Business - page 5

With a background firmly rooted in the financial services sector, the owner of European Financial Planning Group (EFPG), Tom Fraser, has a wealth of experience which led to him establishing the company back in December 2004. Since then EFPG has grown and now employs fifteen staff administering about £300 million of client assets. He talks to Jo Ward about what led him to set up EFPG and how the business is looking after its clients in the current economic climate.   

Born in Australia, Tom Fraser became a Chartered Accountant and was a salaried partner with Ernst & Young before moving to the UK in 1993. “I have always specialised in audit and consulting within financial services and whilst I was in the UK I was instrumental in building Ernst & Young’s compliance business,working with clients like Norwich Union, Generali, Irish Life and Aon,” he explains. In 1995 Tom was offered a partnership in Ernst & Young UK but left to join Norwich Union, where he was appointed as the Finance Director for one of their new divisions, moving on to act as Finance Director for Norwich Union Life & Pensions during its demutualisation. “I then became responsible, and eventually  the main board director for, Norwich Union’s Overseas Operations – which is where I first came into contact with Gibraltar and the offshore markets,” Tom states. When Norwich Union merged with CGU, Tom became European Managing Director for the rebranded ‘Aviva’ and subsequently went on to run the UK Financial Services division of AMP (the owner of Pearl Assurance), NPI, London Life, Henderson Global Investors and Towry Law.

“Looking for new opportunities, I left there in early 2003 and became involved in a small investment bank in the UK called European American Capital, whilst also holding a number of non executive directorships. This in turn led to being asked in 2004 to come to Gibraltar to examine a complex issue for one of the brokers which involved Traded Endowment plans.” It was during this time that Tom realised he was enjoying his time in Gibraltar and took the opportunity to set up EFPG.

“We are a typical life and pensions financial services company with one difference, in that we pay our advisers a salary with bonus as opposed to commission only,” Tom explains, “with the idea being that they are more likely to act in the best interests of their clients as opposed to being driven by the generation of commission from insurance products.”

After a brief sojourn in 2006 when Tom went to Luxembourg for three years, he returned to Gibraltar and became more involved with the daily running of EFPG. “As the world changed and pensions changed, we established our own pension funds,” Tom says.  Part of that change was driven by the fact that some of the larger traditional providers of financial service products in Gibraltar pulled out or restricted their product offerings, including Aviva, Clerical Medical and Legal & General. “We were left with so few providers we had no choice but to build our own products. We now have on offer our own QROPS, QNUPS (offshore pensions) and a local pension called Jubilee.”

Since then EFPG has continued to progress and Tom says that last year they split the business into two elements. “We have an advisory company, trading as Effective Financial Planning Group, which operates under Blacktower, and then we have our pensions company which continues to trade as European Financial Planning Group. This company is responsible for running the new pension schemes whilst acting as Trustee and also working with employers as Trustees”.

“We are definitely a local business – particularly today in these unprecedented times of corona virus when it is all a bit tough for everyone.”

There is no doubt that one of the main concerns for clients is to know what’s happening in the financial markets, particularly with regard to pensions. “The first thing we say is that your money is there for the long term – it is a ten, twenty, thirty year investment – it is not short term,” Tom clarifies.  “As we have seen from the stock market crash in 2008, markets will come back and the key thing here is for people not to panic sell.” He goes on to state that the reality is that if people have  some cash available, it is probably not a bad time to invest into the market.  

Tom emphasises that he thinks the Gibraltar economy has been remarkably strong, but that like a lot of other smaller countries in the world, it is dependent upon two or three big industries and those will obviously have been impacted by the fallout from the corona virus issue. “Financial services are in a similar situation, but people forget that we are there to help our customers and service them, although I understand whilst we are in lockdown, financial services and pensions are not their top priority,” Tom says. 

One thing that he wants to stress is that people shouldn’t give up their financial service products now, because they will become more expensive later on. “It is quite staggering how many people, both in Gibraltar and elsewhere in the world, don’t practice basic financial planning,” Tom states. 

“The key thing that I would recommend to our existing and to our prospective clients is to look to the future, both for themselves and for their families,” Tom concludes adding that “it is important to relax and not panic, because we need to make the right decisions that secure our financial future and these need to be made in a calm and logical way, taking the best advice to ensure that financial stability happens!”

There are some positive aspects to come out of the restrictions following the lockdown due to COVID-19, one of which is the launch of a new website by Holland & Barret Gibraltar. 

Due to a change in customer purchasing habits and a demand for home delivery, people can now register online at Holland & Barrett.gi, browse products in the online catalogue and place an order for home delivery or for collection at their stores. Having included their name, address and phone number, customers will then receive a call back to confirm whether the items they want are in stock. The home delivery service is free and is being undertaken in-house, with no third parties being used.

The website was launched in response to customer demand from people who didn’t want to leave home during self-isolation and others who weren’t ready to start shopping in Main Street, but who still wanted to be able to purchase health related items. 

The look of the new website is very similar to the Holland & Barrett.com UK site, with the only difference being that although there is a smaller range of products available in Gibraltar, there are still over 2,000 product lines online ranging from Vitamins & Supplements, Food & Drink, Sports Nutrition, Weight Management, Natural Beauty and the Free From products relating to items that do not contain ingredients known to cause a reaction in people with food allergies or intolerances.

There are two stores in Main Street where customers can shop, albeit adhering to the rules of safe shopping under guidelines from the Government of Gibraltar. At each store, customer and staff safety precautions have been put in place in terms of social distancing, with stickers on the floor that remind people to keep two metres apart, transparent shop screens at the tills, hand sanitisers at various points in the shop and, of course, the staff are wearing face masks.

Although the website is a work in progress, it is an exciting time for Holland & Barrett Gibraltar as they take the business to another level. The delivery service will continue and is a new aspect that the business will be offering going forward. There is no doubt that due to the coronavirus issue the whole shopping experience has changed and there is also no knowing whether the same situation will occur again, but at the moment gone are the days when customers can do a ‘quick shop’, rushing in to buy something and then dashing off again. 

For Holland & Barrett Gibraltar it is business as usual – but in a different way – and the website gives people the chance to sit at home and place an order. If preferred, customers can collect from the shops as well. They simply pay over the phone and can then collect their shopping in a bag from the front door, which means no queuing to get in to the store.  

There is no doubt that the coronavirus pandemic has meant that people are becoming more conscious about their health, leading to a greater demand for health and wellness products, such as Vitamin C, Vitamin D, Echinacea, Bee Propolis, and Manuka Honey – all very good for the immune system.   

Take a look at the easy to navigate new website where you can shop by category, view seasonal and trending products and find out all the information you need to decide which products you want to purchase.

Go to: www.hollandandbarrett.gi 

What is O2O Logistics? 

O2O Logistics is a Gibraltar based freight company offering daily and weekly shipping from UK depot to Gibraltar, so that you can buy from any online store. It enables residents of Gibraltar to shop online and ship their purchases to Gibraltar via a forwarding facility in Manchester. Very few online retailers ship directly to Gibraltar, so this provides a vital service for the residents of the Rock. 

How does it work?

When purchasing your desired items at your online store, simply use our depot address as your shipping address, instead of your home address. Please refer to our website for full instructions. Your items will then be delivered to our UK depot. After you’ve ordered your items, visit our Order Now page and complete the form listing items, prices and brief description. Complete your home address, then send, sit back, relax and wait for your package to be delivered to you.

How long does it take?

Despatches from our UK depot in Stockport are weekly on a Tuesday and arrive into Gibraltar the following Tuesday where they are then cleared by customs and picked up. Once they are checked in and weighed, they get delivered. Once the parcels leave Stockport it’s an 8 – 10 day average for delivery to the customer. We are also looking into adding a second UK despatch in the near future, to get parcels to Gibraltar twice a week. 

Why is O2O Logistics an efFIcient service?

We enable residents of Gibraltar to shop online with any UK retailer and have their items delivered to their door. We can also deliver to a customer’s place of work if that is more convenient or if it’s a gift that they want delivered discretely. Other benefits of using O2O are the face to face service they receive for their important purchases: we offer help, support and advice throughout the ordering process for customers who struggle ordering online or can’t get out of their homes.

Is it more costly than other methods?

No! Pricewise we are very competitive and very much cheaper than the big carriers. We have straight forward operation which enables us to offer low prices to our customers

Are you running any special offers?

We are currently doing a discount do 20% of shipping costs for essential services: just put “essential services” in order description. 

Contact:
http://www.o2o-logistics.co.uk  +350 54014999

A dim view has been taken by HMGoG and the Office of Fair Trading on potential profiteering by retailers during the COVID-19 crisis.

The Office of Fair Trading (OFT) is monitoring the prices of certain goods which have experienced heightened demand. This is in response to a number of complaints from members of the public regarding pricing of the likes of hand sanitiser, medicines and vitamins and toilet paper and so on.

The Minister for Business, Tourism and Transport the Hon. Vijay Daryanani said, “This is not the moment for businesses to take advantage of the situation. We live in unprecedented times, and we need to show consideration towards our people. Our business community will start prospering again. In the meantime, we need to stick together and be patient.”

The OFT is inviting Gibraltarians to continue to send information on suspected pricing abuse by traders to consumer.protection@gibraltar.gov.gi or calling 200 71700.

Insight asked some local businesses to share with us how they were coping at this extraordinary time, what the implications were for their firms and how they were responding to the challenge.

John Blake, Sovereign

For existing clients, it is business as usual and they will continue to receive timely and accurate servicing, which is more challenging when working remotely but something we have worked hard to achieve. We may see an element of new business levels levelling off, as clients delay decisions which is understandable, but hopefully this is just temporary. 

Sovereign has a robust business model and despite the disruption, will continue to prosper. Our employees, like our clients, are Sovereign’s life blood. The wellbeing and productivity of our employees is imperative to the continued success of the business. Mental health concerns could have far reaching implications for any business during the lockdown period. We are in touch daily with employees remote working. These are challenging times but the proactive and collaborative nature of our employees is truly impressive. It gives us confidence that we will come out the other side stronger, with an even more cohesive workforce.    

Sovereign’s group of companies has been responding to the COVID-19 pandemic since February. Now almost three quarters of Sovereign’s 475 staff are working from home. The preparations learnings from our Asian offices enabled us to test business continuity measures earlier in our European, Middle Eastern and African locations. In Gibraltar we implemented a staged approached, initially with 50% working remotely, phasing into 85% the following week and successfully executing 100% immediately following the Chief Minister’s advice to work from home where possible. Supporting the well-being of the wider community is of paramount importance to us.

This experience will inevitably lead to many businesses to regularly test business continuity measures. It may even change the way we all work. Adapting to change post COVID-19 will be just as important as the measures taken to respond to the pandemic in the first instance.   

Samir Nandwani, Tagore Group 

We began following health guidelines as soon as we saw the pandemic become more serious. Sanitising of high traffic areas such as counters, telephones, card machines etc became a high priority for us as well as reminding staff to constantly wash their hands and, as things became more serious, trying to keep a safe distance between themselves and customers. Of course tourism has now grinded to a halt and with the current lockdown, shops are all closed and we have seen Main Street become eerily quiet. 

We are doing our utmost to be able to serve the community in the highest capacity we can, while practicing all safety guidelines provided our Government. While our physical shops are closed, we are delighted to be able to offer a virtual shopping experience for customers via social media. Customers are encouraged to get in touch with our team via message on our Facebook page (@TagoreGroup), Instagram (@Tagore_Group) or email to info@tagoregroup.com. We are able to assist and offer the full in-store range, process payments securely online, and make free home deliveries while keeping a safe distance. We like to think of it as a personal shopping experience just as if you were to visit us in store. We rely greatly on the support of our loyal customers and are so grateful that we operate in such a supportive community.

Of course, we look forward to being able to welcome our loyal customers and friends back in store very soon!

Gillian Welland, Diamond Occasion  

Covid-19 has effected our business in many ways. Firstly, we have no hand washing facilities in the shop and there is no hand sanitiser available to buy so we can’t offer our clients hygienic areas. Secondly, we have a lot of families coming in both old and young, especially around communion season so again this is not the safest environment for our customers as the Corona virus spreads quickly through these age groups. Thirdly, we have a personal styling service especially with our bridal collections  so again the social distancing rule cannot operate. We cannot offer online shopping as our business is very specialised. We have bought clients’ special  orders in and are storing them safely until this crisis has passed and we can once again operate normally with both our suppliers and clients. We are awaiting government notices on how they will help small businesses as I believe there will be some funding available to get us through this.

Lorraine Laguea, NP Estates 

Covid-19 has unfortunately hugely affected real estate agencies, as our main source of income derives from sales and lettings, it is impossible to conduct viewings under the lockdown restrictions. Some potential buyers who were looking to purchase in the last few months are also now in a very vulnerable position in respect to their job status and income and have had to postpone the idea of purchasing for now.

We prepared ourselves as best as possible under the circumstances, making sure we had photos and videos up to date so that we could provide as much visual information as possible, especially as clients will now have more time to search for their dream home and prepare their list of properties to view soon as things are back to normal. We continue to update our social media pages and keep clients notified of the latest properties available and if anyone requires accommodation now, we can still provide a virtual viewing, on some of our properties.

We were quite busy on the letting side of the business prior to the lockdown with many locals and companies moving back their employees to Gibraltar, some for short term others for longer term.

We continue to provide our landlords with our management services and we are mostly working remotely from home, although we still need to be at the office at times to access to files, printers, etc. It’s not easy but we have done all we can to accommodate our staff in this current situation.

We have a great team and I’m proud that we are pulling through together during this very difficult time and we will be ready once again to open our offices and continue to provide our clients with our personal and excellent service.

The smaller independent estate agents like us will need the support of BEAT to survive during these difficult times as most of our of source is at a standstill. Once we get back to normality it will be another 2 or 3 months until we can start making any money from sales and we don’t know how the crisis will affect the property market. The current BEAT guidelines (at time of going to press) don’t include Estate Agents although this could change as it’s reviewed daily.

The Gibraltar Tourist Board participated in Meeting and Incentives Forum Europe Tenerife, an international event which brought together leading MICE (meetings, incentives, conferences and exhibitions) buyers and suppliers to meet, network and build new connections. From some well- planned out networking activities and personalised 1-2-1 meetings, the event provided a great opportunity for Gibraltar to showcase its MICE products.

The event was attended in partnership with Sunborn Gibraltar.

Minister for Tourism, The Hon Vijay Daryanani MP said, “The MICE market is an extremely important sector of the industry. Our attendance at these events brings us face to face with buyers and allows us to promote Gibraltar’s unique products alongside one of our leading industry partners.”

In a New Year special and to launch their sponsorship of Business Insight, we caught up with Sovereign’s new MD, John Blake, and asked him about the company, Gibraltar and future plans…

Could you give us a brief introduction of Sovereign?

Sovereign was founded in Gibraltar in 1987 and has since grown into one of the largest independent financial services providers in the world. With 450 employees in 26 offices spanning 20 jurisdictions we provide innovative solutions for a wide variety of corporates, entrepreneurs, private investors and high net worth individuals.

What’s the latest in Gibraltar?

These are interesting times for Gibraltar, the transformation has been underway for a number of years but in recent times it has pushed forward to position itself as a serious and mature player on the world stage. Gibraltar continues to punch well above its weight. For the first time in its history Gibraltar has effectively been recognised by Spain and has also entered into its first Double Taxation Agreement, with more likely to follow.

Whilst Gibraltar’s tax regime is competitive like most small jurisdictions that need to survive in the world it may come as a surprise that Gibraltar is preceded by a number of other jurisdictions on the 2019 Corporate Tax Haven Index. These include the BVI, Cayman Islands, Switzerland, Jersey, Singapore, Bahamas, Hong Kong, UAE, UK, Mauritius, Guernsey, Isle of Man, Cyprus, China, Malta and the USA.

It is positive that the Gibraltar Socialist Labour Party won the recent election retaining power for a third term. It reflects a politically stable environment, one where the economy is thriving and the relationship with the UK is becoming ever closer.

Sovereign is certainly optimistic about the future. So much so that we are moving to a new property. This shows our commitment to Gibraltar. After all Gibraltar is Sovereign’s home.    

Can you tell us a little bit about yourself and your role in Sovereign

I started my career in Financial Services in the Isle of Man roughly 15 years ago. Having moved to London 5 years ago where my journey began with Sovereign an opportunity subsequently arose in our Gibraltar office which has recently led to me taking on the Managing Director role for Sovereign Trust (Gibraltar) Limited.   

How has Sovereign responded to an evolving and mature market place?

The regulatory landscape that we operate in is becoming ever more challenging. Initiatives such as FATCA (Foreign Account Tax Compliance Act), CRS (Common Reporting Standard) and DAC6 reflects a new age of transparency and substance which individuals and firms such as ours can either embrace or ignore at their peril.

Sovereign supports such initiatives. For some time we have been providing the support to create substance. Whether it’s merely setting up a business or structuring employee benefit packages and incentive plans for attracting and retaining key staff, accounting services, payroll, bespoke insurance packages, corporate and personal pension plans, obtaining local licences & permits, plus executive relocation. Sovereign has developed a compelling suite of corporate services to assist the entry, growth and sustainability of businesses in all major international finance centres.      

How has the new double tax agreement legislation changed things?

There was time in Gibraltar when it was not beneficial to engage in double taxation agreements. As mentioned above the jurisdiction has been undergoing a transformation. The Gibraltar-UK DTA is an incredible milestone which reflects how serious Gibraltar is in trading with mature jurisdictions. Gibraltar truly will be the the place for European (and non-European) business to establish in order to access UK markets.

Gibraltar is a well-regulated, transparent jurisdiction where financial services are supported by a modern environment with high-quality infrastructure. Gibraltar welcomes businesses who bring economic substance.

Implications of the tax agreement between Spain and the UK regarding Gibraltar?

The UK and Spain have signed a tax Agreement regarding Gibraltar and whilst it awaits ratification in Spain it is another important milestone as it means Spain finally recognises Gibraltar, a contentious point since 1713.

The tax agreement provides clarity for businesses and individuals who straddle the two jurisdictions.

Has the threat of Brexit affected the execution of business in Gibraltar?

The major issue affecting business in Gibraltar regarding Brexit is uncertainty. Once the UK parliament finds closure on Brexit, on way or the other, Gibraltar will be able to respond to business accordingly.

Despite the gloomy tone in Gibraltar following the Brexit referendum the attitude is now extremely positive. We expect business to increase post Brexit. Gibraltar is a perfect jurisdiction for European (and non-European) business to establish themselves to access UK markets. Think Gibraltar – Gateway to the UK

Why is Sovereign different to other providers in Gibraltar?

Unlike the vast majority of providers in Gibraltar we have a global footprint. This enables us to service globally mobile multi-nationals and individuals. It is important to note that our offices across Europe, Asia, Africa and the Middle East do not act as separate silos. We are united in our approach and recognise that the service clients receive is paramount in setting us apart from others.

Are you involved in the FinTech space?

Yes indeed. We offer solutions to across the group of Sovereign companies but most importantly in Gibraltar.

On 1 January 2018 Gibraltar became the first jurisdiction in the world to legislate on Distributed Ledger Technology (akin to the blockchain) becoming a hub for responsible FinTech and Virtual Assets (crypto) businesses.

There are 13 FinTech businesses operating as licensed DLT Providers in Gibraltar to date with numerous applications in process. It doesn’t sound a lot but it’s all relative. DLT providers equal that of investment manager licensees, auditors, banks and exceeds that of E-Money institutions. It truly is a success story with a bright future.

Sovereign offers a range of services to assist FinTech business establish in Gibraltar. From initial and ongoing consultation regarding the regulatory process, forming legal entities, introductions to key stakeholders, provision of bespoke corporate insurance, bank account applications, payroll services, company secretarial, assistance obtaining work permits, locating office space as well as the  provision of non-executive directors

Any extra-curricular activities? 

I enjoy interviewing local business owners, professionals and government departments on Business Matters, a monthly magazine programme allowing viewers an insight into the unique and eclectic business world of Gibraltar. 

See it at www.yourgibraltartv.com/business-matters

Postal deliveries from the UK will now enter Gibraltar directly on a flight from London. The breakthrough agreement was reached between the Royal Gibraltar Post Office and the Royal Mail. This new arrangement will also help expedite delivery times for items sent to Gib from the UK.

The major reform programme of Gibraltar’s civil service won plaudits from the Chamber Of Commerce. Darren Grech, Chief Secretary to HMGoG, set out plans that include a restructuring of existing departmental management systems and of officers’ areas of responsibility, plus a review of existing government premises and a digital transformation of public services. 

It includes a major training component, formulated by the University of Gibraltar in conjunction with King’s College, London.

The Chief Secretary said, “The Future Leaders programme is a critical component in this new phase for Gibraltar’s Public Service, as we can potentially remove some of the bureaucratic barriers that have held back some of the best candidates. The course has been designed in partnership with the University of Gibraltar and King’s College London so as to open it up to the widest possible spectrum of staff. It will bring modern best practice to the fore, and in delivering this programme we will be working closely with the unions that represent public sector workers to ensure that we bring out the very best in our service. This is just the beginning.”

The Chamber was equally optimistic, saying, “By partnering with King’s College, one of the world’s leading academic institutions through the University of Gibraltar, the programme looks to be both innovative and best in class. In short, it represents an unmatched opportunity for civil service employees.”