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Transcript of Inspired 2013
inspiredIS
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O F F I C I A L P U B L I C AT I O N O F T H E D E PA RTM E N T O F ECO N O M I C D E V E LO P M E N T2 0 1 3
Leading the way...How transparency and robust regulation are helping to build the Isle of Man’s international reputation
eGaming
SpaceICT
Aviation
Clean Tech
Maritime
Finance
Manufacturing
ISLE OF MAN.WHERE YOU CANDISCOVER THE NEW STANDARDIN INTERNATIONALBUSINESS CENTRES
ECONOMICALLY COMPETITIVEINTERNATIONALLY RESPECTED
Tourism
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Contents
inspired 2013
Welcome 03Chief Minister Hon Allan Bell MHK
Introduction 05Hon John Shimmin MHK, Minister for the Department of Economic Development
A home for business 06
Living the Island life 08
Sporting excellence 10The Island’s leading sportsmen and sportswomen
Stand and deliver 12John Spellman, Director of Financial Services, looks Stand and deliver – John Spellman, Director of Financial Services, looks at how the Isle of Man Government intends to adapt to future economic trends
Promoting the Isle of Man - a unified approach 14www.whereyoucan.com, the focal point of inward investment
Lifestyle – Fast track to that perfect work/life balance 16Profile on Courtenay Heading, Advisor, Biomed Inward Investment, Department of Economic Development
Case study – Planet Software Ltd 17
China – The Isle of Man Proposition 18Steven Beevers, Department of Economic Development Head of Special Projects
‘No man is an Island’ 18Isle of Man Bankers Association
Big enough to count and small enough to care 20Creechurch Capital
IMGold – a hallmark of trust, integrity and security 22
What a good decision 24Thomas Miller Investment (Isle of Man) Ltd
Manx Insurance Association 26David Kneeshaw, Chairman
A jewel in the Irish Sea for captives 27Gaynor Brough, Chairman, Isle of Man Captive Association
Who should you trust? 28Paul Hotchkiss, Chairman, Society of Trust and Estate Practitioners, Isle of Man branch
An introduction to foundations on the Isle of Man 29John Rimmer, Partner, Appleby
Relocating to the Isle of Man, a practical guide 30Michelle Murphy, Relocation Options
Isle of Man Chamber of Commerce 32Jane Dellar, Chief Executive
Moving forward with confidence 33Nick Boon and Sandra Georgeson, Directors of the Isle of Man Association of Corporate Service Providers
The concept of clustering 34Adrian Moore, founder and Chairman of the Isle of Man Aerospace Cluster
Stroma Group – building sustainability 36
Komatti – inspired by the TT 37
Information and communications technology 38 and economic growth
Skanco – always seeing the bigger picture 39
Manx Telecom – excellence in e-Business 40
Registering intellectual property in the Isle of Man 42Andrew Cardwell, Tax Director, Abacus Trust Company Ltd
Kreston International brand launches 44 on the Isle of Man
Setting up and running an e-Gaming 46 business in the Isle of Man Ray Davies, e-Gaming Development Manager, Department of Economic Development
inspired 2013Editorial:Richard Allen: +44 (0)1624 678001 • [email protected]
Advertising:Ian Rowley: +44 (0)1624 696552 • [email protected]
Edited/designed by Mainstream Marketing & Communications. Printed by Mannin Media. © Mainstream Media Limited 2013.
Produced in conjunction with and on behalf of the Isle of Man Government Department of Economic Development by:
&
www.mmc.co.im www.manninmedia.co.im
Corporate social responsibility – 48 who should be interested?Bill Mummery, Executive Director, Celton Manx
Keep calm and carry on licensing! 50Tina Rawlinson, Director, Cavendish Trust
Continent 8 continues to invest in Isle of Man 52
Riva Financial Systems 55
Lifestyle – Owzat! Bowled over by Island life 56profile on David Smith, Marketing Director, Manx Telecom
Bernhard Schulte Shipmanagement (Isle of Man) Ltd 58
Isle of Man Yachting & Aviation not all “plane sailing”! 60Steve Cain, VAT Director, Equiom
Isle of Man residential property market 63Shane Magee, Chairman, Chrystals estate agents
Sure – building new connections 64Andy Bridson, CCO, Sure
Case study – isis digital Ltd 65
Manx Telecom – first for innovation and investment 66
Cleared for take-off 68The Private Jet Company’s Business Aviation Centre and Executive Terminal opens for business
B-localiom.com relocation services 69
Wi-Manx – network and hosting solutions 70
Lifestyle – The Isle of Man, 72 a champion in sport and businessprofile on Roger Raatgever, CEO, Microgaming
Educational reforms and assessment 74 in the 21st Century Joss Buchanan, Vice Principal-Academic, King William’s College
Are you making the right business connections? 76
Online Regional Travel Group
Golfing on the Isle of Man 79
Case study – Integrated Capabilities Ltd 80
Contents
inspired 2013
WelcomeChief Minister Hon Allan Bell MHK
03
Welcome to the latest edition of Inspired
– a magazine which showcases the
Isle of Man as a leading international
business centre and home to a number of
flourishing niche sectors.
I hope the contents of this publication
provide a useful insight into the success
and diversity of our economy and, indeed,
inspire you to strengthen your personal
and professional links with the Island.
As Chief Minister, the task of stimulating
further growth is at the very heart of my
vision for the Isle of Man and I will continue
to be an active and vocal champion of the
Manx economy.
Recent developments have, I believe,
enhanced the Isle of Man’s reputation as a
responsible and forward-thinking member
of the global community, and underlined
our determination to grow the economy in
a sustainable way.
We recognised at an early stage that the
nature of tax cooperation is changing and
that automatic exchange is becoming the
global standard. The Island already shares
tax information automatically under the EU
Savings Directive and has announced that
it will do so on a wider basis with the USA
and UK.
We have also agreed to engage with a
pilot form of multilateral tax information
exchange being progressed by the G5 –
UK, France, Germany, Italy and Spain.
By demonstrating international leadership
and responding positively to this evolving
agenda, the Isle of Man has sought to give
the business community confidence about
our direction of travel.
Our world-class regulatory environment,
which is recognised by the G20, OECD,
IMF and other global bodies, is just
one of the many attractions of doing
business in the Isle of Man.
We can provide a stable political system,
a strong economic development
ethos, highly developed business
infrastructure and an educated and
committed workforce. The quality of life
on offer in the Isle of Man is also to be
commended, with beautiful countryside,
a very low crime rate and good public
services.
For our part, Government will endeavour
to remain supportive, approachable and
flexible in order to create a responsive
and business-focused environment.
Together the public and private sectors
will continue to build on the Island’s
reputation for innovation, enterprise and
professionalism in order to create new
opportunities with our United Kingdom
and international trading partners.
There are plenty of reasons to be
optimistic about the future, with the
financial services industry, the backbone
of our recent success, continuing to
perform strongly alongside a range
of key sectors such as e-Gaming,
aerospace engineering and shipping.
To move forward in these times of
change, we must continue to be
positive, celebrate success and invest in
our future with confidence – a message
that is echoed throughout the pages of
this magazine.
Chief Minister Hon Allan Bell MHK
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IntroductionHon John Shimmin MHK, Minister,Department of Economic Development
The Isle of Man is a leading international
business centre with a growing reputation
for innovation, professionalism and a long
standing policy of positive engagement
with global standards.
We have enjoyed over 25 years of
sustained economic growth. This strong
performance has been underpinned
by the increasingly diverse nature of
the Island’s economy. As Inspired
demonstrates the Isle of Man hosts a
range of successful business sectors,
some of which are among the best in the
world. Within these sectors, Isle of Man-
based companies are succeeding in the
global marketplace because they operate
in an entrepreneurial and business-
friendly environment. These companies
serve a global blue chip client base
in industries ranging from established
sectors such as financial services,
shipping and aerospace manufacturing
to emerging sectors such as Biomed,
e-Gaming, ICT and aviation services.
The Isle of Man Government works hard
to provide the support and assistance
to allow business to thrive. As well as a
successful and diversified economy with
a modern infrastructure and business
environment, we offer a proactive and
collaborative regulatory regime and
a simple direct taxation system. As
part of a unique Customs and VAT
arrangement with the UK we also offer
access to EU markets for manufactured
goods which is making the Island a very
attractive proposition as a trading hub for
companies, especially in the emerging
economies, to export in to Europe.
One of the most important aspects of this
support is the strong relationships that
exist between Government and industry.
Ministers and senior Government officials
are easily accessible which means
that innovative ideas can be heard and
acted upon when necessary. The Isle of
Man also offers an excellent quality of
life for both residents and newcomers,
characterised by low crime rates, high-
quality public services and a strong sense
of community. This is complemented
by our tourism sector which supports a
leisure infrastructure that can be enjoyed
by all.
I hope you will feel truly inspired after
reading this publication and get a sense of
what makes the Isle of Man such a great
place to do business and a place where
you can achieve anything you wish. Minister Hon John Shimmin MHK
05
A Home for business
What do you look for when choosing a
location for your business? Access to
markets, superfast communications and
IT infrastructure, a skilled workforce, the
potential to maximise profits? Or maybe
you need a place with an impressive
international reputation, somewhere that
offers ongoing business support and an
excellent standard of living for you and
your employees?
If you’re thinking that actually you’d quite
like all of those, then welcome to the Isle
of Man!
Like many people, you have most
probably heard of the Island in connection
with low taxes. And while that is certainly
true – corporation tax is 0% for example –
this self-governing Crown Dependency at
the geographical heart of the British Isles
offers such a great deal more.
A stable economy
Despite the turmoil in world economies in
recent years, the Isle of Man has been able
to boast over 25 years of economic growth
as a result of its steady but progressive
fiscal strategy. It is this long-term stability
which has encouraged the development
of a wide variety of business sectors in
addition to the Island’s world-renowned
financial services industry.
These include e-Business and gaming,
aircraft and ship registration, superyacht
services, film production and space
commerce. (Did you know the Isle of Man
is considered the fourth most likely nation
to send a person to the moon?) There are
also thriving clean tech, bio-tech, high tech
manufacturing and local food production
sectors.
Easy access to London, Europe and beyond
Located in
the Irish Sea,
equidistant
from England,
Scotland, Wales
and Ireland,
the Isle of Man
is only a short
hop away from
many major UK
cities, enabling
easy onward
access to Europe
and the rest of
the world. The
Island is currently served by five airlines
flying throughought the UK, including
major gateways such as London City,
London Gatwick and Manchester. The
excellent transport links also include a
year-round daily passenger and freight
ferry connection to north west England
and fast craft services in the summer to
Liverpool, Dublin and Belfast.
State of the art telecommunications
But the connections don’t end there.
Multi-million pound investments
in telecommunications and power
supplies mean the Isle of Man has
an enviable position as a world-
class telecoms provider allowing
businesses to communicate effectively
and efficiently across the globe. With
reliable and robust infrastructure and
the development of cutting edge
technologies (it was the first nation
in the world to launch a 3.5G mobile
broadband service), the Island is proving
to be a magnet for e-Businesses who
also appreciate the sophisticated data
and internet hosting facilities available.
Businesses and residents alike are able
to enjoy 100% broadband availability with
up to 40Mbps downstream and up to
2Mps upstream.
International recognition and respect
Indeed, part of the Isle of Man’s success
is due to its acknowledgement of the
need to operate at the highest standards
to ensure long term sustainability and
maintain its reputation for quality. The
Island has been at the forefront in
responding to increased international
regulatory demands, placing consumer
06 inspired
Sea and Air Links:
Belfast
Birmingham
Blackpool
Dublin
Gloucester
Liverpool
London City
London Gatwick
London Luton
Manchester
Newcastle
Oxford
Well connected...
protection and good governance at the
heart of Manx legislation. (As a British
Crown Dependency, the Isle of Man sets
its own laws and taxes although due to
its longstanding historical, cultural and
economic ties with the United Kingdom,
the legal system itself is similar.)
Businesses value the Manx Government’s
pragmatic approach which has led to the
Island earning a well-respected reputation
overseas. In particular, the Island is proud
to be recognised on the OECD ‘white
list’ for tax transparent jurisdictions and
is credited by the IMF, FATF, EU Code of
Conduct and other international bodies as
meeting its international obligations.
A welcome and a helping hand
The Manx Government also takes an
active role in welcoming new businesses
to start up or relocate to the Isle of Man
and has Business Development Managers
across all sectors on hand to help with
advice and provide useful introductions.
Creating successful positive relationships
between the private and public sectors is
vital to ensuring industries can grow and
flourish in the Island and businesses are
regularly asked for feedback on issues
and development of future strategy. For
those looking for financial support, there is
a Financial Assistance Scheme available
to help both new and existing qualifying
businesses who can demonstrate
sustainable growth enabling job and
wealth creation.
A place to prosper
The Island currently has an economically
active workforce of more than 44,000.
There are no residency qualifications
and individuals enjoy a standard rate of
tax of 10% with a higher rate of 20% and
generous personal allowances. There
is also a £120,000 tax cap on personal
income for the current tax year 2013-2014.
On a personal level, aside from the
many attractions for business, the Isle
of Man offers a very desirable quality
of life. Excellent healthcare, a high
standard of education and low crime rates
means it provides a safe and peaceful
environment, ideal for bringing up families
and enjoying downtime.
Add to the mix a fine selection of
restaurants, shops and a vibrant arts
scene plus excellent sporting facilities,
miles of countryside and spectacular
coastline, and you’ll find the Isle of Man
combines the best of modern life with its
own unique cultural identity drawn from
Celtic and Viking tradition.
A place where both businesses and
individuals alike can thrive.
07
Isle of Man – Key advantages
• Welcoming Government
• Consumer Protection
• Internationally responsible and cooperative jurisdiction
• Proactive & collaborative regulatory regime
• Simple taxation regime for individuals and companies
• A scheme of financial assistance for financial services companies looking to establish an operation in the Isle of Man
• World-class telecoms network
• Internationally orientated service expertise and global client base
• Quality of life
Isle of Man – Key advantages
• Welcoming Government
• Consumer Protection
• Internationally responsible and cooperative jurisdiction
• Proactive & collaborative regulatory regime
• Simple taxation regime for individuals and companies
• A scheme of financial assistance for financial services companies looking to establish an operation in the Isle of Man
• World-class telecoms network
• Internationally orientated service expertise and global client base
• Quality of life
Breakdown of the Island’s Economy by Industry Sector – %
Living the Island life...
If all you know about the Isle of Man is
Manx cats, kippers and the TT motorcycle
races, there’s a lot to learn! Sitting proud
and defiantly independent in the middle
of the Irish Sea, the Isle of Man is above
all a land of contrasts. While its rolling
green hills and rugged coastline give the
impression of rural tranquillity, the Island
is equally at home hosting one of the
biggest motorsport festivals in the world.
A thriving interest in traditional Manx
heritage and culture sits happily with a
buzzing contemporary arts scene and an
adrenalin-junkie’s assortment of outdoor
activities. Church teas, village fetes and
agricultural shows are just as well attended
as the best restaurants and top name high
street retail outlets.
Room to breathe
At 33 miles long by 13 miles wide, the
Isle of Man packs a lot into a relatively
small space although compared to
similar jurisdictions, there is more room
than you might think. The Isle of Man’s
85,000 population enjoys an area more
than four times the size of Jersey, for
example, including a central hill and valley
region and around 100 miles of coastline.
Often described as a mini British Isles in
itself, the Island has become a popular
location for film productions because of its
geographical variety. Surrounded by the
Irish Sea, the climate is cushioned from
extremes of heat and cold and is mild and
temperate.
Excellent essentials
In terms of the basic essentials for a high
standard of living – healthcare, education
and safety – the Isle of Man is well-
blessed. The system of healthcare is very
similar to that provided by the NHS in the
UK but with a wider range of services than
you would expect in a comparable-sized
UK region. A newly-built £112m 312-bed
main hospital (Noble’s) was opened on
the outskirts of Douglas in 2003, providing
a comprehensive range of surgical
and medical facilities in light and airy
contemporary surroundings. It includes
a purpose built private wing. GP, optical,
dental and pharmacy services are readily
available throughout the Island.
Education, education, education
Education on the Isle of Man has long
been recognised as an area of excellence
and there are 33 primary schools and 5
secondary schools which benefit from
an ongoing programme of investment,
especially in ICT.
These are complemented by a well-
respected independent public school,
King William’s College, offering day and
boarding co-educational studies with
the International Baccalaureate as an
alternative to traditional A-Levels. Private
primary education is also available through
The Buchan School which is King William’s
College junior school for boys and girls
aged 3 to 11. Over 50% of students from
the Island’s schools go on to university, a
higher number than in England.
Higher education students have the
opportunity to study locally at the Island’s
College of Further and Higher Education
which offers both vocational training and
academic courses. It is an associate
college of the University of Chester and
offers Engineering and Art honours
degrees through Liverpool John Moores
University. As befits a nation with a
burgeoning space industry, it also delivers
part of the Space Management MBA
accredited by the International Space
University in Strasbourg!
Safe and secure
The Isle of Man is widely acknowledged
as one of the safest places to live in the
British Isles and the low crime rate has
consistently fallen further in recent years.
In addition, detection rates are generally
higher when compared to the British Isles
08 inspired
and Channel Islands. Policing on the
Island is split into community, international
and inter-agency teams and there is a
keen focus on engaging with the public
and crime prevention.
Out and about
One of the obvious benefits of the Island
is that it is easy to get around, served by
a comprehensive road network as well
as some more unusual transportation
networks like steam and electric railways
and horse drawn trams in the summer.
This means that commutes are invariably
short – even travelling from the far north or
south into the capital Douglas rarely takes
more than half an hour giving residents
an enviable amount of free time outside
working hours.
This is just as well, because the Island has
a host of sporting and leisure activities to
keep you occupied. With sea and land
readily to hand, sports range from sailing
to cycling, martial arts to motocross,
soccer to swimming. The National Sports
Centre in Douglas hosts impressive
indoor and outdoor facilities including
a championship short course pool and
athletics track and field arena. Just next
door is a floodlit 3,000 seater stadium with
a 3g synthetic pitch. There are also nine
golf courses, more than one for each day
of the week!
Add flourishing amateur dramatics and
music, and arts clubs of every type, and
there need never be a dull moment. On
top of home grown entertainment, the
Island regularly welcomes performances
by world-class musicians and actors at the
Erin Arts Centre, Gaiety Theatre and Villa
Marina venues.
Children in particular are encouraged to
participate in both the arts and sport and
the Island boasts more than its fair share
of success stories (world champion cyclist
Mark Cavendish MBE, Olympic gold
medallist Peter Kennaugh and actress
Sam Barks being recent examples).
Relaxed and relaxing
For less active types, there is a wealth of
fascinating heritage to explore courtesy
of thousands of years of Viking and Celtic
history. Increasingly popular pastimes
such geocaching or stargazing (the Isle
of Man has dark sky status), a gentle
stroll through the Island’s many glens,
or just simple afternoons on the beach.
Foodies will appreciate a wide range of
Manx specialist producers and artisans
(including those world famous kippers!)
which can all be washed down with a
glass of locally brewed beer or spirits.
With such a wide variety of things to do,
the Isle of Man really has something for
everyone – and there is even extra time
to enjoy them. The Island has two more
bank holidays than the UK with TT Senior
Race Day in June and the national Tynwald
Day in early July!
Sporting excellence
For an Island of only 80,000 people
the Isle of Man produces far more than
its fair share of World, Olympic and
Commonwealth champions in a range
of sports. Our competitive success is
symbolic of the Island’s ‘can do’ attitude
and provides inspiration which extends far
beyond the sporting arena.
Mark Cavendish MBE, aka ‘The Manx
Missile’, is regarded as the greatest
sprinter in the history of the Tour de
France with 23 stage wins at the time of
writing. He’s the most prolific winner of his
generation including World Championship
wins on the road and track and a
Commonwealth gold at the 2006 Games
in Melbourne – not to mention nearly 100
wins as a professional road racer.
Off-road motorcyclist David Knight MBE
has twice been crowned World Enduro
Champion and British Enduro Champion
six times. ‘Knighter’ finished third in the
X Games World Series event in Brazil
and was awarded an MBE in 2011 for his
services to motorsport.
The Isle of Man is famous around
the world for the TT Races which are
regarded as one of the toughest and most
dramatic motorbike events. It’s run on the
37.25 mile Mountain Course on public
roads – and the fastest Manxman ever to
lap the circuit is Conor Cummins. He also
holds the record for the fastest lap from
a standing start, averaging over 131mph.
His courageous comeback to racing
following a 160mph crash at the 2010 TT
won him fans around the world and he’s
become a respected ambassador for his
sport and the Island.
Team Sky pro cyclist Peter Kennaugh
MBE won gold with Team GB on the
track at the London 2012 Olympics and
is tipped for even greater success on
the road in the next few years. He was
part of a world record breaking team
pursuit squad which also won World
Championship gold and has also raced in
the Tour de France.’.
Zoe Gillings is Britain’s number one
Olympic snowboard athlete and has
competed at the 2006 and 2010
Winter Olympics and voted Isle of Man
Sportswoman of the Year in 2012. She
also carried the London 2012 Olympic
torch during its visit to the Isle of Man.
Aaron Cook is the world number two
ranked Taekwondo star who moved to
the Isle of Man in 2012. He has won
the British title and was twice crowned
European champion. The 21-year-old
was the youngest Taekwondo player to
represent Great Britain in the Olympics
when he finished fifth at the 2008 Games
in Beijing.
Below: Mark Cavendish MBE winning the 2013 British National Road Race title in Glasgow.
London 2012 Olympic team pursuit gold medallist Peter Kennaugh MBE
10 inspired
00
Sporting excellence
11
Above and right: Olympic snowboarder Zoe Gillings
Left: David Knight MBE,
twice World Enduro Champion
Stand and deliverIn a world gripped by austerity, increasing regulation and fiscal uncertainty, how can the Isle of Man buck the trend and provide an opportunity for entrepreneurs to flourish - while still allowing traditional business sectors to thrive? John Spellman, Director of Financial Services, looks at future economic trends and how the Isle of Man Government intends to adapt.
When Harold Macmillan announced
“You’ve never had it so good”, he may not
have realised that his remark would apply
equally to the 1980s and 1990s as well as
the 1950s.
The final two decades of the 20th century,
with their drive for excess and rampant
consumer consumption, fuelled growth
in a number of western economies. That
growth began to stall in the shifting
political word of the 21st century before
being completely flattened by the financial
crisis of 2007 and 2008.
The resulting economic quagmire has
seen major nations struggling to get to
grips with unprecedented levels of debt
and some lesser economies taking truly
drastic measures to stay afloat. Austerity
is the watchword of current times, with
cuts, more cuts and restructuring the focus
for governments who are desperately
trying to balance their books.
Ahead the future in general is still looking
somewhat grim. There remains a great
deal of uncertainty and instability in the
world both economically and politically.
Many people believe the full impact of the
banking crisis has yet to unfold and there
are more bad news stories to emerge.
There is also concern that the wealthy face
being “taxed to death” to fund the growing
requirements of social welfare and an
increasingly disenfranchised youth.
Straitened times have led to social
unrest in some regions which is likely
to continue amid the perception of
increasing inequality and the threat of
rising unemployment. This is set against
a backdrop of political discontent in many
emerging economies that may have knock
on effects on the current balance of power
and the potential for future growth.
Access to, and use of, natural resources
will continue to be a critical factor in
the future. As these dwindle, costs will
escalate forcing the development of more
cost efficient methods of consumption
and alternatives. Travel will become less
prevalent and reliance on telecoms more
crucial.
Another trend, already steamrollering
ahead in some quarters, is the move
towards increasing regulation. Following
the financial fall-out of recent years, and
the need to protect national budgets,
governments have been spurred to create
new regulatory bodies and tighter rules.
This is running hand in hand with a shift
in public sentiment that is demanding
businesses act more ethically and
transparently.
Against this context, and while many
governments try to cut rather than trade
their way out of recession, the Isle of
Man’s vision for the future appears
startlingly positive. This is partly through
starting at a slight advantage - although
buffeted by the tough financial times
the Isle of Man has enjoyed 28 years of
unbroken economic growth. It is also
because the Island recognises that where
there is threat there is also opportunity
and, to put it in Darwinian terms, it will
be those who can adapt who will be
successful and survive.
It is part of the Island’s DNA to adapt and
be versatile; indeed it is illustrated best by
the motto which accompanies the Island’s
Three Legs emblem: “Whithersoever you
throw me, I will stand”. In the face of a
declining tourist trade in the 1970s and
80s, the Isle of Man famously reinvented
itself as an offshore financial centre.
Although hugely successful and still the
major contributor to the Manx economy,
the financial services sector has itself
already gone through several iterations
in response to competitive challenge and
changing attitudes and in the past decade
there has been significant investment in
diversifying the economy into other areas .
The Isle of Man is now seen as a well-
respected international finance centre with
burgeoning manufacturing, clean tech,
space, aviation and e-Business sectors.
The Department of Economic
Development’s project, Vision 2020, sets
out the path for the Island’s future strategic
direction. It aims to articulate the best
options for the Isle of Man as we head
towards the end of the current decade
and beyond, using insights from public
and private enterprise to inform decision-
making along the way.
While still a work in progress, there are
already some key pointers emerging. For
example, in the existing financial services
market, increasing regulation across
banking, funds and insurance sectors,
coupled with the drive for transparency
and fairness, will see changes to current
operating models. Financial players will
need to consider how they cater for the
different needs of retail, corporate and
sophisticated high net worth investors and
where there is an opportunity to specialise
or develop niche products and services.
While interest rates and returns in general
remain low, wealthy investors will want to
look at alternative options such as crowd
12 inspired
13
funding, payday lending and private
ventures.
The focus on tax-planning is likely to switch
to future-planning with safety of funds
the prime consideration. Administrative
efficiency, global solutions and expert
professional advice will become much
more important in the future world.
Meanwhile the professional services
sector is likely to move towards supporting
business relocations and start-ups and,
with its easy access to Europe, help
reposition the Isle of Man as “near shore”
rather than “off shore”. The ability to offer
a European gateway, as well as all the
support services, has also attracted the
interest of China and other Far Eastern
nations offering huge potential for import/
export business and turnkey solutions.
Fortunately the Isle of Man has the
advantage of being able to move quickly
and competitively. With its own legislative
powers, a pragmatic approach can be
taken. Appropriate and proportionate
legislation is preferred to a blanket “one
size fits all” regime.
To maintain its well-respected reputation,
the Island needs to continue to apply
world-class standards and be part of
evolving regulation such as Solvency II
and FATCA as well as extend its taxation
agreements with other countries around
the globe. A low tax environment will
remain critical for attracting business and
entrepreneurs.
The growing need for reliable and mobile
communications across all businesses,
as well as education and entertainment,
mean the devices of the future will all
need electricity. Major investment by the
Isle of Man Government has given the
Island its own robust and independent
power supplies and telecommunications
on the Island are world-class. This is
attracting e-Business and high tech start
ups which in turn will create a thriving
intellectual property sector.
One of the challenges for the Isle of Man
will be to supply the skilled workforce
required for these changes. The Island’s
education service already has an excellent
reputation for its high standards and this
may be enhanced by offering a choice
of academic or vocational pathways and
embracing languages, sciences and
technical disciplines such as physics and
robotics as well as ICT.
No matter what the final recommendations
of the Vision 2020 report, there is already
a keen recognition that the industries of
yesterday don’t necessarily build the future
of tomorrow – and that adaptation is vital
to keep ahead in an ever-changing world.
The Isle of Man needs to continue to be
an attractive proposition for entrepreneurs
and use its low tax environment to help
people build additional wealth and create
jobs.
Work on developing the Island’s growing
reputation as a well-respected international
centre, coupled with maintaining relative
financial stability, will put the Isle of Man
in a prime position to take advantage of
changing trends – and take far-sighted
businesses and individuals with it.
www.whereyoucan.com/finance
John Spellman
Promoting the Isle of Man – a unified approach
In 2012 the www.whereyoucan.com
website became the focal point for inward
investment to the Isle of Man, and a
showcase for local businesses. Its launch
signalled the start of a unified approach
to promoting the Island as an international
business centre with the website acting
as the hub of an integrated range of
marketing activities including a common
set of factsheets, digital marketing
activities, presentation templates and
programme of attendance at relevant
exhibitions.
An example of this integrated approach
was at the Isle of Man Newspapers’
Awards for Excellence in November 2012
at which Heather Smallwood, Head of
Marketing at the Department of Economic
Development, received the Marketing and
PR Effectiveness Award on behalf of the
Department of Economic Development for
the ‘Isle of Man. Where You Can’ initiative.
The awards ceremony was attended by
representatives from a wide range of
leading on-Island businesses, as well as
many influential figures from off-Island.
Department of Economic Development
used the opportunity to promote the
Financial Times special edition about the
Isle of Man using a live webcast of the
awards ceremony on
www.whereyoucan.com which was
supported by leaflets about ‘Where You
Can’ for all guests at the ceremony,
and distributed with copies of the FT
supplement. Department of Economic
Development was also shortlisted in the
UK, in the Public Sector – Other Services
category at the 2012 CIM (Chartered
Institute of Marketing) Marketing
Excellence Awards.
With this integrated marketing initiative
now well established, the focus in the year
ahead is upon positioning the Isle of Man
with industry worldwide. In the 12 months
following the launch, the Department of
Economic Development has consolidated
the ‘Isle of Man. Where You Can’ initiative
which continues to highlight our unique
selling points, products, solutions and
services across a wide range of sectors.
Feedback has been overwhelmingly
positive. Corporate service providers,
for example, benefit because they
now have presentations and exhibition
materials which can be used at trade
missions, and there is a growing list of
subscribers to the ‘Isle of Man. Where You
Can’ newsletter which is integrated with
Department of Economic Development’s
exhibition programme. In the past year
the Department has promoted ‘Isle of
Man. Where You Can’ at the ICE London
and EIG Barcelona e-Gaming expos;
the Monaco Yacht Show at which the
Department of Economic Development
promoted the Isle of Man Ship Registry
and yacht management businesses; and
the Farnborough International Airshow
which showcased the Island’s aerospace,
space and aviation sectors. The Island’s
aviation sector was also the focus of
Department of Economic Development’s
presentation at the Middle East Business
Aviation Conference. The Island’s financial
sector was promoted heavily too, with a
presence at the British Insurance Brokers’
Association Conference and Exhibition,
Captives Live, Moscow Financial
Innovation Forum, Eurohedge, and
Emerging Manager Forum.
To understand more about ‘Isle of
Man. Where You Can’ businesses are
encouraged to visit the website, sign up
for the regular business newsletter and
refer on to clients and contacts where
appropriate.
The website includes details of resources
available to businesses promoting the Isle
of Man, including presentation materials,
factsheets, brochures and newsletters.
www.whereyoucan.com
14 inspired
Heather Smallwood (left) pictured receiving the award from Helen Summerscales of award sponsors Isle of Man PR and Advertising
Department of Economic Development St George’s Court, Upper Church StreetDouglas, Isle of Man IM1 1EX, British Isles
Tel: + 44 (0)1624 686400 (General Enquiries)
www.whereyoucan.com
ISLE OF MAN.
WHERE YOU CAN
DISCOVER THE
NEW STANDARD
IN INTERNATIONAL
BUSINESS CENTRES
• Stable economy – over 25 years of economic growth
• Effective relationship between public and private sectors
• Competitive tax regime
• World-class regulatory environment
• Advanced telecoms and power infrastructure
• World-class professional services
• Strong, direct links to the City of London
• Excellent quality of life
Fast track to that perfect work/life balanceCourtenay Heading, Advisor, BioMed Inward Investment, Department of Economic Development, Isle of Man Government
Every June the Isle of Man echoes to
the roar of world class motorbike racers
tearing around the legendary TT Mountain
Course at speeds of up to 200mph.
After the final chequered flag has been
waved, and almost before the last drops
of Champagne have fallen on the crowd
below the winner’s podium, the public
roads used for the races are reopened
and life returns to its usual tranquillity.
It’s quite a contrast, but one which suits
Courtenay Heading perfectly. The Isle of
Man Government’s Advisor for BioMed
Inward Investment grew up in Sussex
and lived and worked in the UK and USA
before moving to the Island in 2007. He is
one of many Island residents who came
here first for business reasons, but ended
up making it their home after realising it
provided the ideal environment to achieve
the near perfect work/life balance.
The Isle of Man TT played a key role in
Courtenay’s decision to move here. “I
first visited the Island in 1991 to watch
the TT, I had been a motorcyclist and a
fan of motorbike racing all my life but it
wasn’t until I saw the event live that I truly
appreciated what makes it unique.” In
2004 he met Bladon Jets’ Chairman Paul
Barrett while on a flight to the USA and
learned about the company’s ground-
breaking technology and how the TT
connection shaped its development.
Barrett raced at the Manx Grand Prix
motorcycle races in the 1980s against
Chris Bladon. When Paul won the Classic
Junior Manx race in 1983, it was brothers
Chris and Paul Bladon who’d prepared
his bike. The Bladon brothers are brilliant
inventors too and made the technical
breakthrough which, when combined with
Barrett’s patent process and business
background, led to the founding of Bladon
Jets. The company is headquartered
on the Island and currently developing
micro-turbines and recuperator technology
alongside their partners Jaguar Land
Rover and their parent Company Tata,
particularly for applications in the energy
market in India. So convinced was
Courtenay about the technology, and the
passion of the Bladon Jets’ team, that he
became a shareholder.
In 2007 Courtenay and his wife decided
they loved the Isle of Man so much that
they moved from their home in England.
“Business in the Isle of Man is much more
relaxed than anywhere else I’ve worked
before. Meetings are much more likely to
be held in a café over a coffee than in a
boardroom. The working week is much
more flexible – working from home is more
common, and when it is necessary to go
into the office the commuting time is short
no matter where you live on the Island. But
it has a hard-working business culture too,
and there’s an accessible ‘can do’ attitude
right across Government, regulators, and
the private sector.”
In his experience of talking to inward
investors, the benefits that the Island
offers in terms of work/life balance are a
big attraction. With spectacular scenery
and long summer evenings it’s possible
to leave the office behind and within an
hour be walking in the hills or on the water
sailing or kayaking. Or, in Courtenay’s
case, motorcycling. After all, this is the
home of motorcycle road racing.
00 inspired
Lifestyleinspired 2013
Courtenay Heading
The Isle of Man. Where you can… really make it happen – and quicklyPlanet Software Ltd
Investor Nader Pour was meticulous in
his search for the best location for a new
business start-up idea he had – and the
Isle of Man soon rose to the top of his
list. Nader was looking for a place to set
up a software support and development
company which could support other
businesses with their IT requirements,
particularly in the US market.
“I began by looking at all the resources
available in locations around the world,
but particularly those that could offer
government help and financial assistance
to start-ups” says Nader. “Strong
infrastructure was also key as I needed
good connectivity and hosting capability
for the business.”
After researching countries as diverse as
the Bahamas, India and Poland, Nader
short-listed the Isle of Man and one
other jurisdiction - but there were two
outstanding factors that led to his choice
of the Island. “I found that not only did the
Isle of Man have better financial incentives
but it was much quicker to respond to
my enquiries. The Government were very
prompt in getting back to me and along
with the excellent infrastructure that gave
me a lot of reassurance.”
The company was promptly formed in
March 2012 and began trading in July.
One of its earliest and biggest clients is
Jupiter Systems which offers a leading
veterinary practice management platform.
Planet Software now supports system
users via email and telephone assistance
from its office in Douglas. Jupiter Systems
already accounts for the system of choice
for 300 veterinary practices in the UK but
it is planning to move into the US market
which Planet Software will also support.
The size of this market is staggering – in
the Greater Los Angeles area alone there
are 4,700 veterinary practices, which is
several hundred more than in the whole of
the UK!
Further into the future Planet Software sees
more opportunity for providing hosting
solutions. “With cloud technology and
the fantastic IT infrastructure in the Isle of
Man, there are great prospects to build
successful host companies,” says Nader.
Managing Director Rob Jeffries
acknowledges there is a huge potential
for the business to expand and is busy
with an intensive training programme for
his new recruits. “All our staff are local
residents,” he says. “Many are learning
new skills which add value to the local
labour market. In addition, we are not
competing with anyone on the Island
and all our revenue is new revenue to the
Isle of Man so it good news for the local
economy as well as Planet Software.”
Lifestyle00
Case study
17
China – The Isle of Man propositionSteven Beevers, Department of Economic Development Head of Special Projects
The Department of Economic
Development’s strategy for developing
business in China has identified effective
ways of accessing the growing Chinese
economy with the aim of helping reinforce
the geographic diversification in the
Island’s own economy. The positioning
and acceptance in China of the Isle
of Man as a reputable international
business centre is partly dependent upon
building relations at government level to
demonstrate economic benefits of the Isle
of Man’s EU import/export capabilities.
The facilitation of bilateral trade can also
dispel any negative preconceptions
associated with the perception that the
Island may be ‘just another offshore
centre’. Central to the Isle of Man offer
is our established Entry Processing
Unit (EPU) - which given our efficient
Customs and VAT office - provides us
with a distinguished standard of customer
service compared to our competitors.
The UK’s Treaty of Accession to the EU
ensures our free trade access for goods
and agricultural products produced or
supplied by the Isle of Man, and our
tax neutrality benefits those seeking an
attractive base for operations. In addition,
the Island has a wealth of financial and
professional services, helping facilitate
trade into the EU and the option of virtual
‘turnkey’ solutions for import/export
administration.
By establishing this type of business in
the Isle of Man, the Island may ultimately
grow into a European sales base, which
sits well with the Chinese ‘Going Global’
policy. In addition, such business and
its shareholders may well use the Island
for other well-established propositions,
such as listing on stock markets, wealth
management or asset structuring (subject
to the legality of capital movements
and any necessary approvals in China).
Importantly, the Isle of Man is within the EU
indirect tax area, allowing market access
and customs clearance from a well-
positioned trading base in the centre of t
he British Isles and on the doorstep
of Europe.
In the next three to five years, the
European Union (EU) will be implementing
a free trade arrangements between the
member states of the Customs Union (CU)
and the countries of the European Free
Trade Association (EFTA), strengthening
existing trade relations and creating new
opportunities for co-operation. To aid
this growth in China, the Department
of Economic Development now has a
representative in China, who is helping
to cultivate and target companies,
entrepreneurs and creating networking
opportunities to build awareness of the
Island. We have also built Mandarin
webpages and resources adjacent to our
Isle of Man Where You Can website to
support our communications. In January,
the first of several businesses being
cultivated by the Isle of Man Country
Strategy Team confirmed their intention to
set up a subsidiary business on the Island
to manage exports from China.
The Department of Economic
Development’s visit to China in November
2012 highlighted the possibility of working
with a broader network like government
and chamber bodies in Shanghai and
Guangzhou, which may help the Isle of
Man to draw on SME manufacturing and
exportation membership opportunities
from those areas. There have already
been a number of Chinese delegations of
entrepreneurs who have been attracted to
visit the Isle of Man.
In April 2013 a mini trade mission - headed
by Economic Development Minister John
Shimmin – was undertaken. Isle of Man
industry attendees who participated in the
trade visit to China were able to showcase
one or more propositions to sell which they
have already established as being a ‘good
fit’ with Chinese opportunities.
Hong Kong is an important market for
Chinese Initial Public Offers (IPOs) and the
Isle of Man can help foreign companies
list overseas on the Hong Kong Stock
Exchange since 2010 when we gained
acceptance there. However, the Island‘s
track record is best illustrated by the
number of companies it has on London’s
AIM market. Presently such market
activity is quiet, but may present some
opportunities in the future.
Beijing is the pre-eminent and established
centre in China for a diverse range of
commerce and head offices, but Shanghai
is key for financial services, banking
and technology exportation and other
cities like Guangzhou and Shenzhen
are also key centres of activity such as
manufacturing for export. Improving our
business relations with China will help us
to fight for a share in the world’s fastest-
growing consumer and B2B markets. The
Department of Economic Development is
already playing its part in the improvement
of business relations with China which
could emphatically become linked to the
success of Manx businesses and growth
to support the Island’s glowing future.
www.whereyoucan.com/china
Steven Beevers
18 inspired
19
‘No Man is an Island’ has resonance for banking on the Island‘No Man is an Island’ is a phrase which,
according to Mark Waterhouse, CEO
of Zurich Bank International and also
President of the Isle of Man Bankers
Association, has important resonance for
the Isle of Man. He believes this famous
opening line from a quotation from English
poet John Donne, precisely sums up the
approach taken by the Isle of Man and is
the underlying reason for its continuing
economic success.
Waterhouse explains: “On both a national
and international level the quotation is
apt for the Isle of Man. The Isle of Man’s
Government has always believed that
success will only be received through
open government and by working
collectively with its business community
and public to ensure appropriate support
and services are provided in a timely
manner. A perfect example of this is the
Isle of Man Financial Services Partnership
Committee which meets monthly. Led
by the government’s Department of
Economic Development it is attended by
all the heads of the respective finance
trade associations, including; banking,
fiduciaries, life, funds, pensions, captives
and professional services. These meetings
ensure there is collaboration between
government and the various business
sectors and a joined up approach to
delivering strategy that has not only driven
and delivered recent economic successes,
despite a very tough economic climate,
but importantly will continue to deliver
success in the future.”
At an international level, Waterhouse
says that the Isle of Man has always
understood the requirement to work
closely with its near neighbours in the
UK and with governments and regulatory
bodies elsewhere in the world to ensure it
remain at the forefront of international tax
compliance and transparency. He adds:
“Recent discussions with the USA and
the UK on the implementation of foreign
account tax compliance and disclosure
agreements are testament to the Isle of
Man’s eagerness to play a leading role
and work collectively with our international
partners to remain at the forefront
of evolving world wide compliance
standards. This approach is not only
appreciated by the international finance
community but also by the international
parents of the banks and other financial
operations based in the Island.”
“The Island’s status as a highly regarded
international financial centre ensures
that the banks operating here and their
depositors are guaranteed a secure
environment with state of the art financial
services on offer. As a well developed
jurisdiction with a stable political and
economic base, the Island enjoys the key
assets of trust and reputation. It provides
a secure base from which to operate, and
its standards of regulation are enforced
to the highest of international standards,
including being on the OECD’s ‘white list’.”
Isle of Man banks offer a comprehensive
range of banking services, products
and expertise both nationally and
internationally. Their services to a global
client base cover all areas of investment
strategy and money management
including core business areas of wealth
management, investment management
services, deposits, lending and trust
solutions.
Banks on the Island not only support the
growth and diversification of other sectors
in the Island but ultimately benefit from
their success as additional service needs
are generated.
Waterhouse says that Isle of Man banks
are ideally placed to understand and
respond to changing needs and firmly
believes that focusing on quality of service
is fundamental to good relationships and
ensuring standards of service are as high
as possible.
The Isle of Man Bankers Association
is the trade association of the banking
industry in the Isle of Man, and its current
membership is drawn from across the full
spectrum of banks on the Island including
clearing banks, building societies, private
banks and trust banking operations. The
Association upholds the common interest
of its members in their relationships with
the Isle of Man Government and other
business and professional associations
and aims to further develop and preserve
the good reputation of the Isle of Man
as an international banking and financial
centre.
“The Isle of Man is a secure well regulated
environment with industry and commerce
fully supported by government,” says
Waterhouse. “We have the expertise here
and we are extremely innovative with
new products and services and we are
capable of evolving to meet ever changing
challenges. All this sets us apart from
other international financial centres making
us a unique place for banking as well as to
do business.”
www.iomba.org.im
Mark Waterhouse
Finance – Banking
Big enough to count and small enough to care - the best of both for an increasingly global business world
The Isle of Man is widely renowned for its
position as a leading international centre
for financial services. As an industry this
accounts for a large proportion of the
island’s economy. While the Isle of Man
continues to diversify into different sectors
to complement this, financial services firms
also need to differentiate their offering
to ensure we continue our firm foothold
as a world-class hub in an increasingly
competitive business environment.
This has never been more apparent than
in the case of Creechurch Capital. The firm
is strategically placed to develop our off-
island client-base and in turn attract more
interest and business to the Isle of Man. It
also allows us to bring the best products
and services to residents of the island,
which is testament to our commitment to
our roots.
The common thread throughout all
of our Creechurch brands is the fact
they are built upon a comprehensive
understanding of each client’s financial
position, aims, objectives and appetite
for risk. It is that intuition for the client’s
needs which has inspired our continued
innovation and has allowed us to grow
our assets under management to a level
which has led to us increasing our Isle of
Man team to three times the headcount it
was at this time last year.
A particular success story of diversifying
our business was the launch of
Creechurch Private Wealth last year.
This typifies a personalised face-to-
face accessible service combined with
world-class expertise and investment
management.
Creechurch Private Wealth is our
dedicated private client service. Its
existence was borne out of a demand from
discerning clients who are looking for a
service as individual as they are. Through
our experienced team we work with our
clients as their needs evolve.
In today’s market, the choice of
investments and asset classes is vast.
When combined with managing risk and
tax planning, it’s easy to see how this
can cause unnecessary stress.
Creechurch Private Wealth reduces this
stress of complicated decision-making,
as it constantly considers a client’s
options and engages specialist advisers
when appropriate.
There’s no getting away from the fact
that the effect of market volatility has
posed an exceptionally challenging period
in the past few years. With interest rates
also at historic lows, responsiveness
is critical to addressing this in order
to maximise the opportunities that this
environment presents.
Creechurch Private Wealth’s service is
extremely agile, responding quickly and
in tune with agreed client parameters,
making it a highly efficient and effective
way to manage their assets. Its
commitment to active asset allocation
means that investment decisions are
based upon experience, quantitative
techniques and qualitative interpretation,
and portfolios are never left to languish.
Although we provide a truly personalised
approach we find it useful to offer clients
a series of model investment options that
may either provide the exact solution or
at least the starting point from which this
can be reached. As always we use our
personal approach to ensure the final
answer, whichever it is, is the correct one.
By offering a truly personalised approach,
Creechurch Private Wealth’s portfolio
Douglas-based Creechurch Capital is a boutique discretionary fund manager and it works with private and institutional clients operating under three brands; Creechurch Capital (institutional), Creechurch Private Wealth and Creechurch Advisory Services.
CEO, John Greenwood has successfully steered the fast-growing firm through its first two-and-a-half years of business from the historic Knox House building. Creechurch embodies his personal vision of providing clients with a truly boutique and personalised investment manager yet it has a network of clients and partners across the globe creating enviable reach and gravitas.
20 inspired
Finance – Fund Management
21
managers act intuitively and work
unwaveringly to help clients towards
achieving their specific investment
goals in an increasingly complex and
diverse environment.
Our latest brand, Creechurch Advisory
Services, is our flexible consultancy
solution. Formed to deliver the benefits
of our unique position, we draw upon
our comprehensive understanding of
asset classes and economic overview
combined with access to industry-
leading providers.
With the key strengths of independence
and flexibility and in conjunction with
quality partners, we introduce solutions
that are perfectly matched to investment
requirements and desired returns.
As a business, we’re now half way
through our five-year plan, and we’ve
exceeded all of our initial expectations.
As a business with a truly global
footprint, we will remain true to our
boutique approach and culture.
We have evolved into a financial services
business the island can be proud of as
we continue to fly the Manx flag across
the world. Working hard to meet the
expectations of clients is key to our
business and can only serve to enhance
the Island’s already outstanding
reputation as an international business
centre to be reckoned with.
Creechurch Private Wealth and
Creechurch Advisory Services are
divisions of Creechurch Capital Limited
which is licensed by the Isle of Man
Financial Supervision Commission. John Greenwood, CEO, Creechurch Capital
IMGold – a hallmark of trust, integrity and security
Bullion dealers IMGold make buying,
selling and owning gold and other
precious metals as simple as using a
bank. But there’s a crucial difference
and a significant advantage for clients
in that unlike a bank the precious metal
held in IMGold’s vaults is individually
identified and allocated to each client. In
banking the business has legal ownership
of money deposited by clients – but at
IMGold the client’s legal entitlement to the
ownership of their bullion is absolute. No
liquidator, administrator or creditor could
ever claim ownership. This is a crucial
advantage for clients in that they actually
own their bullion and it always remains
their property. Trading in gold or silver
can be done online, on the phone and –
uniquely to IMGold – there is the option for
clients to physically collect their precious
metal if required.
In essence, IMGold is a cost-effective
‘one stop shop’ for bullion trading and
storage providing a service which, up
until the company was launched in 2012,
had only been available to banks and
bullion dealers. Private and professional
clients can buy and sell precious metals
with the very highest standards of secure
storage in former bank premises right in
the heart of Douglas – the Island’s capital.
There is also the added reassurance that
IMGold is based in the Isle of Man which
has a long history as a secure, stable and
well-regulated jurisdiction which combine
to make it a safe haven for wealth – all of
which were significant considerations in
the decision to locate the business on the
Island.
IMGold’s subterranean vaults have
security systems that equal or exceed
industry standards and are electronically
protected and monitored by G4S. The
inventory of each vault is fully insured and
regularly audited. IMGold’s core values
of integrity, security, and trust are also
reflected in its board and consultancy
team which includes former regulators,
bank directors, security specialists, and
experts from the World Gold Council.
Andy Baker, IMGold Corporate
Development Manager says that the
company’s clients are typically high net
worth and ultra high net worth individuals
and their wealth managers. He added:
“IMGold has been setup due to demand
from its stakeholders requiring a storage
facility for their gold holding. Gold is,
and always will be, an integral part of a
well-diversified portfolio of assets. It is a
unique commodity because of the role
it has played for centuries as a universal
currency with 20% of the world’s gold
being part of the financial strategic reserve
of leading nations. IMGold was founded in
response to the increased demand from
clients to provide an easy and secure way
to own bullion. We offer a professional,
cost-effective bullion trading service to all
our clients, whether large or small. Clients
can own any amount from 1kg upwards
and each bar purchased remains the
client’s property until they decide to sell.”
Through IMGold, clients can buy gold
which has been a consistently reliable
store of wealth throughout history.
IMGold is another example of the Isle of
Man playing its role as an innovator in
protecting private wealth.
22 inspired
IMGold are bullion dealers and operators of secure vault storage facilities. We supply and store newly minted, investment grade bullion and help private and professional clients buy and sell precious metals, and offer secure bullion storage.
Metals have been an effective store of wealth for
thousands of years and long-established patterns
show that holding gold:
• stabilises portfolios
• provides protection from inflation
• has proved an effective long-term strategy
There are many ways to buy into ownership of gold but
only one has stood the test of time and that’s ownership
of the physical metal.
IMGold is based in the secure, politically and economically stable Isle of Man and we deal with allocated bullion only.
This means ownership and legal title always remain with
the depositor – all bars are certificated, uniquely identifiable
and remain your property.
Dealing with IMGold is designed to be as simple as dealing
with your bank and we provide:
• an easy way to buy, store and sell gold bullion
• fully insured vault facilities
• security systems that match or exceed industry standards
For more information on IMGold call +44 (0) 1624 888 888
or email [email protected]
Victoria Street • Douglas | Tel: +44 (0) 1624 888 888 | www.IMGold.com
INTEGRITY IS OUR HALMARK
Finance – Investments
00
IMGold are bullion dealers and operators of secure vault storage facilities. We supply and store newly minted, investment grade bullion and help private and professional clients buy and sell precious metals, and offer secure bullion storage.
Metals have been an effective store of wealth for
thousands of years and long-established patterns
show that holding gold:
• stabilises portfolios
• provides protection from inflation
• has proved an effective long-term strategy
There are many ways to buy into ownership of gold but
only one has stood the test of time and that’s ownership
of the physical metal.
IMGold is based in the secure, politically and economically stable Isle of Man and we deal with allocated bullion only.
This means ownership and legal title always remain with
the depositor – all bars are certificated, uniquely identifiable
and remain your property.
Dealing with IMGold is designed to be as simple as dealing
with your bank and we provide:
• an easy way to buy, store and sell gold bullion
• fully insured vault facilities
• security systems that match or exceed industry standards
For more information on IMGold call +44 (0) 1624 888 888
or email [email protected]
Victoria Street • Douglas | Tel: +44 (0) 1624 888 888 | www.IMGold.com
INTEGRITY IS OUR HALMARKINTEGRITY IS OUR HALLMARK
What a good decision...
We originally came to the Island as we
recognised that the Isle of Man with its
history as a politically stable jurisdiction,
geographical proximity to the UK and
reputation as an adaptable well regulated
international business centre would
offer Thomas Miller Investment the ideal
platform on which we could grow. A
secondary but nonetheless vital factor
was the pool of highly trained investment
professionals available on the Island.
We believe that this remains the case
some 25 years later and we have valued
and benefited from the Island’s support
for our business, which has grown and
prospered. Thomas Miller’s traditional
culture and values have survived and
proved themselves throughout many
economic cycles and our reputation for
conservative investment management
finds strong expression in all our
operations today.
From our office in the heart of Douglas’
business district we manage assets for
private clients, charities and pension
funds as well as acting as one of seven
investment managers to the Isle of
Man government, a mandate that was
awarded in 2011. When combined with
Thomas Miller’s investment operations
in London and Edinburgh the total funds
under management within the group now
exceeds £2.6bn.
The offshore private client business
has been central to Thomas Miller
Investment’s growth and recent new hires
have boosted an already strong team of
portfolio managers. The team specialise
in working closely with clients and their
advisors to provide effective offshore
investment management services. Our
unique heritage and expertise extends to
an investment process that emphasises
active portfolio management, exploiting
opportunities at the asset allocation and
stock or fund selection levels, whilst
maintaining a strong focus on managing
overall portfolio risk and volatility.
The Isle of Man is a hub for international
business and Thomas Miller Investment’s
client bank is a testimony to this with
clients spread across all five major
continents. International investment
exposure, multi-currency portfolios,
effective reporting and close client
relationships have been key drivers for
success. We provide a focused, specialist
investment service for corporate service
providers, lawyers, tax advisers and
financial advisors.
Thomas Miller firmly believes that
businesses have a responsibility to make
positive contributions to the communities
in which they operate. Our recent initiatives
have included supporting Team GB
Cycling hopeful Jake Kelly, wheelchair
athlete Darren Kennish, and a number
of charitable causes through staff fund
raisers. Thomas Miller has also supported
the valuable work carried out by The
Children’s Centre throughout 2012 and
2013 and is for the fourth year running one
of the proud sponsors of the Isle of Man
Newspapers Awards for Excellence.
Here’s to another 25 years of success!
24 inspired
Thomas Miller Investment, part of the 128 year old Thomas Miller Group, has gone from strength to strength since opening its Isle of Man office in 1988. Tom Richards, Head of Private Investment Management (Offshore) for Thomas Miller Investment, looks back over 25 years and eyes opportunities for growth in the future.
Team GB Cycling hopeful Jake Kelly, centre, with Ian Jarrett, Chairman of Thomas Miller Investment (Isle of Man) Ltd, and Laura Bellwood, Marketing Manager at Thomas Miller Investment (Isle of Man) Ltd
Finance – Investments
00
Manx Insurance AssociationDavid Kneeshaw, Chairman Manx Insurance Association and Chief Executive Royal London 360°
26 inspired
Steven Beevers
Once again the life sector has proven to
be the largest contributor to the Isle of
Man’s GDP. Not only that, we remain a key
employer providing approximately 5% of
the Island’s jobs. The life sector is made
up of important and large institutions
which form part of the backbone of the
Island’s economy.
What do these companies do? In the main
they provide solutions to help people
preserve wealth, accumulate wealth and
protect families. This is done through a
variety of offshore bonds, savings plans
and life assurance. The market is typically
divided into the UK, the traditional home of
offshore bonds, and the developing world.
In recent times the single premium
offshore market has struggled and any
growth has come from outside Europe.
Recent sales statistics confirm that trend
continuing into 2013. In part the lack of
sales growth can be attributed in the UK to
the after effects of the 2008 crash and the
onset in 2013 of RDR. It is too early to tell
whether UK sales will pick up appreciably
during the year.
If the outlook in the UK has been gloomy
then there is more optimism overseas –
where the market continues to develop
– particularly in the Far East and Middle
East. For these markets the Isle of Man
insurers continue to be the leading
providers and the good reputation of the
Island contributes to our success.
Closer to home the insurers work together
under the auspices of the Manx Insurance
Association. The aim is to promote the
industry, look to raise standards, and
work with the regulators and Government
to ensure a professional approach in a
changing world.
And it’s an interesting time for the MIA with
new regulations and capital requirements
looming on the horizon.
With all of the above going on there’s a
danger we could focus only on the issues
and overlook the positives. But there are
many positives, not least the growing
appetite in the developing world for
financial solutions to savings needs. Isle
of Man companies are at the forefront of
these developments and as they continue
to thrive so too will they continue to
contribute in a major way to the Island’s
economy.
David Kneeshaw
Manx Insurance AssociationMember Companies:AXA Isle of Man
Canada Life International
Friends Provident International
Global Life Assurance
Hansard International
HPB Assurance
Integra Life International
Isle of Man Assurance
LCL International
Nordea Life & Pensions
Royal London 360°
Royal Skandia Life Assurance
Scottish Widows
Zurich International Life
Finance – Insurance
A jewel in the Irish Sea for captivesGaynor Brough, Chairman, Isle of Man Captive Association (IOMCA), outlines the advantages of an Isle of Man domicile for captives
The Isle of Man is considered to be
something of a jewel in the crown of the
captive insurance world. Indeed, it would
be true to say that it is now shining more
brightly than it has for many years. This is
because the Isle of Man has developed
an attractive business proposition based
on its fiscal, legal and regulatory benefits
combined with the Island’s ease of access
to London City and Gatwick airports, being
merely an hour away by air. This makes
the Island attractive to captive owners and
captive managers alike who wish to meet
regulators (IPA) and professional advisors
with speed and ease on a regular basis.
The captive sector is an important
contributor to the Island’s core
financial services sector. IOMCA is the
representative body of the industry
and has a membership in excess of 40
members comprising captive managers,
banks, legal and accountancy firms.
Continued promotion of the sector is a
key priority for IOMCA and during 2013
they will be exhibiting at key international
events such as BIBA, AIRMIC and FERMA.
In 2012, IOMCA produced its own country
strategy and has developed action plans
in connection with the targeting of UK,
South African and Asia Pacific companies.
World leading captive managers such as
AON, Marsh and Willis have a presence on
the Island. In addition several independent
captive managers are located in the Island
such as Castletown Insurance services,
Isle of Man Assurance, Thomas Miller
and West Corporation. This diversity
ensures captive owners continue to be
provided with a range and choice of
captive manager that delivers credibility
and service to the highest professional
standards. The Isle of Man captive sector
prides itself on its ability to service large
and complex captives and the sector’s
workforce is highly qualified and stable.
Many large UK Corporates own captives
domiciled in the Isle of Man and the
Island has the appropriate pedigree for
successfully transacting such business.
Its justifiable strap line is “we manage
large and complex captives”.
The Isle of Man is a renowned international
insurance centre. In addition to its captive
insurance sector, it is a major hub for life
companies. The insurance sector on Island
traces its origins back to the 1970s and has
developed a strong track record in client
quality since then. Assets under management
for the insurance sector are in excess of £56
billion and annual gross written premiums
are approximately £10 billion. The insurance
industry is a major employer within the
Island’s finance sector and there are in
excess of 2,000 full time employees.
A particular strength is the sheer diversity
of the industry on the Island. Captive
insurance business is an integral part of
that diverse insurance industry, which also
includes life assurance and international
pensions sectors. The Island’s
insurance industry has a versatile profile
comprising in excess of 225 licensed
entities, including insurers, insurance
management companies and insurance
intermediaries and over 1,400 authorised
pension schemes.
27
Steven Beevers
Gaynor Brough
28 inspired
Who should you trust?Paul Hotchkiss, Chairman, Society of Trust and Estate Practitioners, Isle of Man Branch
Trusts are created for a multitude of reasons: succession, tax, asset protection and wealth preservation. However, before you create a trust you need to take stock and understand all the ramifications.
Take advice
Advice needs to cover a multitude of areas including what a trust is and how it can assist you, tax position, personal circumstances (including financial), personal and family current and future needs and future aspirations. A good adviser will cover all of these areas and more and explain the advantages and disadvantages of a trust.
Get the drafting right
You may be presented with a draft trust deed. Ask your trustee to explain all the clauses in it. You need to fully understand them, leave ‘no stone unturned’, determine what you want to achieve, and take time doing this. It is worth considering taking separate and independent legal advice to make sure the trust deed is fit for your purposes and meets your current and future needs.
Choose your trustee well
A trustee is not just for Christmas. Whilst most trust deeds enable someone (usually the settlor) to remove or replace trustees, this is to be avoided: it can be expensive and sometimes onerous. Most trusts have lengthy or unlimited lifetimes but you will not be around for ever. You need to be comfortable with who you chose and what happens when your point of contact or trustee is no longer employed.
Make your wishes clear
It is not only the legal drafting of the trust deed you need to get right. Trustees need guidance as to how you wish the trust to be administered in the future and this guidance comes in the form of a non-binding letter of wishes. You need to make sure you express your wishes clearly, and if necessary review and the letter regularly - circumstances can change.
Take tax advice regularly
You need to understand your own, the beneficiaries and the trustees’ tax position. Such advice needs to be taken at the outset. Tax laws change constantly and the laws in relation to trusts are generally complex. You should also expect the trustees to take such advice periodically: circumstances change and it is foolish to avoid taking advice simply to save costs: it may end up costing you more.
Expect to pay on-going legal costs
As a trust relationship evolves, changes may need to be made to the terms of the trust deed. Beneficiaries may be added, excluded, new trusts formed, and wholly owned companies established. These actions need to be carried out properly and appropriate legal advice sought where necessary. Expect your trustee to do this: very often standard template documents are used and whilst these fit some circumstances they do not fit all.
Keep in touch
Communicate with your trustees regularly. Sometimes in an effort to keep costs down some settlors or beneficiaries avoid regular contact. This can often have the opposite effect. If trustees are not informed about the whereabouts and status of the settlor or beneficiaries they cannot necessarily make informed decisions or administer the trust correctly. For example, the simple fact of a beneficiary moving from one jurisdiction to another may trigger reporting responsibilities and the necessity for tax advice or legal advice.
Expect to pay the trustees
Establishing and running a trust correctly will cost money. It is important not to lose sight of this. Relationships between the settlors (or beneficiaries) and trustees often turn sour over costs, therefore, before you chose your trustee or decide to create a trust, get an idea of how much the annual running costs are likely to be. As part of this exercise understand precisely
what trustees will be required to do, what
they will charge their time for and how they
work.
Finally, ask: do you really need a trust
and do you need one now?
Sometimes you can be persuaded that
the creation of a trust is the right thing
to do. However, be careful: a good
advisor should be able to elucidate the
advantages and disadvantages of creating
a trust now or in the future and present you
with a balanced view. Ask lots of questions
and expect clear answers. Timing of
trust establishment can sometimes be
critical. There are many possibilities –
trusts created during your life time, pilot
trusts or Will trusts – all will have their
good and bad points depending on your
own and the beneficiaries’ status and
circumstances.
Conclusion
Trusts can be very useful, flexible and can
serve many purposes. If you wish to create
a trust, the Isle of Man is an excellent
jurisdiction in which to do this. There are
a number of excellent trust lawyers, tax
advisers and fiduciary companies who
will be more than willing to assist you.
If you wish to contact the Isle of Man
Branch of the Society of Trust and Estate
Practitioners, please call +44 (0)1624
872140 or email [email protected]
Paul Hotchkiss
Finance – Trusts
29
An introduction to Foundations on the Isle of Man John Rimmer, Partner, Appleby
The Isle of Man has for many years been a jurisdiction of choice for the structuring administration and preservation of private wealth. As a common law jurisdiction, Manx companies and trusts have become the traditional vehicles through which wealth is passed. This has changed with the passing of the Foundations Act 2011 (“the Act”) in 2011 which came into force last year. A foundation is a legal concept more familiar to civil law jurisdictions and has never had a statutory footing in Manx law.
The manx foundation’s general character
A foundation can be described as a self-owning legal person formed by the dedication of property for specified purposes. Property may or may not be transferred into the foundation when it is established. The foundation is established by making a successful application for establishment to the Foundations Registrar. Whoever initiates the registration of the foundation at the outset is known as the Founder. A foundation, being a legal person, can sue and be sued in its own name and can own property in its own name. Importantly a foundation must have:
• A foundation instrument that defines
the purpose or objects for which the
foundation has been set up as well as
the foundation’s name.
• The foundation rules which must
specify those persons who will act as
its council, its registered agent and its
enforcer. The Act specifies what must
be covered by the rules which include
but is not limited to:
• the appointment, retirement and
replacement of council members,
registered agents and enforcers
• the remuneration of council
members, registered agents and
enforcers
• powers that are to be reserved by
the founder
• when the foundation is to be wound-
up and for what object or person any
surplus assets are to be applied. Other than certain particular issues that must be dealt with in the rules, there is wide scope for the rules to be varied from foundation to foundation. This will be exploited to adapt a foundation to its particular role.
• The foundation’s objects define the
purpose of the foundation. The objects
must be certain, reasonable and
possible, but must not be unlawful,
contrary to public policy or immoral.
The objects may or may not be
charitable, they can also be for the
benefit of a person or class of persons
or for a specified purpose, or both.
• The Council’s role is to administer the
foundations property and to ensure that
the objects are met. The council must
comprise of at least one person and
that person may be a corporate entity.
A council member who is an individual
must be at least 18 years old, but must
not be suffering from a mental disorder,
or be disqualified from being a director
or officer of a company or a member of
a foundation council. The members of
the council must act in good faith and in
the best interests of the foundation. The
council members must also exercise
the care, due diligence and skill that
a reasonably prudent person would
exercise in comparable circumstances.
• A Registered Agent whose initial
purpose is to establish the foundation.
The Bill imposes certain administrative
duties including the safe custody or
particular foundation documents, the
production of accounts, filing of annual
returns. It is envisaged that these duties
will be undertaken by the registered
agent.
• An Enforcer whose purpose is to ensure
that the objects of the foundation are
met. It is not obligatory to have an
enforcer, unless the foundation has a
specified non-charitable object.
Isle Of Man Fiduciary industry
The Act specifies the various parties involved in a foundation and their roles. Amongst others, the registered agent must be a regulated corporate service provider. The Isle of Man has a well established and internationally renowned industry for the provision of corporate and trust services, and it can be assumed that this fiduciary industry will handle foundation business with its characteristic skill and efficiency.
John Rimmer
Finance – Foundations
Relocating to the Isle of Man, a practical guideMichelle Murphy, Relocation Options
Relocation Options has for the last five
years assisted individuals, families and
businesses with their relocation to the Isle
of Man and in doing so garnered wide
ranging experience in the practicalities of
relocating. Some of the relocations we
have assisted with include those ceasing
residence in the UK and further afield who
have transported their businesses to the
Isle of Man and started again through
a new corporate vehicle. We have also
assisted the larger multi-jurisdictional
enterprises that have utilised a subsidiary
based in the Isle of Man, with real
presence on the Island with employees
forming an integral part in their overall
structure. Other managed relocations
include key employees such as managing
directors and senior managers of well
established Isle of Man companies.
Whilst the positive business and lifestyle
perspectives may draw people to the
Isle of Man, the practical issues for a
business, individual or even a family may
seem onerous. For those on the other
side of the globe, the challenges faced are
numerous, whether it is dealing in another
time-zone, overcoming language barriers,
grasping the Isle of Man relationship with
the UK and European Union or just where
to get started with relocating to the
Isle of Man.
Many of the challenges faced with
relocation though are not just business
related; many of the practicalities involve
decisions that will affect key employees
be they directors, senior management or
technical support. The relocation may
also affect the partners of those willing
to make the move to the Isle of Man and
their families. The question of relocating
is more wide-reaching and disruptive than
simply establishing a new enterprise on
the island.
It is our experience that many of the
concerns surrounding the relocation are
personal rather than business related and
involves questions such as where is the
best place to live on the Isle of Man? Will
my partner be comfortable moving to the
island? What are the educational facilities
available to our children? Many of the
concerns are though surmountable with
good advice, information and dedicated
support. We believe it is advantageous
to employ a committed overall relocation
support system that not only assists with
the establishment of the new enterprise
but also supports on a personal and family
level so that the key individuals of the
business can hit the ground running.
Relocation Options offers a bespoke
relocation service and is able to assist
those moving to the island in finding
the perfect accommodation to suit
their requirements. Our services are
individually tailored to those needs,
ranging from general advice on relocation,
to property searches or accompanied
property viewings. We also able to
provide the practical, softer services that
make the relocation much easier such as
arranging for broadband to be set-up in
your new accommodation or stocking the
refrigerator with the basics. We are able
to source a range of properties and are
able to advise on a number of important
areas including housing, education and
employment.
Through our sister businesses, Financial
Options and Corporate Options, we can
assist in securing Isle of Man mortgages,
life assurance, health insurance,
investment advice and pension advice as
well as services to businesses relocating
such as establishment of Isle of Man
Companies, secretarial and administration
services, accountancy services and
guidance on the grants and financial
assistance available.
30 inspired
Michelle Murphy
Residential property searches Company / Trust formation
Commercial property searches Business start up
Isle of Man mortgage advice Grants advice & assistance
Moving in assistance Pension transfers
Guided island tours Investment advice
Local services information Insurance & assurance
Tel: + 44 (0) 1624 612888
Skype: relocationoptions
Email: [email protected]
Web: www.relocationoptions.co.im
37 Hope Street, Douglas, Isle of Man, IM1 1AR Relocation Options is a trading name of Corporate Options Limited which is registered in the Isle of Man No. 122844C and is licensed by the Isle of Man Financial Supervision Commission. Chase Financial Services Limited is registered in the Isle of Man No. 084203C and is licensed by the Isle of Man Financial Supervision Commission. Chase Financial Services Limited is registered with the Isle of Man Insurance and Pensions Authority in respect of general business.
Relocation Options Helping professionals, families & businesses relocate to the Isle of Man with the smoothest of moves
32 inspired
Isle of Man Chamber of Commerce
Jane Dellar, Chief Executive of the Isle of
Man Chamber of Commerce, has worked
in the Channel Islands, Caribbean and
Bahrain and headed Isle of Man Finance
for the Treasury. She became Chamber
Chief Executive in March 2013. The
Chamber of Commerce, she says, is a
microcosm of the Isle of Man’s unique
attitude towards business.
“The Chamber here is a proactive
organisation with an extremely high level
of participation from its membership.
We have eight committees covering
construction, employment and
training, finance, ICT and e-Business,
manufacturing and technical, retail,
tourism and transport – and around 100
business professionals who devote many
hours of their free time to a variety of
Chamber projects. It’s a lively and vibrant
organisation in which members recognise
that everyone in the business community
has a shared interest in the Island’s
success. The number of experienced and
talented people who are prepared to give
up their time to help Chamber is quite
remarkable. Of course, Chamber exists
to represent its members – we receive no
funding from Government – but we have
a close relationship with Government and
the work that our members do ultimately
benefits the Island as a whole. In my
experience of working in many other parts
of the world the Isle of Man is unique in
terms of the extent to which Government,
regulators, professional organisations, and
the private sector work together towards
the common goal of growing the economy.
We have members of the Chamber
representing businesses which are
competitors, but they also recognise that
there is a shared interest in the success
of ‘Isle of Man plc’. In simple terms,
the prevailing attitude in the business
community is that we all have to work
together to make the pie bigger, and it’s
only when this has been done that we can
start to discuss how it is shared out.”
One of her main aims for the Isle of Man
Chamber is to increase affiliations with
Chambers in countries which are potential
new markets for members, or countries
in which members already have a
presence. For example, several Isle of Man
Chamber members have offices in Jersey,
Guernsey, and the Isle of Man. While the
Channel Islands have often been seen as
‘competing jurisdictions’ to the Isle of Man,
Dellar believes that increased co-operation
between Chambers can benefit members
in all three islands.
When it comes to setting up a new
business, Jane has practical experience
which she can draw upon if asked to give
advice to entrepreneurs wanting to do the
same. She and a business partner recently
opened a coffee shop called Coffee
Exchange in the heart of the Island’s
financial district.
www.iomchamber.org.im
Jane Dellar
Sandra Georgeson
Moving forward with confidenceSandra Georgeson, Director of the Isle of Man Association of Corporate Service Providers
Change has always been an inherent part
of the fiduciary business and today this
is no different. Since 2008 the pace of
change has been accelerating but some
of the main ‘game changers’ had affected
the industry even before then. During the
1990’s we saw a moratorium on non-
resident companies and the beginning of
the Corporate and Trust Service Providers
(CSP and TSP) licensing legislation.
The 2000’s saw the implementation of
the CSP and TSP licensing regimes, the
end of the tax exempt company and the
continual closing of loopholes within the
UK tax regime. But, the industry continues
to grow, adapting to the ever changing
operating environment.
The Isle of Man has risen to the challenges
and its ability to innovate and diversify
has shaped the Island’s economy. This
has been advantageous not only to the
Isle of Man as a whole but to the fiduciary
sector which has often found itself at the
cutting edge of these new developments.
New sectors that have been supported
by fiduciaries include the pleasure yacht
register, the aircraft register, e-Gaming,
space and clean technologies. Although
our tax regime has remained central to
those developments, the offering has
developed to a platform of solutions for
businesses involved in those sectors.
The Isle of Man has shown that it has
the resilience to adapt to the changing
environment. The most recent changes
are being driven by the US and now the
UK FATCA agreements. Once again
these are heralded as ‘game changers’
but these new rules and standards also
present opportunity and the industry will
move forward. There is no doubt that there
will be another shift in the make-up of our
business portfolios but can we compare
the change we have now with that of 10 or
15 years ago?
Some may disagree with the Isle of Man’s
‘brave’ move to be the first to sign up to
the UK agreement, but is it inevitable that
the other Crown Dependencies and British
Overseas Territories will have to follow
suit? Only time will tell but the important
aspect of this latest change is responding
and adapting to the new order of things
and using our intellectual capacity to find
the opportunity and exploit it. In this way
we will make a virtue of the new rules
and approach the business world with a
confidence based on the knowledge that
we are embracing progress.
So what is the forecast? Well, with
application, the fiduciary industry on the
Isle of Man will continue to offer attractive
solutions to business people all over the
world. At the heart of all the offerings will
be confidence. That confidence is founded
on the knowledge that basing your
business in the Isle of Man equates
to probity and security.
33
I’m often asked about the concept of
clustering, what it really means and in
particular what the Isle of Man Aerospace
Cluster is all about. In the manufacturing
world and especially in the aerospace
industry the importance and function
of clusters is well known. They are
fully appreciated as a powerful way
of putting into practice a principle first
conceptualised by Aristotle – ‘The whole is
greater than the sum of its parts’.
Leading business strategist Michael
Porter proposed that in business, the
cluster can be described as a geographic
concentration of interconnected
businesses, suppliers, and associated
institutions in a particular field. Clusters
are considered to increase the productivity
with which companies can compete
nationally and globally.
The manufacturing industry in the UK
has taken a hit over the last 100 years.
However, due to the unfortunate economic
events centred around financial services
over the last few years, manufacturing in
the British Isles is ‘trending’ again.
In truth it always has been important
to those of us who have trained in
engineering, manufacturing and science
and technology but now it is politically
‘hot’ again. The overriding culture of the
last 2 decades, that money makes money,
has reverted once again to the primeval
notion of taking a raw material and adding
value to it using skill and ingenuity to
create a desirable product to sell. This is
the concept that made Britain great, our
islands wealthy and our products and
inventions the envy of the world for such a
long time.
When companies decide to enter the world
of manufacturing they are understandably
protective of their idea, designs, methods
and contacts. They can go to great lengths
and expense to protect their ideas via
patents and copyrights and may even
choose to conduct their business in an
area which is considered safe from those
who might seek to steal this collateral and
replicate it.
They are therefore naturally reserved and
choose their business partners carefully to
try and protect their intellectual property.
This issue can also affect their attitude to
staff, recruitment and further deter them
from mixing with other businesses in their
region due to the competition for skills
in that area. In particular engineering is
becoming more and more of an issue
across the world due to a shortage of
newly qualified craftsmen, technicians and
technically biased management talent.
REGULATION
Aerospaceinspired 2013
The concept of clusteringAdrian Moore, founder and Chairman of the Isle of Man Aerospace Cluster
Parts assembly at Swagelock Limited
In 2006 the aerospace sector in the Isle
of Man, built on the strong foundations
already in place with the local Chamber
of Commerce and the Isle Of Man
Government, formed the Isle of Man
Aerospace Cluster.
This sector already had a strong 60 year
heritage of design and manufacture for
the civil and military markets but over this
time had never really capitalised on the
power of working together as a sector.
We already knew each other of course
but the culture of sharing ideas, contacts,
expertise and even resources had not
really been exploited.
It became clear very quickly that we all
had something to offer such a partnership.
A culture of openness and working
together soon began to flourish based
on the premise that if everyone brings
their knowledge and experience to the
table then the ultimate outcome would be
benefits for all.
After all, if businesses join an organisation
motivated purely by ‘what’s in it for me?’
the pot will very soon run dry and the
opportunity will die on the vine.
Over the last few years the Isle of Man
Aerospace Cluster has made a big
difference to the way the sector works. It
has created benefits which every member
can capitalise on and
supported impressive
growth.
An innovative collaboration
between government and
the Isle of Man College
has enabled the sector
to influence the way we
train the engineers of the
future. This approach has
grown into a government
supported project to
build a new engineering
training academy, with
a significantly increased
student capacity, all borne
from an early initiative
which puts an engineer
in the Island’s schools to
increase awareness of
careers in engineering (the
ACE Programme).
We have created a business improvement
programme based on a Rolls-Royce
model of excellence, joint purchasing
and shared services initiatives which save
money, cluster networking events and
exhibited at some of the world’s biggest
events, raised money for charities, won
awards and even put components on
Mars. Most significant is the fact that little
of this costs additional money.
We don’t have a huge budget, use outside
consultants, or spend money on extensive
advertising. We use our collective
knowledge, contacts and passion for our
industry to help each other and as a result
the sector is projecting huge growth. We
have already increased employment by
32% since formation and we are attracting
many international businesses to expand
or relocate.
www.aerospace.co.im
35
Adrian Moore
Stroma Group – building sustainability
The Stroma Group is a leading provider
of building sustainability and compliance
services. After four years of quietly building
relationships and a substantial body of
diverse case studies on the Isle of Man,
in 2013 Stroma increased its commitment
to the Island by establishing Stroma NX
Ltd as an Island-incorporated business. It
has now started to move key staff to the
Island, the first already settled in to life in
Peel, and will look to recruit local residents
as its workload expands, while at the same
time continuing to train and accredit local
companies in support of the company’s
technologies and services.
Stroma NX aims to bring the largest body
of state-of-the-art resources in energy
services and renewable technologies
to the Isle of Man. From fabulous eco
houses to traditional farm estates, private
new build and retro-fit residences, offices
and commercial premises, public sector
buildings and social housing, Stroma
NX has provided a huge range of site
specific solutions incorporating the latest
technologies, system designs and energy
services – and all in the Isle of Man.
The company helps clients assess and
improve their building stock’s services
and fabrics, cut their energy usage, and
generate their own clean, renewable
energy.
Stroma NX projects achieved resounding
approval at the Isle of Man Government
Energy Awards 2012, gaining outright wins
in two of the six categories and a further
three commendations. Stroma NX recently
provided air-tightness testing services for
Auldyn Construction on the new £28million
St Ninian’s Lower School at Bemahague,
where the air-tight building envelope
has contributed to delivering a ground-
breaking energy-efficient school the Isle
of Man can be proud of. Stroma NX has
worked extensively with the Isle of Man
Department of Education and Children
and the Department of Health and the
Department of Social Care to assess and
improve the energy efficiency of their
buildings.
The company’s methodology focuses
on targeted improvements to ensure
the building envelopes are working
effectively, thus reducing energy bills and
carbon emissions; it is also extended to
consider plumbing, heating, insulation
levels, lighting and controls, as well as
new renewable hard technologies such
as heat pumps, biomass, wind turbines,
heat recovery, solar PV and LED lighting,
to further improve the performance and
comfort levels of the buildings assessed.
The Isle of Man has plentiful natural
resources that can be used to generate
low-cost, clean, renewable energy: for
example, it has one of the best wind
resources in the British Isles and a
wealth of forestry providing woodchip for
biomass. It’s not surprising, therefore,
that the Isle of Man Government is eager
to promote the adoption of renewable
technologies on the Island, through its
Clean Tech initiative. Stroma NX supports
this programme and is experienced in
delivering renewable technologies on
the Island, from undertaking feasibility
studies to the supply, design, installation
and commissioning of renewable
energy systems. As an Energy Efficiency
Consultant under the Department of
Economic Development’s Business
Support Scheme (BSS), Stroma NX are
authorised to provide related business
services which could qualify for 50%
Government funding of up to £4,500.
As energy policy and best practice
change, it is important that the industry
can keep up. Stroma NX already provides
flexible training and certification packages
that enable Island-based consultants
and contractors to monitor, measure and
improve the Island’s buildings, whether
by undertaking energy assessments,
undertaking specialist air sealing or
installing and servicing renewables. Its
expertise is now widely recognised on the
Island and in early 2013 delivered CPD
presentations to the Chartered Institute
of Builders and the Royal Institute of
Chartered Surveyors on the subjects of
Passivhaus and The Green Deal in relation
to the Isle of Man.
For more information go to
www.stromanx.im
Clean Techinspired 2013
Stephen Brown, MD of Stroma NX Ltd. and Richard Collister of The Department of Education and Children at the 2012 Isle of Man Government Energy Awards
Komatti – inspired by the TT
Headquartered in Douglas is a new
start-up Komatti Ltd. Komatti is a racing
company, but with a twist, as Dr Koen
Matthys, founder of Komatti, explains:
“Our business model is simple - we enable
the trialling of new technology on the track.
Conventional racing outfits have a racing
team at their core and maintain a satellite
activity to extract technology from the race
track, but we are moving in the opposite
direction. We bring new technology from
our clients to the race track and use it as a
proving ground for product development.
It’s a subtle difference at times, but it
emphasizes why we do what we do: we
race to innovate.”
Komatti’s approach is to seek out a
new breed racing competition where
regulations are relaxed enough to let
innovation flourish. No wonder then that
Komatti has a heavy involvement with
the low carbon, zero emission racing
challenge TT Zero around the Isle of Man
TT Mountain Course. In fact, founder Koen
Matthys has been active in electric racing
on the Isle of Man since the inaugural
event in 2009 and Komatti is a direct
spin-off from the annual clean tech racing
challenges held since then.
He says: “Although it is not our only
activity, TT e-Racing is in the company’s
DNA and we are most known for assisting
R&D start-ups and university entries
with getting to the grid. It’s challenging
because the racing budget for those
teams is usually small, but they still need
to get their development work done in a
high-profile environment and maintain
positive brand exposure while doing it.”
In 2012 Komatti helped Japanese EV
start-up Mirai to come to the Isle of Man
TT. “An interesting project”, explains
Koen, “and more of a partnership as the
base racing vehicle and testing platform
was designed and built in Japan. In turn,
Komatti consulted on selected design,
engineering and build aspects, did some
technology development work but also
took care of race operations at the TT and
the post-race PR and communications
outside Japan. It is important to note
that we can offer value to technology
providers in a wide range of markets –
consumer electronics is but one example.
We currently work with a London-based
SME that produces action cameras. Their
design team is an innovative and talented
bunch of individuals, and their work ethos
aligns with ours so it was an easy match
from the off.”
Asked whether Komatti will be producing
consumer-ready technology or racing
vehicles in-house in the near future, Koen
says: “We have to start from where we
are. Today we enable others to develop
their technology solutions. Komatti has
considered designing and developing
more in-house, but this will happen
when the time is right. Because of our
pedigree, most likely our first technology
demonstrator vehicle would then be a
thoroughbred monster of a TT race bike.
For no other reason than to show that we
can, because sure we race to innovate -
but we also want to win!”
For more info go to komatti.com
37
Dr Koen Matthys, founder of Komatti
Information and communications technology and economic growth
ICT, or Information and Communications
Technology, is one of the fastest growing
sectors in the global economy, and the
role that it can play in economic growth is
widely recognised. While the Island’s ICT
sector is already strong, there is also room
for expansion which in turn can bring long
term economic benefits. In 2013 an Isle
of Man Information and Communication
Technology (ICT) Strategic Plan was
produced by the e-Business Development
Group to look at how Government and
the private sector could work together to
realise the Island’s potential in ICT. The
report was prepared by Chris Gledhill,
Chairman of the Manx ICT Association
and Managing Director of PDMS; Chris
Hall, Managing Director of Can Do
Consulting; and Brian Donegan, Business
Development Manager for ICT at the
Department of Economic Development.
Chris Hall, who led the strategic planning
project, commented: “ICT is becoming
increasingly important in the global
economy but there is a global skills
shortage with over 100,000 IT vacancies
currently in the UK. In the UK the ICT
sector represents around 10% of the
economy, whereas currently the sector
represents about 4% of the Isle of Man’s
economy. So there is clearly room for
growth.”
Hall says that the Isle of Man has a strong
proposition for ICT and is an attractive
base for locating either some or all of
the functions of an ICT SME - especially
if the entrepreneur/owner is prepared to
relocate. He adds: “During the last year
the Island has successfully attracted a
number of niche software
businesses to relocate
here – and this has
been achieved with little
intervention. There is
considerable potential
to create new high value
jobs and accelerate future
growth by increasing the
focus on ICT.”
The ICT strategy will
focus on four key strands:
developing ICT skills,
supporting existing ICT
companies, attracting new
inward investment, and
supporting technology
entrepreneurs and new
start-ups.
The ICT Strategic Plan clearly illustrates
that there is growing interest in the
potential that the Island has to create a
knowledge based economy in which,
through investment in education and
training, the Isle of Man can become a
centre of excellence where the skills of ICT,
software, and e-Business experts can be
sold worldwide. At the time of writing the
ICT Strategic Plan has been endorsed by
the Department of Economic Development
and work is underway to deliver the key
actions identified in the report and to
promote the Island as a great place to run
a software business.
In the next few years the Isle of Man could
have a new ICT higher education centre
which would act as a hub for nurturing
and developing ICT entrepreneurs. The
Manx Educational Foundation (a charity
devoted to supporting educational causes
for the benefit of students within the
Isle of Man) is aiming to create a higher
education establishment in Douglas called
The International Centre for Technology.
Working in conjunction with a network of
global educational and industry partners,
as well as the local ICT community, it
is hoped the International Centre for
Technology will become a centre of
excellence for ICT education both for local
students and those from off-Island. Current
plans involve the provision of industry
supported certification and professional
development short courses as early as
Autumn 2013, with the first major intake of
full time undergraduates in September the
following year.
www.whereyoucan.com
ICTinspired 2013
39
Skanco - always seeing the big picture
Companies invariably want one IT partner
and not a host of irregular suppliers that
never see the big picture, says David
Butterworth, Managing Director of IT
services company Skanco Business
Systems Ltd.
“We aim to offer almost every service
a company might need, it is the added
value of skill, experience and yes, the all
important ability to see the ‘big picture’,
that helps us to build a service which really
stands out from the crowd.”
The size and strength of Skanco is Manx
grown and the Braddan-based company,
which was founded in 1985, is wholly
owned by its directors, all of whom are
Isle of Man residents. This, says Mr
Butterworth, is one of the reasons why
it has invested so heavily in the local
community.
The company now has more than 30
staff working across two custom-built
locations totalling over 20,000 square
feet. “That size makes us reliable, gives
the customer access to a wider range of
technical skills and allows us to pass on
the benefits of higher purchasing powers,”
adds Mr Butterworth. “Yet, over the years
we have also stayed on the cutting edge of
technology, bringing ever more innovative
products to the Island’s businesses.”
In 2011 Skanco won a three-year contract
to provide IT services to the Isle of Man
Government’s Information Systems
Division (ISD) which involves hardware
and software procurement, maintenance
of servers and support for approximately
6,500 desktop and laptop computers.
Skanco’s services embrace:
• Procurement – we can find the perfect
match of hardware or software and can
leverage significant purchasing power
on many brands. Our Partnership
Managers not only act as the prime
point of contact but will proactively
keep clients up to date and advise
on new services, developments and
products that might be of benefit to
their business.
• Technical services – highly accredited
technical team can meet a company’s
needs for everything from simple
installations to complex projects. It
is crucial to have qualified engineers
available who can respond quickly and
efficiently should the need arise.
• Maintenance – guaranteed response
times 24 hours a day, 365 days a year.
When something stops working it can
halt the smooth operation of a business
if there is no solution in place. With a
flexible contract to suit a company’s
specific needs Skanco can deal with
any problems that occur.
• IT Relocation – moving offices costs
time and effort; we use our experience
to manage the relocation of IT
equipment, cutting stress levels and
staff downtime.
• Business continuity – When disaster
strikes we manage the re-instatement
of systems, software and data, taking
responsibility for getting the company
up and running in the fastest possible
time. With a Skanco Restart contract
we can move a company’s entire
business to our resilient and secure
built facility in the event of a disaster.
• Media storage – every business relies
on the accuracy and security of its
data. Our secure offsite storage offers a
simple and cost effective way to ensure
business data is protected from loss or
damage.
• Outsourcing – we integrate seamlessly
with a business, giving it the
strength of a whole IT team at a fraction
of the cost. IT is a constantly evolving
area and even a small business can
require a wide range of competencies
and specific knowledge in order to
work.
• Hosting – an important part of
managing and maintaining data and
business-critical applications. We can
meet a company’s needs from quarter-
rack hosting up to fully secure hosting
areas containing multiple racks.
• Disposal – we dispose of old
equipment securely, ensuring a
company’s sensitive information is
completely erased.
“Our philosophy is to provide professional
IT services to our customers,” is the
unequivocal assertion of Mr Butterworth.
“We have been delivering that distinctive
service for 28 years and some of the
current management team have been with
the company since its inception. Skanco
is set apart by the quality, range and
professionalism of its IT services.”
www.skanco.co.uk
David Butterworth, Managing Director, Skanco Business Systems Ltd
Manx Telecom – Excellence in e-BusinessManx Telecom is the leading telecoms and data centre provider on the Isle of Man – we play a major role in making the Island a global centre of excellence for e-Business and businesses of all kinds.
Our Data Centre at Douglas North, just
outside the Island’s capital, is the only
purpose-built Data Centre on the Isle of
Man. It offers world-class data security,
super fast and highly resilient global
connectivity, fully outsourced managed
platforms, plus scalable and flexible
hosting, network capacity and cloud
services. Currently, our clients include
some of the world’s largest e-Gaming
companies, online bookmakers, global
payment processors, international
e-money providers, global banks,
international insurance companies, and
government departments.
Resilience
One of the most secure and resilient
facilities on the Island, Douglas North
is protected by a three metre high
fence, and covered extensively by
CCTV. Fabricated to a non combustible
standard and erected on a green field
site some 165 metres above sea level,
the centre possesses a sophisticated
building management system which
includes security control, environmental
management, and fire suppression.
Power is ensured via a resilient ring power
supply and onsite substations, plus UPS
battery backups, and diesel generators
with 5 days of diesel storage on site.
Each system is integrated and monitored
by Manx Telecom’s dedicated building
management systems, 24 x 7 x 365.
The Data Centre and its associated
high capacity off-Island networks were
initially designed to deliver 99.999%
‘uptime’ to hosted customers. In fact,
we have achieved 100% availability since
operations began in 2005.
Security
Manx Telecom is accredited to ISO/IEC
27001, the only auditable international
standard which defines the requirements
for an Information Security Management
System (ISMS). One of the most rigorous
standards of its type anywhere in the
world, our certification covers all of Manx
Telecom’s Data Centre service operations,
including managed service platforms, IP
networks, fixed and mobile networks, plus
power and estate management. We also
provide fully outsourced managed Data
Centre platforms to a range of customers
which are required to be audited annually
and be compliant with PCI DSS (Payment
Card Industry Data Security Standard); the
‘gold standard’ for protecting customer
account data.
Connectivity
We offer a variety of flexible options
designed to meet the connectivity needs
of a wide range of customers, whether
based on or off-Island. Our high capacity
Cisco-powered MPLS off-Island network is
diversely supplied over protected multi-
carrier links, via a 10 Gbps SDH backbone
which connects the Isle of Man directly
via Points of Presence in the Isle of Man,
Manchester, London, Dublin and Belfast.
Our Internet peering strategy involves
multiple Tier 1 networks and key peering
partners in order to provide consistent
high speed Transatlantic, European, and
Asian connectivity.
Protection against DDOS attacks is also
a priority. Manx Telecom has designed,
installed, and manages its own multi-
layer and multi-vendor hardware and
software DDOS protection platform which
incorporates the latest technologies
available from leading suppliers such as
Cisco Systems and Arbor Networks. All
traffic is monitored at the point where we
connect to Tier 1 Providers; malicious
traffic is filtered out automatically, while
genuine traffic is passed straight through
to our customers.
Skills & Partnership
We’re especially proud of our Data Centre
team, the largest and most experienced
of its kind on the Island. There are over 30
Manx Telecom staff specifically dedicated
to delivering enterprise hosting and
connectivity services to our Data Centre
clients – guaranteeing that skills and
expertise are always available, 24 x 7 x 365
days a year. We also work in association
with a number of leading industry players
including; Alcatel-Lucent, BT, Cable &
Wireless Worldwide, Cisco, Dell, HP, Level
3, Microsoft, Mitel, Nortel, Red Hat, Sun
Systems, Telefónica, and Verizon.
The Complete Package
Taken together, our Data Centre and its
associated on and off-Island networks,
combined with our team’s skills and
experience, means that we can offer
the complete package for any company
thinking of establishing their operation on
the Isle of Man. We can offer world class
Data Centre solutions, geographically
diverse 24 x 7 x 365 managed platforms
e-Business & e-Gaminginspired 2013
and many flavours of resilient Internet,
MPLS, private circuit and international
private circuit connectivity. In addition,
as the leading telecoms provider on the
Isle of Man, we can provide businesses
with a one stop shop for advanced office
telephony and broadband and mobile
broadband solutions – all backed up by
the largest pool of IT and telecoms talent
and expertise on the Island.
Our location on the Isle of Man also plays
a key role in the mix. The Island has a
government with a ‘can do’ attitude to
e-Business, plus a growing professional
support sector of legal, accounting,
venture capitalists, and web specialists.
Manx Telecom vigorously supports the
Isle of Man Government’s e-Business
strategy and has an active programme
of marketing both our Data Centre and
the Isle of Man to potential clients across
the globe. The strategy seems to be
working, as the company – and the Island
– is winning a significant share of the
investment in worldwide e-Business and
technology relocation.
Companies can choose to base
themselves anywhere in the world –
increasingly, they are choosing the
Isle of Man and Manx Telecom.
41
42 inspired
Registering intellectual property in the Isle of ManBy Andrew Cardwell, Tax Director, Abacus Trust Company Limited
The Isle of Man offers a favourable regime
for holding intellectual property (‘IP’) rights,
the principal benefits being protection of
those rights under legislative provisions, IP
treaties and conventions and tax neutrality
offered to non-resident beneficial owners
of the IP.
Whilst many offshore financial centres offer
tax neutrality for entities holding IP, the Isle
of Man may be well ahead of its rivals in
terms of asset protection. Few offshore
jurisdictions can claim the extensive
protection afforded in the Island.
Legislation, Treaties & Conventions
IP law in the Isle of Man is based upon
UK statute. In relation to patents and
trademarks, for example, this is by
extension of applicable UK law to the
Island, and for copyright, through the
Island’s own legislative provisions, which
mirror the equivalent UK statute.
This extension of UK statute to the Isle of
Man means that that the Island is party to
the Patent Cooperation Treaty and Madrid
Protocol (trademarks), neither of which
extends to the Channel Islands and British
overseas territories such as the BVI.
The Island is also party to, amongst
others, the World Intellectual Property
Organisation (‘WIPO’) Paris Convention
on trademarks and patents; the World
Trade Organisation’s TRIPS Agreement
on trademarks, patents and copyright;
and both the WIPO Berne and Rome
Conventions on copyright.
Taxation
With few exceptions, Isle of Man
companies are subject to the general
corporate tax rate of 0% and distributions
to non-resident investors are free of
withholding taxes. This provides complete
tax neutrality in the Isle of Man, although
foreign withholding taxes would need to
be considered if income originates from
overseas jurisdictions.
The tax consequences of transferring
existing IP to a new structure must
be considered, as they should for the
creation of new IP within a structure. Tax
issues during the lifespan of the IP are
also important – the withholding taxes on
income referred to above, for example – as
should the tax consequences of an exit by
way of sale of IP.
If there are UK connections, anti-
avoidance provisions must be considered:
• Personal ownership: In many cases,
tax provisions designed to target
transfers of assets by individuals
to offshore structures result in an
increased burden of UK tax compared
to holding property through a UK
company, but there is still scope for
planning if the beneficial owner is
foreign domiciled or is considering a
move abroad before any significant
profit is generated from the project.
• Corporate ownership: Controlled
Foreign Company legislation dictates
that where there is a ‘relevant UK
connection’, profits of offshore
companies holding IP will be attributed
back to the UK parent. The term
‘relevant UK connection’ refers to the
origin of the IP or where the activities
relating to creation, maintenance or
enhancement of the IP are carried on.
Similar provisions tend to apply in the
more sophisticated jurisdictions, and
irrespective of where the beneficial owners
of IP reside, detailed tax advice should
always be sought before engaging in any
planning offshore. For more information
on how Abacus can assist you with
intellectual property telephone
+44 1624 689 600.
www.abacusiom.com
Andrew Cardwell
Fios Limited | Murdoch Chambers, South Quay, Douglas, Isle of Man IM1 5ASTel +44 (0)1624 614955 | Fax +44 (0)1624 615601info@�ostax.com | www.�ostax.com
Manx Disclosure FacilityO�shore Health CheckUK FATCA
OFFSHORE TAX SPECIALISTSA privately owned independent Tax Consultancy providing bespoke solutions and tax advice to Corporate and Private Clients
Kreston International brand launches on the Isle of Man
44 inspired
One of the Island’s leading independent
corporate and trust service providers has
recently adopted the brand of its network,
Kreston International.
Previously under the name of BW Oakfield
Group, the established company became
Kreston IOM Limited (“Kreston IOM”), at a
recent launch in Douglas.
The launch took place in the presence of
the Isle of Man’s Chief Minister, Allan Bell,
Minister for the Department of Economic
Development, John Shimmin and on his
second visit to the Isle of Man, Kreston
International Chief Executive Officer, Jon
Lisby, along with over 100 invited guests.
However, despite the change of name,
Kreston IOM Limited has been heavily
involved in the Network since its initial
membership was accepted in 2005.
Kreston International is a dedicated
Network of accountants and business
advisors, based in 105 countries with
700 offices, providing a resource of over
21,000 professional and support staff. It
is currently the 13th largest Accounting
Network in the world and won the
International Accounting Bulletins’ ‘Rising
Star’ Network award in 2012.
The Network is particularly strong in
the United States, where it is heavily
represented by CBIZ MHM, with over
140 offices in the country, along with
established jurisdictions in Western
Europe including Germany, France, Spain
and the Netherlands.
Of particular interest to the Isle of
Man business is the Networks’ recent
expansion in emerging markets -
especially in China, South Africa, Eastern
Europe and South America.
Stewart Davies, Managing Director,
Kreston IOM, explains, “Whilst the Network
is particularity strong in developed
countries, we believe that our core
opportunity and USP will be to target
existing and new members in emerging
markets, with a specific emphasis on
China, India and Africa. During the last two
years, we have attended and spoken at
the regional Asia Pacific Conferences in
Sri Lanka and Mauritius, and this year we
will attend the conference being hosted in
Bangalore.
We also believe that the Kreston brand
will allow us to open doors and take
advantage of the emerging wealth in
these countries, not least due to the Isle
of Man’s safe haven status as AA+ rated
territory and its established position as an
International Financial Centre”.
In addition, Kreston IOM chairs the
Networks’ special interest group -
‘International Wealth and Fiduciary
Services’, composing of 12 territories
including Singapore, Luxemburg,
Switzerland, BVI and Malta.
Commenting on this initiative he added,
“We were asked to set up this Group
following the last World Conference,
hosted by Jun He Law firm in Beijing in
September 2012. Despite the differing
nature of the firms and the various time
zones, we have successfully completed
two meetings by Video Conference and
will hold our inaugural physical meeting
later in 2013.
We have already established Kreston
IOM as the primary source of Isle of
Man structures for the Group (Trust,
Foundations and Companies)”.
In terms of the current Isle of Man
business, Kreston IOM expects their rate
of growth to continue, despite the tough
market conditions in 2011 and 2012.
Their success is attributed primarily to the
emphasis on focusing on the Network and
Left to right are Stewart Davies, Managing Director, Kreston IOM; Department of Economic Development Minister John Shimmin MHK; Chief Minister Allan Bell MHK and Jon Lisby, Kreston International Chief Executive Officer.
45
high value quality businesses, as well as
accepting that the traditional local markets
(UK and Ireland), will not see significant
growth going forward.
Outlining his views on the topic, Davies
said;
“We need to acknowledge that as
established jurisdictions are struggling
for tax receipts, there will be greater
scrutiny of planning; high profile press
and UK Government commentary on tax
avoidance confirms this.
We welcome both the Isle of Man’s FATCA
agreement with the UK and its Manx
Disclosure Facility as suitable mechanisms
for weeding out ineffective structures. We
believe that this will lead to consolidation
within the Isle of Man Fiduciary Sector. We
plan to take advantage of this by seeking
to acquire good quality businesses in
2013/14”.
Kreston IOM will be attending this years’
World Conference in Vancouver, in
September, at which the Company intends
to solidify its position as the leading
Fiduciary Service Provider in the Network
and also push on with the Special Interest
Group initiative.
Building Trust Around the World
IOM
Kreston IOM is one of the Isle of Man’s leading independent providers of Trust, Fiduciary and Corporate services. We manage and administer underlying assets worth over £2 billion, specialising in:
· Trust· Foundations· Companies
We are the Isle of Man’s only representative of Kreston International, a global network of independent accounting firms with over 700 firms in 105 countries, providing a resource of over 21,000 professional and support staff. Due to our affiliation with Kreston International, we are able to offer a multi-jurisdictional as well as a personal approach to our clients.
As a member of the Kreston International network, Kreston IOM is also a member of the prestigious Forum of Firms association.
Kreston IOM is licensed by the Isle of Man Financial Supervision Commission to provide Corporate and Trust Services.
Millennium House, Victoria RoadDouglas, Isle of Man IM2 4RW
Tel: +44 1624 611926 Email: [email protected] Visit: www.kreston.im
Setting up and running an e-Gaming business in the Isle of ManRay Davies, e-Gaming Development Manager, Department of Economic Development
There are a number of challenges facing
the entrepreneur who is considering
establishing an online e-Gaming company,
not least of which is choosing the right
jurisdiction in which to locate the business.
Each jurisdiction is different whilst sharing
some similarities. Operators should base
their decision upon a number of factors, a
low cost operating environment, a robust
and resilient technical platform, the quality
of the regulation required, the location
of the target audience, the payment
services required, and even the time zone,
can be important and the jurisdictions
international credentials should also play a
part in the ultimate decision.
Clearly anyone looking for the highest
standards of regulation, a low cost
operating environment, world class
technical platform and a business friendly
and supportive government would do well
to include the Isle of Man as part of their
jurisdictional research.
The first step is to establish a licence
for online activities with a jurisdiction of
repute. The Isle of Man has the ‘gold’
standard and is widely recognised as
a world-class centre of excellence for
e-Gaming. Having established the licence
it is important to get the timing right. Many
operators applying for a licence are very
keen to start operating as soon as the
licence has been issued. In reality there
is always a period of setting up, contracts
and SLAs may still need to be established,
software glitches can occur, software
testing has not been fully completed or
not fully tested, bank accounts may not
have been set up or are still within the due
diligence process. Partners may not be
ready to launch when the operator is ready
to go and further capitalisation may be
required. There may be numerous other
reasons that operators need to be aware
of and that can slow down the go live
process.
In the Isle of Man, we have developed a
very strong professional services sector
that can provide invaluable assistance to
potential new operators. New operators
have a lot of things to deal with, just by
concentrating on their business and
markets. Having the additional burden
of the licensing process is very hard
and some operators find themselves
taking their eye off the ball. This is
where the corporate service provider
can be invaluable. The CSP will assist
with the licence application, provision
of directors and designated officials,
due diligence checks, anti-money
laundering requirements, KYC, business
plan preparation and all of the other
requirements of the licence application
leaving the operator to focus on what
they know best – the business and
attracting players.
Some operators may find the process of
establishing a new gaming business quite
daunting and would prefer a ‘toe-in-the-
water’ approach. Using a ‘white label’
or an Isle of Man ‘sub-licence’, potential
operators can quickly, easily and at low
cost, establish an online site that looks
and feels just like their own brand, and for
good reason it is - but with much of the
regulatory requirement being provided for
by a fully licensed operator.
With the huge rise in social media gaming
a ‘white label’ is an excellent example of
where an operator of non-gambling social
games can cross sell and commercialise
a real money experience to its social
media player base. Not all social media
gamers will be interested in converting
to a real-money environment, but those
that do could be converted and retained
at a fraction of the cost of acquiring new
players. It is the trusted brand and the
trusted customer experience that is the
catalyst for conversion.
There is no doubt that there is a lot to think
about when considering establishing an
e-Gaming business. My advice to anyone
considering taking the plunge is to contact
the Isle of Man e-Gaming Team. We have
a great deal of experience in helping new
business to flourish and can provide help
and support in the early stages.
www.whereyoucan.com/egaming
46 inspired
Ray Davies
00
ace in the pack“Being offline costs money. That’s why we rely on a world class hosting provider”
Gary HillDirector of IT Operations Rational Group, owners of PokerStars and Full Tilt Poker
call +44 (0) 1624 888 777visit manxtelecom.com/egaming
hosting the world’sbiggest poker sites
Corporate social responsibility – who should be interested?Bill Mummery, Executive Director, Celton Manx
Corporate philanthropy, or corporate social
responsibility, is the act of corporations
donating some of their profits, or their
resources, to charitable causes. To be
effective such a programme of supporting
the communities in which we operate has
to be supported at board level and be
part of the culture of the business. Where
this happens there is clear evidence that
it helps motivate, attract, and retain staff.
“People want to work at a company where
they share the values and the ethos,” says
Mike Kelly, Head of CSR at KPMG Europe.
In my view we all should. Much like the
growing importance of ‘Third Sector’
voluntary organisations delivering
vital services in areas like health care,
education, and homelessness, the role of
responsible, structured corporate giving
has never been so important.
In our personal lives many people
recognise that they enjoy a relatively
privileged position in society which allows
them, and their families, to enjoy a higher
standard of living than others and that it
is absolutely right and appropriate to put
back into their community. This is often
through voluntary and charitable work, or
through service organisations such as the
Rotary movement, Lions Clubs or any of
the other service organisations.
In my view, given the present economic
climate that most societies are struggling
with, it is an opportunity for the corporate
sector to support the communities in
which they operate. Even as businesses
we benefit from all of the fabric of our
society, its Government, its infrastructure
and most of all its people. Investing back
into the community is not only the right
thing to do as businesses, it’s also the
smart thing to do
A recent McKinsey global survey indicated
that ‘corporate philanthropy can be an
effective tool for companies that are trying
to meet consumers’ rising expectations of
the role businesses should play in society’.
Consumers, quite rightly, increasingly
expect more from the companies they
support and display loyalty to in their
community engagement policies.
Clearly, as with individuals, the ability
for businesses and corporations to
contribute will vary significantly. In my
view, the traditional approach adopted by
shareholders in too many publicly listed
companies is that the only mandate given
to senior management is to maximise
profits for shareholders. I believe that this
is out of line with both the views of society
and their customers.
Companies that 20 years ago were held
accountable only for direct, contractually
specified, or regulated consequences of
their actions today find themselves held
to account for the consequences of their
actions in areas as disparate as offshoring,
obesity, excessive consumer debt, and
environmental sustainability.
Encouragingly though, executives whose
companies have a corporate philanthropy
programme now recognise that these
programmes are much likelier to address
a broad mix of local issues to address the
social and political issues that they expect
will affect shareholder value the most. The
mix of issues addressed varies across
industries and regions, but the overall
difference remains.
It is also heartening to read in a report
published in January 2013 that each of
the Fortune 500 companies included in
the report gave an average of $21 million
($695 per employee), and 60% of the
companies gave more in 2011 than they
did in 2009. For a third of the companies
in the survey, giving rose by 25% or more.
This shows that a substantial number of
companies are progressing towards their
giving levels prior to the financial crisis,
even with continued uncertainty about the
global economy.
For me the key statistic is the US$695 per
employee figure. It may not be achievable
for all corporations, but it isn’t a wholly
unrealistic target. The same report showed
that there is a clear trend towards fewer
grants (down by 26% since 2009) but of
higher value (up 31%).
At the same time there has been a
move towards more focused causes
which means that potential recipient
charitable organisations have to be
‘smarter’ in the way that the apply for
grant funding, particularly for the larger
so called ‘signature’ grants. But, at the
same time, the awarding of smaller grants
has increased significantly. This is also
encouraging for communities such as
ours.
So, in conclusion, my wish for 2013
and beyond is that the Isle of Man as a
business community considers what it
can do both collectively and as individual
companies to work with and support our
community, the many excellent initiatives
and ‘Third Sector’ organisations that
deliver high quality services in a committed
and efficient manner.
Without doubt we all benefit and it
strengthens our community, our Island and
quality of life.
48 inspired
Bill Mummery
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CELTON MANX SUPPORTING OURCOMMUNITY
www.celtonmanx.com • www.sbobet.comCelton House • Isle of Man Business Park • Douglas • Isle of Man • IM2 2QZ
From Fireworks to Football, Healthcare to Hockey, Training to Taekwondo, we areactively engaged in Island life. Proudly supporting community, charity, sportand youth projects in the Isle of Man.
Keep calm and carry on licensing!by Tina Rawlinson, Director, Cavendish Trust Company Limited
There is some concern surrounding the
impact the impending shake up of the
UK’s gambling and licensing regulations
will have on the Isle of Man’s e-Gaming
sector.
The UK’s influential Department of Culture,
Media and Sport Committee (DCMS) has
recommended that, in future, all operators
providing services or advertising to British-
based consumers should be taxed and
regulated at the point of consumption
(POC). Companies would also be subject
to a tax on UK gaming yields, at a rate still
to be set.
Around 80% of online gambling in the
UK is currently conducted with operators
not licensed in the UK. Under existing
UK legislation, these non UK operators
must be licensed in one of the white
list jurisdictions approved by the UK
Gambling Commission. The Isle of Man is
one of only four such white list jurisdictions
in the world and, of the four, the Isle of
Man is seen by many as offering the best
infrastructure and services for the gaming
industry.
The DCMS admits the proposed changes
will mean the scrapping of the white list
system, but has confirmed that operators
already doing business in the UK, but
based in a white-listed country, will
benefit from a ‘period of transition’ during
which they will automatically be given a
‘provisional licence’ to ensure continuity of
trade. Further, former white list jurisdiction
registered e-Gaming companies will get
favourable UK licensing provisions with
fast track priority, meaning no duplicating
of due diligence etc.
Opponents of the Bill say it will not provide
any more protection for consumers and
could even drive them to unlicensed
operators with a cheaper cost base and
therefore higher win percentages. But
the UK authorities are convinced the
POC-regulation proposals will ‘bridge
a regulatory gap’ that currently exists
in consumer protection and anti-
corruption efforts, claiming operators in
well-regulated jurisdictions will not face
significant increases in licensing costs.
DCMS Minister, Hugh Robertson, says
the changes mean all operators selling
into the British market, wherever they
are based, would be required to hold a
UK Gambling Commission licence and
adhere to UK gambling laws, but that the
proposals were not designed to duplicate
the work of other ‘approved’ regulators
or to unnecessarily increase burdens
imposed on operators.
We, therefore, have to accept that
there will be changes to the UK gaming
legislation, the changes may impact
upon the cost base for those Isle of Man
licensed operators with UK clients and,
also, that at some point in the future,
the Isle of Man’s white label status will
be lost and previously non-white listed
jurisdictions will be allowed to advertise
to the UK market, creating a highly
competitive and potentially overcrowded
market place.
Whilst this may be a cause of concern for
some, I believe the changes in the UK will
have a minimal impact on the Isle of Man’s
e-Gaming sector.
My opinion is based on the fact that the
Isle of Man has created its market position
by offering a commercially superior,
responsible and well regulated platform
for international e-Gaming companies and
that this offering has not changed, and will
not change, for the foreseeable future. As
such, the Isle of Man will continue to be a
very attractive location for all e-Business
entities.
It is also worth noting that the Isle of Man
Government has intimated it may consider
mitigating the ‘doubling up’ of gaming duty
costs, caused by needing both an Isle of
Man and a UK license, however even if all
50 inspired
Tina Rawlinson
51
Isle of Man gaming duties are removed, it
will only offset a portion of the proposed
UK duty charges facing all e-Gaming
companies doing business in the UK.
Furthermore, any changes in the UK
position aren’t likely to take place until
December 2014 at the very earliest, so this
still provides a lengthy timeframe in which
to take an e-Gaming business through
licensing and, thereafter, achieve the UK
market share advantages available to Isle
of Man licensed gaming operators, prior
to the market opening up, post the
legislative changes.
So my advice to any start-up or
established businesses considering
applying for an e-Gaming licence in the
Isle of Man, is to begin the application
process as soon as possible and make
hay while the sun shines!
And even after implementation, the
significant advantages of being an
Isle of Man based e-Gaming company
will remain; which can be summarised
as follows:
• the kudos from being established in a
top tier regulatory jurisdiction
• world class telecoms and hosting
facilities with resilient power supply
• a business friendly (pro-Gaming)
Government
• a zero corporation tax platform
• very low gaming duties
• network of highly experienced
professionals to support the industry.
So keep calm and carry on licensing!
Cavendish Trust is a multi-jurisdictional, independent corporate and trust service provider with extensive experience resulting in the ability to administer all international structures, irrespective of asset value, size, complexity or level of activity. Our services include management of:
• companies from all major jurisdictions • trusts and foundations• aircraft, superyachts and ships • space/ satellite related entities• e-Gaming and IP structures • AIM/ IPO entities
To contact Cavendish, please visit www.cavendishtrust.com, call +44 1624 679000 or email [email protected]
Licensed by the Isle of Man Financial Supervision Commission
52 inspired
Continent 8 continues to invest in Isle of Man
Continent 8 has been in operation in
the Isle of Man for 6 years now having
grown significantly in terms of service
and footprint to meet the ever challenging
demands from our growing customer
base. Continent 8 is focused exclusively
on delivering on advanced secure service
levels to the gaming community through
our hosting centre in Douglas, and our
extensive suite of services supported on
a private redundant global backbone. No
other provider in the Isle of Man offers
an end-to-end solution to support our
customers with a defined and measurable
performance management capability in all
of the markets they operate in.
Continent 8 has just announced an
extension to its pan-European network
into Italy and Dublin to meet demand
from gaming companies for connectivity
to address additional diversity and
resilience. The new points of presence
(PoP), which has been in service since Q3
2012, provides Continent 8’s customers
with resilient, high quality private data,
video, voice and internet services. This
results in additional resilience for gaming
companies located in Continent 8’s Isle
of Man hosting facility addressing Central
and Eastern Europe in terms of high
speed internet services along with direct
connectivity to London and Paris as part of
the Continent 8 Private MPLS backbone.
Continent 8 launched operations in the
Isle of Man in 2006 building an
expandable data centre to address
Gaming and Enterprise markets alike.
This facility is currently being trebled in
capacity to address growth in demand
for Continent 8 services in the Isle of Man
market. We have also increased both
technical and commercial resources
locally through the addition of three senior
professionals sourced locally on the Isle
of Man. This demonstrates Continent 8’s
continued commitment to the location of
our global headquarters.
In addition to a suite of services designed
specifically to meet the requirements of
the gaming sector, the key differentiator
in the Isle of Man is how we manage our
infrastructure and network. Continent
8, in addition to an unparalleled service
model that has been created, has a
unique differentiator in terms of network.
Rather than depend on local IP transit
providers, which are available as a back-
up, Continent 8 has invested to build a
fully private protected redundant network
connected to two separate data centre
locations in Paris and London. This private
network, in addition to the IP Transit routes
available, gives us the flexibility to deliver
a unique and reliable online experience,
and an enhanced level of service in terms
of MPLS VPN Network services, effective
DDOS monitoring and mitigation and a
suite of fully managed services.
Since our beginnings in 1997 Continent
8 has defined a unique approach in
the gaming industry to customer focus
which has created an environment for our
customer’s success. To understand this it
is important to go back to the beginning
of the online gaming industry as we know
it today. Continent 8 launched its first
service to the industry in Montreal in 1997
to what were start-up operators, and
networks who now form the largest in the
online gaming industry. It is through the
gradual growth of these customers, their
service requirements, their geographical
expansion challenges and the regulatory
roadblocks that they have faced, together
with Continent 8 that has formed our
customer focus strategy. There is no
comparative services based company in
the gaming industry that has lived through
these challenges, or gained such a level
of experience in the way that Continent 8
has.
Considering the pace at which the
gaming industry is moving, we see every
development as an opportunity to grow
our service and geographical capabilities
by staying close to regulation, keeping
an open and flexible approach to partner
development and maintaining a healthy
capital reserve to react to changing
conditions for the benefit of Continent
8 and our customers alike. This has
been evidenced by our continued
expansion to support customers in
multiple jurisdictions, address regulatory
developments such as the launch of
our Paris data centre in reaction to the
Arjel framework and the network and
services growth to provide a single partner
approach for communications, hosting
and management for our customers.
In the past year we have witnessed
considerable growth in customer
acquisition, service capability and
locations from which they can be offered.
Through expansion and investment
we have fuelled increased customer
acquisition and uptake on newly launched
services, particularly in the area of shared,
Continued over
reliable innovationeGaming’s multi-jurisdictional
hosting solution
It’s all in hand...
continent8.com
Isle of Man | London | Paris | Dublin | Singapore | Gibraltar
Guernsey | Malta | Montreal
54 inspired
Transfer Agency Solutions for the Asset Management Industry
For further information please visit our website www.rivafs.com or call us on +44 (0) 1624 850140 and learn more about Riva TA.
The Riva AdvantageIn an increasingly global transfer agency environment, the ability to offer a single TA solution capable of servicing multiple jurisdictions and product types across the globe has become a primary requirement.
Riva offers a comprehensive transfer agency solution that supports multiple locations, jurisdictions and investment products on a single platform with a low total cost of ownership.
Continent 8 (continued)
managed and networking services. We
have also greatly extended the services
portfolio we provide to our existing
customer base fuelling organic revenue
growth and profitability. Continent 8
has grown, developed and delivered
new products and services designed to
address the sector requirements while
expanding its jurisdictional footprint
with many data centres across multiple
continents. This has been the key to
expanding the addressable market for
our business. We are the only data centre
provider that can offer a multi-jurisdiction
solution approach to the gaming sector in
the regulated jurisdictions.
In terms of future strategy Continent 8
will continue to closely monitor regulatory
developments within the sector with the
objective of continuing our expansion in
terms of footprint and services to meet the
communications and hosting requirements
of our customers, wherever they need to
be. North America and Asia are two key
priorities for us right now, though Europe
is also a key growth geography which we
will continue to invest in and support as
demonstrated by the current expansion
underway in the Isle of Man and the
launch of the Continent 8 Dublin data
centre. We work closely with customers,
regulators and governments to create
unique regulatory models to support our
customer’s business challenges.
Continent 8 is uniquely positioned to
provide an end-to-end service approach
to assume responsibility for infrastructure
and network management functions for
our customers allowing them to focus on
what is core to supporting their business,
application performance and availability.
Continent 8 remains committed to the Isle
of Man with growth forecast for some time
to come.
Riva Financial Systems
Nestled away in the peaceful surroundings
of the Isle of Man is a thriving niche
software company that is making a big
impression on the global asset servicing
industry.
Riva Financial Systems was founded by
a group of experienced business and
technical experts who recognised that
legacy transfer agency systems relying
upon decades old software and hardware
would struggle to keep up with the
changing demands of a transfer agent in
an increasingly global marketplace.
Together, the founders conceived of
a flexible, scalable, affordable, self-
contained investor record keeping solution
built using best of class technology and
servers, and the flagship product that
emerged from this blueprint was Riva
Transfer Agent (‘Riva TA’).
Suitable for both a transfer agent and fund
administrator, Riva TA is a highly functional
dealing and registration software solution
capable of supporting the entire investor
record-keeping process across multiple
administration centres, investment
products and currencies. Operating on
a single platform, it comprises a range
of features designed to make transfer
agency operations more efficient, flexible
and responsive. It offers among other
features, a web enabled front-end for ease
of servicing, integrated cash management
and general ledger advanced functionality,
integrated imaging and workflow
functionality, enhanced foreign exchange
processing and interface capabilities with
an open database architecture.
Riva’s ascendancy was publicly
acknowledged in September 2007 when
Franklin Templeton Investments, one of the
world’s largest asset managers and global
distributors of funds acquired a majority
stake in the company.
Riva’s status as a key market player was
confirmed in January 2013 following the
announcement that Riva TA had been
successfully deployed across the entire
international transfer agency operations
at Franklin Templeton Investments
marking the culmination of a project
that Mr Ghassan Hakim, CEO of Riva
Financial Systems, described as being
“unprecedented in terms of scale and
complexity”.
Whilst speaking about the successful
deployment of Riva TA, Paul Brady,
Senior Vice President and Operations
director at Franklin Templeton Investments
commented, “The Riva system will now
support all of our cross border clients
in countries across Asia, Europe, the
Middle East and Latin America on a
single efficient global platform, delivering
a standardised service and operational
model supplemented with regional
features. As our global business
continues to expand, this solution will allow
us to move quickly to be ready to support
our clients’ needs in any new markets we
enter.”
To fully complete its value proposition, Riva
Financial Systems maintains a team of
highly skilled business analysts, software
quality engineers and developers recruited
from within the financial services industry
to ensure that design, implementation
and support issues are always addressed
in the appropriate business context by
individuals with the required expertise.
It is this rare combination of business
knowledge and technical skill that we
believe sets Riva apart in the industry.
Valuing the island’s enterprising heritage
and values, and a vision which looks
beyond its shores to the world at large,
Riva Financial Systems is headquartered
in the Isle of Man, with offices and
employees also based in Luxembourg,
Canada and India. As at January 2013,
the Riva TA software was used to manage
approximately US $230 billion of assets
across 14 global locations covering Asia,
Middle East, Europe and the United
States.
Should you wish to learn more about Riva
TA’s potential within your organisation,
please visit our website www.rivafs.com or
alternatively please call us on +44 (1624)
850 140 or email [email protected]
55
Owzat! Bowled over by Island lifeDavid Smith, Marketing Director, Manx Telecom
Anyone working in London would find it
difficult to leave the office on a Wednesday
evening and be opening the bowling for a
club cricket team within the hour. But that’s
just accepted as one of the advantages
of the work/life balance that business
people in the Isle of Man enjoy. Manx
Telecom Marketing Director David Smith
moved to the Island in early 2011 to take
up his current role with the Island’s leading
telecoms provider, and he makes the most
of the sporting opportunities the Island
offers. He’s a member of Peel Golf Club
and the distance of his daily commute
is little more than the equivalent of a few
good iron shots – another advantage
of Island life. He’s found that the Manx
sporting community is ideal to enjoy his
passion for golf and distance running – but
it’s cricket which is his main pastime.
“Cricket is my first love and I had only
been on the Island a few weeks before
I was invited to play for Ronaldsway
Cricket Club in the south of the Island,”
he says. “The Isle of Man is a friendly
place and very welcoming for newcomers,
and anyone who loves sport will find
many kindred spirits here and many
opportunities to take part in a wide range
of sports. Playing in the midweek evening
cricket league here is something that I
would struggle to find time for in many
other locations simply because of the
commuting time.” In midweek the long
summer evenings can be filled with cricket
matches, running races, or even a full
round of golf in June or July.
As a keen runner (he finished the 2013
Virgin London Marathon and has also
run marathons in Paris and Berlin) the
Island’s beautiful scenery with its rolling
hills, beaches, and trails provide a perfect
place to train with friends in the Isle of Man
00 inspired
Lifestyleinspired 2013
Veteran Athletes Club, or just to enjoy a
relaxing jog after a busy day in the office.
He’s also taken part in the Manx Telecom
End2End Mountain Bike Challenge – a
46-mile race across the length of the
Island from north to south – and the Manx
Telecom Parish Walk which is an epic 85-
mile endurance challenge which attracts
around 2,000 participants every year.
“Sport plays a big part in the Island’s
community and, like many people, when
I first arrived here I was impressed by the
high level of participation in lots of different
sports. Manx Telecom is one of the Island’s
major employers and we recognise that
we have a responsibility to play a part in
supporting the local community, and one
of the ways we do that is to sponsor sports
events and clubs. So I’m doubly lucky that
not only is the Island a great place to take
part in sports that I enjoy, but part of my job
also involves helping to support events and
clubs that are an integral part of Island life.”
Manx Telecom also sponsors the Manx
Road Club (the club includes Tour de
France star Mark Cavendish MBE and
London 2012 Olympic gold medallist
Peter Kennaugh MBE as members) and
competes as Team Manx Telecom.
Prior to moving to the Isle of Man to take up
his role with Manx Telecom, David worked
for telecoms operators in several far flung
parts of the world, and has been based
in Barbados, Grand Cayman, Jersey and
Pakistan. “All things considered, I would
rate the Isle of Man as my number one
location for sport over my career. Perhaps
I’d select the Caribbean for the weather and
Pakistan for cricketing prowess, but neither
location can offer long summer evenings,
idyllic mountain back-drops and a friendly
rivalry that’s second to none.”
57
Lifestyle
00 inspired
Bernhard Schulte Shipmanagement (Isle of Man) Ltd
Bernhard Schulte Shipmanagement (Isle
of Man) Limited has a proud history of
over 26 years operating from the Isle of
Man. During this time the company has
gone through many changes and today
is designated as a Crew Management
Centre within the Bernhard Schulte
Shipmanagement Group (BSM). BSM
are currently the second largest ship
manager in the world, managing over 600
vessels on behalf of our clients, including
the Schulte Group’s own fleet of 85
vessels. We specialise in providing crew
management services to a wide variety of
clients and vessels, including specialised
types such as LPG/LNG carriers,
chemical/product carriers, crude oil
tankers, offshore supply vessels, FPSOs,
FSOs and drilling vessels. We currently
manage over 100 vessels.
Providing the highest quality officers and
ratings, either recruited through BSM’s
global network of Crew Service Centre’s or
directly by ourselves, is a critical element
of the service we provide to our clients.
This global network ensures that we can
provide crew which meet shipowners’
specific and demanding needs whether
it be nationality of crew, levels of training
and competence or years of sea service.
The crew are then supported by our
experienced teams based in the Isle
of Man office who specialise in the
management of the crew, recruitment
activities, insurance administration and
claims handling, accounting and payroll
operations. In total there are 75 people
employed in the Isle of Man office and we
are certified by Lloyds Register under ISO
9001, ISO 14001 and ISM code standards.
As part of the BSM Group we can utilise
the strengths of other offices for situations
where we do not have in house expertise.
Examples include technical management,
chartering services and newbuilding
supervision. However, in addition to crew
management, we also provide statutory
management, gas and chemical training
and cryogenic consultancy services. Our
in house travel agency, Eurasia Travel (Isle
of Man) LP offers all aspects of marine
travel services to our Group and external
third party customers.
The statutory management side of our
business provides our connection with the
Isle of Man Ship Registry. As part of the
Schulte Group, who are shipowners
Ship Managementinspired 2013
in their own right, we administer all
aspects of the registration and ongoing
administration for vessels which sail under
the Isle of Man Flag. We also provide
the same service to external clients.
This includes acting on behalf of the
shipowner as the Representative Person
under the requirements of the Isle of Man
Flag and the provision of advice for ship
registration/deregistration etc. We have
an excellent working relationship with the
Isle of Man Ship Registry and are able to
work together to meet our specific client
requirements.
Due to its location on the Isle of Man,
Bernhard Schulte Shipmanagement (Isle
of Man) offers a unique offshore base
for the management of vessels. The
Isle of Man zero percent corporate tax
rate, the growing ship register and the
excellent communications developed for
the offshore financial institutions add to
the appeal of the Isle of Man as a prime
location for the services we provide.
59
00 inspired
Isle of Man Yachting & Aviation
not all “plane sailing”!
Registriesinspired 2013
Steve Cain – Equiom’s VAT Director tells why the Isle of Man is still the premier jurisdiction for Yachting and Aviation business. Steve is highly regarded within the industry for his entrepreneurial approach to VAT solutions.
Whilst the Isle of Man has always been
recognised as a leading financial centre – it
is one that hasn’t rested on its laurels and
has shown a proactive attitude to business,
recognising opportunities in growth sectors
such as e-Business, Space, Yachting,
Aviation and many more.
As a Crown Dependency the Isle of Man
is separate from the United Kingdom
and European Economic Community, but
considered part of the EU for Customs
and VAT purposes (under Protocol 3),
which is part of the attraction for yacht and
aircraft owners and operators bringing
their business to the Island. Growth
has been substantial in both areas, with
each sector having developed world-
renowned registries and the Island gaining
a reputation as a highly respectable and
leading offshore jurisdiction.
Part of the Island’s success is the open
and transparent co-operation which exists
between the public and private sectors Steve Cain
61
– culminating in a very business friendly
environment with an innovative culture and
a nucleus of experts all working together
to ensure the Isle of Man remains the
pivotal location for yachting and aviation
business.
The aircraft registry was launched in 2007
for corporate and private aircraft, and was
the first registry in Europe to provide a 24
hour service. The highly regarded “M”
register has over 590 registered aircraft at
the time of writing but continues to show
very strong signs of continued growth
into 2014 and beyond. Confidence in the
registry is demonstrated by the acclaim
of winning “Best Aircraft Registry in the
world” in 2012 by leading global aviation
lawyers.
Equiom has worked closely with the
aircraft registry since inception, and
established its own aviation service
offering in conjunction with the launch of
the register, and today provides one of
the most comprehensive service offerings
available within the marketplace including
aircraft registration, ownership structures
and importation services.
Importation of aircraft into the Island
for example, is certainly made easier
by the flexible and “can-do” approach
regularly demonstrated by the Island’s
Customs & Excise department who make
themselves available around the clock to
accommodate new aircraft into the Island
from a variety of destinations.
The absence of Customs Officers in the
UK to deal with importations out of normal
working hours enables the Isle of Man to
benefit from additional income such as
handling fees, aircraft landing fees and
domestic expenditure by the Crew.
Similar success has been enjoyed by
the Island’s Ship Registry which was
established in 1984. Its strong emphasis
on quality, service and efficiency has
ensured that it ranks highly on a variety
of “white lists” which monitor port state
control, helping it to achieve a listing as
one of the top performers in the Shipping
Industry’s Flag State Performance Table.
In addition to the excellent service
from the Registry, the Island has also
been a prime location for many years
for yacht ownership structures using a
sole Isle of Man VAT registration for all
EU chartering activities. All this was to
change however in 2011, when HMRC
(which the Isle of Man is party to for VAT
purposes) implemented new legislation
which removed the EU Fall-Back
provision, resulting in yachts needing to
physically sail to the UK/Isle of Man in
order to reclaim VAT. Naturally other EU
jurisdictions recognised the opportunity
this presented and were quick to offer
solutions in order to attract business
away from the Island – leaving Corporate
Services Providers such as Equiom with a
more challenging outlook for their yachting
business.
It is however an ever-changing landscape
in terms of legislation. Recent VAT
changes within certain EU Member
States, has resulted in VAT registration
requirements being introduced in
the country where a yacht charter
commences. The need to now have
multiple VAT registrations in place means
that using an Isle of Man ownership
structure to hold a commercial yacht is as
good as any other jurisdiction.
What next in terms of legislation? No-one
can know for sure, but for the Island and
Equiom the outlook remains positive.
Chrystals estate agentsShane Magee MRICS, Chairman of Isle of Man estate agents Chrystals, gives his view on how the Island’s residential property market fared in 2012 and first Quarter of 2013.
Any estate agent who described the
residential property market as strong
in 2012 would have had his rose tinted
spectacles on! The main issue was
stringent and restrictive lending practices
from the Island’s banks and this had a
direct impact on the volume of buyers
able to secure funding for property
purchase. For those vendors having to
sell, pricing was key and some sales were
only achieved after the seller made a
serious correction in asking price. Vendors
have generally been more receptive to
applicants making bids and as the year
progressed the volume of sales
gathered pace.
The spring market has seen sales levels
rebound and whilst new listings are
still outstripping sales there has been
a noticeable increase in the volume of
viewings and offers.
The Isle of Man economy is faring better
than that of our near neighbours with net
growth in GDP of 3% per annum. Any
increase in unemployment is unwelcome
but at 2.7% we must be the envy of
Europe.
However, there is no room for
complacency and driving the economy
forward remains the focus of Government
and the private sector. The global business
arena provides many opportunities and
the Isle of Man Government and private
business have been putting a ‘welcome
on the mat’ inviting Chinese banks and
commercial enterprise to consider the Isle
of Man as a spring board and trading hub
for their business interests into the United
Kingdom and Europe. If this move proves
successful we can expect increased
interest being shown in the residential and
commercial property sectors.
New developments still provide the focus
of attention and Chrystals have achieved
£9m of sales on behalf of Hartford Homes
over the last 12 months. Much of the
activity has been at top end of the market
and quality wins through with discerning
buyers attracted by location, design and
finish. Buyers at this end of the market
appreciate flexibility from the developer
and the opportunity to fine tune the
interior design to suit their own distinct
requirements has helped seal the deal on
a number of larger residential transactions.
The era of low interest rates is likely
to remain with us for the foreseeable
future. With negative growth in real terms
on deposit accounts and low income
producing savings bonds, investors seek
other avenues of income to add to their
portfolios. Many Isle of Man residents like
the idea of property ownership as an asset
class which they can control, monitor
and improve. Gross yields between 4-6%
per annum start to look attractive with
the rental market remaining fluid. The
e-Gaming industry continues to provide
a steady stream of enquiries from rental
applicants taking up positions on Island,
however, demand remains focused on
high quality property with a well presented
finish.
Chrystals have now sold almost 80% of
Imperial Court apartments in Douglas. A
new scheme of 54 one and two bed units
with secure underground car parking,
court yard garden and rooftop outdoor
seating areas. Each apartment comes
complete with white goods and fitted
carpets. Owner occupiers and investor
buyers have been attracted by this
centrally located Douglas development
and discounts remain on selected units.
I anticipate market activity will improve
slowly but much will depend on the
strength of the UK economy and lending
parameters from local lending institutions.
inspired
Infrastructureinspired 2013
Shane Magee
63
Top: The private balcony of The Penthouse at Imperial Heights, Port Erin – £1,100,000Bottom: Ballavoddan, Ballasalla is set in tranquil grounds extending to approximately one acre – £1,250,000
Sure – building new connections By Andy Bridson, CCO, Sure
The acquisition of Sure by Batelco, the
Bahrain-based telecommunications
provider in April this year was an exciting
step forward for the Isle of Man based
telecommunications company.
The Batelco Group has a long history,
dating back almost 140 years, of delivering
high quality communications services to
its customers, who are the focal point of
the company’s mission. It is the desire to
bring the latest products and services to
its clients, that has driven Batelco as an
innovator and which complements Sure’s
existing philosophy, which has seen new
infrastructure and services being brought
to the Isle of Man for the benefit of Isle of
Man residents.
Since it began operations in the Island,
Sure has invested over £25m into the
economy, building a strong and reliable
local network whilst connecting the Island
to other, similar jurisdictions.
Sure continues to balance its global
strength, enhanced by the new Batelco
connection, with domestic insight. For
instance, it brought a 40MB broadband
service to the Isle of Man because it knew
the strength of local demand for faster
broadband.
Sure has also created a new submarine
fibre network that connects the Island
directly to London, Paris, Guernsey and
Jersey and onward to every corner of
the globe, providing businesses with
the services they need to conduct trade
around the world.
“We are a local business with a global
outlook,” said Andy Bridson, the
company’s CCO. “This means that we
understand the needs of companies
across the Island because we are one
of them.
“Not only have we invested to bring new
products and services to Isle of Man
residents and businesses but we have
invested in people, creating jobs in every
area of our business. Over the years,
we have continued to accumulate and
strengthen our international partnerships to
ensure that Isle of Man residents receive
the best provision for both domestic and
international communications.
“The shape of the world’s economy
is changing at unprecedented speed.
Industries are expanding and changing
across the globe as new technologies
open new markets and end the old way
of doing things. Our new relationship
with Batelco, means that Sure is perfectly
placed to provide the Island with the
communications technologies of the 21st
Century, bringing the world forever closer
to the Isle of Man.”
Local on the outside and global on
the inside, Sure’s knowledge of the
telecommunications industry brings
worldwide expertise that can be delivered
with the essential addition of local
knowledge, to create the ideal platform for
Island businesses.
“With Sure in the Isle of Man,” said Andy
Bridson. “You have the peace of mind
in knowing that no matter where you do
business, your communications solutions
are just around the corner.”
64 inspired
Andy Bridson
65
The Isle of Man. Where you can enjoy life and build a successful businessisis digital Limited
The digital TV industry is a fast-moving one
and David Gillies, founder and Director of
isis Digital Limited, is well suited to it. After
an initial visit to the Island in early 2012, he
managed to relocate both himself and his
business from Leeds to Onchan within just
six weeks.
Helping to deliver an end to end (or ‘glass
to glass’ as it’s known in the trade) service
from video production all the way through
to video display for the consumer, isis
digital has worked with some big names
in the European market such as B.T., the
German division of Vodaphone and the
start up Belgian internet company WeePee
New Media Ventures.
When it came to deciding on an optimum
location for the isis digital business, David
had two ‘absolutely key’ requirements
– good, reliable broadband and ease
of access to European airports. “The
telecoms infrastructure in the Island is
excellent and the broadband speed is
significantly better than what we were
getting in the UK,” says David. “The air
links through Manchester, London City
and London Gatwick mean you can get
anywhere in Europe and I’ve found it takes
me less time to get to Manchester from my
base in the Isle of Man than it did just to
do the car journey from Leeds!”
The relocation to the Isle of Man had been
suggested by David’s UK accountant for
tax efficiency and David knew very little
about the Island, other than the TT races,
at the time of that first visit. “I liked the
place immediately,” says David. “It is
a very beautiful Island and there are so
many things to do, especially if you like the
outdoors. There are the nine golf courses,
great walks and even if you’re just going
for a drive, the scenery is fantastic.”
David’s particular passion is sailing and
he spends as much time as he can on
the water. “The people on the Island have
been so welcoming and friendly too. It’s
been easy to get to know them.”
Having had mixed experiences of
relationships with governments overseas,
David took some six months to engage
with the Isle of Man’s Department of
Economic Development. “In retrospect
I wish I had done it sooner as they have
been incredibly supportive, providing
guidance to the opportunities open to
businesses here and introducing us to
really helpful contacts. I’ve also been
introduced to the Government’s ICT
strategy and asked to provide feedback on
it for the future.”
David is hugely positive about the future
of the technology industry on the Island
as well as the future of his own business.
“I’ve been astonished by the quality
of the hosting providers here – there
are at least four, if not more, world-
class hosting companies. Combined
with the guaranteed power supply and
the telecoms infrastructure, there is
tremendous opportunity for attracting
more internet-centric businesses to the
Isle of Man.”
Meanwhile David is happily flying the flag
for his new home. “It’s been such a very,
very positive move for me and isis digital,”
he says. “I’ve not regretted a day of it.”
Case study
Manx Telecom - first for innovation and investment
Innovation is in Manx Telecom’s DNA.
In our business, constant evolution is
a necessity to remain competitive and
provide our customers with the latest
telecommunications and IT solutions.
We are always analysing opportunities
offered by new technology and have
a proven track record of investing
in the Island’s telecommunications
infrastructure. Over the last 10 years we
have invested £100million. In doing this,
we recognise our responsibility not just to
our customers, but also to the Island as
a whole. The telecoms infrastructure we
provide plays a critical role in upholding
the Island’s excellent reputation as an
international business centre. In many
regards, such as 3G mobile coverage
and average broadband network speeds,
Manx Telecom’s investment has meant the
Isle of Man benchmarks ahead of most
jurisdictions including the UK. Mobile or
fixed, consumer or business, we’ve got the
island covered.
The latest 4G (LTE) mobile broadband
technology is firmly in our plans for
2013 and we have already successfully
trialled the technology on the Island to
show its capabilities. To make 4G (LTE)
technology available to consumers will
require one of the biggest investments
in Manx Telecom’s history in order to
upgrade our entire mobile infrastructure
which already provides our customers with
exceptional 3G mobile broadband speeds
and exceptional coverage. But, as always,
we are looking ahead to ensure we can
support our customers growing demand
for mobile data hungry smartphones.
Our technical preparations for 4G are
well advanced and, depending upon the
allocation of radio frequencies, we plan to
launch a 4G network as soon as we can.
Since its launch in October 2011, the Manx
Telecom ‘Ultima’ high-speed broadband
service has surpassed expectations and
ably demonstrates the Island’s appetite for
technology. Offering speeds up to three
times that of regular broadband services,
it satisfies the growing demand for families
and businesses to access smartphones,
iPads, games consoles, laptops and
internet-enabled TVs simultaneously.
Currently, there are more than 2000
customers using Ultima which is available
to 70% of homes on the Island.
In partnership with the Isle of Man
Government, Manx Telecom plays a pivotal
role in making the Island a global centre of
excellence for e-Business in all its forms.
To achieve this we have made a significant
investment in our Douglas North data
centre and a world class Cisco powered
off-Island Multi-protocol Label Switching
(MPLS) network which connects the Isle of
Man directly to London and other points
of presence in Manchester, Dublin and
Belfast in a matter of milliseconds. Our
Douglas North data centre, however, is
the jewel in the crown, meeting stringent
international standards for resilience and
security and trusted by Government and
many leading e-Gaming and financial
services brands. It’s this data centre which
is the backbone to enable us to offer the
Island’s businesses the very latest desktop
virtualization services provided on our very
own Intelligent Cloud platform.
One further example of Manx Telecom’s
commitment to investing for the Island’s
future is our Next Generation Network
(NGN) which is the result of a £25million
investment to give our customers the
ability to access and manipulate voice
calls, data, television, and video, on one
seamless, converged, IP network. In
effect, it’s the move from an analogue
and compartmentalised world to a totally
connected digital world. NGN will keep
the Island’s communications network
at the cutting edge of technology and
provides an excellent platform for Island
businesses to take full advantage of an
exciting new era in telecommunications.
As I said, innovation is in Manx Telecom’s
DNA - and we are determined to drive
forward the evolution in technology which
we believe will play a vital role in the
Island’s continued economic growth.
66 inspired
Manx Telecom, the Isle of Man’s leading telecoms and IT services provider, has always been at the forefront of new technology. In 2005 it was the world’s first operator to launch a super-fast 3G HSDPA (3.5G) network and here Manx Telecom CEO Mike Dee explains how the company is already looking ahead to the next major developments in mobile and broadband technology.
MIke Dee
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Cleared for take off!The Private Jet Company’s Business Aviation Centre and Executive Terminal opens for business
The successful completion of an ambitious
and exciting project to create a new state
of the art Business Aviation Centre and
Executive Terminal at Ronaldsway Airport,
marks the dawn of a new era for the
Island’s aviation sector. The stunning new
centre has been created by the Private
Jet Company and opens a new business
aviation gateway to the Island, to enable it
to compete with leading UK and European
centres that already offer high-class
facilities for business/private jets.
The Private Jet Company was first
incorporated in 2007, and has rapidly
developed its own niche market. It’s a
bespoke solution that is focused on a
close personal relationship with clients,
and which can cover all bases in terms
of initial purchase of the aircraft and its
registration, to maintenance and day-to-
day operation. The Private Jet Company
has dedicated crews at the disposal
of clients whenever they require their
services. Furthermore, the intricacies of
technical documentation, flight planning
and hangarage are all part of the service.
The opening of the new centre at the
Island’s airport has gone hand in hand
with an aggressive marketing initiative
to land the Isle of Man a share of the
lucrative transatlantic private/business jet
market. Presently aircraft use airports such
as Prestwick (Scotland) and Shannon
(Ireland) for refuelling and technical
stops. But now, The Private Jet Company
believes the Island is poised to land a
significant share of the business. Evidence
suggests their confidence is well founded.
The company’s client base has risen by
between 65 and 70 per cent in just three
years, and with the new Business Aviation
Centre and Executive Terminal now on
stream, the sky’s the limit.
Facilities at the new centre are impressive,
and cover all the demanding day-to-day
requirements of the business aviation
sector. There’s an executive lounge, VIP
Passenger facilities, conference room,
ample complimentary parking, pre-cleared
immigration for passengers and crew,
on-site security screening (if required)
and a dedicated quiet room with shower
facilities. The centre is located away from
the main terminal and offers substantial
hangarage, able to accommodate aircraft
up to, and including, Bombardier Global
Express 8000. A full fuelling service
provided by Shell is also offered, along
with extensive support services (de-icing,
lav/water, oxygen and nitrogen top-ups,
interior and exterior cleaning).The new
centre provides the Private Jet Company
with room to expand, and provides a
timely boost to the Isle of Man economy
as it seeks to diversify and grow.
Private Jet Company spokeswoman
Caly Roberts said the move into the new
centre marked an exciting period in the
company’s history. She said: “We are
still finding our feet in the building, but
it’s already been incredibly busy. We
believe the centre will be an asset for the
whole of the Island, and apart from giving
us the space to grow and develop our
services, there will be a positive spin-off
for other service providers, such as hotels,
taxis, fuel supppliers and a host of other
businesses. It’s been a long and difficult
process to get to where we are, but now
it’s onwards and upwards”.
Blank
69
B-localiom.com relocation services
B-localiom.com is a tailored service to
help individuals, families and businesses
relocate to Island quickly and easily. Since
it was set up in 2005 the B-localiom.com
team have gained extensive experience
of relocating people from all over the
world. Founder Mary Linehan moved here
from England in 1993 because of her
husband’s job in the finance sector. Her
decision to set up b-localiom.com was
born out of a desire to ensure people who
have made the decision to move to the
Island have a positive experience and are
able to integrate rapidly into the business
and social aspects of Island life. Having
moved to the Island with her husband
and family – and having experienced the
logistical challenges this can pose she has
first-hand experience to draw upon when
advising her clients.
The Isle of Man has so much to offer and
few people who move here ever regret
their decision. But, of course, any move to
a new location is complex and the services
and expertise that Mary and her team
provide makes relocation as smooth as
possible. Mary said: “For individuals and
families we offer support in every aspect
of moving to the Island, including finding
accommodation, schooling, and financial
advice. Our emphasis is upon taking the
hassle out of relocation and allowing new
residents to focus on what’s important to
them so that they can fully appreciate and
enjoy all the benefits of living and working
on the Island.”
For business relocation B-localiom.
com offers support in sourcing office
space, furnishing, recruitment, IT, and
introductions to proven professionals.
Mary said “The Island is an ideal base to
relocate a business to. The B-localiom.
com team has relocated a number of
businesses from all over the world - each
with their unique needs. The team with our
extensive network and local knowledge
have been able to provide operational
assistance to ensure the business move
happens on time, to budget, and with
minimum disruption.”
B-localiom.com also offers what it calls
‘taster introductory Island experiences’ for
employees and their families. This service
is useful in the interview stage for both
employer and prospective employee and
is designed to give those considering a
move the chance to visit the Island to find
out about its lifestyle and culture.
To find out more visit
www.b-localiom.com
Mary Linehan Michelle Bowen Ann Faragher Linda Donald
Wi-Manx Network and Hosting Solutions
Much has been said about the Isle of
Man’s reputation for enterprise, its diverse
economy, world class infrastructure and
it’s resilience during the current economic
climate. These factors have meant the
Island has emerged as one of the number
one destinations to locate your e-Business
or e-Gaming operation. The Island brings
e-Business friendly legislation, trusted
regulation and a compelling taxation
system, and with it competitive advantage.
The Isle of Man continues to attract the
innovative and the competitive, with
industries such as e-Gaming, space
commerce and clean-tech flourishing – yet
the Island still retains its independent spirit
of heritage and culture. Considered a
well-regulated and respected independent
Island with a diverse, successful economy,
the Isle of Man clearly stands out from the
crowd.
When it comes to hosting and e-Business,
the Island is held in high regard, in
particular where hosting offshore (or
nearshore) is a specific requirement. With
high capacity, low-latency connections
to the UK and Ireland, and onwards to
the US and the EU – the Isle of Man is
the perfect offshore hosting location,
without compromising on quality, trust
or availability. The successful business
environment is proven, however the
hosting and connectivity needs of
businesses operating within the UK and
Europe are demanding, both in terms of
price and service. To truly stand out as a
key hosting location, the Isle of Man needs
to match, or exceed the level of quality,
service availability and price as seen in
other markets – an ethos integral to our
business.
As a leading Isle of Man service provider,
Wi-Manx is a truly technology focused
company with a strong emphasis on
service. Several thousand customers
already trust Wi-Manx to provide
optimised connectivity solutions, host
their key systems whilst meeting their ever
increasing technology demands. We can
reduce complexity, select the right blend
of technology, deliver a solution that helps
your business succeed and ultimately
provide the level of service that your
customers expect.
Mission critical systems and demanding
internet applications require a first
class hosting infrastructure. Our
modern datacentre has been built to a
high specification, featuring the latest
generation of power, cooling, security
and network infrastructure – delivering
a highly available and resilient hosting
environment. Our datacentre facilities are
the ideal location to house your valuable
data assets. Demonstrable quality and
process is achieved through our ISO 9001
and ISO27001 certifications, providing a
consistent approach and measureable
results.
Your information is the life blood of your
business, a datacentre can house your
data in a secure, stable environment,
but to reach your customers, you need a
high capacity, adaptive, congestion free
network infrastructure. Our investment
in a modern Juniper Networks powered
network delivers a range of high capacity
connectivity and flexible network services.
High speed Internet connectivity, IP Transit,
global site-to-site private circuits, MPLS
WAN services and DDOS Mitigation
services are a small selection of the
connectivity services on offer.
Our experienced team of engineers are
knowledgeable across a broad spectrum
of hosted solutions, network security,
storage and software platforms. We
build relationships with our customers,
understand their solutions and can
function as an extension of their business,
working to the same goals. Financial
services, e-Gaming, digital agencies and
local authorities – all have very different
technical demands, but they are all
serviced with the same dedication and
technical understanding, tailored to their
business.
Small business communication services,
load balanced cloud instances, MPLS
links to Asia, multi site hosting solutions,
databases or managed security, Wi-
Manx can deliver a solution with the
performance, scalability and flexibility that
your business demands. Our best in class
datacentre infrastructure coupled with
our strong focus on customer satisfaction
ensures maximum uptime, improves
business agility and accelerates service
deployment. We offer a wide portfolio of
solutions which can be combined to create
the optimal solution to meet your needs.
If you are considering the Isle of Man as
a place to do business or if you demand
a high quality hosting environment, speak
to Wi-Manx. For more information please
speak to our sales team on +44 1624
641188 or email [email protected]
70 inspired
www.wimanx.com
Destination:Isle of Man
Your host:
Flexible offshore hosting solutions Our datacentre facilities are the ideal location to house your valuable data assets, whilst we strongly believe the Isle of Man is the ideal location for all of your offsite or offshore data storage or hosting needs. Wi-Manx provides a trusted, stable and secure hosting environment whilst also ensuring you comply with the relevant industry guidelines and compliance requirements.
Find out moreTo truly stand out as a key hosting location, the Isle of Man needs to match, or exceed the level of quality, service availability and price as seen in other markets - an ethos integral to our business . If you are considering the Isle of Man as a place to do business or if you demand a high quality hosting environment, speak to Wi-Manx.
Our team of experienced staff will be happy to discuss your requirements, engage our technical experts and look to develop the perfect solution for your online business.
call +44 (0) 1624 641188 email [email protected] www.wimanx.com
The Isle of Man – a champion in sport and businessRoger Raatgever, CEO, Microgaming
The pace of life can be frenetic;
we live in a world where people
are so time poor that ideas
that once would have seemed
ludicrous are now being
considered if they make us
more efficient. Take treadmill
desks for example; they do
what they say on the tin – quite
literally a desk combined with a
treadmill - employees can walk
or run without losing a minute
at their desk. A concept that
not too long ago would have
been laughed at has become a
reality and these mind-boggling
products are now on sale in
Europe and the USA and being
trialled by some organisations.
With products like this coming
on to the market, you can’t help
but wonder if this is a reflection
of the rate at which people now
live their lives or a reflection of
companies realising that their
time poor employees will be
more productive and healthier if they keep
moving whilst checking their emails and
getting their work done?
Microgaming, the Island based online
gaming giant is a company with sport
running through its veins. Whilst they don’t
have treadmill desks, they do have a state
of the art gym installed in their Douglas
based Head Office and firmly believe that
a ‘healthy body leads to a healthy mind’.
This isn’t surprising though given that
their CEO Roger Raatgever, is an avid
sportsman and a highly impressive one
at that; he will be representing the Isle of
Man as part of an eight-member triathlon
team at the Island Games in Bermuda July
2013.
Roger’s enthusiasm for Microgaming,
sport and life on the Island is contagious
and it permeates the culture at
Microgaming. He is frequently asked
why he chose to base
the gaming giant
on the Isle of Man;
a question that he
doesn’t need to give a
lot of thought to before
answering. “The
powerful combination
of business benefits
such as access to the
government, along
with the quality of life
the Island offers, made
it the ideal place.”
The rolling hills and
coastal paths of the
Isle of Man make it the
ideal backdrop for so
many sports and it is
sport that has firmly
cemented the Island
on the global map;
local heroes such as
the ‘Manx Missile’ Mark
Cavendish MBE and
Olympic gold medal
winner Peter Kennaugh MBE highlight
the Island’s ability to develop incredible
sporting talent.
Microgaming takes an active role in the
local community, particularly through sport
and healthcare initiatives. It sponsors
Ramsey Youth Centre Old Boys Football
Club, Team Microgaming Isle of Man
Cycling, Rally Isle of Man, the Lighthouses
Challenge Cycle Sportive as well as
Lifestyleinspired 2013
Roger Raatgever
the Manx Tri Club and the Isle of Man
Marathon and Half Marathon. It has most
recently launched a Sports Ambassador
Programme, which provides funding to a
number of local athletes who are tipped
to be rising stars. In addition to sport it
has donated a staggering £700,000 to
local causes in need of help, through the
Microgaming Health and Care Trust. The
company received the Corporate Social
Responsibility award at the Isle of Man
Excellence Awards in November 2012, an
accolade that it is particularly proud of.
As one of the most well known CEOs on
the Island and one of the most respected
CEOs in the online gaming industry, it isn’t
surprising that Roger is leading the field
in both sport and business. Running a
company that is growing at an exponential
rate certainly commands a clear mind and
Roger vows that having the Isle of Man as
the backdrop to his working life and sport
activities, create the perfect environment
for him to achieve that.
73
Lifestyle
Educational Reforms and Assessment in the 21st Century Joss Buchanan, Vice Principal-Academic at King William’s College, discusses the International Baccalaureate (IB) and its benefits in the present-day academic environment
Recent proposals to press ahead
with major reforms to the UK’s
secondary education system as
early as 2015 have revived the
contentious issue of assessment
frameworks, and the topic appears
to be very much back on the
political agenda. It is now well
known that MPs investigating the
exam standards debacle have
been warned by many that teachers
may be avoiding tougher GCSEs
and A-levels. Such a system has
in turn been blamed for what is
described as a loss of trust, both
parental and regulatory, in the
Government’s marking guidelines
and precipitated, albeit momentarily,
a move to replace all GCSEs
and A-Levels with the English
Baccalaureate certificate. A much
publicised Government u-turn on
these proposals has since been
announced, but the initial sentiment
leaves in its wake a range of still
unanswered questions concerning
the lasting appeal of the IB and its
implications in the modern teaching and
assessment landscape.
One of the greatest assets and
opportunities for independent and IB
schools, such as King William’s College,
is that while one eye can, and should, be
kept on current developments in terms
of the national curricula etcetera, an
independent school can remain largely
free from political and bureaucratic control.
At King William’s College we have even
opted to explore the IGCSE model in
order to lay the foundations and prepare
students for the IB at Sixth Form. The
IGCSE model also allows an escape from,
not only political interference, but also
certain tasks that so often interfere with
the practise of teaching - such as retesting
and modularity. Modularity can often be
a very disruptive guide to teaching, and,
when compared with other more linear
alternatives, can take up a significantly
larger amount of teaching time.
Then there’s the question of competitive
commercial examination
boards, which can be
something of a poisoned
chalice. With the single
examination board of the IB
there is no temptation for
any school to fish around for
whichever board is offering the
easiest qualification or the best
grades. There’s rigour, and
structure, and there hasn’t been
any significant grade inflation
for 30 years, in contrast to the
A-level scenario, where grade
inflation is both a fact, and a
very real problem.
While the ability of the IB to
escape political control is an
attractive advantage, possibly
the greatest benefit of the IB
is that it allows an element
of flexibility, in terms of both
the available subjects and
the manner in which they are
taught. A classic example
of this is languages. The IB has, for
example, the requirement that every
student must learn a foreign language.
Given the growing internationalism within
the commercial sector and the fact that
more and more students are now looking
globally for higher education, present-
day graduates will be competing, in
both the professional environment and
tertiary education fields, on a global
scale with people from all over the
world. Participation in the IB equips
students with experiences, skills, and
inspired
Educationinspired 2013
Joss Buchanan
qualifications which are portable, and that
will open doors to them, whether in the
UK or further afield. The higher degree
of internationalism and language focus
offered by the IB is therefore very attractive
in terms of preparing students for the truly
global commercial environment which
awaits them.
Recently, much emphasis has been
placed on the topic of fostering a sound
work ethic in UK pupils, and encouraging
them to take responsibility for their own
academic development. Maintaining
smaller class sizes is critical to enhancing
an institutions ability to focus on individual
development. So too is a rigorous process
of thorough and regular assessment of
individual progress. Students require
a pastoral support structure, and King
William’s College places great emphasis
on tutors throughout the school. Expert
tutors and small, intimate tutor groups
allow students the opportunity to thrive
within the classroom. The IB is not for
the elite, or the super clever, but one
does have to learn to be organised and
dedicated, and the 100 per cent pass rate
at IB level and near zero drop out rate of
former King William’s College students
at university is testament to the type of
individual that the IB model produces.
Despite being a small school on a small
Island, the current practices of King
William’s College are directly aligned
with the rest of the world through the
IB - both our curriculum model and
the skills taught are being replicated in
Moscow, Shanghai and Australia. There
is always the worry that an island by its
very nature may be insular. As such, we at
King William’s College like to be outward
looking, encouraging students to be
global citizens. It is because our students
have had the correct support that they’re
ready with the appropriate skills and are
prepared for university and the wider world
when it comes.
75
Are you making the right business connections?
Love it or hate it, business travel is a
necessity today, linking executives and
corporations across the globe.
Maintaining exceptional air and sea links is
also vital to the future success of the Isle
of Man, ensuring we are able to continue
making the right business connections 24
hours a day, 365 days a year.
However, business travel can often be a
time-consuming and frustrating process
for those tasked to look after it; for
busy secretaries trying to balance the
travel needs of their bosses with their
often unpredictable and ever-changing
schedules, managing multiple sector
changes generally leads to valuable
time being wasted sat in a call-centre
queue. And perhaps most important of
all, business travel is a 24/7 requirement,
going way beyond the realms of a
traditional 9-5 job.
Trusting an internationally experienced
partner with your business travel
requirements is key, and is a decision
being taken more and more by companies
who recognise this. Why waste hours
searching for flights, hotels with the
required facilities, organising transfers and
tickets when you can make one call to a
dedicated Business Travel Manager?
In 2012, the Online Regional Travel Group
celebrated 30 years in business. Having
grown from a one-man office in the Isle
of Man, the company is now the largest
business and leisure travel group across
the tri-Islands, with dedicated business
and leisure bases covering the Isle of Man
(Mann Link Travel and Richmond Travel),
Jersey (Bellingham Travel) and Guernsey
(Wayfarers Travel).
Across the Group, its staff have more than
900 years of combined experience working
within the international and domestic
business and leisure travel sectors.
With some of the world’s prestigious blue-
chip companies as clients and remaining
under the leadership of founding Chief
Executive Officer, Brian Kelly, the company
also owns and operates a number
of leading travel websites including
the award-winning www.justtheflight.
co.uk, www.flybelfast.co.uk, www.
manxflights.com and www.manxferries.
com. Following significant development
investment by Mann Link Travel, this site
has recently become the first commercial
site ever to facilitate inbound ferry and
accommodation bookings in to the
Isle of Man.
Now renowned as a technology company
within the travel sector, the focus is very
much now on empowering its clients
through delivery of pioneering industry
capability combined with years of
experience and the expert knowledge of
its staff.
The Group has major expansion plans
for 2013 and beyond; in addition to re-
entering the Isle of Man’s inbound travel
market for the first time in over 20 years, it
plans to launch a number of international
retail websites in the coming months as
well as extend its popular affiliate booking
programme to a number of trusted
hospitality and leisure partners.
So, why choose the Online Regional Travel
Group?
• DedicatedBusinessTravelManager
justonecallaway
• 24/7service
• Offeringyear-roundcontractedfares
withmajorairlines(betterthanweb
prices)andlong-haulscheduled
carrierdiscounts
• Accesstodiscountedhotels,carhire
ratesandferrytickets
• Visaandtravelinsuranceexperts
• Incrediblyexperiencedstaff
• Monthlycreditfacility(T&Csapply)
• Managementreporting
Just as important as connecting the Isle of
Man with the rest of the world is, one thing
the Online Regional Travel Group should
be incredibly proud of is its ability to stay
at the forefront of travel innovation.
inspired
Leisure & Travelinspired 2013
Brian Kelly
The Online Regional Travel Group is the largest provider of Business Travel services across the Isle of Man, Jersey and Guernsey. Established more than 30 years ago, we specialise in linking together tri-Island companies with the rest of the world.
With cutting-edge global travel technology at their fingertips, our dedicated Business experts combine their unrivalled industry knowledge with their enormous buying power, giving you a cost-effective travel solution and letting you concentrate on what really matters – your company.
Get in touch with one of our offices to find out more, or visit www.ortg.co.uk/business
• Dedicated Business Travel Managers and personal Account Managers in each Island
• 24/7 service
• Specially negotiated airfares, hotels and car hire
• International/global travel expertise
• Monthly account facility*
• Online booking
• Comprehensive travel reporting and policy management
• Global travel news and alerts
• Arrangement of travel insurance and Visas
* Terms and conditions apply
Are you making the right business connections?
In business, it pays to make the right connections.
THE ONLINE REGIONAL TRAVEL GROUP
01624 [email protected]
Isle of Man Guernsey
www.ortg.co.uk
Jersey
Mann Link Travel Wayfarers Travel01481 243777
Bellingham Travel01534 715010
Are you making the right business connections?
Golfers are just discovering the brilliance
of a break in the Isle of Man. We have
nine courses set in a variety of beautiful
landscapes and the fairways are rarely
crowded. Isle of Man Golf Tours are now
in their second year of operation and with
well over 300 customers on their books,
and enquiries for over 1,000 golfers, the
Island’s golf offering is proving to be very
popular.
Isle of Man Golf Tours is co-owned by Ged
Power (pictured) and Martin Young. Ged
says: “We are living in a golfing haven and
to have such a selection of golf courses,
and so many hotel options, we can cater
for all golfing tourists. Our visitors love the
Island, Castletown Golf Links (pictured)
is a favourite and many say it is as good
as any course in Great Britain. Set on
the Langness peninsula and bound
by the dramatic Irish Sea, it energises
every golfer. The recent acquisition and
clever investment in the course by Mr
Philip Vermuelen is taking Island golf to
another level. I am convinced that the Golf
Links will be amongst the top echelons
of European golf. We are blessed on
the Island with eight other outstanding
courses, all filled with character and which
deliver consistent scenic pleasures. Our
guests are treated to a friendly welcome at
all of the courses, which means that many
of our visitors cannot resist a return to play
them all.”
Escorted tours in minibuses are real
winners with groups. For example, the day
starts with a post breakfast pick up at the
hotel; a lovely round at Peel followed by
a beer at one of the Island’s best pubs -
The White House. Take a wander down
the quaint streets to the Creek Inn for a
bite to eat where the views are flanked by
a marina and a medieval castle and you
have a highly enjoyable day all wrapped
up. Ged adds: “A key component in
making a golf trip hassle free is our fleet
of the latest TaylorMade hire clubs and
it means airport charges and tiresome
luggage issues are dismissed. We have
14 sets available and the feedback is
great, I know of three customers who have
purchased new TaylorMade products as a
result of using our clubs. More often than
not, they are a higher standard than what
they are used to at home. Accommodation
on the Island is excellent and we have our
own golf resort at the 4* Mount Murray
Hotel and our guests always enjoy their
stay. It has everything on site and the staff
are commended regularly by our guests
for their friendliness.” The company also
caters for the luxury golf break market
with guests staying at The Arches 5*
accommodation in Port Erin.
78 inspired
Golfing on the Isle of Man
Ged concludes: “Developing Isle of
Man Golf Tours as a business with
Martin Young has been enjoyable
and rewarding. There is real pride
in knowing that the more golfers
we bring to the Island, the more the
Island’s economy benefits as the
golfing tourist is one of the highest
spenders. Economically, this supports
our local hospitality industry and
golf clubs. Our efforts have been
recognised and endorsed by the
tourism officials at the Department
of Economic Development, their
guidance and advice is valued.”
Isle of Man Golf Tours has a
partnership with www.yourgolftravel.
com – the world’s largest golf tour
operator.
For more information go to
www.isleofmangolftours.com
Top: Castletown Golf Links; above: Mount Murray Golf Club; Right: Ged Power
79
The Isle of Man. Where you can… make the most of your entrepreneurial spiritIntegrated Capabilities Ltd
There aren’t too many businesses that
can recruit new customers without any
advertising or promotion, but such is
the impressive reputation of Integrated
Capabilities Ltd, it has seen a period of
unprecedented growth by simple word
of mouth. The corporate service provider,
based in Ramsey in the north of the
Island, has diversified from its traditional
corporate and trust services business into
the areas of marine management and
online micro lending with tremendous
success. With a sister office in Malta
assisting in access to the US market, and
offering niche solutions to the yachting
turnover has doubled in a three year
period and the number of staff increased
from 18 to 31 in the last 18 months, with
another 10 soon to be recruited for a sister
operation to support the online micro
lending clients.
Director Kevin Perks believes much of
this growth is due to the opportunities
open to businesses on the Isle of Man.
“There are some key benefits to being
based in the Isle of Man,” he says. “Among
them the 0% corporation tax, the robust
IT connectivity, hosting capability and
uninterrupted power supply as well as the
high standards and positive attitude of
professional people here. The time zone
is perfect – midway between Russia and
the US so it is possible to do business
with countries in both directions – and
the legislative framework is very strong.
The 2006 Companies Act for example
is a really sensible piece of legislation
designed to help attract business but also
protect the Isle of Man’s reputation as an
excellent financial centre.”
The speed of growth at Integrated
Capabilities is testament to the high level
of service it provides to its clients and also
to how straightforward it has been to set
up its operations.
“It’s remarkably easy to talk to key
people here on the Isle of Man,” says
Kevin. “There are not many jurisdictions
in the world where you can talk to
people in Government so readily and the
Department of Economic Development
has been exceptionally supportive
in making introductions to relevant
organisations and suppliers. They are also
helping us to form a trade association for
Isle of Man micro credit businesses which
will give the industry a stronger platform
as it develops further and ensure a good
code of practice is established for lenders
to adhere to.”
The future continues to look bright for
Integrated Capabilities as it develops
both its all-inclusive marine management
packages and its services to US based
entrepreneurs. The company’s ongoing
success is also having a positive impact
on its hometown of Ramsey.
Kevin adds: “Most of our colleagues live
in the north of the Island and our founder
Kevin Perry wanted to make a commitment
to supporting the historic town of Ramsey
by investing in a purpose-built office on the
quayside. We moved in there in 2011 but
we have already outgrown that so we have
rented further accommodation in the town
for our future expansion.”
Case study80 inspired
CommunicationCommunicationCommunication
www.mmc.co.im+44 1624 678001
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