The world’s leading banks – particularly those in the United States, Britain and in the EU that exposed themselves to the potentially profitable, but equally dangerous American sub-prime mortgage market – have been through a torrid time in recent months.
Their losses in this sphere, were the sparks which touched off the current global crisis.
Most, if not all, of Gibraltar’s banks – now effective subsidiaries or branches of the world’s big players – have been relatively free of the sub-prime mortgage pressures, and their hands at least are clean of any suggestion of mis-selling or grappling for profits in the murkier parts of the world’s markets. Their local critics suggest that the fact that they are backwaters on the international scene, has protected them from the storms which their parents have felt.
Certainly the fears of redundancies which last year were rumoured to be anticipated by some bank employees have not materialised, in spite of the improved technology introduced recently by both Barclays Wealth and the RBS-NatWest amalgam.
Of these, the Barclays’ developments are the most spectacular and were achieved with a seamless transition which has delighted local director Franco Cassar as well as his head office superiors. Some 60 of the local staff were involved in a switch that for Barclays, at least, has brought local retail and wealth banking to new levels and into the top 5 per cent of all international banking.
The local bank’s IT systems are now linked directly to the core operating system of Barclays in the UK and elsewhere, but the UK now looks after the resilience of the system, its maintenance and any upgrades whilst the local branch can offer its local clients an unrivalled service.
“It’s great for the bank as it makes us more competitive, and it’s great for our clients who now have access to a worldwide and world-class service,” Cassar told B2B this week. “What’s more, though back in December it seemed that we might have to make redundancies – which often seem inevitable when technology expands – there’s only one member of staff likely to become redundant.”
“And with subsequent phases of development I don’t think there will be an issue of people on the street,” he added.
“It also now means that all our clients can have access to on-line banking although some of the older generation among our customers who don’t have access to PCs, will, of course, continue to use traditional and familiar banking methods such as cheque-books and posted statements. For those with access to a PC and the internet it will mean a lot less paperwork.”
Cassar believes that the system will also create great stability by helping to get the basics right so that things come out on time. As business has grown, there has been increasing stress on staff, he believes. “Too much stress has meant staff worrying about things and getting them wrong,” he says.
The new system offers two significant benefits. It allows the staff to focus on giving good quality service, and it offers a wider range of products and services while at the same time the tellers’ counters are more efficient and these, too, can deliver more.
“There are still people out there who want something for nothing,” Cassar points out. “Our primary concern is to give the highest levels of service to those that pay the best. It’s a bit like going to a supermarket where you buy low-cost own-label products or pay more for better quality.“
This applies particularly to both personal and structured products at the wealth end of the market where one relationship manager, for instance, may help wealthy people with equity in property to release some of that equity by planning structured growth. There have been a few bumps and glitches and a realisation that in the past, although sometimes the bank may not have reached the level of services it was hoping for, Barclays has retained a large and loyal client base. Cassar continues to be astonished by the size and continued growth of the business and also by the loyalty of the clients.”

Jeremy Blatch looks at the act of ‘giving’ whist contributing to ‘need not greed’.
In the midst of the current financial market crises, I was struck when reading through the obituary of Sir John Templeman, by the contrast between his ‘ethos and motivation’ for investing, compared with that of the many so-called ‘successful‘ investors of today.
Sir John Templeton, a committed Christian, passed away a few weeks ago at the age of 92. A legend in his lifetime, he pioneered the method known today of ‘value investing‘. Money magazine said of him that he was arguably the greatest stock picker this century. When he began investing globally in the 1930’s, he was truly a pioneer. Most Americans thought it unwise to invest outside the United States. His results were legendary. Templeton sold his Templeton funds in the early 1990’s, and they were worth an incredible USD 800 million. His own personal fortune was worth some USD 900, million. His overriding goal was never just to make money, but to earn for others. He was quoted by the magazine ‘Philanthropy‘ as saying, “at Yale I was investing what talents God gave me, and where I thought I could be most beneficial to people, was to help them make fewer mistakes by selecting their investments.“
By his own admission, he was a ‘contrarian’. He once wrote, “that in order to buy stocks at bargain prices you have to do the opposite from the crowd.” He also added just before his death, that in all his 92 years he had never seen a time, when one has to search so diligently to find a bargain.
An interesting reflection given the ‘arrogance and greed’ which has been the embodiment of the financial institutions practice over the last decade. Reflecting over his lengthy life, he made the following comment: “About twelve years ago I sold out. I had been helping a few thousand wealthy families, and I did a lot of thinking, that if I could tell you, the rest of my life, I might help a few thousand wealthy families to become more wealthy. But by selling to my competitor, I can now dedicate 100% of my time, to help people grow in a spiritual way. And there are very few people who have a substantial amount of money and contribute to helping people grow spiritually.“
What a contrast to the hubristic, obsession to make money irrespective of the risks to others which has pretty much been the watchword in many of the world’s financial institutions over the past decade. Perhaps in the words of the Old Testament prophet Hosea, ‘we have sown the wind and will now reap the Whirlwind‘. Could his words have a familiar ring to our ears today? ‘They sow the wind and reap the Whirlwind, the stalk has no bud, it shall never produce meal, if it should produce, Aliens would swallow it up‘.
Interesting to me that for all his undoubted financial success serving others in a material way, in the autumn of his years he should choose to serve others in a spiritual way. All well and good for him you may say. He could afford to make the choice. The reality is however that most of his personal fortune he gave away. I believe that giving from a sincere heart, no matter how small the gift, touches and reflects something of the heart of God. Of course our giving is not restricted to finance, we give of our talents, our time, our experience, our skills and sometimes our physical strength, to help others. The Bible tells us that the ’God loves a cheerful giver’. What is our true motive for giving? There is something spiritual about the spontaneous generous act of giving. When we give without obligation, or tradition or ritual but because we desire to help someone else. ‘Out of the mouth the heart speaks‘.
In working during the last few years with the Members of the Investors International Forum, which we formed in Gibraltar to give something back to those in need, and now those involved with us in the construction of the Solidarity Fund, it has been a constant source of encouragement and inspiration to me, to witness the generosity and spontaneity of giving from those involved. A result of this is the Solidarity Fund, which was launched in Gibraltar… I think I can say without fear of contradiction that the fund is unique. All those involved have ‘walked the walk‘ not just  ‘talked the talk‘ by going the extra mile, to set up a fund of excellence, of which the business and professional community of Gibraltar can be proud, as it seeks to give investors the opportunity to protect or grow their capital whist seamlessly helping those in need. All participants have contributed in some way by both keeping cost to a minimum, thereby passing on a benefit to the investor, as investors may subscribe in the fund free of charge, and by directly contributing to charity themselves, upholding in practice the ‘ethos and spirit‘ of the fund.
Tiger Woods, when asked what motivates him, said “it was his foundation that helps needy black children.” Charity begins at home, so the old saying goes, well it may be true, but ‘out of the mouth the heart speaks‘, so perhaps the journey really starts with us. Someone once said that ‘a journey of a thousand miles, starts with a single step‘.
Whether responsible for advising other people, or with corporate or individual financial resources, you’ve got to put them somewhere. Perhaps you are not actively giving to make a difference but would like to, then perhaps this is the time to ‘take the first step‘ towards showing solidarity with those who need you. The Preacher and Evangelist John Wesley, the founder of the Methodists, said “save as much as you can, make as much as you can and give away as much as you can.”
Emotion and fear drive financial markets, not economic theory nor political rhetoric. The Stock Market is the ‘thermometer‘ not the ‘barometer‘ of the economy and should be treated as such. Very few people are capable of beating the herd consistently. Sir John Templeton was one of them. Consistent success in the world stock markets is about humility not arrogance. He understood that.

For more information: www.thesolidarityfund.com

Four local community groups became the appreciative beneficiaries of Gibtelecom’s recent upgrading of its fleet of vans.
Each group was presented with a Suzuki Carry van after Gibtelecom had the vehicles completely overhauled; this included a full service and replacement of clutch, brakes and other parts where necessary. Not only that, but the bodywork was fully refurbished to a shining new-look finish. The four vans, worth around £6,000 in total, all have long MoT certificates as well, so the support groups should be able to look forward to enjoying trouble-free use of them in carrying out their work in the community.
CEO Tim Bristow and Lianne Azzopardi from Sales and Marketing presented the vans at a reception at Gibtelecom’s New Harbours stores. 
The keys were handed over to John Rodriguez for Europa Retreat Centre; Jaime Felices for the Youth Centre; Christine Loddo for St Bernard’s Parish, who help the Co-workers of Blessed St Theresa of Calcutta; and Michelle Perera and Iris Segovia from Women in Need.
At the reception, Gibtelecom’s Sales and Marketing Representative Lianne Azzopardi said, ‘This donation complements other support given to the community by Gibtelecom through numerous donations to various local charities, educational groups and sports and cultural societies.’
The recipients of the sparkling vans all expressed their sincere thanks to Gibtelecom and emphasised their appreciation for the generous donation.

One year short of our 10th anniversary, Corporate Events Ltd have moved to new premises. The new shop front at 8 Bell Lane aims to give more direct and accessible service to all B2B customers whilst, at the same time, offering a retail service to the general public.
At Corporate Events we are able to supply an extensive range of promotional products and imprinted promotional items that utilise various methods of logo branding and product decoration including screen printed, pad printed and embroidered branded merchandise items. We deliver the best turnaround time available, showcasing quality products that are competitively priced and suitable for any promotional marketing budget.

Aon Insurance Managers (Gibraltar) Limited (AIM) held a celebratory dinner at The Rock Hotel on Monday 14th July to celebrate its 10th Anniversary in Gibraltar and raise funds for its chosen charity, Gibraltar Special Olympics. Paul Sykes, Managing Director of Aon Insurance Managers Gibraltar Limited welcomed over one hundred guests including guest of honour, The Honorable Peter Caruana QC, Chief Minister of Gibraltar.
Mr Sykes took the opportunity to thank clients, local business partners and the staff of Aon in Gibraltar for supporting Aon in the past, the present & the future.
Chris Le Conte, Regional Managing Director for Aon Global Insurance Managers (AGIM) spoke about what Gibraltar means to Aon. He recounted how Aon Insurance Managers (Gibraltar) Limited incorporated in Gibraltar in 1998 under the management of Paul Savignon at European Insurance Management Services (EIMS). Following the introduction of Protected Cell Company (PCC) legislation in 2001 (Gibraltar was the first European on-shore domicile to do so), Aon decided to take a larger presence in Gibraltar and bought EIMS from Mr Savignon. Shortly after buying the management company Aon incorporated White Rock Insurance (Gibraltar) PCC Limited, to create the first PCC in the EEA and expand Aon’s market leading brand of protected cell companies, the White Rock group of companies.
Mr Le Conte confirmed “2001 was a catalyst for us: the wisdom & foresight of Gibraltar to become the first EU domicile to introduce PCC legislation.”
Many other multinational clients were subsequently attracted to Gibraltar by Aon, which now manages a total of 34 insurance entities for clients.
In 2002, AIM Gibraltar employed only one member of staff, which consequently grew to 18 people today, comprising locally qualified professionals mixed with the skills of internationally experienced staff recruited from the London, Dublin & Guernsey financial markets.
Tizzy Hoare, who joined the Company in 2002 as its second employee and now serves as Company Secretary and Human Resource Officer, commented: “Despite growing significantly, we have retained the feeling of being a family, which makes Aon Gibraltar a very special place to work, and one I am very proud of”.
Mr Caruana congratulated Aon on having “developed from being a managed company yourselves in 1998 to becoming Gibraltar’s largest manager of insurance entities 10 years later.”
Speaking of what Aon means to Gibraltar, the Chief Minister observed that Aon Global Insurance Managers is a leading manager of insurance companies in the world, remarking that Gibraltar wants to have quality companies operating in Gibraltar like Aon.
He explained that the insurance industry in Gibraltar has been one of the fastest growing finance sectors and that this has been possible due to political stability, good regulation by Gibraltar Financial Services Commission, highly developed financial services infrastructure and a positive tax regime.
After dinner, representatives of the band of the Royal Gibraltar Regiment made a surprise entrance, imbuing the evening with a flavour of Gibraltar’s history for the many overseas visitors.

Local members of the Gibraltar Insurance Association have formed a new insurance institute for Gibraltar to help educate and serve members and employees working in the local insurance market.
So far over 100 individuals from local insurance organisations have confirmed their intention to join the new Institute.
The objective of the Gibraltar Insurance Institute (GII) is to promote higher standards of competence and integrity in the practice of insurance in the Gibraltar market. It aims to achieve this through the training, monitoring and facilitation of continual professional development for its members.
On 3rd September 2008 the GII held an inaugural lunch at the Rock View suite in the Elliott Hotel. The event, which was sponsored by Argus Insurance, was an opportunity for prospective members to find out more about the GII, and the forthcoming events and training sessions being organised. The GII also launched their new corporate identity.
The speakers at the Lunch were The Hon. Gerald Simons OBE, President and CEO of the Argus Group, who is visiting Gibraltar from Bermuda. Mr. Simons has been CEO since 1998, and is the immediate president of Bermuda Insurance Institute. He has also served in the legislature of Bermuda in various ministerial posts including the Ministry of Education.
Also speaking was Penny Hudson FCII, Managing Director of Caledonian. Miss Hudson is a Fellow of the Chartered Insurance Institute, and the current President of Gibraltar Insurance Association. Announcing the formal launch of the GII, Penny said, “The establishment of an Insurance Institute in Gibraltar has been mooted a number of times over the years and now, at last, here we are. The GII is an opportunity for its members to obtain high quality education and knowledge to help themselves and their colleagues in the industry.”