inspiredIS

LE

OF

MA

N – IN

TE

RN

AT

ION

AL

BU

SIN

ES

S C

EN

TR

E

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

Locating your businesson the Isle of Man?Then you need an IT partner that can look after all of your business needs.With over 25 years’ experience, Skanco sets itself apart by the quality, rangeand professionalism of its IT services.

Contact us to see how we can help you with:

Office Relocation

Technical Support

Procurement

Disaster Recovery

Professional IT Services:

Hosting | Maintenance Services | Business Continuity | Disposal | Outsourcing |

Media Storage | Disaster Recovery | Office Relocation | Technical Support | Procurement

Tel: + 44 (0) 1624 680808

Email: enquiries@skanco.co.uk

Web: www.skanco.co.uk

Skanco Court, Cooil Road, Braddan, Isle of Man, IM2 2SR

Find out more

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 • richard@mmc.co.im

Advertising:Ian Rowley: +44 (0)1624 696552 • ianrowley@manninmedia.co.im

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

you’re in safe handscomplete solutions from the only fully

converged provider that’s invested over £100min the Island’s telecommunications

fully managed hosting, IT and telecoms solutions you can rely on

call +44 (0)1624 624 624 visit manxtelecom.com

B2B safehands int 2012_Layout 1 04/06/2012 12:37 Page 1

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 enquiries@imgold.com

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 enquiries@imgold.com

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 admin@stepiom.com

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:   enquiries@relocationoptions.co.im 

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: info@kreston.im 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

BREA

KTH

ROUGH B

REAS

T CAN

CER

STEP

ISLE

OF

MAN

ATH

LETI

C A

SSOCIA

TION T

RACK A

ND F

IELD

KEM

MRY

K

JUNI

OR

NETB

ALL

LEAG

UE

DOUGLA

S BO

ROUGH F

IREW

ORK

S

ELLA

N V

ANNIN

PIP

ES A

ND D

RUM

S

PORT

ST

MAR

Y LI

FEBO

AT

JUNI

OR

ACHI

EVEM

ENT

CRU

SE B

EREA

VEM

ENT

CAS

TLET

OW

N HO

CKE

Y CLU

B

CEL

TON

WAR

RIORS

DO

UG

LAS

LIFE

BOAT

CHAM

BER

OF

CO

MM

ERCE

AWAR

DS

FOR

EXCEL

LENCE

ISLE

OF

MAN

AGRI

CULT

URA

L BE

NEV

OLE

NT

TRUST

ISLE

OF

MAN

RED

CRO

SS

RELA

Y FO

R LI

FE

CRO

SSRO

ADS

H

BLE

ENRY

BLO

OM

NO

HEAL

THCAR

E TR

UST

VICTI

M S

UPPO

RT

MAN

X SP

CA

MAY

ORA

L CONCER

TRA

MSE

Y TE

NNIS

CLU

B

MAN

X TA

EKW

ONDO

THE

CAT

HED

ERAL

CHURC

H O

F ST

GER

MAN

PEE

L IS

LE O

F M

AN F

OOTB

ALL

TEAM

MAN

X HA

RRIE

RS

WIS

H UP

ON

A DRE

AM

JUNI

OR

JOUR

NALI

ST

CELTON MANX SUPPORTING OURCOMMUNITY

www.celtonmanx.com • www.sbobet.comCelton House • Isle of Man Business Park • Douglas • Isle of Man • IM2 2QZ

corporate@celtonmanx.com

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 info@cavendishtrust.com

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 learnmore@rivafs.com

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

If you require the highest quality print or have a demand to keep to a budget,

Mannin Printing will provide you with swift delivery and a 1st class service.

Whatever your needs might be, visit our website or call us today to find out

how we can help you.

mannin printing is a division of mannin media group limited

print that stands out

High Quality& Vibrant

mail@manninmedia.co.im

If you require the highest quality print or have a demand to keep to a budget,

Mannin Printing will provide you with swift delivery and a 1st class service.

Whatever your needs might be, visit our website or call us today to find out

how we can help you.

mannin printing is a division of mannin media group limited

print that stands out

High Quality& Vibrant

mail@manninmedia.co.im

68 inspired

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 sales@wimanx.com

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 hosting@wimanx.comvisit 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 654655business@mannlink.com

Isle of Man Guernsey

www.ortg.co.uk

Jersey

Mann Link Travel Wayfarers Travel01481 243777

business@wayfarerstravel.co.uk

Bellingham Travel01534 715010

business@bellinghamtravel.co.uk

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

inspiredIS

LE

OF

MA

N – IN

TE

RN

AT

ION

AL

BU

SIN

ES

S C

EN

TR

E