform KYC services as required by 

the local regulator, the Guernsey Financial Services Commission (GFSC). 

These services will include identification and verification of clients, as well as 

screening based on public/commercial sources. 

Located at Maison Des Venelles, Venelles Des Gaudion, the CoE will initially 

have seven staff. n 

Invest Europe 

launches 

Professional 

Standards 

Handbook 

INVEST EUROPE, FORMERLY 

the European Private Equity and 

Venture Capital Association (EVCA), 

has published its 2015 Professional 

Standards Handbook, a comprehensive 

set of up-to-date standards and 

guidelines for the private equity sector. 

The Handbook reflects the 

heightened standards of transparency 

and accountability being pursued by 

investors in Europe’s growing private 

equity industry, which represents 

€545bn of assets under management. 

It takes into account regulations in 

Europe, including the Alternative 

Investment Fund Managers Directive, 

that have come into force since the 

last update of the Handbook in 2013. 

As part of the revision, Invest 

Europe has published substantially 

updated guidelines for reporting by 

private equity firms to their investors, 

which emphasise the importance of 

clear and detailed disclosure of fees. 

As well as increasing transparency, 

the guidelines encourage extra 

reporting to address areas of nonfinancial 

disclosure and enhanced 

clarity on reporting metrics. 

The updated Handbook was created 

by Invest Europe members – including 

private equity firms and their 

institutional investors – as well as 

industry advisers, working in 

collaboration for over a year. Its 

guidance demonstrates consensus 

across the industry about best practice 

in today’s market. 

All Invest Europe members are 

required to adhere to the Handbook’s 

Code of Conduct, which remains 

unaltered from prior editions. 

The Invest Europe Professional 

Standards Handbook 2015 can be 

downloaded from the Invest Europe 

website, www.investeurope.eu n 


News 


Minerva and Meghraj 

announce joint venture 

INDEPENDENT TRUST, CORPORATE and fund administration services provider 

Minerva has entered into a joint venture with Meghraj Group to provide investment 

banking services. The joint venture firm, which is known as Meghraj Capital LLP, has 

been set up in London. 

Meghraj Group, which is connected to Minerva through common family ownership, 

has been involved in investment banking since the 1990s. Using this experience and 

expertise, Meghraj Capital will offer clients a range of advisory services, including equity 

raising, debt raising, mergers and acquisitions and joint ventures. 

The business will leverage the collective relationships of Minerva and Meghraj to help 

clients raise money, and to buy and sell businesses. 

Meghraj Capital will be headed by Murray Robertson, who will join the business as its 

Managing Director. Prior to his appointment, Murray was one of the founding partners 

of Bowmont Capital Partners. n 

PraxisIFM acquires 

Cavendish 

Administration 

THE PRAXISIFM GROUP has 

expanded its fund administration 

division with the acquisition of Londonbased 

closed-ended fund administrator 

Cavendish Administration. 

The acquisition means that PraxisIFM 

will be able to offer administration 

services for onshore as well as offshore 

investment trusts. It follows a previous 

announcement in October of the 

Group’s intention to acquire Confiance 

and the expansion of its pension 

division Trireme Pension Services, with 

the acquisition of Confiance Pension 

Services. 

Cavendish Administration provides 

a range of support services, including 

administration, secretarial, 

management accounting and 

compliance work mainly to closed-end 

investment trusts listed on the 

London Stock Exchange, including 

those traded on AIM. 

Cavendish has funds under 

administration in excess of £700 million, 

and its team will all join PraxisIFM. 

Cavendish’s offering will be rebranded 

under PraxisIFM Fund Services. n 

SafeCharge 

relocates from 

BVI to Guernsey 

AIM-LISTED TECHNOLOGY company 

SafeCharge International Group has 

relocated from the British Virgin Islands 

to Guernsey. The company, which was 

floated on AIM in April 2014, raising 

$125 million, now regularly ranks in the 

FTSE AIM 100. At the time of migration it 

was capitalised at around 

£400 million. 

SafeCharge provides 

payments services, 

technologies and risk 

management solutions 

in the UK and Europe. 

Its decision to move to 

Guernsey was motivated by 

the island’s reputation as a base for 

funds and companies listed on the 

London Stock Exchange. The company 

also saw Guernsey as well positioned for 

a potential move to the Main Market. 

SafeCharge’s domicile in Guernsey 

will give the company greater exposure 

to investors, thereby facilitating liquidity 

in its shares. It was advised on the move 

by Collas Crill Partner Sean Cheong, 

assisted by Senior Associate Gareth 

Morgan and Associate Simon Heggs. n 

Consortium buys 

SandpiperCI 

DUKE STREET AND Europa 

Capital have sold their investment 

in Channel Island retailer SandpiperCI 

to a consortium of Channel Islandsbased 

investors. 

The consortium has been assembled 

by Ravenscroft, and includes Bailiwick 

Investments, Sealyham and other 

private clients of Ravenscroft. The 

SandpiperCI management team, led 

by CEO Tony O’Neill, will be investing 

alongside the consortium and will 

continue to lead the business. 

At the time of writing, the 

transaction is subject to regulatory 

approval from CICRA in Jersey. Key 

terms for the transaction have not 

been disclosed. 

This transaction brings to an end 

Duke Street and Europa’s investment 

in the SandpiperCI Group, which was 

acquired in 2007 and has franchises 

that include Marks & Spencer, Iceland, 

Costa and George. 

Commenting on the sale, O’Neill 

said: “Business will continue as usual 

and our customers are unlikely to 

notice any changes. 

“Our new Channel Islands-based 

investors plan to continue investment in 

our retail estate, including extending 

the range of our numerous franchise 

brands, benefiting our customers in 

Jersey, Guernsey and the wider 

European mainland.” 

The consortium was advised in 

relation to the transaction by Carey 

Olsen and BDO. Ogier acted for the 

vendors, Duke Street and Europa Capital, 

through UK law firm DLA Piper. n 


News 



CISE allows SPACs 

to be listed 

RULES HAVE BEEN introduced to 

allow Special Purpose Acquisition 

Companies (SPACs) to be listed on 

the Channel Islands Securities 

Exchange (CISE). 

A SPAC is a cash shell used to 

raise money for a very specific 

investment objective. According to the 

CISE, SPACs are growing again in 

popularity as international markets recover from the global 

financial crisis. The Exchange has launched rules to 

introduce it as a new product. 

Fiona Le Poidevin (pictured), CEO of the CISE, said: “We 

have been able to introduce our SPAC rules in a timely 

manner, which demonstrates the responsive nature of the 

CISE in meeting the needs of current and potential clients. 

The new SPAC rules have been designed to be commercially 

attractive for management teams and yet also offer robust 

integrity for investors.” 

The new rules came into effect in November 2015 and 

they include: 

● A minimum initial market capitalisation of £700,000 

● A management team shareholding of more than 

10 per cent 

● A 36-month timeframe to make a Qualifying Acquisition. n 

Crestbridge gains 

Jersey ManCo licence 

CRESTBRIDGE IN JERSEY has been approved by the 

Jersey Financial Services Commission (JFSC) to provide 

Management Company (ManCo) solutions to Jersey funds. 

The award of the licence means that Crestbridge in 

Jersey will now be able to act on behalf of fund managers 

as an appointed management company, provide risk 

management oversight, oversee delegation for portfolio 

management, central administration and distribution, 

and coordinate communication with third parties 

and regulators. 

The launch of Crestbridge’s Jersey ManCo service 

complements its existing Luxembourg offering and means 

it can now provide ManCo services for a full range of 

regulated funds to support both onshore and offshore 

distribution. n 

Done 

Deals 

Carey Olsen has advised on the successful launch and 

admission to trading of Regional REIT Limited, a 

Guernsey real estate investment trust (REIT), on the 

Main Market of the London Stock Exchange. Regional 

REIT is managed by Toscafund Asset Management LLP, 

with London & Scottish Investments managing the 

property portfolio. It merges two existing funds, and 

targets investments in commercial property in major 

regional centres outside London. Carey Olsen Partner 

and Head of the Guernsey corporate group Graham Hall, 

Senior Associate Annette Alexander and Associate 

Alexandria du Jardin advised on all Guernsey aspects of 

the listing. The REIT has a market capitalisation of 

approximately £274.2 million. 

Carey Olsen also advised Gravis Capital Partners LLP 

on the initial public offering (IPO) of a new £100 million 

Jersey fund, Project Finance Investments, which is now 

listed on the Main Market of the London Stock Exchange. 

The company’s investments will be largely UK-based, 

medium-to-long-term fixed or floating rate loans 

secured against cash flows and/or physical assets. Its 

objective is to generate attractive risk-adjusted returns 

primarily through regular, growing distributions and 

modest capital appreciation over the long term. 

Offshore law firm Mourant Ozannes has acted as Jersey 

counsel to Mimecast Limited on its IPO on NASDAQ. 

The email security group was valued at US$540 million 

based on the IPO price. Mourant Ozannes also advised 

Mimecast on its pre-IPO group restructuring. Mimecast 

is the first US IPO by a Jersey company since Jersey 

introduced legislation specifically designed to facilitate 

US listings. The Mourant Ozannes’ team advising 

Mimecast was led by Partner James Hill, Senior 

Associate Jon Woolrich and Associate Jamie Wisbey. 

Mourant Ozannes has also acted as Jersey legal adviser 

to the Aerium group in the sale of a commercial property 

portfolio worth £330 million. Working alongside King & 

Wood Mallesons, the team at Mourant Ozannes advised 

pan-European real estate investment manager Aerium 

on the sale of prime commercial properties held by a 

number of Jersey entities. The team from Mourant 

Ozannes was led by Partner Ben Robins, supported by 

Senior Associate Sophie Reguengo. Headquartered in 

Luxembourg, with offices operating in key European 

markets, Morocco and Turkey, Aerium manages more 

than €6.1bn in property assets across 12 countries. n 


Exceptional service 

is only possible with 

exceptional people. 

With offices in Jersey and Guernsey, Grant Thornton Limited is 

one of the Channel Islands’ leading accounting, tax and business 

advisory firms dedicated to serving the needs of privately held 

businesses, financial services and private clients. We offer a full 

range of audit, assurance, tax, corporate recovery and advisory 

services. As a member firm within Grant Thornton International 

we have access to member and correspondent firms in over 

130 countries, offering our clients specialist local knowledge 

supported by international expertise and methodologies. 

Kensington Chambers, 46/50 Kensington Place, St Helier, 

Jersey JE1 1ET Channel Islands 

T +44 (0)1534 885885 

PO Box 313, Lefebvre House, Lefebvre Street, St Peter Port, 

Guernsey GY1 3TF Channel Islands 

T +44 (0)1481 753400 

www.gt-ci.com 

Grant Thornton Ltd is a member firm within Grant Thornton International Ltd (Grant Thornton International). Grant Thornton International is one of the world’s leading organisations of independently owned and 

managed accounting and consulting firms. Grant Thornton International and the member firms are not a worldwide partnership. Each member and correspondent firm within Grant Thornton International is a 

separate national firm. These firms are not members of one international partnership or otherwise legal partners with each other (with the exception of certain limited instances), nor is any one firm responsible for 

the services or activities of any other. Each firm governs itself and handles its administrative matters on a local basis. Any and all references to Grant Thornton International are to Grant Thornton International Ltd.

Appointments 

Investment consultancy Enhance Group 

has appointed Tom Wiseman as 

Managing Director of its London office. He 

will oversee relationships with Londonbased 

clients, as well as local operations 

for clients with multijurisdictional needs. 

Tom was a Relationship Manager and 

Partner at Seven Investment Management 

(7IM), where he managed discretionary 

investment portfolios for the clients of 

independent financial advisers. He also 

helped establish 7IM’s direct-to-client 

proposition, providing a range of services 

to a small number of wealthy families and 

their associated structures. 

Nicola Gott has been named Managing 

Director of Equiom (Jersey). With more 

than 18 years of banking experience, 

Nicola has served as Country Chief 

Operating Officer for BNP Paribas. She 

was previously its Head of Risk and 

Permanent Control and, before that, Head 

of Group Risk Credit. With a seat on the 

Equiom Group (Europe) Board, Nicola’s 

new role involves overseeing the key 

business functions and contributing to 

business development across Europe. 

Nicola takes over from Anton Swemmer, 

who becomes Group Finance Director for 

Equiom’s European operations. 

David Oliver has been named 

Chief Compliance Officer at Sanne. He 

joins from the JFSC, where he was a 

member of the executive committee and 

led the Trust Company Business division 

for two years. He previously lectured at 

the Jersey Business School for seven 

years, covering UK and Jersey regulation. 

David was also a Chief Examiner for ICSA 

from 2003 to 2011. He will be based at 

Sanne’s headquarters in Jersey and will 

be responsible for the Group’s compliance 

function, supporting the firm’s six 

business divisions located across nine 

financial jurisdictions. 

Butterfield Bank (Guernsey) has 

appointed Alan Bain as Chief Financial 

Officer for Guernsey. He joined Butterfield 

as Head of Finance for Guernsey in 2007, 

overseeing the financial management and 

regulatory reporting for Butterfield’s 

Guernsey operations and the Butterfield 

Trust business, together with a range of 

administered banks. In his new role, Alan 

has broader responsibilities in the overall 

management of the Guernsey business, in 

addition to his current responsibilities for 

the Trust. His prior experience includes 

senior roles at financial services 

companies in the UK and Channel Islands. 

12 JANUARY/FEBRUARY 2016 

First Names Group has recruited Carol Keenan 

(pictured) and Gerard O’Gorman as Client Services 

Directors. Carol joins from Elian, where she was Group 

In-House Counsel, having spent 12 years with Ogier. She 

has also been a lawyer with Linklaters in Hong Kong and 

London. In her new role, Carol will grow the Group’s 

corporate business in the Channel Islands, while Gerard 

takes on an existing client portfolio in the Group’s 

Private Client service line. Gerard has 25 years’ 

experience managing high-net-worth individuals. Prior 

to joining First Names, he spent 14 years with Royal 

Bank of Canada, managing a large client portfolio.

News 

Full Service 

Support 

Guernsey’s former Chief Minister, Lyndon 

Trott, has been appointed Chairman of 

Guernsey Finance. He replaces Jim 

Gilligan, who is retiring. Elected 

Guernsey’s first Treasury Minister in 2004, 

Lyndon became the jurisdiction’s 

youngest and longest serving Chief 

Minister, a role he filled until 2012. He has 

combined a 16-year political career with 

30 years in financial services. A former City 

trader specialising in proprietary foreign 

exchange, Lyndon is now a non-executive 

director on the boards of a Guernsey 

fiduciary company, a fund administrator 

and an AIM-traded private equity fund. 

The Jersey Financial Services Commission 

(JFSC) has appointed John Everett as its 

Deputy Director General, to drive forward 

its programme to become a more 

efficient, effective regulator. The 

appointment reinstates the Deputy 

Director General post, which was a part of 

the JFSC’s senior management structure 

until 2009. As well as his role in the change 

programme, John will oversee supervision 

and policy activities, ensuring effective 

co-ordination between the development 

of policy and its implementation. Since 

joining the JFSC in 2014, he has been the 

Director for Funds and Fiduciary. 

Multi- 

Jurisdictional 

FATCA 

Solutions 

Reporting 

Services 

Fully compliant 

• US FATCA 

• UK FATCA 

• OECD CRS 

Produces ready 

to submit reports 

RBC Wealth Management has appointed 

Daniel Bisson as Chief of 

Staff, Fiduciary Services. Based in 

Guernsey, he will manage projects aimed 

at transforming the fiduciary services 

business and joins the Fiduciary Services 

Management Committee. RBC Wealth 

Management’s fiduciary services business 

includes RBC’s Channel Islands-based 

trust and private client business, as well 

as its tax advisory practice and RBC ‘cees’. 

Daniel was RBC Wealth Management’s 

Head of Business Development Execution 

and Delivery. He has also held senior roles 

managing high-net-worth clients. 

The Guernsey office of JTC Group will now 

be led by Adam Moorshead. As well as 

being Managing Director of the Guernsey 

office, Adam, who joined JTC in 2015, will 

have cross-jurisdictional responsibilities 

and sit on the global management board 

of JTC’s Institutional Client Services 

division. Adam has specialised in business 

transformation, client service delivery and 

fund operations. He has been Head of 

Fund Administration at Kleinwort Benson 

and held senior roles at Man Investments, 

Credit Suisse and Rothschild Asset 

Management. He also holds directorships 

in several investment firms. 

Flexible pricing 

options 

FIND OUT MORE 

Contact us today to see what 

InfrasoftTech FATCA solutions 

can offer your business, 

call 01534 745222 or email 

enquiries@infrasofttech.je 

Ogier has promoted Richard Daggett to Partner. 

Richard is a corporate finance lawyer focusing on complex 

real estate investment transactions, mergers and 

acquisitions, private equity structures and IPOs. A former 

Ogier bursary student, he joined Ogier in 2004 as part of 

the firm’s first intake of English trainees. He has worked on 

some of the largest real estate transactions of the past 

decade, including Intu Properties’ £867 million acquisition 

of Westfield shopping centres. Richard has also acted 

for global private equity firms on high-profile transactions, 

such as the £1.54bn Main Market listing of 

Partnership Assurance. 

6 Vine Street, St Helier, Jersey JE2 4WB 

Tel: 01534 745222 

www.infrasofttech.je 

JANUARY/FEBRUARY 2016 13


JERSEY NED FORUM 2016 

A BOARD’S 

EYE VIEW 

Wednesday 16 March 


3.5 hours CPD available 

DELEGATE RATE: FROM £195 

The agenda for the half day includes a variety 

of panel discussions and presentations covering 

the following: 

• What should be on the NED agenda in 2016? 

• Board dynamics and dynamic boards 

• Directors’ duties and relief from liability 

• How to address innovation and digital skills 

• Managing strategy and risk 

• The independent NED toolkit 

Places can be booked by visiting www.blglobal.co.uk/events 

or emailing carl.methven@blglobal.co.uk 

In partnership with: 

Sponsored by:

Supported by:

Interview 

From its headquarters in the Isle of Man, 

Sheila Dean, Global CEO of Equiom Group, has 

overseen the company’s rapid expansion in 

recent years, including into the Channel 

Islands. So just what has she learned 

from the experience and are the crown 

dependencies at all alike? 

Words: 

Nick Kirby 

You have one minute to tell us about Equiom – and 

the clock starts now… 

Equiom is a multijurisdictional trust and corporate 

service provider, focused on delivering bespoke 

ownership structures and professional tax advice 

for a broad range of companies and clients, including 

ultra-high-net-worth individuals, across a variety 

of specialist markets. 

Our history is something we’re very proud of. 

We were part of the Ernst & Young Trust Company 

up until 2002, when we were sold to Anglo Irish Bank. 

We became an independent company in 2006, having 

completed a management buyout, and we completed 

our secondary management buyout in 2013. 

Since 2011, we’ve completed 10 acquisitions, which 

has led to us opening offices in Jersey, Guernsey, Malta 

and Hong Kong. 

We currently have 327 employees working across 

our five offices in Europe and Asia. Our total assets 

under management are in excess of US$23bn. 

I believe you’ve effectively been with the company 

since the start of your career? 

Pretty much. I started working for Ernst & Young 

straight after graduating. Along the way, I qualified as 

an accountant and when E&Y was acquired by Anglo 

Irish, I stayed with the company. When Anglo Irish 

decided to sell the trust arm of the business, I led the 

management buyout and Equiom was born. So this 

really has been my entire career. 

Jersey and Guernsey are often lumped together, 

whereas the Isle of Man sits well outside, despite being 

a crown dependency, and seems to plough its own 

furrow. Is that a good or a bad thing? 

The Isle of Man is bound to be viewed differently to 

the Channel Islands to a certain extent. It has a very 

different government system and there are differences 

in the taxation and business rules across the islands 

too. Also, to state the obvious, we’re geographically 

quite a distance away – we certainly don’t benefit 

from the same climate! 

VAT is probably the main thing that differentiates 

the Isle of Man from Jersey and Guernsey. In the Isle 

of Man, VAT is charged and legislated almost exactly 

the same as it is in the UK. This is because the island 

has a VAT revenue-sharing agreement with the UK, 

so it’s considered part of the common VAT area of 

the European Union, giving it full access to the EU 

for importation and EU trade. The Channel Islands, 

on the other hand, are only part of the EU in terms 

of customs, which can cause limitations with the 

importation of goods. 

That said, there are some massive similarities 

between the islands. They are all crown dependencies; 

corporate income tax rates are all zero per cent; and all 

three islands now have a financial ombudsman. None 

of the islands operates capital gains tax, and there’s no 

denying they have all been affected by the recession. 

All the islands benefit from the flexibility enabled 

by their independent governments. This independence 

from the UK has allowed them to proactively introduce 

changes to their regulatory and legal systems to 

embrace, for example, the Foreign Account Tax 

Compliance Act (FATCA) and Tax Information 

Exchange Agreements with a host of countries. 

As a business, we’ve built very strong relationships 

with the Isle of Man government over the years, 

having worked closely on joint initiatives. We’d like to 

replicate this with Jersey’s and Guernsey’s governments. 

Is being private equity-backed – through Lloyds 

Development Capital (LDC) – a help or hindrance? 

Can PE be too short-term focused? 

We wouldn’t be in the successful position we are in 

without the backing of a private equity company. 

We’ve worked with our current PE company, LDC, 

for a number of years. 

The LDC strapline is ‘Private Equity less ordinary.’ 

This is without a doubt our experience of them. Yann 

Souillard [Managing Director] and his team at LDC 

have exceeded our expectations – their support has 

been all-embracing. With such a broad portfolio of 

businesses under management, they have a network of 

solutions at their fingertips, all of which we can dial 

into and use to support Equiom. 

LDC’s management style is very much relationship 

driven, and this philosophy of putting relationships 

first is mirrored at Equiom. As we have grown, our 

relationship with LDC has strengthened. The team at 

LDC has been incredibly supportive throughout and 

they’ve delivered on everything they promised – and 

▼ 


Interview 

The 

interview 

Sheila Dean 


Interview 

Growing quickly 

does put pressure on. 

The five acquisitions 

we completed in the 

past year certainly 

tested everything 

we’ve got to give! 

more. When professional firms work in conjunction 

with private equity, it’s important for clients to know 

that neither the service nor the cost is going to be 

adversely affected. We’re proud to have delivered a 

seamless service to our clients through the initial and 

secondary buyouts, without the loss of any clients 

as a direct result. 

There’s been a significant amount of M&A activity in the 

financial services sector in recent years – what is your 

take on that and do you see it continuing? 

M&A activity is indeed flourishing again in financial 

services, which is strong evidence of renewed economic 

confidence globally. 

A substantial contributor to this, in our sector in 

particular, has been the increase in regulatory and 

compliance requirements within the industry. This has 

made it very difficult for the smaller trust companies 

to continue to operate because they just don’t have the 

resources to cope with the additional administrative 

and regulatory requirements. 

In order to continue, they need to become part of 

larger companies, with large established compliance, 

legal and operational risk teams, and the systems and 

processes in place to ensure adherence to regulations. 

In addition to this, banks are streamlining their 

operations to reduce costs while at the same time 

reducing their exposure to risk. This has resulted in 

a number of banks selling off their trust businesses, 

which have become acquisition targets for the 

larger trust companies. 

As regulation within the industry continues to 

tighten up, I don’t anticipate that this M&A activity 

will slow down. Equiom is particularly active on the 

acquisition front and we do 

see this continuing over the 

coming years. 

Your expansion has been quite 

‘aggressive’ in recent years – tell us 

about that. 

The business has grown from 80 

staff in the Isle of Man in 2012 to 

327 staff across five jurisdictions. 

Seven acquisitions have 

taken place since the secondary 

management buyout in September 

2013, five of which took place in 

the six months up to May 2015. 

Our strategy is focused on 

creating a business of scale and 

substance in both Europe and 

Asia. This is best achieved by 

concentrating on establishing 

and developing successful 

businesses in a small number 

of jurisdictions. The purpose of our strategy is to 

provide increased opportunities for our clients and 

staff. Having a number of offices allows us to offer a 

wider range of solutions to our clients, and to tailor 

services to their specific needs. 

Does growing quickly put pressure on the business 

– from client service and compliance perspectives, 

for instance? And how difficult is it to meet those 

challenges? 

Yes, it inevitably does put pressure on. The five 

acquisitions we completed in the past year certainly 

tested everything we’ve got to give! 

Acquisitions particularly affect the central Group 

support functions, such as compliance, finance, 

corporate communications and IT. However, all areas 

of the business are impacted, particularly by all the 

travelling that myself and the senior team do in the 

lead-up to an acquisition in order to form integration 

plans and build relationships with our new colleagues. 

Our priority throughout the acquisition process 

is to ensure that everything happens as seamlessly as 

possible for our clients. It’s also critical to establish 

‘buy-in’ from the staff throughout the Group. I always 

make sure that we regularly communicate internally 

throughout the acquisition process to ensure that all 

staff are aware of the progress we are making. All 

Equiom staff are familiar with the acquisition process 

and are well accustomed to the continually evolving 

and fast-paced world that we work in. 

Our IT and communications infrastructure has 

particularly been tested in recent months. The IT team 

works exceptionally hard to ensure that our systems, 

data and communications networks are integrated 

effectively. We’ve recently invested heavily to increase 

the level of support within our IT, Integration and 

Change functions, including upgrades to our core IT 

infrastructure and employing additional staff. 

Even after an acquisition has completed from a 

technical point of view, the work continues to ensure 

that the acquired business and the employees are 

integrated into Equiom from a cultural perspective. 

We have a ‘buddy’ system, where we pair up any 

new employee with a current team member at their 

equivalent level – sometimes in other jurisdictions – 

to ensure that they are made to feel part of the 

wider Group and to give them a point of contact 

for any questions. Training is also an essential part 

of the process. 

The Compliance team has an important part to 

play in acquisitions – from overseeing the due diligence 

prior to the completion of the acquisition, to playing 

a role in the integration and harmonisation projects 

post-acquisition and communicating with the relevant 

regulatory authority. 

So, in summary, yes – growing quickly does put 


Interview 

I don’t think my 

gender has ever 

had an impact on 

my career and it 

certainly hasn’t 

held me back 

FACT FILE 

Name: Sheila Dean 

Age: 46 

Position: Global CEO, Equiom Group 

Married to: Jonny 

Children: Ollie, 13 

Hobbies: Keeping fit 

Interesting fact: I absolutely love Russian history 

pressure on the business, although we do plan these 

projects well, resource accordingly and most of the 

time, things go smoothly. 

A number of fiduciary companies have either made 

acquisitions or opened offices in the Far East in recent 

years – Equiom bought AFP Group in Hong Kong at the 

start of 2015. Why? And what is the strategy? 

We’ve always viewed Asia as a key market as part of 

the company’s ambitious growth plans but, as with all 

of our acquisitions, we had to find the right business, 

with the right people, to blend with the overall culture 

that we promote throughout the company. 

With AFP Global, we knew that Roddy Sage 

[Executive Chairman of Equiom Hong Kong] and his 

team would bring that ‘can do’ culture that Equiom 

has, as well as the huge experience that we needed 

with our first Asian acquisition. 

The strategy in Asia mirrors the strategy for the 

rest of the Group, in that we continue to follow 

the twin-track method of acquisitional and organic 

growth, within clearly identified markets. 

At BL, we often hear about the lack of suitable 

skilled staff in small jurisdictions such as the crown 

dependencies. What’s your take on this? And, indeed, 

how should it be dealt with? 

It’s a problem that needs to be addressed – particularly 

in the Channel Islands, where strict employment and 

housing restrictions are in place to limit the size 

of the population. If these rules aren’t going to be 

relaxed, the islands need to focus more on education 

and training locally to attract young people to return 

beyond graduation and make the islands less dependent 

on immigration. 

At Equiom, we wholeheartedly support training, 

exams and external courses – it’s important that our 

staff are qualified and continually develop in the area 

of the business in which they work. 

We’ve also trialled a new programme where we 

employ school leavers as Assistant Administrators 

within the Client Services team, providing ‘roots up’ 

experience. They’ve also been given the opportunity 

to sit exams, which will help with their professional 

development and career progression. 

Where do you stand on the subject of the lack of senior 

women in business? Is too much attention given to it? 

Is there a danger of promoting women purely based on 

gender as opposed to merit? 

Yes, it’s something that’s talked about a great deal, 

but, if I’m absolutely honest, this ‘issue’ has never 

really been apparent to me. Many of the businesses 

I deal with employ women in senior positions. 

Likewise, there are several women occupying 

board positions at Equiom. 

Personally, I don’t think my gender has ever had an 

impact on my career and it certainly hasn’t held me 

back. I’d like to think that I’ve achieved what I have 

because of my skills and experience, rather than my 

gender, and I’ve never had any negative (or otherwise) 

experiences as a result of being female. n 

NICK KIRBY is Editor-in-Chief of BL magazine 


Finance 

Already one of the fastest growth areas in 

financing, peer-to-peer lending has recently seen 

the launch of a number of investment trusts. Will 

investors and businesses both reap the rewards? 

20 January/february 2016

Finance 

P2P makes its 

next move 

Words: 

Dave Waller 

THE PAST SEVEN years haven’t exactly 

been the best time to be an SME seeking 

funds. Since the financial crisis, banks 

and other traditional lenders have 

tightened their lending criteria and 

avenues have become closed off as 

regulators restrict lending activities to 

help stabilise the economy. 

Against this backdrop, the surging 

appeal of peer-to-peer (P2P) lending 

comes as no surprise – while the banks 

may not be in a position to dish 

out the dosh, plenty of other folk are. 

The P2P model is largely credited to 

Zopa, a London-based platform that 

launched back in 2005 and has now 

lent more than £1bn. The basic model 

of P2P is that online platforms allow 

individuals and businesses seeking capital 

to go direct to members of the public, 

who in turn get a good return for their 

lending (much better than the paltry 

interest rates that are available from 

deposit accounts). 

Zopa has since been joined by a host 

of rival platforms, including Funding 

Circle, through which 11,000 businesses 

have borrowed a total of more than 

£890 million in the UK alone. 

Overall, P2P lending to British 

firms exceeded £1.2bn in 2014, with 

a 90 per cent increase in the number 

of UK companies borrowing through 

such platforms, according to the 

Peer-to-Peer Finance Association. 

“There’s strength and wisdom in 

the crowd,” says Angus Dent, CEO 

of ArchOver, a UK-based P2P lending 

platform, as an explanation for P2P’s 

success. “Borrowing becomes easier for 

the borrower, while we build in several 

layers of security for lenders.” 

Of course, such revolutionary models 

rarely remain static for long, and the 

P2P concept has now expanded beyond 

one-to-one lending through the creation 

of P2P investment trusts, which manage 

a selection of loans on the investors’ 

behalf. By investing in a range of P2P 

platforms, these offer exposure to a greater 

number of loans than if investors used a 

standard P2P model. 

They may also offer exposure to debt 

that may not be directly accessible through 

P2P lenders, and they have a potentially 

low correlation to equities – which could 

make for an attractive risk profile. Plus, 

with dedicated teams to choose the loans, 

it saves investors doing their own due 

diligence on the underlying loans and 

platforms, which can be both tricky 

and time-consuming. 

This is a relatively new asset class, 

perhaps more accurately labelled ‘direct 

lending’ – it’s hard to see an investment 

trust as a peer, but the P2P title has stuck 

because the process remains intermediaryfree. 

While retail investors were targeted 

first, it’s now largely the preserve of 

institutional investors such as pension 

funds – which means far greater fund 

volumes and chunkier deals. 

BRANCHING OUT 

At the time of writing, there are 

five investment trusts in this space. 

The largest, P2P Global Investments, 

launched in May 2014 and has so far 

raised around £800 million. Victory Park 

Capital and Ranger Direct Lending are 

US companies that launched in March 

2015 and have raised about £200 million 

and £135 million respectively to date. 

But the Channel Islands are involved as 

well, first through GLI Finance, which has 

a Guernsey-based P2P investment trust 

that has allocated a £52 million fund 

across 19 platforms. 

“We’re director of all of them, so we 

have full oversight of the businesses,” 

says Andrew Whelan, GLI’s Director of 

Lending. “We’re intimate with them, 

▼ 


Finance 

rather than just using them 

as a vehicle to throw money 

through, and we’ve created 

a liquidity in the fund 

– investors can redeem 

up to 20 per cent of the 

fund every six months 

with 90 days’ notice at 

a price discount to 

NAV of 0.5 per cent.” 

Finally, there’s the news 

that Funding Circle has 

launched an investment trust of 

its own, making it the first platform 

to do so. The Funding Circle SME Income 

fund, which is also based in Guernsey, 

listed in London in November, after 

raising £150 million from a group of 

institutional investors. It’s set to focus 

on loans to small businesses in the UK, 

US and Europe. 

INVESTOR GAINS 

So exactly what’s in all this for the 

investor? P2P investment trusts bring 

several benefits – one is yield, which is 

proving so elusive in the current climate. 

A pension fund that doesn’t have to 

worry about the kind of regulation that’s 

stifling bank lending may wish to get 

involved as P2P investment trusts are 

paying between six per cent and 10 per 

cent. Funding Circle’s trust targets a 

yield of about seven per cent a year. 

The other principle boon for investors 

is diversification, which helps boost 

security and lower risk. 

“Investment funds allow instant 

portfolio diversification,” says Dent. “If 

you’ve only got £1,000, you can’t spread 

that around on our platform – but put it 

into a P2P investment trust and you can.” 

And what about the borrower? 

“Institutions are where a lot of the cash 

is, and these funds are doing a good job 

by unlocking it and getting it out there to 

help businesses,” says Dent. “That’s way 

better than leaving the money sitting in 

deposit accounts not doing anything. 

“If you’re an engineering business in 

the West Midlands in need of £200,000, 

do you really care where it comes from? 

You don’t want to get it from a drug 

dealer, so it needs to be reputable, but 

beyond that you’re not fussed.” 

Such platforms also benefit borrowers 

with speed. If you have the opportunity 

to buy a property for development, but 

you have to complete on it in a week, for 

example, there’s little chance a bank could 

turn it around in the timeframe required. 

“With these guys [P2P lending], you 

may pay an arrangement fee,” says Ben 

Thomason, Managing Director at Asset 

P2P investment trusts 

bring several benefits 

– one is yield, which is 

proving so elusive in 

the current climate 

Leverage Consultants. “But as you’ve 

managed to buy the property and refinance 

it quickly, it’s still worthwhile.” 

While luring powerful institutional 

investors is a quick way for a fund to hit 

its targets, P2P trusts are still suitable for 

individual investors too. They have been 

eligible for inclusion in individual savings 

accounts (ISAs) in the UK since July last 

year – and from April, the first £1,000 of 

direct peer-to-peer earnings will be tax-free, 

at least for lower-rate taxpayers. 

BUYER BEWARE 

It’s no surprise then that retail investors are 

tempted to get involved. But they should 

beware: these yields are high for a reason. 

P2P investment trusts come with the risk 

of default of the underlying holdings. As 

Thomason points out: “Anyone hoping to 

get double-digit returns is operating at the 

higher end of the risk spectrum.” 

Meanwhile, as P2P is a new form of 

lending, established after the financial 

crisis, these platforms haven’t been put 

through their paces yet. If the economy 

tanks further and jobs go, those defaults 

could shoot up. Ultimately investors 

will be reliant on the platform 

acting in a sensible way to 

mitigate against this. 

Dent points to one 

problem here – the 

focus for fintech 

lenders is often more 

on the technology 

than on the money 

lending. And as we’ve 

learned quite painfully 

in the past, while tech is a 

great enabler in terms of finance, a 

whizzy bit of computer power isn’t going 

to protect anybody once things go wrong. 

As such, the trust’s risk management 

has to be bulletproof, or as close to that as 

possible, and providers must be quick to act 

should any security be eroded, in order to 

get money back to investors. 

Luckily, such platforms have a good 

track record in that regard. “One of the 

advantages of investment funds is that they 

have deep pockets,” says Dent. “When 

[GLI’s] Platform Black had a problem, 

GLI stepped in and financed the business 

through that period, using some of their 

funds to ensure people who’d lent over the 

platform didn’t lose money. They had the 

cash sitting on the balance sheet ready to 

go should a crisis arise.” 

Still, while the providers may have 

systems in place to mitigate risk, it’s 

still a huge leap of faith for potentially 

unsophisticated investors simply chasing 

yield. “My concern is that if you’re a 

smaller investor with £5,000, and you think 

you’ve found a fund you can stick into your 

ISA, do you fully understand the risks?” 

says Thomason. “You have to be very 

careful that you choose the right fund – you 

have to know its quality, its track record 

and its risk assessment.” 

It’s for this reason that P2P investment 

trusts could be a potential growth area for 

the Channel Islands – not only in the setting 

up of trusts, listing on the CISE perhaps, or 

using the Channel Islands to list in London, 

but also in their administration. 

“Investing in investment trusts is a 

process that needs to be professionally 

managed,” says Whelan. “If you’re using 

client money, you have to ensure that 

you’ve managed it accordingly. That’s 

administration, which is absolutely a 

growth area for the Channel Islands. 

“In fact, GLI’s administrator is in 

Guernsey, so by supporting them, we’re 

ensuring that money goes back into 

the local economy.” n 

DAVE WALLER is a freelance 

business writer 


WE HAVE EXPERTS IN YOUR AREA, 

IN YOUR AREA. 

With unrivalled local knowledge and experience, 

no-one understands the needs of the local market like we do. 

To speak to our Channel Islands team, call (01534) 282076. 

The Royal Bank of Scotland International Limited trades in Jersey and Guernsey as Coutts & Co Channel Islands and as Coutts. 

The Royal Bank of Scotland International Limited. Registered Office: P.O. Box 64, Royal Bank House, 71 Bath Street, St. Helier, Jersey JE4 8PJ. Business address: 23-25 Broad 

Street, St. Helier, Jersey JE4 8ND. Regulated by the Jersey Financial Services Commission. 

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and licensed under the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002 and the Protection of Investors (Bailiwick of Guernsey) Law, 1987, 

as amended. 

Calls may be recorded.

Finance 

THERE’S NO ESCAPING the fact that global 

wealth is shifting toward emerging markets, 

with startling figures showing just how 

much the demographic is changing. And it’s 

a situation that’s putting wealth managers 

under pressure to refocus their business. 

In India, middle-class wealth has grown 

150 per cent since 2000, while Africa has 

seen growth of 102 per cent, according 

to the Global Wealth Report 2015 by 

Credit Suisse. But these numbers are 

overshadowed by China, whose middleclass 

wealth has grown an incredible 330 

per cent over the same period. The report 

predicts that over the next five years, the 

number of dollar millionaires will rise by 

46.2 per cent, with the sharpest increases 

likely to be across the Asia-Pacific region. 

Simon Finch, Fund Manager at 

Ashburton Investments, agrees that the 

growth of wealth in Asia will continue, 

particularly in India. “With 65 per cent 

of the Indian population under 35, and a 

demographic pyramid that has a rather 

broad base up through to middle age, India 

is in a sweet spot. The trend of a growing 

employment demographic will result in a 

boost to Indian economic growth and an 

uptick in domestic consumption.” 

The rural-to-urban migration in Asia, 

most notably in India and China, also 

means higher living standards and greater 

profitability for home-grown, listed 

companies, such as Repco Home Finance 

and Bharti Airtel. And they are tapping 

into this emerging and high-spending 

consumer base. 

As Finch points out, India is often 

referred to as a country with a billion 

entrepreneurs. And a significant number 

of these entrepreneurs are now at an age 

where they can substantially contribute to 

the future success of their nation. 

Wealth levels are growing in Africa 

too, as Naro Zimmerman, Business 

Development Assistant Manager at Nerine 

Trust, explains. “Africa is certainly poised 

for growth and, once it puts in place the 

necessary infrastructure to be able to 

support the expansion, it will grow in 

a very rapid fashion, with an estimated 

45 per cent increase in new millionaires 

over the next 10 years,” he says. 

Zimmerman believes this will create 

huge amounts of new wealth and further 

opportunities for companies from the 

Channel Islands to provide wealth 

management services for these individuals. 

However, he warns that outside of the 

required improvements in technology, 

various countries across Africa need to 

resolve corruption and regulatory issues. 

“We must ensure that business we bring 

into the Channel Islands is of a standard in 

line with the quality already held here. Our 

standards are of paramount importance to 

ensure that we continue to be regarded as 

a well regulated, pragmatic and responsible 

jurisdiction of choice for high-net-worth 

individuals from Africa.” 

SHOCK OF THE NEW 

With massive burgeoning wealth in 

these emerging markets, this all begs one 

question: for Channel Islands companies 

moving into these regions, should the 

focus be on targeting the new wealth of 

entrepreneurs rather than established 

wealth? Indeed, is there much joy to be 

had in trying to attract those who have 

long-standing relationships with other 

jurisdictions and providers? 

Zimmerman doesn’t believe it’s as clear 

cut as that. Looking at the Middle East and 

North Africa (MENA) region in general, he 

says: “Many of the larger families do have 

long-standing relationships with various 

institutions and it can be challenging. 

However, we are seeing opportunities to 

meet these families as we devote time and 

resources to expanding our network base 

in MENA. Once introductions are made, 

we’re able to better demonstrate what 

we have to offer.” 

He adds: “It’s very much a case of 

being present within the region, travelling 

regularly and ensuring that you understand 

the markets in which you are investing time 

and resources (both from a cultural and 

a financial point of view). I think for any 

company looking at MENA, focusing on 

old wealth or new wealth solely would 

not be beneficial. Instead looking at 

gaining traction in the market as a 

whole would be more sensible.” 

Steve Spybey, Group COO at Hawksford 

and based in Singapore, agrees there is 

scope to win over ‘old wealth’ clients. 

“Although many wealthy families and 

individuals have existing relationships with 

advisers, global regulations, particularly 

regarding CRS and BEPs, are changing the 

nature of the advice clients need,” he says. 

“This presents additional opportunities 

for service providers that can be more 

jurisdictionally agnostic and that can offer 

the understanding and expertise required.” 

Like Zimmerman, Spybey doesn’t 

think solely targeting new wealth or old 

wealth makes much sense. He believes 

it’s important to be an expert in an area 

of focus, as a scattergun approach carries 

more risk. “We assess each new client and 

ensure that we have the right expertise to 

deliver impeccable service and to identify 

and manage our risk appropriately,” he 

says. “This is more important than whether 

the wealth is new or old.” 

PROTECTING WEALTH 

Whether old or new, individuals and 

business owners may well be looking to 

protect their wealth outside their own 

jurisdictions, and there is good reason 

for this. As Richard Sayers, Singapore- 

▼ 

As wealth booms in emerging markets, should 

the Channel Islands focus purely on new money 

and entrepreneurial business? 

Words: 

David Burrows 

Out with 


Finance 

the old? 


Finance 

Many of the larger families 

do have long-standing 

relationships with various 

institutions and it can be 

challenging to make in-roads 

based CEO of Enhance Group, outlines: 

“Businesses and families are becoming 

more international, driven by opportunity 

and helped by technology and transport. 

Wealth may be protected outside their 

own jurisdiction due to a broader range 

of opportunities, stability, diversification, 

growth rates, intellectual capital, incentives, 

legal and regulatory frameworks.” 

He adds: “Managing international 

affairs is potentially more challenging 

than domestic activities and so the trend 

for financial service companies is to be 

able to effectively service clients across 

jurisdictions and time zones.” 

Zimmerman also sees the benefit of 

using foreign jurisdictions. “Taking Africa 

as an example, we still see a large flight 

of capital to offshore jurisdictions as 

wealthy individuals, fearful of political or 

social instability in their home countries, 

seek to place their wealth elsewhere in 

order to protect it.” 

He points to the Channel Islands being 

regarded as a safe haven for wealth, with 

assets such as prime London real estate 

(held through offshore structures) still 

highly regarded by HNW individuals 

from Africa. 

“If correctly advised structures are put 

in place, the asset protection offered is 

extremely high, due to the quality of our 

legislation and regulation,” he says. 

There are undoubtedly business 

opportunities for financial centres such 

as Jersey and Guernsey, but there are also 

challenges too. Sayers insists that Jersey 

and Guernsey must identify the trends and 

position themselves accordingly. “There 

can be no doubt that other financial centres 

will be snapping at their heels and it’s 

crucial to be a ‘good place to do business’, 

otherwise it may go elsewhere.” 

Spybey thinks the depth of expertise 

in Jersey and Guernsey currently sets the 

jurisdictions apart from some international 

competitors, but he concedes that the 

gap is reducing quickly: “In order to 

remain competitive, I think it’s critical 

that the Channel Islands focus on core 

strengths. The proximity of and good 

financial connections with London remains 

particularly attractive to clients that are 

seeking access to the available expertise 

and routes to markets such as AIM.” 

TRIED AND TESTED 

As with older wealth, does new wealth 

prefer to put its money in established 

jurisdictions? Sayers believes ‘new wealth’ 

is more open-minded in nature. 

“New wealth is presented with many 

more opportunities and a range of possible 

jurisdictions. Even if the jurisdiction is 

considered younger, it may be that new 

wealth can take comfort that ‘tried and 

tested’ financial service providers are 

located in the new jurisdiction,” he says. 

In such a competitive market for HNW 

business in Asia and Africa, how does 

the Channel Islands go about building 

relationships with these countries? 

Spybey insists there is a need to 

continually build international awareness 

with regard to the benefits that Jersey and 

Guernsey can offer. “There can be 

an extended payback period as clients 

and intermediaries can take time to 

establish the required levels of trust with 

advisers and service providers. Individual 

business and the Channel Islands as a 

whole need to therefore view time spent 

with individuals and businesses as a 

medium- to long-term investment.” 

Zimmerman views relationships as 

key. “The challenge lies in building a 

relationship with the clients themselves 

and showing that values are clearly aligned 

with their own, with a respectful, expert 

understanding of their needs,” he says. 

With a number of Channel Island firms 

(as well as Jersey Finance and Guernsey 

Finance) already in emerging regions – 

and with plenty in the process of setting 

up – it’s clear they have identified the 

considerable opportunities, whether old 

or new wealth. Now it comes down to 

translating those into real business. n 

DAVID BURROWS is a freelance 

financial writer 


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Finance 

Financial crime 

gets personal 

Cyber theft may make all the front pages, 

but financial crime goes a lot deeper and 

much of it has a very human element 

Words: Dave Waller 

IN FEBRUARY 2015, Russian hackers stole 

£650 million from banks across the globe. 

It was dubbed ‘the world’s biggest bank 

raid’, which took two years to orchestrate 

and happened entirely in cyber space. As 

such, it’s a breathtaking example of what 

financial crime is all about in this modern, 

connected age. Right? 

Well, maybe not. Cyber thefts may grab 

the headlines, but they haven’t completely 

taken over the financial crime scene – 

they’ve just given forensic teams a whole 

new area to dust for fingerprints. More 

‘traditional’ financial crime – everything 

from money laundering and the proceeds 

of crime and drug trafficking, to fraud 

and corruption and terrorism – is still 

a massive concern on a global scale. 

The latter came under particular 

scrutiny in November, after the terrorist 

atrocities in Paris. “Following the attacks, 

people are asking questions around where 

these terrorists buy weapons,” says Barry 

Faudemer, Director of Enforcement at 

the Jersey Financial Services Commission. 

“The hunt is on for how that was financed. 

And I can’t see financial crime being shifted 

off the top of the agenda for a while yet.” 

Money laundering remains perhaps the 

main concern for the Channel Islands. 

While most people in the islands’ finance 

industries aren’t robbing banks themselves, 

they may still come into contact with 

proceeds from criminal activities, especially 

as the tracks are increasingly well hidden. 

That said, every year one or two people 

▼ 


Finance 

on the islands are prosecuted for the 

direct defrauding of a client or employer. 

Then you have tax evasion, and third 

parties stealing from businesses or clients 

in the finance industry. And much of this 

does now take the form of cyber attacks. 

“We’re a honey pot,” says William 

Grace, Partner at Carey Olsen. “Businesses 

in the Channel Islands hold money, and 

that will attract all sorts of insects who 

want to dab into it.” 

REGULATORY PRESSURE 

It’s a lot for financial services firms to 

deal with, and the picture becomes even 

more complex when you add in the raft 

of legislation that companies must comply 

with in order to avoid trouble themselves. 

The list of boxes to tick includes the 

EU’s anti-money laundering directives, 

BEPS (the OECD’s Base Erosion and Profit 

Shifting project), the Common Reporting 

Standard and directives on tax evasion, and 

measures from the US including FATCA 

and Deferred Prosecution Agreements. And 

in the UK, HMRC has recently issued a 

consultation paper on the introduction of 

civil and criminal penalties for enabling 

and facilitating offshore tax evasion. 

It’s a confusing maze, but Barclays’ 

recent record fine of £72 million for failing 

to carry out proper anti-money laundering 

checks on a £1.88bn deal in 2012, offers 

a cautionary example of why companies 

need to find a way through it. 

Even though there was no evidence 

of any crime in this case, the Financial 

Conduct Authority still slapped a hefty 

fine on the bank, for failing to sufficiently 

corroborate the source of the funds. 

It’s those sources that Channel Islands 

companies must be wary of. Grace paints 

the hypothetical picture of a Jersey fund 

that owns a widget factory in Bulgaria, 

which in turn includes businesses in Syria 

among its customers. Those customers may 

be distant, but ultimately those proceeds 

would find their way back to Jersey. 

“If a headline in the Wall Street Journal 

says: ‘Jersey company implicated in sale of 

widgets to Assad’, that reflects badly on 

the company and on the jurisdiction,” says 

Grace. And those illicit links may date back 

10 years, to the origins of a client’s wealth. 

Syria is currently on the EU’s sanctions 

list, so doing business with the state is 

forbidden. But sanctions lists change all 

the time, which muddies the picture still 

further. Burma and Cuba, for example, are 

both being treated more favourably today 

than they were a few years back. 

Sanctions may also be applied by the 

Channel Islands on its own individuals 

and firms, who have to comply with the 


Finance 

standards set by the regulators or face the 

consequences. 

“For those companies that decide 

they’re going to show a wanton disregard 

for compliance, we could impose a civil 

penalty, make them train in anti-money 

laundering, or even revoke their licence 

and close their business,” says Faudemer. 

“The Jersey brand has been hard fought 

to achieve, but can be lost very easily by 

anyone playing fast and loose with antimoney 

laundering standards.” 

As the landscape becomes more complex, 

businesses are being forced to put together 

ever more substantive policies, procedures 

and teams to counter the threat. This brings 

compliance teams under increased pressure, 

and means a greater proportion of turnover 

has to be spent on protective systems. 

“Compliance isn’t a revenue earner,” says 

Grace. “It’s coming out of the bottom line, 

so it’s becoming a tougher proposition to 

scrutinise and manage the risk of taking on 

new business and transactions.” 

UNDER SCRUTINY 

As costs go up, solutions become more 

intelligent to compensate for this. Know 

Your Client (KYC) and due diligence 

processes are evolving in sophistication 

and automation in order to cope with the 

scale of the task. The finance industry is 

investing heavily in computer systems that 

can pick up unusual activity, within their 

teams and beyond, as well as automatically 

screen for individuals, businesses or states 

that appear on sanctions lists. 

“Criminals will always try to make the 

money they’re seeking to launder have 

the appearance of legitimate funds,” says 

Faudemer. “But the compliance capability 

in jurisdictions like the Channel Islands 

has become just as sophisticated.” 

This will mean extra cost, some of which 

will get passed on, with customers of 

The Jersey brand 

has been hard fought 

to achieve, but can 

be lost very easily 

by anyone playing 

fast and loose 

with anti-money 

laundering standards 

financial services firms having to pay 

more. “It’s similar to airport security,” 

says Grace. “The need for added security 

creates a knock-on effect for airports and 

carriers, and that cost passes on to the 

customer as a security levy. As is so often 

the case, the end user will pay.” 

As well as increasingly using automated 

systems, there’s a need for organisations 

to train staff to ask the right questions 

throughout the course of the client 

relationship. The scale of the problem 

requires common sense too, so that risks 

are flagged up before they happen without 

the whole team having to investigate 

everyone to the same degree. 

It’s here where KYC becomes 

increasingly important. “You can’t escape 

the basic fact that the vast proportion of 

all business done in the Channel Islands 

is perfectly genuine and doesn’t involve 

any criminal activity,” says Peter Derrick, 

Head of Risk and Compliance at Ogier. 

“And that’s the challenge – you’re spending 

lots of time carrying out checks on all 

that genuine business to stop the small 

percentage getting through. The thing 

that worries everyone most is money 

laundering, because that’s the regulator’s 

greatest focus. But you can get equally 

unstuck if you get the rest wrong too.” 

Plenty of people have learned that 

lesson the hard way. Take Horizon 

Trustees, which was pulled up in 2013 

by the JFSC for failing to be transparent 

in its business arrangements and failing 

to ensure that its statements weren’t 

misleading, false or deceptive. The outcome 

for the body was to go into administration. 

Then there was STM Fiduciaire, which was 

prosecuted in Jersey in 2015 for failures 

around compliance – it was ultimately 

acquitted of these charges last summer. 

And it’s not just companies. A number 

of individuals have been prosecuted in the 

Channel Islands for bringing cash into the 

jurisdiction for tax evasion purposes. 

“There are also individuals who’ve 

had personal sanctions applied to them 

for not fulfilling their regulatory duties 

properly,” says Tony Horscroft, Head 

of Compliance and Risk at Ipes. “They’ll 

have been fined and banned from working 

in financial services. These cases are 

starting to be more numerous.” 

A ‘landmark’ case took place last 

June, when Andrew Crawford Norman 

Fleming was imprisoned for 12 months 

for providing false and misleading 

information to the JFSC when trying 

to acquire a regulated trust company. 

Which leads us to the most important 

upshot of all of this extra compliance work 

and added cost – that the islands have a 

financial services industry that everybody 

knows is clean, which is how they attract 

more high-quality clients. “We want crooks 

and dealers to say: ‘These guys ask too 

many questions’,” says Derrick. n 


financial writer 


Finance 

Having just come to terms with US FATCA, financial institutions in the 

Channel Islands have had to move swiftly to deal with the intricacies of 

the Common Reporting Standard. Laila Arstall at Carey Olsen explains 

CRS: the time 

has arrived 

THE TAX AUTHORITIES in the crown 

dependencies sent the first set of US FATCA 

reports, compiled by financial institutions 

(FIs) in their respective jurisdictions, 

to the US Internal Revenue Service on 

30 September 2015. Now those same 

institutions have to face up to the Common 

Reporting Standard (CRS) which, for the 

crown dependencies, was introduced on 

1 January 2016. 

CRS is a separate regime for automatic 

exchange of information developed by the 

Organisation for Economic Co-operation 

and Development (OECD). Under CRS, 

jurisdiction A will send information 

to jurisdiction B in respect of accounts 

maintained by financial institutions in 

jurisdiction A for individuals and entities 

that are resident in jurisdiction B. In 

many cases, the exchange is reciprocal 

but, in some instances, the transfer of data 

is one way only. 

The CRS has a wider global reach 

than US FATCA, given that, as at the end 

of October 2015, 96 jurisdictions had 

committed to implement CRS exchanges 

by 2018 at the latest. 

The information that is to be gathered 

under CRS is broad in scope and covers 

three key areas: 

● The financial information to be reported 

relates to Reportable Accounts and 

includes all types of investment 

income, as well as account 

balances and the proceeds of the 

sale of financial assets (including 

income and balances); 

● Reportable Accounts include 

accounts maintained for 

individuals and entities (which 

includes partnerships, trusts 

and foundations) and there is 

a requirement to look through 

passive entities to report on the 

individuals seen as ultimately 

behind these structures; 

● The FIs required to report under 

CRS include banks, custodians, 

brokers, certain collective 

investment vehicles, trust and 

corporate service providers. 

CRS sets out due diligence rules to be 

followed by an FI in terms of identifying 

Reportable Accounts. This involves 

reviewing client due diligence gathered 

for anti-money laundering (AML) and 

Know Your Client (KYC) purposes on 

pre-existing account holders, and 

requesting new account holders to 

complete self-certificates. 

Once identified as a Reportable Account, 

the data to be reported is gathered from 

financial statements and other information 

maintained by the institution on the 

account and the relevant account holder. 

The required data is used to complete a 

CRS schema, which is then filed with the 

local tax office through an online portal. 

In Guernsey’s case, for example, this is the 

Information Gateway Online Reporter 

(IGOR). 

In the main, the steps to review, identify 

and report on accounts under CRS follow 

the same approach as US and UK FATCA. 

So, FIs that have already gone through the 

process of filing reports under US FATCA 

in 2015 will be well placed to leverage 

that experience when the global reach of 

reporting, under automatic exchange of 

information, extends to other jurisdictions. 

CRS recognises that taxpayers and tax 

administrations have a legal right to expect 

that sensitive financial information remains 

confidential at all stages of information 

gathering and exchange. Maintaining 

confidentiality and the safeguarding of 

data is a matter of both applicable law 

and the systems and procedures that 

underpin the regime. 

While CRS contains extensive guidance 

on confidentiality and safeguarding of 

data, the onus is on each jurisdiction to 

satisfy itself that its exchange partner has 

the required standards in place before 

sending information to that jurisdiction. 

In the event of a breach or failure of 

confidentiality, a jurisdiction would 

be justified under CRS in immediately 

suspending transmission of data. 

CRS also requires the domestic 

framework of each jurisdiction to include 

penalties or sanctions for improper 

disclosure of confidential information, and 

investigatory procedures to be triggered 

if a breach takes place. At its meeting in 

Barbados at the end of October 2015, the 

OECD’s Global Forum announced that 

all CRS-committed jurisdictions will be 

subject to a preliminary assessment, for 

the purposes of assessing confidentiality 

and data safeguarding measures, by 

mid-2016. This will ultimately lead to a 

comprehensive review of all jurisdictions. 

For an account holder, who is susceptible 

to threats of extortion or kidnap, a 

breach in security or confidentiality is 

already too late. 

Consequently, concerns around the 

safeguarding of such information 

remain high on the agenda for clients 

and their service providers. They 

have little option but to comply, 

however, as the world moves ever 

closer to a level playing field in 

terms of tax transparency. n 

LAILA ARSTALL is a Senior Associate 

at Carey Olsen in Guernsey 


Finance 

FIntech in 

the Channel 

Islands: 

a bright 

future… 

It’s hailed by some as the next 

big thing for the islands, but 

are the opportunities in fintech 

as dazzling as they seem, or are 

people getting carried away? 

IF YOU’RE LOOKING to coast along in a job where everything 

remains safe and familiar, and the only change you have to deal 

with is the stuff in your pocket that secures goodies from the office 

vending machine, then the world of finance may not be for you. 

The sector is being turned on its head, thanks to record levels of 

investment pouring into groundbreaking technology platforms. 

According to Accenture, investment in financial technology 

(fintech) companies trebled last year, rising from just over $4bn 

globally in 2013 to more than $12bn. It marks a formidable shift, 

especially in a sector that has traditionally raked in those dollars 

and cents without worrying too much about the 1s and 0s. 

The most eye-catching fintech deals in recent times have been 

the $3.5bn that KKR and others poured into payment processor 

First Data, and the $865 million raised on the New York Stock 

Exchange by Lending Club, a peer-to-peer lender. But the fintech 


Finance 

Words: 

Dave Waller 

or nothing 

but hot 

air? 

buzz goes beyond these massive companies – an army of start-ups 

has emerged, redesigning (and redefining) everything from small 

business lending to how flatmates split their bills [see box on p38]. 

It should come as no surprise, then, that fintech is generating 

the sort of hype previously attached to other digital disruptersgone-mainstream, 

such as AirBnB and Uber. And if there’s 

something to be learned from the dramatic impact that those have 

had (on the hospitality and taxi sectors respectively), it’s that the 

choice facing established finance companies isn’t whether or not 

they should get on board with this emerging technology, but about 

ensuring that the change doesn’t bite them in the back pocket. 

As you might expect, the Channel Islands’ finance industries 

have been talking up the fintech opportunity. Jersey recently 

hosted a conference on the subject and established a high-level 

working group to develop a coherent strategy for the island. 

▼ 

▼ 


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Finance 

Guernsey has been making similar moves, 

commissioning PwC to write a strategic 

review of fintech and how it relates to 

Guernsey as an offshore jurisdiction. 

It’s also formed the Fintech and Digital 

Oversight Group, again comprising 

figures from government, regulation and 

industry. Both islands, be it at the Digital 

Jersey ‘Hub’ or through Startup Guernsey, 

are running regular fintech events and 

networking sessions. 

OFF AND RUNNING 

There have already been concrete successes. 

Elian is one company that’s taken the 

island’s expertise in identity management 

to the fintech arena. Its ID Check is an app 

that enables people to handle certain parts 

of the Know Your Client (KYC) process 

themselves – using their phone to take a 

photo and aggregating that automatically 

with other information, thus reducing the 

cost of KYC and allowing Elian to process 

120,000 applications a year. 

“It’s a small and safe step to be 

recognised as a potential fintech leader 

around compliance,” says Chris Clark, 

who, as CEO of Prosperity 24.7, worked 

with Elian. “If people are happy to 

trust data and money in Jersey from a 

regulatory perspective, then having KYC 

data outside the UK and EU could well 

be a compelling proposition too.” 

This is one example of an approach 

that could prove fruitful for the Channel 

Islands. They have already nailed the ‘fin’ 

part of the fintech equation by honing in 

on niche specialisms in areas such as 

wealth management, real estate, insurance 

and fund administration. The challenge 

now is to tackle the tech part. 

Many people advocate adapting this 

to key segments of existing expertise, 

rather than aiming to lord it over the 

entire fintech kingdom. “We’re not looking 

to take on London,” says Andy Jarrett, 

Director of Digital Jersey. 

This seems a sensible approach. The 

UK capital already employs more than 

half a million people in digital or 

technology businesses, and Prime Minister 

David Cameron himself has stated his 

aim for London to be the fintech capital 

of the world by 2020. The UK government 

even appointed a special envoy for fintech, 

Eileen Burbidge, in July last year. 

Its competition is in Silicon Valley, which 

has dominated the tech sphere for decades. 

There are also smaller nimble jurisdictions 

such as Israel, which now has about 200 

fintech companies, many specialising in 

data security – a handy skill picked up 

working with the Israeli Defence Force. 

Given this competitive landscape, the 

opportunities for the Channel Islands 

may indeed lie far from creating headlinegrabbing 

apps like Uber. “The Channel 

Islands have a lot of people who know an 

awful lot about the finance industry,” says 

Mark Loane, CEO of C5 Alliance. “It’s 

about bringing out that IP and turning 

it into products and solutions – whether 

that’s finding more efficient ways of 

engaging with clients; building more 

advanced portfolio management; risk 

management and the management of 

regulatory reporting; or the construction of 

financial products and solutions.” 

Mike Culverwell, Interim Director of 

Guernsey’s Digital Greenhouse, also urges 

the islands to “play to our strengths”. 

The islands have a genuinely strong 

reputation for data sovereignty in financial 

services, he says. Add a sympathetic 

regulator and the access they have to key 

markets, and they can provide an enviable 

location for product development. 

Another example of technology that 

may suit this testing model is blockchain, 

the database system that powers cryptocurrencies 

such as Bitcoin. It’s causing a stir 

in the US as big banks work to establish 

standards. “Cross-bank payments are likely 

to be targeted by this technology and it 

will take out traditional players like Swift,” 

says Jarrett. The Channel Islands could 

look to become a home for companies 

trialling blockchain technology – they will 

be looking for small and agile jurisdictions 

with open, proactive regulators. 

Such work – now known as ‘regtech’ 

– could be another potentially rich vein. 

“Can we put legislation in place that allows 

The Islands have a 

lot of people who know 

an awful lot about 

the finance industry. 

It’s about bringing 

out that IP and turning 

it into products and 

solutions 

people to hold data here in an innovative 

way using blockchain, while giving them 

certainty that the mechanism is recognised 

in the court of law?” asks Nick Vermeulen, 

a Partner at PwC, who worked with 

Guernsey on its fintech strategy report. 

“I see that as a way of allowing people to 

come here to do interesting things. After all, 

we’ve done it before with e-gaming.” 

SUPPORTING ROLE 

The other area of potential lies in simply 

supporting the booming fintech sector in 

the UK and EU. This is the nuts and bolts 

stuff the Channel Islands have always been 

good at. “As these players get wealthy they 

may need trust structures, seek private 

equity investment or a local listing, or a 

listing in London,” says Fiona Le Poidevin, 

CEO of the Channel Islands Securities 

Exchange. “If London has the aim of being 

the fintech centre of the world, it makes 

a lot of sense to support that effort.” 

While the tax-neutral Channel Islands 

may offer some appeal as a base for fintech 

start-ups (Digital Jersey is talking to a 

▼ 


Finance 

Fintech’s wide 

umbrella 

Accenture defines fintech as a sector that offers technology for banking and corporate finance, capital 

markets, financial data analytics, payments and personal financial management. In other words, it’s massive. 

Here are some of the areas being explored… 

Credit scoring 

Algorithms and predictive 

analytics are being used 

to improve accuracy 

in forecasting people’s 

dreaded credit scores. 

Compliance 

Technology is being harnessed 

to help compliance officers 

detect cases of market 

abuse, fraud and reckless 

behaviour early, and conduct 

investigations faster. Many 

even use machine learning. 

Payments 

Mobile apps enable users to exchange 

currencies at favourable interbank rates, 

and transfer money overseas with minimal 

fees. Some even send money through 

social networks, or help housemates to 

split rent and everyday expenses. 

Banking 

‘Smart retail banks’ offer intelligent 

banking on users’ smartphones – with 

emerging platforms keen to distance 

themselves from the old ways of 

high-street banks. 

Personal finance 

New platforms offer tools 

and guidance to help people 

manage their finances better. 

Take Squirrel, which helps 

people save, budget and 

manage their bills directly 

from their payroll. 

Invoice trading 

Funding Invoice is developing 

an online invoice marketplace 

to improve cash flow for SMEs 

facing lengthy payment terms. 

Bonds 

Origin is a digital marketplace 

connecting fixed-income 

investors with large corporate 

borrowers in the bond market. 

The aim? To allow large 

corporate borrowers to save on 

the cost of capital by transacting 

directly with investors. 

number of large banks that run accelerators 

globally about setting up something similar 

on the island), it’s unlikely the islands will 

be concocting their own Silicon-based 

nicknames any time soon. Technical skills 

there are limited, for starters. 

“We have the issue of brain-drain, 

specifically on the entrepreneurship side,” 

says Jennifer Strachan, CEO of Startup 

Guernsey and a member of Guernsey’s 

Digital Business Development Committee. 

“There’s such a vibrant community in 

London and the rest of the UK and it’s 

buzzing. Instead of supporting school 

leavers here, we say: ‘Go off to uni and 

maybe come back or don’t’.” 

Then there’s the business culture. The 

islands’ long-standing success in financial 

services has required a deep-rooted 

and conservative approach – disruptive 

technology requires precisely the opposite. 

“Innovation means taking risks and being 

prepared to accept that not everything 

works,” says Jason Laity, Chairman of 

KPMG in the Channel Islands. “When 

things go wrong you share your experience, 

learn and move on. Is that something the 

Channel Islands are used to doing?” 

The governments could also make the 

environment more welcoming. “We don’t 

reduce risk for angel investors,” says 

Strachan, an angel investor herself. “In the 

UK they may give investors their money 

back if the company fails, but here there’s no 

government support, no appetite or vision.” 

Guernsey lacks a start-up fund, she 

says, and while Jersey has its Innovation 

Fund, it’s only for companies that already 

have traction. “We have a lot of building 

blocks,” she says, “but we need more.” 

If you’re wondering how big the market 

could be for the Channel Islands, this may 

be the wrong question. It’s more a case of 

what could be lost if they aren’t involved. 

Loane says taxi operators would never 

have been usurped by Uber if they’d had 

an easy-to-use mobile booking system and 

a quick and convenient way to pay. But the 

industry didn’t adapt to new technology 

and it got disrupted. 

“In the Channel Islands there’s a risk 

of this happening,” he says. “Not in one 

huge disruption, more death by a thousand 

cuts. New players are shifting the paradigm 

while lots of highly-paid individuals sit 

apathetically in the financial sector not 

realising what’s going to hit them.” 

The direct gains from fintech are unlikely 

to make billionaires of the islands’ business 

community, but it could bring a steady 

but realistic growth to their GVA. It could 

also be a vital element in diversifying the 

economy and, more importantly, help 

secure the future of financial services. 

If the change is handled right, the task 

needn’t be too big for the Channel Islands. 

“We don’t need to reinvent the wheel,” 

says Vermeulen. “We just need to take that 

wheel and strap it to our bike.” n 



Potential 

fintech 

areas for 

the Channel 

Islands 

● Blockchain/crypto-currencies 

● Improved client interfaces 

● Advanced portfolio 

management 

● Risk management 

● Regulatory reporting 

● Construction of financial 

products and solutions 

● Data hosting 

● Regtech 

● Supporting fintech-related 

trust structures, private equity 

investment and listings 

● P2P platforms 


Finance 

A haven of peace & tranquility 

LA RUE DE LA RETRAITE, ST. SAVIOUR, JERSEY, CHANNEL ISLES 

St Helier: 2 miles, Jersey Airport: 7 miles 

Imposing Manor House with its striking tower dating in part to the 

15th century on a private estate, 4 reception rooms, 6 bedrooms, 

4 bathrooms, heated swimming pool with gym area and changing rooms, 

tennis court, garaging for 4 vehicles, separate 2 bedroom cottage and 

exquisite grounds, granite outbuilding/store, qualified. 

About 2.8 acres I Guide £3.95 million 

Geri O’Brien 

Savills Jersey 

01534 870143 

gobrien@savills.com 

savills.je 


Business 

Girl power 

Does having daughters make male CEOs run 

more socially responsible companies? 


Business 

Words: 

Kirsten Morel 

Those companies 

run by a CEO with 

at least one 

daughter scored 

on average 11.9 

per cent higher 

on standard CSR 

measures than 

those without 

ONCE UPON A TIME, Queen Elizabeth I led her 

country to a famous victory. Five hundred years later, 

it was Winston Churchill’s turn to become a great 

leader. Today, however, we defer not to our national 

leaders, but to the likes of Bill Gates and Steve Jobs – 

corporate leaders who looked to conquer the 

world… and won. 

There’s no shortage of media coverage when it 

comes to how and why fêted CEOs make it to the 

top of their field. They are portrayed as great people 

(often men) who have an X-factor ability to motivate 

people and take the crucial, difficult decisions that turn 

small companies into major multinationals. 

The ‘lone hero with a vision’ story is one that the 

media adores and continually falls back on, but rarely 

do they look behind the scenes to see just how the 

CEO’s decisions are being made or, perhaps more 

importantly, influenced. 

Recently, two university professors attempted to 

lift the veil that so often covers decision-making by 

looking at the influence of family members – and 

more specifically, daughters – on the decisions that 

are taken by CEOs. 

Taking the companies in the S&P 500 as their test 

bed, Professors Henrik Cronqvist of the University of 

Miami and Frank Yu of China Europe International 

Business School analysed the effect that 

having a daughter has on the socially 

focused activities of major US companies. 

The researchers were able to find 

information about the gender of the 

children of 379 CEOs of S&P 500 

companies and compared this information 

with the social responsibility ratings of the 

companies they run. 

Their findings were quite clear – those 

companies run by a CEO who has at least 

one daughter scored on average 11.9 per 

cent higher on standard CSR measures 

than those who do not. The companies 

also spent more than 13 per cent more 

on CSR than those run by CEOs who 

have only sons or no children. 

If daughters do have a quantifiable 

effect on their CEO parents, it begs the 

question ‘why?’. According to Professor Yu, 

it’s all a matter of perspective. “Our study 

gives credibility to the female socialisation 

hypothesis, which says that living and interacting 

with females helps the male see the world from a 

female’s perspective.” 

The female socialisation hypothesis is more than 

just a theory; it works in practice, according to 

Alice Merry, daughter of Chris Merry, the CEO of 

Ipes. She is clear that “boys who have grown up with 

sisters tend to be nicer to women than those who 

don’t”. [See box on page 42] 

Her father agrees that if you grow up with sisters 

in your family – and then go on to have daughters later 

– you’re much more likely to have an understanding 

of the female perspective. 

GRADUAL INFLUENCE 

Professor Yu also points out that the effects aren’t 

likely to happen instantly, the day a business leader’s 

daughter is born. “It doesn’t happen right away. People 

have tested this with judges and senators in the US and 

there is evidence to show that those with daughters 

display more ‘female’ ways of working,” he says. 

“In the study, we weren’t able to test whether 

the effects are felt by a certain age – just identifying 

whether a CEO had a child was challenging – but our 

guess is that these effects take place over time.” 

Yu and Cronqvist’s study showed that companies 

led by CEOs with daughters score above the median 

in every CSR category: diversity (+13.4 per cent), 

community (+6.5 per cent), employee relations 

(+6.3 per cent), product (+6.0 per cent), environment 

(+4.6 per cent) and human rights (+1.0 per cent). 

The fact that diversity heads this list may be a 

reflection of the most common experiences associated 

with parenting a daughter. 

“You translate your own experiences back and if 

you see your daughter having difficulty finding work, 

you wouldn’t want to see that reflected in your own 

business,” explains Chris Merry. 

He points out that emotional intelligence is not easy 

to learn in the classroom. Taking this into account with 

the study, there is an implication that the long-term 

experience of living with women may more effectively 

open minds to a greater range of perspectives. 

Interestingly, Yu and Cronqvist have sought to 

quantify the effect that a daughter has on a male CEO 

by comparing them with female CEOs. 

“Having a daughter gives a male CEO about onethird 

more towards the social responsibility levels of 

▼ 


Business 

a female CEO,” says Yu, which in itself implies that 

even with daughters, male bosses still aren’t as socially 

minded as their female counterparts. 

THE BIGGER PICTURE 

Whilst it may be possible to quantify the effect of 

daughters on their father’s leadership qualities, 

Christopher Journeaux, Partner at Therapy Jersey, 

points out that studies like this are useful for 

companies looking to ensure diversity; they aren’t 

about ‘feminising’ the business world. 

“The more you take a myriad approach to people 

on a board, the wider the understanding you bring to 

that board,” he says. “It’s about real diversity, it’s not 

about making a board female-dominated. Diversity 

helps boards become more understanding.” 

If the performance of business leaders is 

substantially affected by the people in their family, it 

does create questions for recruiters who tend to look 

only at the person in front of them. “If you want to 

hire a socially responsible CEO, perhaps you should 

look at their whole profile,” says Yu. 

Journeaux suggests that recruiters should start by 

examining the way they describe the roles they are 

seeking to fill rather than looking into the candidate’s 

family background. 

“Companies should look at the job description 

first and ask themselves whether it is focused 

on a particular set of traits – for example, male 

characteristics. If it is, then they could look at 

broadening the description as this will help 

diversify the leadership.” 

Journeaux’s suggestion that firms revisit their job 

descriptions is a common sense place to start for 

companies committed to a diversity of thinking around 

the boardroom table. 

However, Yu and Cronqvist’s study highlights 

an important element of leadership that is often 

overlooked in the search for the mythological and 

self-contained ‘hero-leader’. 

Whilst the effect that daughters have on their 

fathers’ leadership qualities is interesting, more 

than anything else, the study proves that none of us 

exists in a vacuum. Leaders, as much as anyone, 

soak up the experiences of those around them 

and, often subconsciously, use these 

experiences to inform their 

decision-making. 

Many companies are 

looking to better reflect 

the world around them 

and to play a more active 

role in the societies in 

which they operate. To 

achieve this, they could 

start by gaining a true 

understanding of the 

influences and experiences 

of their CEO – these 

factors may well 

affect how they run 

the company. 

KIRSTEN MOREL 

is a freelance business 

writer 

If the performance of leaders is 

affected by the people in their 

family, it does create questions for 

recruiters who tend to look only 

at the person in front of them 

THE FAMILY VIEW 

With an older brother, a younger sister and a father leading one of 

the Channel Islands’ largest private equity and fund administration 

companies, Alice Merry, 20, is well placed to comment on the effect 

that her family has on her father’s leadership style. 

“I studied geography, so the wider environment is important to 

me and I’d find it very unfair if my father wasn’t interested in 

diversity,” she says. 

As Alice looks towards work following graduation, she is both 

positive about the issue of gender diversity in today’s workplace and 

clear about the kind of influence she’d like to have on the companies 

she’ll end up working for. 

“I personally have never found that I have been discriminated 

against,” she says. “There’s a lot less discrimination these days due 

to the pressures that social media can place on companies. I’m 

interested in Human Resources because it’s about making 

companies better places to work at.” 

As a father of two daughters and one son, Chris Merry is keenly 

aware of the effect that siblings have on each other and he recognises 

this in the findings of Yu’s and Cronqvist’s 

study. “If you grow up with sisters, you grow 

up with a greater understanding of the female 

perspective than if you don’t. If sisters have an 

influence, then daughters will too,” he says. 

Ultimately, he feels that companies, as 

much as their leaders, are products of their 

environment and will always reflect this. “The 

drivers to being a good place to work are similar 

wherever the office is located, but offices 

do reflect the populations in which they are 

located,” he says. 

Unlike ethnic diversity, however, where 

location plays a defining role, populations 

everywhere are split pretty much 50:50 in 

terms of gender. So few companies should 

have a problem maintaining equality 

between the sexes. 

Chris Merry (CEO of Ipes) with his 

daughters Alice and Pippa, son Hugh, 

and wife Julie 


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Business 

Only you 

can prevent 

a bad hire 

Whether it’s through poor interviews, misrepresenting 

a role or not looking after a new recruit, getting the 

‘fit’ wrong when you employ someone can prove costly 

44 January/february 2016

Business 

Words: 

Jack Flanagan 

FIRING SOMEONE IS awkward. It’s bad enough when the 

employee knows they’ve done wrong, but when it comes as a 

surprise to them, it’s worse. As your voice dips into an unfamiliar 

timbre – sympathetic but resolute – and the conversation moves to 

its conclusion, you can’t help but feel you’re partly to blame. 

This is probably because you are. Employees don’t march into 

the office unbidden – they’re invited there. Before that, they’re 

filtered by suitability, and it’s highly likely that you gave them 

the job in the first place. Somewhere along the line, a mistake 

has been made. And while disappointment in a bad hire is natural, 

taking responsibility for it often isn’t. 

The costs of poor recruitment can be high. A recent survey 

from Glassdoor puts it at £122,000 for every senior hire that goes 

belly-up; for mid-level managers, £57,700; and for junior roles, 

£39,000. Last year, online shoe retailer Zappos said bad hires 

had cost it about $100 million over its lifetime. To counteract any 

future loss, it initiated a separation scheme that offered employees 

$3,000 to exit the company swiftly, which it claims has made 

the process a lot smoother and much less expensive. 

These figures factor in costs such as salary, loss of customers, 

reduced productivity and turnover; and then there’s litigation and 

outplacement for missing talent. Despite this, Jeralie Pallot, CEO of 

Rowlands Recruitment, thinks these numbers are conservative. 

“Lost time and lost productivity can add up to double the annual 

salary of the hired position, particularly for a senior hire,” she says. 

While people leave an organisation over time in the natural ebb 

and flow of a business, it’s those who leave soon after joining that 

do most of the damage. On top of the money and time spent on 

finding someone in the first place, there’s an impact on the running 

of the business itself. Productivity dips while the role is unfilled – 

the team that should’ve been managed by the new employee is left 

in limbo. And morale is hit, not just because staff changes are 

disruptive, but because a new employee leaving so fast is startling. 

REPUTATIONAL DAMAGE 

Companies in the Channels Islands should be especially careful 

of this. A sudden high-profile exit from a firm in such a small 

market can cause reputational harm that could take years to 

repair. “You’d be surprised by how long people hold on to these 

things,” Pallot says. “You can meet someone who left a company 

unceremoniously who will say nothing but bad things about 

them, even if it was 10 years ago.” 

Experts advocate trying to resolve problems with a new 

employee rather than letting them go. “If it’s not an issue of the 

employee being in completely the wrong job, relationship problems 

can be quite quickly overcome with administrative support,” says 

Phil Eyre, Managing Director at The Learning Company. 

If it is a relationship issue – such as a problem with a co-worker 

or difficulties with senior staff – it can, and should, be fixed. Not 

only does this save on the expense of damage done by seeking 

someone new, but it may also address potentially pre-existing 

problems in the company that only a fresh pair of eyes can spot. 

Clearly, this all takes place post-appointment. But to stop your 

company from making a bad hire before any of this happens, it’s 

www.blglobal.co.uk january/february 2016 45 

▼

Business 

important to address how robust – or not 

– the company’s interview process is. 

Inexperienced interviewers (who talk more 

than they listen), poor communication and 

ill-defined requirements make the selection 

process little more than a lucky dip. 

Lack of information about the 

candidate is another common mistake. 

Shelley Kendrick, Director at recruitment 

company Kendrick Rose, suggests a 

‘360 degree’ approach to hiring. She 

recommends “getting opinions from old 

colleagues who know this person and how 

they work, having in-depth meetings”. 

Employers need to be more sleuth-like, 

to find sources of information beyond 

what they’re presented with. 

There’s a race on between you (the 

employer) and the person who wants the 

job – you want to know their weak point; 

they want to shield it from view. 

However, these preventative measures 

aren’t foolproof. Once an employee has 

joined a new company, the next task is 

retaining them. An onboarding strategy 

– the way you bring new recruits into the 

Last year, online 

shoe retailer Zappos 

said bad hires had 

cost it about 

$100 million over 

its lifetime 

company – will be key. If the first couple of 

months aren’t working out for them – they 

may feel sidelined, underused or that 

you’ve plain lied to them about the job 

– this will slash the enthusiasm of even the 

most ambitious hire. A happy employee 

will become lacklustre, eyeing the exit. 

A good onboarding strategy introduces 

the employee to the company, makes them 

feel a part of it and sets up a system for any 

early worries and concerns to be dealt with 

before they become severe irritants. 

HONEST AND OPEN 

Feeling misled can be a particularly bad 

problem, says Pallot, and it will be difficult 

for a newcomer to recover from this. If they 

feel they’ve been mis-sold a job or culture, 

it will create resentment towards the 

employer, and each day in the office will 

reinforce this feeling. 

Employers must be candid in the 

interview process, rather than sugarcoating 

the role or making presumptions, to avoid 

misunderstandings once the candidate has 

entered the business, says Pallot. 

“A company can give the impression 

they are quite relaxed and social, but in 

fact are very heads down. That doesn’t 

make it a bad culture, but it can quickly 

disengage a new employee who wasn’t 

expecting it. It’s important that companies 

understand what their culture is and 

communicate it effectively,” she says. 

Probationary periods are a good way of 

safeguarding the company against such 

situations, but this isn’t necessarily the case. 

As Victoria Clohesy, Senior Manager of 

Resourcing at RBC Wealth Management, 

says: “They aren’t ‘try before you buy’, 

but a two-way system for company and 

employee to get a sense of each other.” 

All the same, if a firm lets someone go 

after their probationary period, the damage 

has already been done – in reputation, 

cost, disruption and wasted time. 

A standardised, robust recruitment 

strategy and a friendly, informative 

onboarding strategy are essential. Beyond 

that, there are no silver bullets – every 

FIVE FATAL MISTAKES 

Poor interview process 

The interviewer talks for 40 minutes 

about how demanding the role is, leaving 

the candidate little time to show what 

makes them right for the job. Investing 

in interview training or outsourcing to a 

professional interviewer can solve this. 

Lack of research 

Start at the CV but go deeper. Establish 

why the role is needed – such as moving 

into new markets or selling an established 

product – and gather information on 

whether the candidate is right for the job. 

No onboarding process 

A good onboarding process makes a 

new employee feel part of something. 

Victoria Clohesy, Senior Manager of 

Resourcing at RBC Wealth Management, 

says: “We go through RBC’s history to 

make them feel welcome and give them 

shared ownership.” 

Negative work experiences 

Issues can arise on the job, such as 

poor relationships or lack of contact. 

Rowlands Recruitment CEO Jeralie Pallot 

recommends keeping in touch with 

newcomers “from three to six months into 

the job” to keep them engaged. 

Weak employer brand 

A company that hires and fires recklessly 

comes across as skittish and demanding. 

It won’t attract the strongest candidates 

and the recruitment process will drag on 

much longer than it needs to, while costs 

rise and productivity falls. 

employer must act as the situation 

demands. Some recommend an objective 

approach to interviewing, keeping track 

of the details of every mistake made 

thereafter; others underline the importance 

of talking to potential employees to find 

out who they really are. A candidate who 

is good at thinking on their feet may not be 

up to spec in the workplace. Alternatively, 

someone who comes across as antisocial 

or unenthusiastic in the interview, could 

be perfectly fit for the role. 

Nobody can be certain that they will 

never make a bad hire. Somewhere along 

the line a candidate will misrepresent 

themselves or an interviewer will make a 

poor judgement call. But a company must 

do everything it can to minimise mistakes 

in the recruitment process – and avoid that 

final awkward conversation. n 

JACK FLANAGAN is a freelance 



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Business 

Share 

and share 

alike 

When it comes to job satisfaction, 

employee engagement and increased 

productivity, does it pay for your staff 

to own your company? 

Words: 

Ben Jordan 

I RECENTLY PICKED up a copy of Atlas 

Shrugged by Ayn Rand after it was 

referenced in HBO’s Mad Men. In Rand’s 

bleak industrial world, the catalyst for 

change comes from an elite group of 

innovators. Unfortunately, they have all 

mysteriously vanished. Without the great 

Captains of Industry, society is leaderless 

and falls into economic decline. The book 

makes the case for a hierarchical society 

governed by self-interest and the pursuit of 

profit. Amazing the things you can learn 

from chilling and watching Netflix. 

Society is egocentric. We like to attribute 

success to extraordinary leaders who, 

through some Faustian pact with the 

dark forces, make it big. Henry Ford’s 

self-assembly model for manufacturing 

affordable cars for the mass market 

was used as a blueprint for such giants 

as McDonald’s and Apple. Successful 

companies in 2016, however, seldom have 

one private owner at the top of a pyramid. 

Increasingly, companies co-own their 

business with their employees and give 

them a broader participation in the profits. 

Back in 1991, Starbucks launched Bean 

Stock, an employee partnership programme 

that rewarded all eligible employees in 

addition to their normal salary. It created 

a culture where everyone had a vested 

interest in the financial success of the 

business. It increased productivity and 

staff retention from the bottom up. 

Long before that, John Spedan Lewis 

decided from the outset that he would 

share the ownership of his company with 

the employees. Every member of staff 

would be a partner and have a voice in 

how the business was run. Today, the 

John Lewis Partnership is the largest 

employee-owned business in the UK. 

ALL FOR ONE 

According to the latest figures, more than 

300 UK companies are fully owned by 

their staff and at least the same again are 

majority-owned by their workers. Between 

them, they employ 250,000 people. 

There’s little wonder, when the Employee 

Ownership Association’s (EOA) 2015 

report reveals that the top 50 employeeowned 

companies had combined annual 

sales of £21.5bn (about two per cent of 

the UK’s GDP). They enjoyed an average 

sales increase of 4.6 per cent year on 

year combined with a very respectable 

3.4 per cent increase in operating profit. 

The same companies have also 

reported an average increase of employees 

of 4.3 per cent. And according to the 

National Bureau of Economic Research, 

employee-owned companies consistently 

outperform the FTSE All-Share Index. 

All of this comes as no surprise to 

Duncan Langston, Director of Waitrose, 


Business 

Channel Islands, an employee-owned 

company. He says: “We perform well in 

staff retention, morale and productivity 

relative to other retailers. Our company 

ethic is that our partners share in the 

rewards, through annual bonuses, but 

also share in the responsibility for running 

the partnership.” 

Nigel Le Quesne, CEO of JTC Group, 

another company with shared ownership, 

similarly enthuses about the benefits: 

“We’ve found that productivity is better 

and it creates a sense of family and 

cohesion. It’s important to us that our 

employees are treated fairly, so, provided 

all the ingredients are there, you’ll get a 

better all-round result for your team, 

clients and external partners.” 

Indeed, Le Quesne is quite evangelical 

about employee ownership. “It’s my 

absolute belief that if we all have a real 

stake in the company, then collectively we 

will achieve more success and better results 

and that success should then be shared in 

proportion to each individual’s level of 

input and contribution,” he explains. 

There’s no doubt that embracing 

employees as ‘partners’ makes sound 

economic sense, and there are a number 

of ways in which companies achieve this. 

In the UK, for example, there are several 

HMRC-approved schemes, including 

Save As You Earn and Company Share 

Option Plans. The schemes vary in terms of 

whether shares are bought by employees or 

given by the company, the tax advantages, 

whether the shares can be sold separately, 

and the influence that employees have over 

the company direction. 

FOLLOW THE LEADER 

Larger companies may choose to follow 

the John Lewis model, where the company 

is held collectively in a trust. John Lewis 

notes on its website that this creates a 

stable long-term business model as such 

companies are difficult to sell to a third 

party. Employees also have a greater voice. 

“We have separate democratic 

structures for every level,” says Langston 

of the Waitrose model. “So at branch level, 

we have a forum called Partner Voice, 

which holds to account the management 

for the success of the store.” 

“Representatives are democratically 

elected from the shop floor and they have 

a say in how we can make things happen,” 

he continues. “This goes right up to the 

Partnership Council that affects decisions 

at the top level.” 

Other companies, such as JTC, operate 

a hybrid model, where staff are allocated 

shares under one scheme, but have the 

option of purchasing additional shares in 

the company through a second scheme. 

“We started our first Employee Benefit 

Trust [EBT] in 1998, and in 2012 that paid 

out £9 million to our staff shareholders 

when we sold a 40 per cent stake in the 

company to the private equity firm CBPE,” 

explains Nigel Le Quesne. 

“We then started EBT2 in 2012, which, 

just like EBT1, holds shares in the company 

for every single member of staff and is 

growing as the business grows. 

“Our Equity For All [E4A] scheme sits 

alongside EBT2 and allows staff to directly 

purchase shares in JTC Group. We thought 

it was important to offer that option for 

a number of reasons. First, regardless of 

their level in the business, we want people 

to have the option to increase their stake in 

JTC if they wish. Second, we have grown 

rapidly through acquisitions in recent years 

▼ 


Business 

and E4A allows our newer colleagues to access a greater stake in 

the business.” 

Given that it is relatively easy to establish an employee-owned 

company, there’s little to be said against the model. Indeed, in the 

Finance Act 2014, the UK government set aside £50 million for 

measures to exempt employee trusts holding shares from capital 

gains tax, as well as income tax for individual employees. 

FROM THE GROUND UP 

Despite these generous incentives for titans of business like John 

Lewis, is it worth the trouble for a smaller company such as a new 

business to embrace employee ownership? Iain Hasdell, former 

Chief Executive of the Employee Ownership Association, 

is ambitious about the prospects of employee-owned companies. 

“Employee ownership contributes some £30bn to UK GDP 

each year. And it is a growing economic force, at an annual rate 

of around nine per cent over the last three years with the pace 

of growth set to further improve,” he explains. “We are on track 

towards the EOA’s goal of 10 per cent of UK GDP being delivered 

by employee-owned businesses by the end of 2020.” 

From a Channel Island perspective, it also remains to be seen 

whether employee-owned companies will benefit the wider 

economy. Nevertheless, Langston is enthusiastic about what 

Waitrose has done thus far. “Profit earned by partners naturally 

comes back into the local economy, but it’s not just about financial 

benefits. We see a greater level of community engagement from our 

team, from the Community Matters green tokens we distribute to 

shoppers, to our support of the Salvation Army at Christmas and 

recent involvement in the Island Games. There’s a social benefit as 

our partners are committed to providing for the community.” 

The unsentimental drive to make profit isn’t incompatible with 

notions of fairness and social responsibility. Employee-owned 

companies are testament to that. According to Hasdell, the recent 

growth in employee-owned businesses has been triggered partly 

by the financial crash because business owners want to find a new 

way of doing business – just as John Lewis did in the late 1920s. 

Perhaps the Channel Islands will follow the UK by introducing 

tax incentives to encourage local companies to adopt the shared 

ownership model. The policy underpins the idea that it builds 

stronger businesses and spreads wealth. 

So rather than looking for a new job or joining a hippy 

commune, direct your boss to the Employee Ownership 

Association. It pays to share. n 

Gripple – a different 

approach 

An innovative company developed on the design, 

production and marketing of a wire fastening device, 

Gripple is based in a lovingly refurbished factory in 

Sheffield. The Gripple device, named after its ability 

to both ‘grip’ and ‘pull’ wire, was invented by wire 

salesman Hugh Facey after an enlightening 

conversation with a Welsh farmer. 

Big things have small beginnings, and Gripple now 

produces 30 million wire joiners every year. What’s 

more, nearly 80 per cent of its 220 employees own 

equity in the firm. 

While some businesses follow the John Lewis model, 

with an employee benefit trust as owner, Gripple asks 

workers for a direct investment. Indeed, employees are 

required to invest a minimum of £1,000. 

“Everyone in the business should take a risk,” explains 

Andy Davies, Chairman of Glide, a holding company for 

Gripple and other businesses. Employees are required to 

buy into the company after a 12-month qualifying period, 

with loans available to enable purchase where necessary. 

An internal market ensures equity stays within the 

business. The share price is generated by profits – shares 

purchased at the outset are now worth about 18 times 

their original purchase price. 

As a footnote, you might be interested to know that 

thousands of Gripple wire joiners hold together the 

Great Dingo Fence in Australia, the world’s longest fence. 

Strewth, that’s a lot of gripples. 

BEN JORDAN is a freelance business writer 


Business 

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Business 

Time for a 

Change? 

Some companies resist new ways of working while others 

embrace them, but getting change right can be the difference 

between success and your company going to the wall 

Words: 

Emma de Vita 

THE MYSTERIOUS WORLD of change management can sometimes seem like the dark arts. 

Replete with models and methodologies and strange-sounding names – Lewin’s Force Field, 

Kotter’s Eight Steps and ADKAR, to name but a few – it can be an offputting prospect 

for the uninitiated. But just how complex is change management? And, more to the point, 

what does it actually mean and do you need to be doing it? 

The official definition of change management, according to the Association for Project 

Management, is ‘a structured approach to moving an organisation from the current state 

to the desired future state’. Change, therefore, means progress – and in business this means 

leading a firm towards the future, not simply letting it stand still with the risk of being 

overtaken by competitors and losing the trust of its stakeholders. 

Steve Hearsum, a Development Consultant at leadership institute Roffey Park, thinks we 

should think of change as something that shouldn’t be managed but led. Most important, 

▼ 


Business 

he says, at the forefront of any leader’s mind should be two key 

questions: change is an answer to what question, and what 

is it you want to achieve? 

A change management programme doesn’t necessarily have 

to mean radical upheaval. As Debbie Rayner, Director of IT at 

law firm Ogier in Jersey, says: “A lot of small changes can add up 

to a radical difference without the added downside of upheaval 

and disruption to the business. Understanding your organisation’s 

appetite for change, identifying quick wins, and a common 

sense approach go a long way.” 

Jonathan Atkinson, CEO of change management consultancy 

Greenlight, says his own rule is not to change unless you have 

a robust business case that spells out the proposed benefits and 

how they will be measured and made real. 

“Companies need to change for many reasons. It might be 

because systems, processes or services have become out of date 

or because they simply need to be improved due to new demands, 

or there are opportunities to grow revenues or profit,” he says. 

CHANGE OR DIE 

“Evolve or become extinct,” Rayner says more plainly. Moving 

towards a state of continuous improvement is what most firms 

should be aiming for. “It’s essential that we continually challenge 

why we’re doing things and the way in which we are doing 

them, and that we adapt our processes to continually enhance 

and improve the services we offer,” she says. 

Mike Jeacock, COO at the Jersey Financial Services 

Commission, is spearheading a major transformation programme 

at the financial regulator. The reasons behind it, he says, are 

to increase efficiency and effectiveness and to bring about 

modernisations that were put on hold during the financial crisis. 

Once the “major surgery” that he is spearheading is complete, 

only “routine changes” will follow, he says. 

Although advancements in technology are the catalyst for 

much change, Rayner warns that organisations can be too easily 

seduced by the next magic Hogwarts IT solution. “Any time the IT 

Many experts agree that 

change in a business 

should encompass 

continuous small 

improvements married 

with the major change 

programmes that are 

sometimes necessary 

department is the driver of change into the business is a recipe for 

disaster,” she explains. Instead, technology should underpin and 

support the strategic plans for every area of the business, 

including cultural, environmental, technical and financial issues. 

“Just because a new technology ‘can’, doesn’t necessarily mean 

the organisation ‘should’,” she cautions. 

Many experts agree that change in a business should encompass 

continuous small improvements married with the major change 

programmes that are sometimes necessary. Solely sticking to a 

‘big bang’ approach, which drags an organisation kicking and 

screaming into the present day, can be fraught with problems. 

The business may have to wait for months, or even years, to 

reap any benefits from the new regime – or worse, a change 

may be so delayed that it becomes outmoded itself. 

WHAT TO CHANGE 

Identifying which areas to fix in a business can be done in a 

number of ways. The most straightforward is to talk to employees, 

clients and suppliers to find out what is going well and what 

needs to be worked on. This leads to an important stream of 

organic ideas for change, but must be supplemented by a proactive 

approach that analyses whether each process or area of business 

is working as best it can. 

Atkinson advocates a combination of business analysis 

techniques and measurement to identify any areas of weakness. 

“Measuring the performance of certain functions or outputs paints 

a picture that allows you to understand what needs to improve,” 

he says. “Then it’s back to the business case again – what are the 

impacts in terms of time, cost and resource to improve, and what 

is the return on investment.” 

He argues that the greatest assets an external consultant brings 

are objectivity, along with lessons learnt from other organisations, 


Business 

as well as proven tips, tricks and methods that will be of invaluable 

help to staff leading change from within the organisation. 

A change management programme will inevitably encounter 

obstacles, ranging from managerial resistance and budgetary 

constraints, to the limits of legacy systems and company culture 

problems. Personal attitudes can also put a spanner in the works 

if those in the company are fearful of change, are too busy to take 

it on or are too complacent about it. 

“It’s down to every single member of every team to first 

accept that there will be days when we fall into one of these 

categories,” says Rayner. “We are all human after all. The trick is 

to recognise those days for what they are and not let them turn 

into weeks or months.” 

Atkinson believes obstacles lie in people, processes and 

technology. The most complex of those is people, as resistance 

can be covert, making it difficult to manage. “Industry techniques, 

such as stakeholder analysis and engagement and communication 

planning, are a great help in overcoming these resistors, but they 

need constant attention,” he says. 

With two decades of change management experience behind 

him, JFSC’s Jeacock says the key to a successful programme comes 

down to several factors. These include strong communication with 

staff, a realistic timescale, a common-sense approach and a ‘willdo’ 

attitude, board support and good governance of the project. 

A massive advocate of engaging every employee with change, 

Jeacock has created roles for voluntary change champions at the 

organisation to dispel any resistance. Their job is to give feedback 

to management about how the programme is affecting staff, 

to clarify any areas of concern and in particular to dispel any 

worrying rumours. “You have to bring staff with you,” he says. 

Rayner has another important message for any organisations 

proposing to transform the way they’re run. “Change doesn’t have 

to be arduous or threatening,” she says, adding: “Although it can 

be hard work at times, we have a lot of fun.” n 

EMMA DE VITA is a freelance business writer 

SIGNS THAT YOUR COMPANY MIGHT 

NEED TO CHANGE 

Are you concerned your company might be struggling 

to keep abreast of the market? Answer yes to two 

or more of these statements and it might be worth 

considering whether you should undertake a change 

management programme. The following list isn’t 

definitive or ‘right’, it’s a starting point for reflection. 

1 Your customers/users are complaining about 

your products/services. 

Your employee engagement/staff survey data 

2 is showing a downward trend – or if it’s the first 

time you’ve run it, is simply not indicating your 

business is a great place to work. 

3Staff sickness/absenteeism is increasing and/or 

churn rate is high. This isn’t a sign you have ‘the 

wrong people’; it’s a signal that the leadership 

and/or culture is in need of attention. 

4 Whistleblowing. If people need to tell someone 

else what is wrong in your business, and they 

can’t tell you, you have a problem. 

5 New entrants to the market can offer what you 

do more efficiently/for less. Can you remain 

competitive? 

6 

Revenue/cost targets aren’t being hit. 


Corporate 

Commercial & Trust 

From finance houses and utility companies to entrepreneurial 

start-ups and internet businesses, we understand that you need 

high quality accurate and pragmatic advice. 

At Parslows we work closely with our clients to ensure a prompt 

and practical service that you can rely on. 

For expert advice, please call Mason Birbeck on 01534 630530. 

Corporate 

Commercial Trust 

Dispute Resolution 

& Court Work 

SME 

Personal Law 

Risk and Regulatory 

Property 

17 Broad Street, St Helier, Jersey, JE2 3RR T: 01534 630530 E: enquiries@parslowsjersey.com W: parslowsjersey.com

Advertising feature 

Outsourcing? 

Then make sure 

your due diligence 

is thorough 

Mason Birbeck, Head of the Corporate, Commercial and Trust 

team at Parslows, examines key due diligence considerations 

when outsourcing business operations 

OUTSOURCING IS ON the rise across a large 

range of industries. Recent figures show 

the value of UK public and private sector 

outsourcing rising from about £35bn at the 

turn of the millennium to a current figure 

of around £88bn. A significant increase. 

Unsurprisingly, businesses in the Channel 

Islands have also embraced outsourcing as 

a means to lower costs, increase efficiency, 

expand resources and expertise, and 

ultimately improve customer service. This 

can, however, open the door to operational 

and regulatory risks. As a result, before 

committing to outsourcing arrangements, a 

business should carefully consider carrying 

out appropriate due diligence in order to 

avoid, or at least mitigate, those risks. 

Here are some of the key points that 

need to be considered: 

● Establish a risk management 

framework and risk register enabling 

the outsourcer’s and service provider’s 

teams to identify and assess the project 

risks, their current status and any action 

needed to manage those risks. 

● Look inwards as well as at the 

prospective service provider. Start by 

considering what target services are 

currently being provided in-house, 

the service delivery model and the 

service levels being met, as well as the 

transaction volumes. This includes 

the number of employees engaged in 

providing those services, and if changes 

could affect staffing levels, or require a 

review of employment terms. 

● If cost is a key driver, the process should 

include a detailed review of current 

expenditure on the earmarked services. 

● Examine intellectual property rights 

used in the existing services (software 

products, for example). If those IP 

rights aren’t owned by the business, 

will the terms of use enable the business 

to make them available to the service 

provider if necessary, and is there any 

associated cost for doing so? 

● Are there any third-party contracts 

currently in place to deliver the services? 

If those will cease to serve a function, 

can the business terminate the contracts 

without penalty or before expiration 

of a set notice period? If there will be a 

continued need for third-party services, 

but on amended terms, can the business 

unilaterally vary those terms? 

● Assessment of a prospective service 

provider requires a comprehensive 

analysis of all the services it is offering, 

how it will tailor those to the aspects 

the business wishes to outsource, and 

how it will deliver those services. 

● Fixing the detail of those services will 

inform the service provider’s proposals 

on pricing, which should make it easier 

for the business to price any changes to 

volumes and service levels. 

● Include an examination of the service 

provider’s corporate status and wider 

group structure, and its own (and its 

group’s) financial standing. Also, its 

insurance coverage and the risks covered. 

● Investigate the service provider’s 

compliance history, the existence of 

complaints, litigation or regulatory 

actions, and evaluate its track record in 

delivery of similar services. 

● Analyse the service provider’s disaster 

recovery and business continuity plans, 

its system of internal quality and 

other controls, its security history, 

and the extent to which it is audited, 

financially and otherwise. 

● If the business is a data controller and/ 

or data processor for the purposes of the 

Data Protection (Jersey) Law 2005, and 

data is to pass to the service provider 

under the outsourcing arrangement, 

adequacy of data protection will be a 

key consideration. 

● Adherence to the six core principles laid 

down in the Jersey Financial Services 

Commission’s Policy Statement and 

guidance on outsourcing will be a critical 

factor for businesses in the regulated 

financial services sector. 

If, following the due diligence process, the 

decision is to proceed, the parameters of 

the outsourcing, and a detailed description 

of the services, should be set out in a 

comprehensive outsourcing agreement. 

This should, among other terms, include a 

precise description of the functions to be 

outsourced, and a clear delineation of the 

respective responsibilities of the service 

provider and the outsourcer. 

An early-stage and comprehensive 

evaluation of any proposed outsourcing 

arrangement is highly advisable. 

Failure to identify strategic, market, 

reputational and (to the extent 

applicable) regulatory risk could not 

only fundamentally affect the project’s 

economics, but also be potentially 

damaging to the outsourcing business. n 

WANT TO KNOW MORE? 

For advice on due diligence as part of an 

outsourcing process, contact Mason Birbeck 

at mason.birbeck@parslowsjersey.com 

or call +44 1534 630530 

www.parslowsjersey.com 


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Technology 

There’s been much talk, and some hysteria, about job 

automation and artificial intelligence, but is this really the 

end of the human workforce as some would have us believe? 

Will a 

robot 

steal 

your 

job? 

Words: 

Dr Liz Alexander 

THOSE OF US fascinated by Star Trek technology may once 

have dreamed of phones that responded to voice commands, 

robots taking on household chores, and cars that drive 

themselves. But did we ever wonder what effect these modern 

marvels would have on the world of work? 

Last November, Andy Haldane, the Bank of England’s 

Chief Economist, said 15 million jobs in the UK – about half 

the current working population – could soon be lost to 

“sophisticated machines”. 

That’s consistent with findings by Professors Carl Frey 

and Michael Osborne of Oxford University, whose 2013 

study, The Future of Employment: How Susceptible are jobs 

to computerisation?, proposed that ‘about 47 per cent of 

total US employment is at risk’ within the next 20 years. 

The impact on manufacturing has already been huge, 

with armies of robots taking jobs once performed by humans – 

but it’s not the only sector feeling the march of automation. 

Even as bank profits have shot up in recent years, jobs on 

trading desks have plummeted. In 2013, Bloomberg Business 

quoted one bank analyst who talked about firms getting rid of 

traders because “all they do today is hit buttons on computer 

screens. Twenty-five years ago they would be calling their 

buddies at different firms. It was a highly labour-intensive 

effort.” Now it’s largely automated. 

That’s just one example of how this ‘evolution’ is 

different to the technological changes that led to manual 

▼ 


Technology 

You are safer if you have three things 

that are essentially human skills – 

negotiation, helping other people 

and coming up with new ideas 

labour being ousted after the invention of the 

combine harvester. A report issued in April 2015 

by Bank of America Merrill Lynch on creative 

disruption predicted that “machines will perform 

more and more tasks in banking, logistics, healthcare 

and other service sector industries”. 

But, as physicist and Nobel Laureate Niels Bohr 

once famously pointed out: “Prediction is very difficult, 

especially if it’s about the future.” 

This seems especially true concerning technology. 

Who can forget the widespread belief that Y2K would 

be ‘a crisis without precedent in human history’? 

So how much salt should we take with experts’ 

assessments that the ‘second machine age’ will lead to 

massive unemployment? More to the point, who will 

be the fortunate ones whose jobs are least threatened 

by the advancement of AI? 

THE HUMAN ELEMENT 

“Don’t fear the robots or automation and the rise 

of computing,” says Gez Overstall, InfrasoftTech’s 

business development expert in Guernsey. “They’re 

just going to take away the drudgery and routine, 

repetitive stuff, freeing up people to add more value 

to the business. 

“If I can find a way to make my work more efficient 

and finish in half the time, rather than the monotony 

of doing the same things for clients over and over and 

shuffling paper around, that frees me up for 

networking and getting out in front of people.” 

That may be true for Overstall, but not necessarily 

for everyone. A report from Oxford’s Frey and 

Osborne featured on the BBC website, reveals that 

not every role has the same odds of survival. Those 

at greatest risk of automation (95-97 per cent 

certainty) include book-keepers, accountants and 

taxation experts. Roles assumed not to be so easily 

taken on by machines (seven to nine per cent certainty) 

are management consultants, business analysts such as 

Overstall, and CEOs. 

“Automation is a massive threat, but also an 

opportunity as long as you’re at the ‘thinking’ end of 

the industry,” says information consultant Dan Hare, 

Director of Continuum in Jersey. “If you can draw on a 

flow chart how something is supposed to happen, you 

can automate it. You are safer if you have three things 

that are essentially human skills – negotiation, helping 

other people and coming up with new ideas.” 

Which begs the question, just how ‘sophisticated’ 

and ‘intelligent’ are the machines that could replace us? 

Maybe not so much, even now. As the authors of The 

Second Machine Age, Erik Brynjolfsson and 

Andrew McAfee, point out: “Computers and robots 

remain lousy at doing anything outside the frame of 

their programming.” 

Take this simple statement by Hector Levesque, 

AI Researcher in the University of Toronto Department 

of Computer Science: “The large ball crashed right 

through the table because it was made of Styrofoam”. 

You read that ambiguous sentence as meaning the table 

(not the large ball) was made of Styrofoam, right? But 

a computer would flounder at making that inference, 

says Levesque. In short, machine automation – at least 

as it stands today – isn’t really about thinking, it’s 

about removing the paperwork burden and handling 

huge quantities of disparate data really, really fast. 

FINDING THE BALANCE 

Barry Matthews, an expert on robotic process 

automation (RPA) technology and Managing Director 

of independent management consulting firm Alsbridge, 

agrees that while technology has matured and advances 

in AI are an “unstoppable tide”, machines still aren’t 

intelligent in the same way that we are. Those currently 

used for back office ‘heavy lifting’ can only act on rulebased 

algorithms programmed by their human masters. 

Nevertheless, he cites an example where RPA took 

data spread across many different file formats and 

posted it into the right accounts so quickly that it 

enabled a global bank to close their books in days 

rather than weeks and reduce headcount by 70 per 

cent. It simply replicated what a human would do, 

only so much faster and without the need to eat, 

sleep or take holidays. 

However, as Dan Hare counters: “In financial 

services, the advantage we have is customers. The best 

way to service those clients is by embracing automation 

and making sure we have better quality information 

with which to add value to them.” 

WHO MIGHT GO FIRST? 

1 

TELEPHONE 

SALESPERSON 

(99%) 

153 

IT ENGINEER 

(58.3%) 

3 

LEGAL 

SECRETARY 

(97.6%) 

199 

FINANCE AND 

INVESTMENT 

ANALYST AND 

ADVISER 

(40.7%) 

Icons: thenounproject.com 


Technology 

Think, for example, how we’ve become used to 

the convenience of ATMs rather than having to wait 

for a bank teller. Or how much quicker and easier it 

is to book an airline ticket online than go through 

a travel agency. Yet when we have a problem for 

which we don’t even know the right question, let 

alone the answer, it’s a human being we want, not 

automated options. 

The balance to be reached is human-centred, rather 

than technology-centred automation. Indeed, as 

Jonathan Aldrich-Blake, Global Investment Manager 

and tech sector specialist for Ashburton Investments 

says: “Automation may be a bigger risk in emerging 

markets where the economy is still largely based on 

physical labour. The UK is a developed market and 

is less about manufacturing processes than it once 

was. The higher end or skilled jobs still need somebody 

who has decision-making control.” 

“If a customer says to me: ‘What’s the business 

case for sourcing my data warehouse to India rather 

than Eastern Europe?’, or insource it rather than 

outsource it, I’ll use technology to provide those data 

points and all the evidence,” adds Barry Matthews. 

“But understanding what the customer wants, assessing 

it and then providing recommendations is something 

that only a human will be able to do for many years 

to come. I hope.” 

TURNING POINT 

Why speak of hope? Because of the likelihood, at some 

point, of the ‘technological singularity’ – a term coined 

by futurist Ray Kurzweil to describe “a future period 

during which the pace of technological change will be 

so rapid, its impact so deep, that human life will be 

irreversibly transformed.” 

Says Matthews: “When a machine can start to think 

for itself and design other machines, that’s when we all 

have to worry. That’s a real inflection point because 

then you lose control, robots can do what they like without 

having to obey their human masters. At the moment that 

remains in the realm of science fiction movies.” 

Then again, as the Kyle Reese character says at the end 

of the film Terminator: Genisys: “One thing we know for 

sure: the future is not set.” n 

DR LIZ ALEXANDER is an author, educator and 

business strategist, and Founder of business consultancy 

Leading Thought 

WHEN ROBOTS GO BAD 

Despite all the talk of robots taking over certain jobs, automation isn’t 

foolproof, as a recent example of market trading demonstrated starkly. 

High-frequency trading (HFT) platforms, and a form of AI also referred 

to as ‘algos’, have been used on Wall Street since 1999. According to Marc 

Goodman, author of Future Crimes, they now “represent up to 70 per 

cent of the trading volume on the Dow Jones”. 

Goodman relates how, in April 2013, the Dow Jones Industrial Average 

and the S&P went into freefall, with $136bn in shareholder value wiped 

out within three minutes. Why? Because these algorithms, while making 

“trillions of calculations per second” and executing trades “in less than a 

half a millionth of a second” rely on the automated reasoning of software 

programs written by human beings. 

So, when a group calling itself the Syrian Electronic Army (SEA) hacked 

the Associated Press’ official Twitter news feed and falsely posted news 

of two explosions in the White House, injuring President Obama, the 

algos began selling like crazy, as they’d been programmed to do when 

scanning news sources that reported terrorist attacks. 

As Goodman points out, had a human looked at the false SEA tweet 

they “might have noticed it was poorly phrased, was not in Associated 

Press style format” and had other “subtleties lost on a robot-trader”. 

SOME JOBS ARE MORE LIKELY TO BE AUTOMATED THAN OTHERS. HERE, A SELECTION OF JOBS ARE RANKED OUT 

OF 365 PROFESSIONS, AND A PERCENTAGE GIVEN ON THEIR LIKELIHOOD OF AUTOMATION 

8= 

FINANCE 

OFFICER 

(97%) 

26= 

TAXATION 

EXPERT 

(95.3%) 

52 

WAITER OR 

WAITRESS 

(89.9%) 

95 

CONSTRUCTION 

WORKER 

(80%) 

124 

ESTATE AGENT 

OR AUCTIONEER 

(68.1%) 

225 

HR MANAGER 

OR DIRECTOR 

(32.3%) 

282 

CHIEF 

EXECUTIVE 

OR SENIOR 

OFFICIAL 

(8.7%) 

285 

JOURNALIST, 

NEWSPAPER 

OR PERIODICAL 

EDITOR 

(8.4%) 

320= 

SOLICITOR 

(3.5%) 

365 

PUBLICAN 

(0.4%) 

Source: BBC/Oxford University/Deloitte 


Technology 

With technology seeming to leap forward almost every day, 

can investors spot those small tech firms that could 

become the Googles and Apples of the future? 

From tech 

acorns… 

62 january/february 2016 www.blglobal.co.uk

Technology 

Words: 

Chris Menon 

IT’S ASTONISHING TO think that the 

dotcom crash occurred over 15 years ago. 

Many investors lost their shirts (and a lot 

more) putting all their money into tech in 

the hope of making a fast buck. Fast 

forward to 2016 and tech must still be 

approached with caution – but there are 

plenty of opportunities to make money if 

you know what you’re doing. 

For today’s digital generation weaned 

on the internet, the investment frenzy that 

centred around the emergence of internet 

businesses from 1997 to 2000 may seem 

strange. Yet it’s a lesson that every tech 

investor should learn by heart. 

At its height, private investors were 

ploughing cash into start-ups that had 

no prospect of ever making profits – 

companies such as Boo.com, Just2Clicks 

and Pets.com. When this bubble burst in 

March 2000, many of these ‘hot’ tech 

stocks vanished without trace, along with 

their investors’ cash. 

Even a traditional FTSE stalwart, GEC, 

came unstuck trying to reinvent itself to 

profit from the boom. Under Lord Simpson 

it sold off its profitable defence arm, 

rebranded itself Marconi and invested 

billions to become a telecoms equipment 

manufacturer. The bust brought it close to 

bankruptcy and wiped out shareholders. 

It took 15 years for the NASDAQ, 

America’s tech-heavy equity index, to 

surpass the high water mark of 5,048 set 

on 10 March 2000. Yet in that time a few 

of the ‘new economy’ stocks that survived, 

such as Amazon and eBay, have become 

global behemoths. 

The trick of investing in stocks is to spot 

winners when they’re small and cheap 

– invest early and hold. Better still is when 

a sector is out of favour. For those that had 

The trick of investing 

in stocks is to spot 

winners when they’re 

small and cheap – 

invest early and hold. 

Better still is when a 

sector is out of favour 

the nerve to invest in good tech stocks 

when they were most out of favour back 

in early 2003, the rewards have often 

been impressive. Indeed, from the start 

of March 2003 to the end of November 

2015, the FTSE techMark All-Share 

Index of tech stocks rose 415 per cent 

compared with only 100 per cent for 

the FTSE All-Share. 

TRENDING RIGHT NOW 

Given the pace of technological innovation, 

there are many broad trends than an 

investor can play. According to technology 

analyst Lorne Daniel, from broker 

finnCap, some of the most important 

centre around mobiles, connectivity and 

changes in transport. 

“Mobiles grow in importance by the 

day. They’re becoming an all-pervasive 

connection to the world – business, 

financial, personal and leisure. Connectivity 

is key,” says Daniel. “The Internet of Things 

means an increasing number of devices will 

be connected around us, talking to each 

other, anticipating our needs. In transport, 

wider coverage and better data capacity 

sees us pulling more and more data from 

vehicles, about driving characteristics and 

vehicle and engine status.” 

Gartner has estimated that by 2020, 

35 billion things (ranging from vacuum 

cleaners to parking meters) will have 

internet access and 47 per cent will have 

the ability to request support automatically. 

This level of interconnectivity will also 

necessitate increased cyber security. 

Gartner believes that by 2018, 20 per cent 

of smart offices will have suffered from 

digital vandalism. 

Other top trends for 2016, identified 

by Juniper Research, include the rise of 

virtual reality headsets in the world of 

entertainment, the availability of consumer 

robotics, the growing use of wearable 

technology (such as surveillance cameras 

and health monitoring) by business and 

government agencies, and cloud 

infrastructure for game devices, such as 

Nintendo’s NX console. Juniper sees 

eSports, where consumers watch live 

streams of games tournaments, as 

pioneering a new games revenue stream. 

Gervais Williams, Managing Director 

at Miton, is a fund manager who specialises 

in the small cap universe. He believes it 

is set to outperform in an era of low 

economic growth – a thesis ably set out 

in his book The future is small. 

He’s well placed to identify fast-growing 

small cap technology stocks but cautions 

against jumping to invest in trends such 

as robotics and the Internet of Things. 

“Although it’s nice to be able to turn your 

heating on remotely, the more that you link 

things up, the more you have the ability for 


Technology 

someone else to turn your heating on… 

I think the mainstream may be quite slow 

to adopt it,” he says. 

STOCK PICKING 

In terms of finding stocks with worldclass 

technology, balancing the risks 

against the opportunities is key. “There 

are a lot of concept stocks that could 

do very well, where there is quite a lot 

of sales growth and profits still to be 

generated,” says Williams. 

“Generally, our strategy has been to 

slightly steer away from those. This is 

partly because the excitement of the 

future is already reflected to a degree in 

the share price, so there is substantial 

downside if it doesn’t materialise, but 

also because we believe we can make 

much better returns by investing in 

companies that aren’t at the leading edge 

but are still innovative. They are taking 

existing products but modifying or 

updating them, so the technology risks 

for the new adopters aren’t too high but 

the commercial benefits very substantial.” 

He cites software firm K3 Business 

Systems. “Their technology has started to 

be adopted by Microsoft, who are using 

it in Germany and the US,” he enthuses. 

An exception is his holding of four per 

cent of small cap Seeing Machines, which 

is at the cutting edge of driver monitoring 

systems for safety. 

“They have many leading auto 

companies working with them and 

recently sold the rights to their 

technology in the mining industry to 

Caterpillar. As the Caterpillar money 

came in, it allowed them to devote more 

resource to develop their customer base 

in other areas,” says Williams. 

He admits that he mitigates the risks 

by working with industry partners “who 

have better knowledge than we have and 

who, more importantly, have done more 

due diligence than we are allowed to”. 

Hence he used Caterpillar’s adoption 

of Seeing Machines as third-party 

verification. 

This is a classic example of today’s 

smart tech investor – spotting the value 

of the genuinely new but using tried and 

tested investment practices as back up. n 

CHRIS MENON is a freelance 

investment writer. He holds shares 

in Seeing Machines 

FIVE FOR THE FUTURE? 

For most investors, exposure to small cap tech stocks, or even their bigger cousins, 

is likely to be achieved through an investment fund. But for those with the 

knowledge, time (and nerve), here are five small cap tech stocks worth a look. 

Gfinity 

This stock, which is on AIM, could benefit from the increasing popularity of eSports, 

where consumers watch live streams of games tournaments. According to Juniper 

Research, the 2015 Gfinity Championships in London topped 30 million viewers 

worldwide. Small cap specialist Hargreave Hale has a 10.3 per cent holding. 

Oliver Bedford, Manager of the Hargreave Hale AIM VCTs, says: “Although online 

gaming events already attract large global audiences through online broadcasting 

platforms, it remains a nascent industry that is yet to fully exploit the commercial 

opportunity. Gfinity is a leading European player in eSports.” 

Seeing Machines 

AIM-listed Seeing Machines developed head and eye-tracking 

technology, which was used by Caterpillar in the mining industry to 

monitor driver fatigue and reduce costly accidents. Caterpillar then 

bought the rights to use and market the system for its business for 

US$17.5 million. The technology is also used in next-generation 

semi-autonomous vehicles, such as General Motors flagship Cadillac 

CT6, and the firm is working with another 10 auto manufacturers. Tech 

analyst Lorne Daniel, at house broker finnCap, said: “We see a company 

with a mid-term value of at least £480 million, even on a conservative basis. That 

compares with the current £40 million market capitalisation.” 

GB Group 

GB Group offers identity verification and tracking solutions on the internet. It 

has a vast number of connections to multiple databases, which is very difficult to 

replicate globally. More internet commerce means more business and demand for 

GBG. As that explodes, GBG is growing proportionately. House broker Peel Hunt’s 

tech analyst Alexandra Jarvis said: “We believe the company can sustain strong 

organic growth through international expansion, its expanded product base and 

ongoing innovation, supplemented by acquisitions. GBG is uniquely placed in the 

ID intelligence market and the strategic value of this business continues to grow.” 

K3 Business Technology 

Software integrator and vendor K3 Business Technology supplies software to 

the retail, manufacturing and logistics sectors. It’s increasingly moving up the 

value chain, selling products that contain its own intellectual property at a higher 

margin. These products are also being sold internationally through third-party 

vendors such as Microsoft. According to finnCap analyst Andrew Darnley: “Global 

recognition through membership of Microsoft Dynamics’ Inner Circle demonstrates 

the solution quality and in turn raises K3 product visibility on the world stage, with 

increasing channel interest and first global contract wins.” 

Intelligent Energy 

This AIM-listed company designs and develops hydrogen fuel cells for low-cost, 

mass-market applications. It operates in the automotive, consumer electronics 

and distributed power and generation sectors. Notably, Apple sells its Upp phone 

charger and it’s said to be developing a long-life fuel cell for the iPhone. Zeus 

analyst Dr Tom McColm described it as “one of the UK’s most sophisticated and 

exciting technology companies”. In the automotive sector it’s working with some 

leading Asian car manufacturers. 

64 january/february 2016 www.blglobal.co.uk

Technology 

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Technology 

Whether you want to organise your work life 

or choose a bottle of wine with confidence, 

we’ve picked five apps that will help you 

kick off the new year with gusto 

Words: Chris Wheal 

CAMCARD 

‘Good intentions’ is the name I give to the 

pile of unsorted business cards on my desk. 

Thankfully, I now have the CamCard app. 

On the way home from meetings, I simply 

take a snap of each of the business cards I’ve 

collected and CamCard adds the details to 

my contacts. It lets me edit them before I 

save (though sometimes its guess at which 

category to put each bit of text in is wide 

of the mark). All new business cards are 

immediately in my address book, which 

syncs with my computer. Now there’s just 

that old pile of cards to get through … 

Free 

iSCANNER 

If someone sends you an official document 

in the post and you want a digital version 

or you’ve been asked to email it to a 

colleague, iScanner is the app for you. 

Using your phone’s camera, you can quickly 

turn any paper document into a PDF. There 

is a free version of the app, but that leaves 

you with a visible watermark at the top of 

your PDF, which is annoying. So it’s worth 

paying the small sum for the full version to 

give you a clean scan. It’s much quicker 

than putting paperwork through your 

scanner and the quality is almost as good. 

Free/£0.79 (premium) 

Five apps to make 

life better in 2016 

MICROSOFT OFFICE 

It’s ubiquitous; you use it everywhere you 

go; and at long last, thanks to this handy app, 

it’s actually pretty good on your phone as 

well. If you don’t already have a Microsoft 

account, you’ll need to sign up for one in 

order to access all the functions of Word, 

Excel and Powerpoint (each a separate app). 

This gives you the freedom to edit documents 

on your phone wherever you are and save 

them to access later on your computer. One 

big plus, if you’re a fan, is that you can use 

Outlook on your iPhone instead of Apple’s 

Mail programme, which gives you the same 

look and feel as on your computer. 

Free 

HOW TO TIE A TIE 

There are lots of apps on tying tie knots, and 

many use an identical interface and graphics, 

but this one by Damir Nigomedyanov is the 

high-class end of the market and uses its 

own moving artwork. The free version gives 

you limited access, while the paid-for app 

shows you how to tie all the knots. Different 

knots suit different collars – and then there’s 

that occasional black tie event. There’s 

nothing more stylish than untying your real 

bow tie at the end of the evening and leaving 

it draped casually around your neck. This 

app means you can tie that knot confidently 

rather than wearing a tacky clip-on. 

Free/£3.99 (premium) 

VIVINO 

Scan a wine label, or even a wine list, into this nifty little app and Vivino will tell you all about the wine, 

how much a bottle might cost and what your fellow drinkers think of it. This means you can scan a wine 

list to find the bottle that’s either best value or most likely to suit your palate. Many venues – restaurants, 

shops and wine merchants – are already included on Vivino, so you can look up the wine list before you even 

enter. You can add your own comments to help others too, and there are special offers for wine lovers. 

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BLguernsey 

Monterey Insight reveals 

market share of funds 

Findings from the 21st edition of the Guernsey Fund 

Report from independent fund research company 

Monterey Insight reveal the market shares of all 

service providers in Guernsey’s funds industry. 

For fund administration services of domiciled and 

non-domiciled funds, Northern Trust remains the largest 

by total net assets ($63.8bn), with Ipes ($45.5bn) and Apax 

Partners ($31.7bn) ranked second and third. For funds under 

custody services of domiciled and non-domiciled funds, Northern Trust also 

maintained its lead position with $20.5bn. Kleinwort Benson ($9.4bn) stayed 

in second position ahead of BNP Paribas Securities Services with $6.3bn. 

Of the legal advisers, Carey Olsen advised 724 funds, followed by Mourant 

Ozannes with 264 and Ogier with 120. For auditors, PwC was auditing 350 

funds at the end of the period, ahead of KPMG with 343 funds. Among fund 

management companies, the largest fund promoter of Guernsey-domiciled 

schemes was Apax Partners ($32.4bn), followed by Partners Group and EQT 

Partners (with $23.5bn and $18.5bn respectively). 

“The report shows a fall in total assets for the first time in five years,” said 

Monterey Insight MD Karine Pacary, adding: “Guernsey continues to attract 

business: 106 new sub funds were launched (domiciled and non-domiciled), 

71 serviced funds were launched (including 48 new Guernsey schemes) and 

15 new promoters have chosen Guernsey to establish their funds.” n 

Guernsey Finance to open 

Hong Kong office 

Guernsey Finance is to open a representative office in Hong 

Kong in the first quarter of this year. 

The office will be the promotional agency’s second overseas 

outpost, in addition to its Shanghai office, which opened in 2008. 

Guernsey Finance’s China Representative, Wendy Weng, who is 

based in Shanghai, will use the office to carry out further 

promotional activities concentrated on the wider south-east Asia 

market. It will also be utilised by the Guernsey Financial 

Services Commission to provide regulatory advice to 

those in the region who might be considering 

Guernsey-specific ventures. 

The central location at Three Pacific Place in 

Admiralty ensures Guernsey Finance is well 

positioned to meet Hong Kong-based 

practitioners and others from Asia. 

The office is expected to be operational 

during the first quarter of 2016. A formal 

launch event and a Guernsey-hosted masterclass 

is scheduled to take place in Hong Kong during 

the first week of March. n 

GFSC issues 

guidance on 

electronic CDD 

The Guernsey Financial Services 

Commission has issued annexes to 

the Handbooks for Financial Services 

Businesses and Prescribed Businesses on 

Countering Financial Crime and Terrorist 

Financing, on the use of technology in the 

customer due diligence process. 

The changes to the rules and guidance 

in the Handbooks provide for the use of 

technologies such as digital signatures and 

electronic verification in the client take-on 

process and when due diligence 

documentation has to be updated, including 

where this technology is delivered through 

the internet or by tablet and smartphone 

applications. 

Each annex encompasses new rules 

stipulating that a firm must understand 

this technology if it is to use it and that it 

has evaluated that its use will result in 

compliance with the relevant regulatory 

requirements. The revisions to existing 

rules are intended to provide positive 

affirmation that new technologies have a 

part in this important process. 

The GFSC hopes that these changes 

will give firms the confidence to use new 

technologies. It doesn’t require firms to 

notify the Commission that they intend to 

use new technology. However, it will 

monitor take-up through the disclosures 

firms are asked to make in the annual 

financial crime risk return. 

“Guernsey is the first offshore 

jurisdiction to introduce such guidance. The 

GFSC should be congratulated in listening 

to industry and recognising that regulated 

businesses can introduce smart technology 

while continuing to apply the same 

rigorous standards the island has based its 

reputation on,” said Dominique Carpentier, 

Director at KYCme (Guernsey). n 


BL Guernsey 

island signs MoU 

with shanghai 

family office union 

Guernsey Finance, on behalf of Guernsey’s financial 

services sector, has signed a Memorandum of 

Understanding (MoU) with the Shanghai Family 

Office Union (SFOU). 

The agreement was signed by Kate Clouston, 

Director of International Business Development at 

Guernsey Finance, and Antoine Kuo, Chairman of the 

SFOU, at a co-hosted wealth management event in 

Shanghai in November last year. 

The MoU sets out a statement of intent to support 

business development initiatives between Guernsey and 

the SFOU, provision of office and meeting room space 

in Shanghai, organisation of events, employee exchange 

programmes and registration services. 

“Guernsey industry experts now have the 

opportunity to help Chinese firms understand 

international regulatory and compliance standards 

and procedures. The Union will in turn act as a conduit 

to a vast and growing network in mainland China,” 

said Clouston. 

“The MoU also shows a broadening of the 

relationship between Guernsey and China, which has 

continued to build since we first established our 

Shanghai office in 2007.” n 

funds masterclass to 

shed light on AIFMD 

Options for fund managers marketing into 

Europe under the Alternative Investment 

Fund Managers Directive (AIFMD) will be 

the focus of a Guernsey funds ‘masterclass’ in 

London on 3 February. 

The event, at the British Museum, will feature 

a panel debate with leaders from the funds 

industry and a keynote speech from Lord Flight. 

Discussion will centre on the benefits and suitability of national private 

placement (NPP) regimes and third-country passporting under AIFMD. 

Dominic Wheatley, Chief Executive of Guernsey Finance, said: 

“Given that both NPP and third-country passporting look set to be 

available in relation to Guernsey alternative investment funds and 

alternative investment fund managers for at least three years after the 

activation of passporting, our masterclass will examine which regime 

will be the preferred option for fund managers operating in the EU.” 

The panel session will be moderated by Robin Fuller of Guernsey 

Funds Consultancy. Panellists include Cathy Pitt, Corporate Partner of 

CMS Cameron McKenna; Shane Le Prevost, Chairman and Founder of 

Liberum; Storm Boswick, Managing Director of Brightwood Capital; 

and Emma Bailey, Director of the Investment Supervision and Policy 

Division at the Guernsey Financial Services Commission. 

The event – entitled NPP or third-country passport? – starts 

at 4pm and ends with a networking drinks reception at 6pm. 

For further information or to book a free delegate place, email 

Vicky Richardson at v.richardson@guernseyfinance.com or 

telephone +44 (0)1481 720071. n 

Funds grow but banking dips 

The total value of funds business in 

Guernsey grew by £4.9bn (2.2 per 

cent) during the third quarter of 2015. 

Latest figures from the Guernsey Financial 

Services Commission (GFSC) show that 

at the end of September 2015, the net 

asset value of all funds under management 

and administration in the island stood 

at £224.8bn. 

Guernsey closed-ended funds increased 

by £2.9bn (2.1 per cent) to £138.4bn, 

while Guernsey open-ended funds 

increased in value by £0.3bn (0.8 per 

cent) to £39.4bn. Non-Guernsey schemes 

– open-ended funds that aren’t domiciled 

in Guernsey but have some aspect of their 

management, administration or custody 

carried out on the island – also increased 

in value by £1.7bn (1.3 per cent) during 

the third quarter to reach £47bn. 

In total, the GFSC approved 19 new 

investment funds during the third quarter, 

comprising 14 closed-ended funds, two 

open-ended funds and three non-Guernsey 

open-ended schemes. This brought the 

total number of approvals for domiciling 

or servicing in Guernsey to 1,045. 

Figures for the banking sector, however, 

showed a decline. Total deposits fell to 

£81.6bn (1.7 per cent down on the 

previous quarter), with the number of 

banks on the island down one to 29. n 

island retains 

AA+ rating 

International credit rating agency 

Standard & Poor’s (S&P) has confirmed 

that Guernsey’s credit rating remains at 

its highest possible level. 

The ‘AA+ with a stable outlook’ 

rating is the highest a jurisdiction such as 

Guernsey, which does not have its own 

currency, can achieve. 

In its latest announcement, S&P said 

Guernsey had ‘a wealthy and open 

economy, generally strong institutional 

environment, and robust fiscal position 

based on a prudent fiscal framework and 

sizeable government assets.’ n 


BLjersey 

Stable Q3 for 

finance sector 

Funds and corporate activity in Jersey’s finance 

industry remained buoyant and banking business 

was stable in the third quarter of 2015, according to 

the latest figures for Jersey’s finance industry. 

Collated by the Jersey Financial Services 

Commission (JFSC) for the quarter to September 2015, 

the statistics show the net asset value of regulated 

funds under administration in Jersey increased to 

£218.8bn, the third highest level since December 2008 

and 6.5 per cent up on the September 2014 figure. 

Within the funds sector, alternative asset classes 

continued to perform well, with total alternatives 

business, including hedge, private equity, real estate and 

infrastructure funds, growing by 11.5 per cent year-onyear, 

and real estate and private equity values both 

increasing by four per cent on the quarter. 

The total number of regulated collective investment 

funds increased by 13 from 1,298 to 1,311 – there 

were also 126 active unregulated funds 

The banking sector displayed relative resilience 

despite ongoing global pressures in the quarter, with 

the total value of deposits in Jersey banking institutions 

falling by about one per cent to £131.8bn. 

Meanwhile, the corporate market was very active, 

with 717 company incorporations during the quarter – 

the second highest quarterly rate of incorporation in 

seven years. There are now 33,739 live companies on 

the register, the highest total figure since June 2009. n 

Monterey Insight 

issues funds review 

Findings from independent fund research 

company Monterey Insight, released at 

the end of November 2015, reveal the 

market shares of all service providers in 

Jersey’s fund industry to the end of June 2015. 

For fund administration services across 

domiciled and non-domiciled funds, State Street 

remained at the top of the table with $50.2bn in assets, followed 

by Aztec Group with $44.3bn and Saltgate with $33.4bn. 

Again, for domiciled and non-domiciled funds, BNP Paribas 

maintained its top position as the largest custodian, with $30.3bn 

in assets. JP Morgan, with $13.7bn, climbed to second (up from 

fourth last year), and SG Hambros Trust ranked third with $10bn. 

Among legal advisers, Mourant Ozannes remained in top spot, 

advising on 817 funds, followed by Carey Olsen with 479 and 

Ogier with 328. PwC is the largest auditor, with 472 funds, ahead 

of KPMG (259) and EY (172). Among fund managers, BlackRock 

Financial Management took the lead of Jersey domiciled schemes 

with $16.1bn of assets, followed by CVC Capital Partners 

($15.6bn) and ETF Securities ($13.6bn). 

“Jersey had a rather stable year in terms of total growth of 

assets, and actually showed a slight increase in the number of 

newly launched funds and new business coming to the island,” said 

Karine Pacary, Managing Director of Monterey Insight. 

“Additionally, in excess of 30 new promoters have chosen Jersey 

to establish their funds. Jersey continues to attract new investment 

and is regarded as a specialist in private equity funds, and is also 

competitive in alternative funds and real estate funds.” n 

jersey Aircraft Registry takes off 

Following the enactment of the Aircraft 

Registration (Jersey) Law 2014, 

Jersey’s first aircraft registry became 

operational in November. 

The Jersey Aircraft Registry (JAR), 

which will focus on registering new or 

nearly new high-value private and corporate 

aircraft, registered its first aircraft, a private 

jet. JAR will offer: 

● Registration of private and corporate 

aircraft 

● Registration of commercial aircraft engine 

mortgages 

● An online registration system, available 24 

hours a day (to be launched in Q3 2016) 

● A safe and comprehensive regulatory 

framework 

● Neutral nationality registration prefix 

ZJ- followed by three characters of choice 

● A competitive Scheme of Charges. 

Minister for Economic Development, Senator 

Lyndon Farnham, said: “The Jersey Aircraft 

Registry… will enable local businesses to 

broaden their offerings, which already 

includes the registration of companies, ships 

and other security interests. Revenue will be 

created through the fees charged by the 

Registry, and we hope to see new jobs created 

in financial, fiduciary and legal services. 

“There is also a longer-term goal of 

creating roles in technical positions, as we see 

maintenance and management organisations 

relocating to Jersey.” n 


BL Jersey 

Jersey and spain 

sign tax agreement 

Jersey and Spain signed a tax information exchange agreement (TIEA) at the 

Spanish Embassy in London on 17 November 2015. For Jersey, the 

agreement was signed by the Assistant Chief Minister, Senator Philip Ozouf. 

The tax information exchange agreement will come into force once the 

parties have completed their respective domestic procedures for ratification. 

Senator Ozouf said: “We attach great importance to the signing of this TIEA 

with Spain. While Jersey is not a part of the European Union, we are part of 

Europe and we have long pursued a good neighbour policy towards the 

Member States of the EU. It is also further evidence of Jersey’s full 

commitment to compliance with the current international standards on 

transparency and exchange of information for tax purposes.” n 

Pictured L-R: Spain’s Ambassador to the UK, Federico Trillo-Figueroa Martínez- 

Conde; the Spanish Embassy’s Financial Counsellor, Jose Manuel Gutierrez 

Delgado; Senator Philip Ozouf 

S&P reaffirms jersey’s 

AA+ credit rating 

Standard & Poor’s (S&P) has reaffirmed its ‘AA+ credit rating, with a stable 

outlook’ for the States of Jersey. This is one of the best that the credit 

ratings service awards. 

In its report, S&P noted: ‘The AA+ ratings on Jersey reflect our view of 

its mature political and institutional setting, flexible policy environment, 

wealthy economy and a healthy financial position underpinned by low debt 

and a high-net general government asset position.’ 

The report also stated that Jersey ‘has an open and wealthy economy’ and 

recognised that Jersey’s economy had grown in real terms in 2014, mainly 

underpinned by strong profits in the financial services sector. 

Treasury and Resources Minister, Senator Alan MacLean, said: “It is 

extremely positive news for Jersey that an international credit rating 

institution such as S&P continues to recognise our strong balance sheet. 

We have had a full and frank discussion about our fiscal position with them 

and our future plans have provided the comfort they need to maintain their 

high rating level. The outlook view remains stable, reflecting their expectation 

that Jersey’s economy will continue to grow.” 

The AA+ credit rating was first assigned in November 2013 so that the 

States could proceed with the £250 million bond earmarked to provide 

investment in affordable housing over the next 10 years. n 

population 

office releases 

application 

figures 

Figures showing the number of 

applications for registered and licensed 

staff, and how many were granted or 

refused by the States of Jersey’s Population 

Office, were released in late November. 

This coincided with publication of 

Guidance Notes outlining how decisions 

on individual applications are made to 

support the policies of the States Assembly. 

The highest number of permissions were 

in the finance and construction industries, 

and the highest number of refusals in the 

hospitality sector. 

A States of Jersey press release stated: 

‘Permissions were granted in all sectors, 

having considered the benefits to Jersey of 

individual applications. This is in line with 

the States’ policy of optimising economic 

growth by targeting migration which 

generates most social and economic value.’ 

The Guidance Notes outline support for 

seasonal permissions, in particular for the 

hospitality industry. ‘This is because these 

workers do not add to the permanent 

resident population,’ stated the release. 

The Notes also outline a commitment 

to improve the time it takes to process 

an application – from the standard 15 

working days to 10 working days – with 

an aspiration to further improve this target. 

Figures will be published in the new year 

showing how the Population Office is 

performing against these targets. 

The figures will be published every 

quarter on www.gov.je. n 


waitrose.com/sthelier 

Community 

Matters 

Every month we give our time and money to local communities. 

We donate £1000 to be shared by three good causes that you choose. 

Waitrose St Helier 

Supporting the community

THE AGENDA 

The Agenda is compiled by BL’s Fashion and 

Lifestyle Editor, Thom O’Dwyer, with additional 

material by Danny Cobbs, Peter Dean and 

Jeffrey Chinn of Hettich Jewellers in St Helier 

1. SHOOTING STAR 

No Hollywood A-lister is worth their 

salt these days until they have their 

own brand of booze, writes Peter 

Dean. We’ve had Brad and Angelina 

launch their bling Provençal rosé, 

Miraval, and Sean ‘P Diddy’ Combs 

releasing his own vodka brand. This 

month golfer Nick Faldo of all people 

has launched his own wine selection, 

the consumption of which will not 

necessarily improve your handicap. 

Not to be outdone, the latest star 

to join this exclusive set is Mr George 

Clooney. Casamigos is his own 

brand of tequila and comes in three 

varieties – blanco, reposado and 

añejo. It’s great neat, on the rocks or 

(apparently) straight from the bottle. 

Although George’s been making it 

for six years, he’s just started selling it 

retail – a launch not harmed one jot 

by him hand-signing each batch. At 

some launch events, he’s even shown 

up in person to deliver the first case. 

What makes this ultrapremium 

tequila better than 

average? Only the finest 

hand-selected Blue 

Weber agaves are used 

from Jalisco, Mexico; the 

agave piñas are ovenroasted 

for 72 hours rather 

than steamed for seven; 

better yeast is used; and the 

spirit fermented for twice as 

long. As for the label’s design, 

that’s inspired by an 

altogether earlier 

screen legend. “This 

was going to be like 

the bottles in old 

John Wayne movies,” 

says George, “where 

you slide the bottle 

down the bar, pull out 

the cork with your 

teeth and pour 

yourself a shot.” Class. 

£54-£57 a bottle, 

www.amazon.co.uk1 

INSIDE THE AGENDA: FOOD, MUSIC, FURNITURE, HOMEWEAR, BEAUTY, FRAGRANCES, 

FASHION, FOOTWEAR, ACCESSORIES, JEWELLERY, DRINKS, CARS 

Everything you need for a more stylish life. 

➨ 


2 

THE 

AGENDA 

2. GOLDEN GODDESS 

No matter how you spell it – using 

a ‘u’ or a ‘v’ from the classical 

Latin alphabet the famous Italian 

jewellery and luxury goods 

company prefers – BVLGARI 

(aka BULGARI) is synonymous 

with the ultimate in high-class, 

high-grade, high-quality, 

high-living opulence. Its latest 

fragrance, Goldea, is a powerful 

echo of virtually everything the 

brand represents and personifies. 

It is, in fact, a manifesto of 

Bulgari’s style. Cleopatra – who 

is said to have slept wearing a 

solid gold mask to preserve her legendary 

beauty and flawless complexion – is the 

scent’s intoxicating muse. And the eternal, 

almost hypnotic obsession that the 

precious metal symbolises is at the core 

of the scent’s seductive inspiration. 

This fragrance was created for the 

contemporary goddess – a passionate, 

sensual, charismatic, provocative woman 

determined to seize her own destiny. 

Key notes include crystal musk, orange 

blossom, bergamot, jasmine, ylang ylang, 

patchouli, amber and musk. A heady 

mixture that captures the regal, sensual, 

luminous essence of the precious metal 

that it is named after. 

Eau de parfum, £102 for 90ml; 

£74 for 50ml; £37 for 25ml, available 

nationwide from 15 February 2016 

4 

4. PERFECT TOUCH 

These sporty, butter-soft leather driving 

gloves have got to be the ultimate in 

winter handwarmers. Gucci’s leather 

and cashmere gloves embody the 

super deluxe label’s sophisticated Italian 

aesthetic focusing on elegant, timeless 

design and luxurious quality make. The 

gloves – which also come in black – have 

a knitted cashmere underlayer that is 

trimmed with a ribbed cuff. The famous 

‘GG’ logo is prominently featured on the 

sporty wrist strap closing. Treat yourself, 

guys, and make your hands feel special. 

£330, www.matchesfashion.com 

33. BAGS OF STYLE 

Every season there’s an ‘It’ bag that every fashionista in the galaxy 

just has to have, no matter what the cost. This time round it’s the 

Mayfair Bag, which is the result of an inspired collaboration between 

ultra-classic luxury leather goods brand Aspinal of London and cult 

French fashion brand être cécile. The latter is a new breed of 

contemporary clothing brands that combines the clean, fresh lines 

of French style with injections of humour of British street fashion. 

The boxy proportions of this lady-like handbag are a perfect fusion 

of classic chic and tongue-in-chic street-style. Handmade in Italian 

calf leather and accented with boldly coloured panels, it’s lined in 

shimmering grosgrain and even has a built-in compact mirror and 

a central zip compartment. Naturally, it features Aspinal’s trademark 

shield for the black enamel lock clasp. This handbag ticks all the 

right boxes, and has already reached icon status. 

£695, www.aspinaloflondon.com 


55. ALL SHOOK UP 

For the man who, like James Bond, appreciates the finer 

things in life and likes his very dry martinis shaken not stirred, 

and with a twist, look no further. This timeless and decidedly 

deluxe solid sterling silver and 24-carat gold Aston Martin 

Martini Set has been designed and produced by one of 

Britain’s finest top-end silversmiths, Grant MacDonald. 

Blending centuries-old techniques and advanced modern 

technology, it takes highly trained master craftsmen more 

than 30 hours to handcraft just one set. The lines and curves 

that have defined Aston Martin throughout its history 

epitomise refined, discerning and highly sophisticated 

connoisseurship. Each piece in the set carries the official 

Aston Martin collection hallmark and comes in an elegant 

handmade black and grey case, along with a certificate of 

authentication. With a limited edition of just 100 having 

been made, we’re really talking heirloom material here. 

£7,850, www.grantmacdonald.com 

6 

6. ALL WOOL AND GOOD 

Inspired by their home town of Buckfastleigh, 

Devon – once a thriving part of the British 

woollen industry – husband and wife design 

duo Justin and Hannah Floyd have developed 

an ingenious and revolutionary way of working 

with wool. Instead of using coarse wool from 

upland sheep for carpets, they’re using it to 

make furniture. No joke. They call it Solidwool 

and it’s a strong, beautiful and 100 per cent 

natural composite material. Think fibreglass 

but made with wool. This durable and 

groundbreaking medium is then used to 

create beautiful products to last and cherish. 

The Hembury Range of furniture includes 

simple, classic, functional pieces. Pictured here, 

the Hembury Chair in Solidwool, with its 

simple lines and timeless appeal, was inspired 

by the iconic Eames plastic side chair created 

in fibreglass in 1950. It’s shown here with a 

rustic tanned sheepskin rug. This forwardthinking 

design team may be tucked away in 

Devon, but they’re futuristic trailblazers. 

Chair, £395; rug, £85, www.solidwool.com 

january/february 2016 75 

➨

THE 

AGENDA 

8. KISS AND MAKEUP 

The Yves Saint Laurent Kiss and Love 

Multi-Usage Make-Up Palette not only 

comes in a chic gold case embossed with 

the iconic YSL logo, it also has the famous 

red hot lips print introduced by the master 

himself in 1971 and recently rehashed by 

current YSL maestro Hedi Slimane. It gives 

off a real Valentine’s Day vibe and is almost 

too gorgeous to use. Shimmering gold, dark 

brown, silver and champagne eye shadows 

create glamorous smoky eyes. Lips are 

saturated with either wicked pure red or 

playfully demure natural pink, both with 

an irresistible high-shine finish. Finally, the 

cheeks are lightly dusted with a delicate, 

fresh coral tone delivering a playfully 

naughty glow. A must-have make-up palette 

to help you rock the night away in glamour. 

£59, available nationwide 

7 8 

7. SPEAKERS OF THE HOUSE 

Venerable Scottish hi-fi manufacturer 

Linn has come up with just what the 

well-dressed home needs: an active 

speaker system – the Series 5 – clad 

top to toe in a wide range of fashionably 

fabricated coats. These include a totally 

on-trend heritage Harris tweed jacket 

(pictured here), ready for a pheasant 

shoot or Vivienne Westwood’s catwalk. 

Putting aside the ‘fluff’ though, let’s 

turn to the serious stuff. In the Linn 520 

System there’s no amplifier or receiver 

‘between’ the speakers, but there is a 100W 

amp and receiver inside, all controlled 

wirelessly via your iPad or PC. The Series 5 

also uses algorithms to adjust the sound 

to the shape of your room – even to 

what the walls are made of. 

As a result, the sound is astounding. 

The system is built for digital tracks stored 

at CD quality and above, streamed via 

ethernet cable from a central unit you 

can hide away in a cupboard. It offers a 

sparkling sound that will remind all real 

hi-fi aficionados what proper systems 

sounded like before the iPad arrived 

and messed it all up. 

Be warned though. The 502 System – 

decor-matching coats and all – doesn’t 

come cheap. 

£9,250, www.linn.co.uk 


9. NAILED IT 

Beauty brand Palette London could 

revolutionise the at-home manicure 

market with its customised nail varnish 

service. With the Create Your Own Nail 

Paint Collection, you can concoct your 

own must-have shade. There are dozens 

of colour permutations at your fingertips. 

Every kit contains five 14ml bottles of nail 

varnish, including red, yellow and blue 

primary colours, plus neutral shades of 

black and white. You also get five 3ml 

pipettes, five 5ml empty bottles and 10 

basic formulas to get you started. You’ll 

soon be the Michelangelo of the manicure 

table! Should you prefer someone else to 

do the dirty work for you – though it won’t 

be half as much fun – there’s the Bespoke 

Nail Paint service. Just send them a fabric 

swatch, an image from a magazine, or 

even a smudge of your favourite lippy, 

and the exact colour will be replicated. 

Alternatively you can select a shade from 

their special colour wheel online. 

Create Your Own Nail Paint Collection 

Kit, £50; Bespoke Nail Paint, £50, 

www.palettelondon.com 

11 

9 

10. HEART AND SOUL 

With a number of prestigious awards under her belt – as well 

as lucrative collaborations with top brands Peroni, Frame Chain 

and Smythson – jewellery designer Jessica de Lotz has hit the 

big time. Her quirky, narrative-inspired designs are a modern 

reflection of the past, embellished with playful heraldry, Victorian 

wax seals and vintage dolls’ winking eyes. Her work has attracted 

a growing celebrity fan base, including Helena Bonham Carter, 

Daisy Lowe, Paloma Faith and Samantha Cameron. Emotive, 

evocative, and intriguingly romantic, the necklace and matching 

bracelet pictured here are from the Across the Waters collection, 

based on the theme of cherished love exchanged. 

Either – or both – would make the perfect Valentine’s Day gift for 

that significant other. They are made from hallmarked sterling 

silver, plated with 18-carat rose or yellow gold. The hand-stamped 

‘love forever’ Victorian wax seal is topped with an ornamental 

scroll top and suspended from a delicate chain with the JdL 

trademark on the fob. What girl could resist? 

Necklace, £215; bracelet, £197, 

www.jessicadelotz.co.uk 

10 

11. ALL WRAPPED UP 

Guys, your best friend this winter is a 

shearling coat. This classic menswear 

material has a definite 1970s macho 

vibe, and it’s been on every AW15 

catwalk from London to Timbuktu. 

Not just a coat or jacket lining, 

it’s also been used for trims on 

bags, boots and even knitwear, 

both dyed and in its natural 

furry form. It’s a functional, 

hard-wearing fashion favourite 

that never fails to turn heads. 

Another big plus is that 

you’ll be wearing it for years. 

Like fine wine, shearling – 

tanned sheepskin – only 

improves with age. 

So if you’re going to 

buy just one coat or 

jacket this winter, 

make it a shearling. 

The charcoal dyed 

shearling duffle coat 

pictured here has an attached 

hood, toggle fastening and roomy 

front patch pockets and was 

designed by Joseph. And as it’s 

totally reversible, you’re getting two 

coats for the price of one. 

£1,595, www.matchesfashion.com 

➨ 


THE 

AGENDA 

12 

12. BOXSTER CLEVER 

Powered by the same 3.8-litre engine found 

in the 911 Carrera S, the new Porsche 

Boxster Spyder is sleek, slick and full of 

intent, writes Danny Cobbs. Streamliners 

behind the headrests – a stylisation that 

evokes the Porsches of a bygone age – 

transform this version into an easily 

recognisable yet instantly different car 

from the one it’s been based on. 

It trumps many of its rivals with some 

notable performance figures – 0-62mph in 

4.5 seconds and a 180mph top speed. But 

it’s the way it takes all that power and turns 

it into speed that makes this two-seater 

convertible so impressive. A greater power- 

to-weight ratio – it’s now 30kg lighter 

than a regular Boxster – wider rear wheels, 

lowered suspension and a mechanical 

differential take this car to a new level of 

competency. It’s amazingly precise and 

surefooted, guaranteeing the tightest 

of corners are executed to perfection, 

while displaying an unyielding and 

endless enthusiasm to please. It really 

does exceed all expectations. 

The standard model comes in at just over 

£60,000, which includes a six-speed manual 

transmission, race-derived carbon-shell 

seats and Porsche’s Sports Chrono package. 

However, certain onboard niceties, such as 

air conditioning and an audio system – all 

of which have been stripped out to save 

weight – are now found on the options list. 

For far too long the Boxster was 

considered a pastiche – a dumbed-down 

Porsche constructed to a sell to the masses 

and devoid of any sense of its own identity. 

Conversely, the Boxster Spyder represents 

something thrillingly new. It’s relevant, 

contemporary and seductive. 

Put simply, this car is the difference 

between nearly good and really good. 

And it’s also by far the prettiest car that 

Porsche has built in decades. 

From £60,459, www.porsche.com/uk 


THE 

AGENDA 

13. SIGNATURE STYLE 

A partnership between one of the world’s leading design minds and a heritage 

brand famous for its craftsmanship was always going to cause waves, writes 

13 

Jeffrey Chinn. So it’s no surprise that the collaboration between Marc Newson 

and Montblanc is attracting attention as a reinvention of a classic, reworking 

the world of luxury writing instruments and moving it into brand new territory. 

Described as the one of the most influential designers of his generation, 

Newson has brought his revolutionary eye to writing accessories, working with 

Montblanc to engineer a pen that’s not only striking to look at, but intuitively 

simple to use. Says Newson of the Montblanc M range: “Writing becomes a 

sensory experience.” Featuring a seamlessly polished shape, an engraved 

ruthenium and rhodium nib, and a magnetic cap that slides perfectly into 

place, this is set to become a classic. The full range includes a fountain pen, 

rollerball, ballpoint, screenwriter, and a fineliner for technical drawing. 

Marc Newson Montblanc M, from £236, www.hettich.co.uk 

14. BOTTOMS UP 

As more and more designer brands take note of the 

men’s fashion underwear market, D Hedral goes 

well beyond the basics to provide underwear that 

looks great and keeps the masculine form in mind. 

Hailed as the new ‘Wonderbra of men’s underwear’, 

D Hedral’s innovative, patented, bum-boosting 

AngleFit technology – an angled Y-band at the back – 

creates the perfect fit for the manly derrière. Moving 

past all the cheesy gimmicks promising to ‘enhance’ 

this or ‘lift’ that, this seamless underwear is designed 

quite simply to be a man’s second skin. Three bum 

shapes define the angles and are divided into groups 

according to roundness – slim, average and full. 

Traditional underwear only accounts for waistline 

measurements, but with D Hedral’s premium pants, 

after selecting your usual waist size, you choose 

your actual bum size. Pictured here, made from 

knitted seamless lightweight Italian microfibre, 

the white-on-white Gigolo Joe II trunk is an 

easy-to-wear classic. As the brand’s advertising 

logo states: ‘AngleFit re-curves a classic’. 

£35, www.dhedral.com 

14 

www.blglobal.co.uk january/february 2016 79 

➨

15 

THE 

AGENDA 

15. DIAMONDS ARE FOREVER 

To celebrate its 200th anniversary in 2015, revered knitwear giant Pringle of Scotland has 

launched Deconstructed, an interactive online platform that allows visitors to customise 

the brand’s iconic ladylike twinsets or the golfer’s favourite argyle pullover. True classic 

styles that defy fickle fashion-forward trends, colour being the key. From neutrals to neon, 

Deconstructed’s extensive colour menu allows you to make a total tonal transformation 

from sleeve to trim. For those experiencing a creative Design-It-Yourself slowdown, the 

Deconstructed Style Icon Designs section offers an impressive array of inspiration. 

Notable collaborators include superstar Tilda Swinton, shoe designer to the stars 

Manolo Blahnik, actor Luke Treadaway, artist David Shrigley (whose Argyle pullover 

is pictured here) and GQ Editor-in-Chief Dylan Jones, among others. 

All bespoke cashmere knitwear is crafted in Scotland and is ready within eight weeks. 

The same time frame applies to the Style Icon Designs, though prices for the latter come 

in slightly cheaper than the true bespoke knitwear. Despite being the centrepiece of the 

brand’s landmark celebrations, Deconstructed will continue well past the bicentennial year. 

Argyle pullover, £995, www.pringledeconstructed.com 

16 

16. WHAT A SMACKER 

This ring has to be the perfect present for the lady 

in any man’s life come Valentine’s Day. Created by 

jewellery designer to the stars Solange Azagury- 

Partridge, the original ring from her Hotlips collection 

was first released in 1995 and has been snapped up by 

a gaggle of showbiz luminaries – Scarlett Johansson, 

Lady Gaga, Katy Perry, Penelope Cruz, Cara 

Delevingne and Lily Allen among them. 

The original model carried a four- or 

five-figure price tag, depending on the type 

of gold used. However, thanks to the 

designer’s link-up with e-commerce 

giant Amazon – a partnership now in its 

second season – this iconic piece of jewellery 

symbolising the power of love and never-ending 

kisses can be yours for a fraction of the original price. 

Instead of gold like the original, this one is in sterling 

silver with a hand-painted lacquer finish. Who cares 

though? It’s only the lips that speak! 

£69, www.amazon.co.uk 

17. FIESTA ON A PLATE 

Tex-Mex joints – all sombreros, tequila slammers and drunken 

hen parties – have done little for the reputation of Mexican food. 

And burritos, nachos, chili con carne and hard-shell tacos are all 

Tex-Mex inventions. Thankfully, people are discovering authentic 

Mexican cuisine, a kaleidoscope of regionally diverse and vibrant 

tastes dating back to the Aztecs. Growing demand for the real thing 

has been driven by the rising popularity of Mexico as a tourist 

destination, and many authentic Mexican restaurants have opened 

in the UK. Masterchef winner Thomasina Miers was one of the first 

with Wahaca; another is East London cantina Boho Mexica. Now an 

explosion of Mexican home cooking in the US is starting to spread 

here too. Check out online foodie paradise SousChef – its Mexican 

Fiesta Hamper has all the necessaries to rustle up an honest-injun 

Mexican blow-out. It also comes with the holy grail of genuine 

Mexican cooking, The Essential Cuisines of Mexico by Diana Kennedy, 

who in the US is hailed as the Julia Child [read Delia Smith] of 

Mexican cuisine. Buen apetito, amigos! 

£80, www.souschef.co.uk 

17 


THE 

AGENDA 

18 

18. HAPPY FEET 

The Golfito shoe from Christian 

Louboutin is a postmodern take 

on juiced-up trainers. This is a witty 

hybrid combo of low-top college guy 

sneakers and the classic all-American 

Ivy League jock saddle shoe. Made 

from different colour wing-tipped 

panels of leather and canvas, the shoe 

sits on a thick, white rubber midsole. 

Think of them as the ideal smart/ 

casual go-between. They go perfectly 

with skinny fit jeans and a cottonpiqué 

polo shirt. And like their female 

counterparts, do these kool krazy 

kolour kicks sport the designer’s 

trademark sole? Buy ‘em and see! 

£495, www.matchesfashion.com 

19 

19. POWER DRESSING 

The power suit is back! It’s no secret that the trouser suit – or 

pantsuit, as our American cousins call it – is having a magic 

moment right now. Since its major emergence during the sexual 

revolution of the late 1960s and 70s, this fashion statement has 

undergone any number of major changes and reinterpretations. 

The perfectly tailored trouser suit is ideal for the working woman, 

and will take her from work and formal meetings right through to 

after-hours drinks and parties. The look will also carry on into the 

spring and summer months in a number of new, reworked guises. 

Most of the new trouser suits – like the one shown here by brilliant 

American designer Derek Lam – are being sold as separates. 

The sharply tailored jacket is made in Italy from black and white 

tweed with subtle pink flecks. It’s elegantly cut so that it sculpts the 

body, from the mannish notch lapels to the nipped-in waist. And 

the oversized black, felt buttons add a charmingly feminine finish. 

Combined with matching leg-lengthening, wide-cut trousers, 

this full-on trouser suit spells head-to-toe success. 

Jacket, £1,090, and matching trousers, £590, 

www.matchesfashion.com 


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DIRECTORY 

TO GET YOUR FIRM LISTED IN THE DIRECTORY CONTACT CARL METHVEN 

+44 (0) 1534 615886 / +44 (0) 7797 796377 OR CARL.METHVEN@BLGLOBAL.CO.UK 

82 January/february May/June 2015 2016 www.blglobal.co.uk

Directory 

To advertise in the directory in print or online contact Carl Methven on 

+ 44 (0)1534 615886 or carl.methven@blglobal.co.uk 


Training to improve your business 

performance 

ALX Training is dedicated to making sure 

that your staff have the tools they need to do 

their jobs efficiently and effectively. 

Our extensive range of courses covers all 

Microsoft Office products including Excel, 

Outlook, Powerpoint, Word, Project and 

Visio as well as training on the major 

bookkeeping packages: Sage and 

Quickbooks. 

We also offer a wide range of online courses 

through our exclusive partnership with 

LearnDirect. From Microsoft Office Expert 

exams to short focused IT modules, you can 

use our range of online courses to provide 

your staff with a truly flexible way to learn. 

Where software packages are unique to your 

business, we are able to create courses that 

will effectively train both your customers 

and staff on bespoke systems, getting the 

most from your investment. 

Operating with complete flexibility - you can 

choose to use our training rooms or we can 

come to your workplace - we deliver courses 

in short two or three-hour sessions that 

ensure learning is maximised whilst time out 

of the office is minimised. 

For more information, please contact: 

Alex Morel 

Managing Director 

Hilary House 

19 Hilary Street 

St Helier 

JE2 4SX 

01534 873785 

07797 774676 

alex@alxtraining.com 

www.alxtraining.com 

Appleby is the leading provider of offshore 

legal, fiduciary and administration services. 

Uniquely positioned in the key offshore 

jurisdictions of Bermuda, BVI, the Cayman 

Islands, Guernsey, Isle of Man, Jersey, 

Mauritius and the Seychelles, as well as the 

international financial centres of London, 

Hong Kong and Shanghai. We are also the 

only firm to have offices in all three British 

Crown Dependencies. 

Our services include: 

l Corporate 

l Dispute Resolution 

l Private Client & Trusts 

l Property 

Members of the Jersey and Guernsey offices 

regularly advise London City and 

international law firms on all legal aspects of 

offshore corporate, finance and investment 

fund transactions and arrangements in the 

Channel Islands. 

For more information visit our website 

www.applebyglobal.com/our-expertise 

Michael Cushing 

Managing Partner, Jersey 

+44 (0)1534 818 395 

mcushing@applebyglobal.com 

Gavin Ferguson 

Managing Partner, Guernsey 

+44 (0)1481 755 603 

gferguson@applebyglobal.com 

Ashburton Investments is a new generation 

investment manager. We are the investment 

management arm of the FirstRand Group, one 

of Africa’s largest financial services companies. 

Our offering spans traditional and alternative 

investment strategies, as well as active and 

passive investment styles. 

The strength of our investment proposition is 

based on our unique ability to leverage 

investment thinking and capability across the 

FirstRand Group, to offer retail or institutional 

clients unique investment opportunities. With 

us, investors can gain access to more sources 

of return, broader investment capabilities, 

considered risk management and deeper 

investment insights. We are experienced 

emerging market investors in Africa, India and 

China, with a proven track record in multi asset 

investing. 

Our assets under management total 

approximately US$10 billion as at June 2014, 

and we have international reach with offices in 

the Channel Islands, South Africa, the United 

Kingdom, United Arab Emirates and India. 

To find out how Ashburton Investments can 

help you access more opportunities, 

contact us today on: 

+44 (0)1534 512000 

enquiries@ashburton.com 

www.ashburtoninvestments.com 

➔ 


Directory 

Independent and Professional 

We provide a full range of management 

services to our domestic and international 

private clients. 

Family office – bespoke assurance 

Wealth management – your strategy 

Fiduciary services – impartiality with vision 

Corporate services – attention to detail 

Good governance – a helpful eye 

We aim to assist in the provision of personal 

service to meet your requirements, being 

vigilant and proactive in the face of a fast 

changing legal, economic and fiscal 

landscape. We can provide the focus to your 

solution. Try us. 

Our team has many years of experience 

dealing with a wide range of clients in 

different countries. We look to provide good 

corporate governance to achieve your aim. 

Contact us: 

Mrs Áine O’Reilly, ACCA – Client Director 

aoreilly@baccata.co.je 

Peter Rice – Head of Business 

Development 

price@baccata.co.je 

Carole Dodge – Senior Trust Manager 

cdodge@baccata.co.je 

Wendy Warder – Senior Trust Manager 

wwarder@baccata.co.je 

Tel: +44 (0)1534 870670 

Licensed by the Jersey Financial Services 

Commission in the conduct of trust company 

business 

Bright. Commercial. Responsive. 

Law firm, Benest Corbett Renouf, provide 

solutions to a wide range of legal issues. 

We may be Jersey’s newest legal practice, 

but we draw on the combined wealth of 

experience of our partners and fee earners in 

the following practice areas: 

l Litigation 

l Personal Injury and Clinical Negligence 

l Family Law 

l Property & Planning 

l Wills & Estates 

l Trust Law 

We aim to provide the best possible advisory 

and advocacy services to clients, tailored to 

their particular needs. 

We are proud of our ability to resolve matters 

by giving legally sound, commercially 

practical advice at sensible cost. 

For further information about how we can 

assist you, please contact: 

David Benest, Managing Partner 

david.benest@bcrlawjersey.com 

Tel: +44 (0) 1534 760 860 

www.bcrlawjersey.com 

Cazenove Capital Management is the wealth 

management business of the Schroder Group 

in the Channel Islands, the UK and in Asia; and 

is a leading provider of specialist financial 

solutions to private clients, family trusts, 

companies, charities and pension plans. 

We offer exceptional levels of personal service 

from our team of experienced specialists, 

whose role is to tailor our range of wealth 

management services to meet our clients’ 

individual circumstances and objectives. Our 

range of services includes personalised 

discretionary and advisory investment services, 

wealth planning, cash administration and 

specialised lending. 

Overall, we believe that our complete range of 

services and the quality of our private client 

specialists, together with the stability and 

depth of investment resource of the Schroder 

Group, give us an unparalleled ability to look 

after our clients. 

For further information on our services, 

please contact: 

Guernsey 

Julian Winser, CEO 

julian.winser@cazenovecapital.com 

+44(0)1481 703700 

Jersey 

Matthew Sutton, Client Director 

msutton@cazenovecapital.com 

+44 (0)1534 848200 

www.cazenovecapital.com/ci 

Cazenove Capital Management is a trading name of Schroders 

(C.I.) Ltd which is licensed under the Banking Supervision 

(Bailiwick of Guernsey) Law 1994 and the Protection of Investors 

(Bailiwick of Guernsey) Law 1987, as amended. Schroders (C.I.) 

Ltd is a participant of the Guernsey Banking Deposit 

Compensation Scheme. Registered address at Regency Court, 

Glategny Esplanade, St Peter Port, Guernsey GY1 3UF, 

(No.24546). Terms and conditions apply. For your security, 

communications may be taped or recorded. 





Deloitte LLP 

Deloitte LLP offers professional services to the 

UK and European market. The company has 

the broadest and deepest range of skills of any 

business advisory organisation and employs 

over 14,400 exceptional people in 28 offices in 

the UK and Switzerland. 

We provide professional services and advice to 

many leading businesses, government 

departments and public sector bodies and 

publish many influential studies and thought 

leadership pieces. 

Deloitte LLP employs 160 professionals across 

the Jersey, Guernsey and the Isle of Man 

offices. It is the UK member firm of Deloitte 

Touche Tohmatsu Limited, a UK private 

company limited by guarantee, and its global 

network of 150 member firms, each of which is 

a legally separate and independent entity. 

Deloitte provides audit, tax, consulting, and 

financial advisory services to public and 

private clients spanning multiple industries. 

Deloitte brings world-class capabilities and 

high-quality service to clients, delivering the 

insights they need to address their most 

complex business challenges. 

For further information please do not 

hesitate to contact: 

John Clacy, Partner, Guernsey 

Email:jclacy@deloitte.co.uk 

Phone +44 (0) 1481 724011 

Greg Branch, Partner, Jersey 

Email: gbranch@deloitte.co.uk 

Phone: +44(0)1534 824325 

www.deloitte.com 

About EY 

EY is a global leader in assurance, tax, 

transactions and advisory services. The 

insights and quality services we deliver help 

build trust and confidence in the capital 

markets and in economies the world over. 

We develop outstanding leaders who team 

to deliver on our promises to all of our 

stakeholders. In so doing, we play a critical 

role in building a better working world for our 

people, for our clients and for our 

communities. 

Our strong network has enabled us to build 

close working relationships with our 

colleagues in EMEIA and across the world. 

This allows us to respond quickly to our CI 

clients’ needs, drawing upon our industry 

experience across all our services lines. 

To discuss how we can support your 

business, please contact one of our 

partners below: 

Mike Bane, Partner, Assurance and TAS 

E: mbane@uk.ey.com T: 01481 717435 

Andrew Dann, Managing Partner, 

Assurance 

E: adann@uk.ey.com T: 01534 288655 

Geraint Davies, Partner, Assurance 

E: gdavies11@uk.ey.com T: 01534 288639 

Chris Matthews, Partner, Assurance 

E: cmatthews@uk.ey.com T: 01534 

288610 

David Moore, Partner, Assurance and 

Advisory 

E: dmoore@uk.ey.com T: 01534 288697 

Peter Willey, CI Head of Tax 

E: pwilley@uk.ey.com T: 01534 288 212 

Wendy Martin, Partner, Tax 

E: wmartin1@uk.ey.com T: 01534 288 298 

Grant Thornton Limited is a leading Channel 

Islands accountancy and consultancy 

practice with offices in Guernsey and Jersey. 

We are the Channel Islands member of Grant 

Thornton International, one of the world’s 

leading organisations of independently 

owned and managed accounting and 

consulting firms. We provide a range of 

services in the Channel Islands that include: 

l Audit 

l Accounting services 

l Insolvency, Recovery and Reorganisation 

l Forensic accounting 

l Data forensics 

l Out-sourced Accounting and Payroll 

services 

l Private Client services 

l Tax services 

l Business Risk services 

For more information please contact: 

JERSEY OFFICE 

Adam Budworth 

Director 

Business Advisory Services 

E Adam.budworth@gt-ci.com 

T +44 (0) 1534 885885 

www.gt-ci.com 

GUERNSEY OFFICE 

Dave Clark 


E Dave.clark@gt-ci.com 

T +44 (0) 1481 753400 

www.gt-ci.com 

David White, Head of Tax, Guernsey 

E: dwhite1@uk.ey.com T: 01481 717 445 

➔ 


Directory 


ONLINE 

DIRECTORY 

THE ONLINE DIRECTORY THAT 

WILL GET YOUR FIRM NOTICED. 

With a profile summary on 

every press release, and a 

historical press release 

archive linked to your 

directory entry, 


is the place to be 

Only £150 

per annum 

TO GET YOUR FIRM LISTED IN 

THE DIRECTORY CONTACT 

CARL METHVEN 

+44 (0) 1534 615886 / 

+44 (0) 7797 796377 OR 

CARL.METHVEN BLGLOBAL.CO.UK 

i2Office Guernsey offers a more flexible and 

lower cost alternative to the traditional long 

term lease with prestige serviced offices and 

meeting space in Royal Chambers on St 

Julian’s Avenue, St Peter Port, Guernsey. 

i2Office provides high quality serviced 

offices for rental on flexible, competitive 

terms with top-grade technology services. 

The offices can accommodate all sizes of 

operations, from small start-up teams to 

companies looking to house more than 50 

people, either for a project, an interim 

period whilst refurbishing or moving offices, 

or for a long term real estate solution. 

i2Office Guernsey also offers a business 

lounge plus meeting space to 

accommodate board meetings, seminars, 

training and events for 2 to 150 people. 

i2Office operates high quality serviced 

offices and meeting rooms in over 25 

locations in the UK, including Mayfair and 

the City of London as well as major cities 

such as Birmingham, Edinburgh, Glasgow, 

Leeds and Manchester. 

For further information please contact: 

Michelle Morley 

General Manager 

i2Office Guernsey Ltd 

The Rotunda 

Royal Avenue 

St Peter Port 

Guernsey 

GY1 2HL 

Tel: 01481 760000 

Email: michelle.morley@i2office.co.uk 

www.i2office.co.uk 

The Intertrust Group is a global quality 

leader in the trust and corporate services 

sector, providing a broad range of 

specialised administrative services to 

multinational corporates, financial 

institutions, alternative investment funds 

and private clients from every corner of 

the world. 

Intertrust in Guernsey is one of the Channel 

Islands leading fiduciary companies offering 

a range of trust and corporate services, fund 

administration services, taxation services 

and compliance out-sourcing services. With 

over 130 experienced and highly qualified 

staff and a presence in Guernsey which 

goes back to 1900, Intertrust Guernsey 

can provide professional, personal and 

multi-jurisdictional services for clients all 

over the world. 

For further information, please contact: 

Intertrust Guernsey 

P O Box 119, Martello Court, 

Admiral Park, St Peter Port, 

Guernsey GY1 3HB 

Phone: 44 (0)1 481 211 000 

E-mail: guernsey@intertrustgroup.com 

www.intertrustgroup.com/en/locations/ 

guernsey 





A leading accountancy practice, with offices 

based in Jersey and Guernsey, KPMG in the 

Channel Islands provide audit, tax and 

financial advisory services. 

KPMG’s global network enables us to draw on 

our international resources and skills to meet 

our clients’ needs. We address complex 

business challenges with methodologies and 

processes spanning markets and national 

boundaries. 

Fundamental to KPMG’s approach is our 

focus on industry sectors. Our vision is simple, 

to turn knowledge into value for the benefit of 

our clients, people and capital markets. 

For further information please contact: 

Neale Jehan 

Head of Audit 

njehan@kpmg.com 

Andrew Quinn 

Deputy Head of Audit, 

andrewquinn@kpmg.com 

John Riva 

Head of Tax 

jriva@kpmg.com 

Tony Mancini 

Executive Director, Tax 

amancini@kpmg.com 

Ashley Paxton 

Head of Advisory 

ashleypaxton@kpmg.com 

Robert Kirkby 

Executive Director 

rkirkby@kpmg.com 

www.kpmg.com/channelislands 

Minerva is a family owned business that has 

been in existence in Jersey for over 35 years. 

As a leading independent provider of trust, 

corporate and fund administration services, 

we focus on internationally active clients 

located in sub Saharan Africa, India, the GCC 

and Europe. 

We firmly believe in the value of personal 

relationships and are familiar with how our 

clients and professional intermediaries 

operate from a cultural and business 

perspective within these regions. 

In addition to Jersey, we provide services 

from a number of offices based in key 

jurisdictions including London, Geneva, 

Mauritius, Dubai, Singapore and 

Amsterdam, as well as affiliate offices in 

Kenya, India and New Zealand. 


John Wood 


Minerva Trust & Corporate Services 

Limited 

PO Box 218 

43/45 La Motte Street 

St Helier 

Jersey JE4 8SD 

Channel Islands 

T +(0)1534 702930 

E john.wood@minerva-trust.com 

www.minerva-trust.com 

As a full-service law firm, Parslows regularly 

act for clients in all fields of law from 

corporate commercial trust and commercial 

litigation to conveyancing, personal injury 

claims, family law, wills and probate. 

Whatever your needs, be you a corporate 

client or an individual instructing a lawyer 

for the first time, you will find Parslows 

lawyers and staff efficient, experienced and 

approachable. Above all, you can be sure 

that we will work in partnership with you to 

reach a positive outcome. 

Our lawyers are tenacious in litigation and 

pragmatic on transactional matters. Our 

forward thinking, imaginative and 

meticulous attitude has ensured that we 

have built a growing network of loyal clients. 

Have a look at our website to find out more 

at parslowsjersey.com 

For further information please contact 

Dispute resolution and Court work 

rebecca.morley-kirk@parslowsjersey. 

com 

Corporate Commercial Trust 

mason.birbeck@parslowsjersey.com 

Personal legal services 

natalie.jenner@parslowsjersey.com 

Property and conveyancing 

priya.jobanputra@parslowsjersey.com 

Risk & Regulatory 

chris.austin@parslowsjersey.com 

SME 

carl.parslow@parslowsjersey.com 

Parslows, 17 Broad Street, St Helier, JE2 3RR 

01534 630530 

www.parslowsjersey.com 

➔ 


Directory 

Specialty: Bespoke IT Development & 

Business Consultancy 

Puritas is an award-winning provider of 

intuitive software and business solutions for 

the financial services industry. 

Specifically designed to meet the increasingly 

complex accounting, compliance, and 

reporting needs of our clients, all software 

features robust audit and control capabilities 

which can be easily updated to reflect 

changes in the regulatory environment. 

Our products include: 

l PureFunds - a unitized product platform 

specifically designed to support many 

different types of asset class and fund 

structures and help fund administrators 

and portfolio managers better manage 

investor activity 

l PureClient - an advanced customer due 

diligence/client management system 

which will maintain and update client 

records for any entity or relationship and 

provides the necessary transparency and 

look-through reporting that is needed to 

manage sophisticated structures 

l PureManager - a bespoke software 

package for fund and investment 

managers which provides for effective 

control, analysis, reconciliation and 

reporting of daily trading activity. 

As well as software development, our services 

include: 

l Systems integration and implementation 

l Programme and project management 

l Project and business consultancy 

To find out more how Puritas can help 

your business. 

Contact: Mike Feighan - Director 

Phone: +44 (0) 1534 874100 

Email: mike.feighan@puritas.co.uk 

Building trust in society and solving 

important problems 

We focus on three things at PwC in the 

Channel Islands: assurance, tax and advisory 

services. But how we use our knowledge and 

experience depends on what you want to 

achieve. So whichever one of our 320 plus 

staff in the Channel Islands you work with (or 

208,000 people across the PwC global 

network of member firms), they’ll start by 

asking the following questions: 

Are you looking to build trust? Give your 

shareholders more value? Or do you want to 

do something completely different with your 

strategy? 

When we work with you we really listen, to 

understand you better. We’ll get to know 

you, your business and your goals. Then we’ll 

share what we’ve learned to help you get 

there. We want to deliver the value that you, 

our clients, our people and our communities 

are looking for. 

Talk to us about your issues and aspirations. 


John Roche, Partner, Guernsey 

Tel: +44 1481 752040 

john.roche@gg.pwc.com 

Karl Hairon, Partner, Jersey 

Tel: +44 1534 838276 

karl.hairon@je.pwc.com 

www.pwc.com/jg 

Follow us: @PwC_CI 

Rathbone Investment Management 

International is part of the award winning 

Rathbone Brothers PLC (“Rathbones”), 

which was established in 1742. Rathbones is 

a leading provider of discretionary 

investment management services for private 

investors, charities and trustees. 

We enjoy the stability afforded by being a 

FTSE-250 listed company with significant 

critical mass (£28.3 billion of funds under 

management as at 30 June 2015). 

We offer a range of tailored investment 

options: 

l Bespoke portfolio management 

l Multi-manager portfolios 

l Unitised portfolios (the RIMI Strategies 

Funds) 

Our services are delivered by a team of 

innovative and experienced offshore 

professionals based on an understanding of 

a client’s specific investment and risk 

objectives, backed-up by the performancedriven 

Rathbone investment process and 

encompass the full universe of assets. 

For further information please do not 

hesitate to contact: 

Jonathan Giles, Managing Director 

jonathan.giles@rathbones.com 

Phil Bain, Director 

phil.bain@rathbones.com 

Vaughan Rimeur, Director 

vaughan.rimeur@rathbones.com 

+ 44 (0) 1534 740550 

www.rathboneimi.com 

Rathbone Investment Management 

International Limited is regulated by the 

Jersey Financial Services Commission 





Rowlands has been actively supporting 

businesses in Jersey for almost 40 years. 

With a wealth of experience, in-depth 

market knowledge and a genuine 

enthusiasm for people, careers and 

resourcing we are well positioned to help 

you make the most of your recruitment 

opportunities and to secure the best 

possible people for your business. 

Our performance is based on honest, 

effective personal relationships and it is our 

aim to provide you with a long term, 

valuable resource that will help to improve 

your business. The services we provide have 

developed through client demand; building 

a reputation for professionalism and 

confidentiality. Our services include: 

l Permanent Recruitment – all levels 

l Executive Placements 

l Temporary/Flexible Solutions 

l Contract Recruitment 

l Graduate Services 

l Pre Employment Screening 

l Outplacement Services 

l Psychometric Testing 

l Remuneration Survey 

For more information on these services 

and how we could support you and your 

resourcing strategy please contact: 

Jeralie Pallot 


Rowlands Recruitment, Trinity House, 

Bath Street, St Helier, Jersey JE2 4ST 

T: +44 (0)1534 626722 

E: Jeralie@rowlands.co.uk 

www.rowlands.co.uk 

We are an award winning, established law 

firm with a multi-facet approach to law. 

Renowned for our integrity, accountability 

and vast legal network, we build 

longstanding relationships with clients 

who return to us time and again. This is 

substantiated further by our Lexcel status, 

recognising us for excellence in legal 

practice management and client care. 

Representing clients across the Channel 

Islands, UK and Europe, we act as their 

strategic legal partner utilising our off-shore 

expertise and international reach. We 

understand your business is unique and that 

you require a bespoke solution to meet your 

business needs and responsibilities. 

In this way, we ensure our services are 

aligned to your legal requirements - whether 

you are a global corporation, a business 

start-up, a national government or a private 

client. 

Our range of bespoke legal services 

includes: 

l Commercial 

l Dispute Resolution 

l Employment 

l Family 

For expert legal advice that can redefine your 

business, please contact us today. 

E: info@viberts.com 

T: +44 (0) 1534 888 666 

W: www.viberts.com 

l Personal 

l Property 


ONLINE 

DIRECTORY 

THE ONLINE DIRECTORY THAT 

WILL GET YOUR FIRM NOTICED. 

With a profile summary on 

every press release, and a 

historical press release 

archive linked to your 

directory entry, 


is the place to be 

Only £150 

per annum 

TO GET YOUR FIRM LISTED IN 

THE DIRECTORY CONTACT 

CARL METHVEN 

+44 (0) 1534 615886 / 

+44 (0) 7797 796377 OR 

CARL.METHVEN BLGLOBAL.CO.UK 


20 

questions with 

CHRISTOPHER SCHOLEFIELD 

ROMAN HOLIDAY 

➤ 

Tea or coffee? 

Coffee. I get my beans from 

Coopers and always keep at 

least three different varieties, 

milled as I go. Three big cups a 

day – at breakfast, for my ‘eleven 

o’clockers’ and after dinner. 

Favourite TV programme? 

The Bridge and, indeed, any 

‘Scandi noir’. 

Fondest childhood memory? 

Building dams and making lakes 

on the beach at Gorey with my 

cousins. 

Somewhere you’ve 

never been that 

you’d love 

to visit? 

Brecquou, for 

the gardens. 

Rome, for 

everything. 

Scariest 

thing that’s 

happened to you? 

A university moot [mock trial]: 

Middle Temple Hall in London, 

packed with eminent lawyers, 

last-minute change of plan, 

submissions hurriedly rewritten 

on a paper napkin. Never again! 

Your best quality? 

It’s not for me to say, but I’ll 

venture word power. 

Something about yourself 

you would change? 

I can dwell too much on 

incidental details – see answer 

to first question. 

First job you had? 

Queue marshal at Barclays 

Bank – “Cashier number three is 

free madam…” 

Worst job you’ve done? 

See above. 

Dream job? 

Minister Plenipotentiary for the 

re-planning of Jersey. 

Any hobbies? 

Cycling, 

gardening (as 

a blood sport), 

architecture and 

design – and 

flying flags, of 

which I have 

collected about 70. 

Something that drives 

you nuts? 

Giving the impression that 

Jersey is part of the UK, as 

in www.police.jersey.uk. 

No, no, no! 

Best bit of advice received? 

Stop writing and listen 

– from my pupil 

master. 

Your 

fantasy 

dinner 

guest? 

Napoleon 

Bonaparte. 

Buzzword you 

hate the most? 

‘Going forward’ – do 

we have a choice? 

MODERN MIRACLE 

NO PETS PLEASE 

Last meal on death row? 

The entire mixed hors d’oeuvres 

trolley from La Capannina 

restaurant in St Helier. 

Cats or dogs? 

Furry poop 

factories. Neither 

thank you. 

Someone you 

admire? 

Andrew Marr – his 

book, A History of 

Modern Britain, was 

a revelation. He’s 

written for The Economist 

and fought back from a stroke, 

so I forgive him for taking out a 

super-injunction. 

Sweet or savoury? 

Sweet – in Lisbon I once 

ate eight cakes in one day. 

Something about 

you that people might 

be surprised by? 

In 1981 I did time in 

Borstal. Although, 

as the Monopoly 

board puts it, I 

was ‘just visiting’ 

– experiencing 

the penal system 

incognito for 

my legal 

studies. 

Christopher Scholefield is a 

Partner at Viberts in Jersey 

n 


E-commerce 

Banking & Finance 

Intellectual Property 

Commercial Disputes 

Commercial Property 

Construction & Planning 

Commercial Agreements 

Employment & Incentives 

Trusts & Wealth Structuring 

Corporate Processes & Transactions 

Financial Services Regulation 

Mergers & Acquistions 

the 

strategic choice 

for your 

business 

We are an award winning, long established, international law firm renowned for our 

outstanding client service, effective problem-solving skills and outcome focused 

strategic thinking. Whether you are a multinational corporation, a business start-up 

or an individual, contact us today to experience our pragmatic approach to law. 

Contact us: 

+44 (0) 1534 888666 

commercial@viberts.com 

www.viberts.com 

Follow us: 

@vibertslawyers 

google.com/+VibertsLaw 

linkedin.com/company/viberts 

youtube.com/c/VibertsLaw 

COMMERCIAL EMPLOYMENT FAMILY LITIGATION PERSONAL PROPERTY

RAISING THE 

BAR ISN’T OUR 

ASPIRATION. 

IT’S ONE 

OF OUR 

OPERATING 

PRINCIPLES 

EL0009 

We’re here to make a difference. Replacing 

stale, familiar norms with dynamic, valuedriven 

performance, we’re raising industry 

standards by challenging standard practice. 

Across Corporate Services, Fund Services 

and Private Wealth, our relentless pursuit 

of excellence is the new benchmark. 

ELIAN.COM 

Regulatory information is detailed on elian.com/legalnotice

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