For Mark Williams, smoking and kite surfing did not go hand in hand. He had puffed on cigarettes for 15 years and it was affecting his active lifestyle. He wanted an alternative. He found it online in the form of electronic cigarettes, but he was quickly disappointed. The products he ordered were overpriced, poorly made or, worse still, both. Rather than pick up his packet of Marlboro Lights again, he took a somewhat different tack. He set out to develop his own products. Eighteen months later, Mr Williams is the managing director of a Gibraltar-based company rapidly stamping its mark on the emerging market for alternatives to tobacco.
Total Cigarettes was born out of a personal need to find a well-priced product that worked. Developing the e-cigarette has been a personal experience for Mr Williams. “What I’m doing is finding a product that’s ideal for myself,” he told B2B. “Everything that I do is basically what I wanted to see when I first came across them 18 months ago.”
So what is an e-cigarette? Total Cigarettes describes its products as premium quality nicotine inhalers, commonly referred to as electronic cigarettes or e-cigs.  Each cigarette is comprised of a battery, a heating element and a cartridge that holds a liquid solution containing nicotine. When you take a draw on e-cig, the atomizer heats the nicotine liquid which provides a vaporized solution that closely resembles smoke when exhaled.  There is no tobacco, smoke or combustion involved in its operation and you do not exhale second-hand smoke, which means it can be used in areas where traditional cigarettes cannot be smoked. Electronic cigarettes can openly be used in airports around the world such as Gatwick and Gibraltar airport, where Total Cigarettes products are sold in the departure lounge and bar.
Although some people use these cigarettes to quit smoking tobacco, this is not what they are designed for. “This product is an alternative to smoking,”
Mr Williams said. The Total Cigarettes product range includes nicotine-free cartridges that allow users to ‘smoke’ without having to worry about addiction. As a former smoker, Mr Williams knows what a smoker wants in an alternative product. He jokes, for example, about the different degrees of “throat hit” that each version of his e-cigs provides. The cigarettes and associated accessories are made in the Far East in factories handpicked by Mr Williams and his team.

For Total Cigarettes, Gibraltar has provided something of a learning curve and helped Mr Williams to understand what people want from his product. “You’d think an item such as this would fail instantly in Gibraltar, where there is a culture of smoking and cigarettes are cheap,” he told us. In fact, quite the reverse happened and, largely through word of mouth, interest in the product grew locally.
Total Cigarettes are now sold at discounted prices in a number of outlets in Gibraltar, including pharmacies. “Gibraltar has become a fantastic base for market research.”
There are, of course, some people who are not convinced by e-cigarettes. This includes health authorities in a handful of countries who are concerned at the lack of long-term scientific research into e-cigarettes and how they deliver nicotine into the system. Mr Williams acknowledges these concerns and believes that e-cigarettes will likely be regulated in the future. He would welcome that and in some respects is already looking ahead. Unlike some of its competitors, for example, Total Cigarettes has clear warnings on its products to keep them out of reach of children. Mr Williams believes people should know exactly what they are consuming. But he is also vaguely puzzled by smokers who express health concerns about e-cigs. “The majority of doctors would agree that if there is a choice between smoking a real cigarette or an e-cigarette, it’s going to be the e-cigarette,” he said.

A new cycle hire scheme that could revolutionise personal transport in Gibraltar.

London’s doing it, Barcelona has had it for years. Soon Gib will be joining these cities in being home to a cycle hire scheme, which could potentially help to alleviate our traffic problems or at least make some short journeys from A to B easier and cheaper.
It’s simple really. There are 132 cycles at 15 stations around the Rock. You subscribe approximately £30 per annum and are issued with a membership card, which you swipe at the cycle docking station to get your bike, use it for half an hour for free and for any extra half an hour pay a small fee, yet to be determined. So, pick it up at station A, drop it off at station B, swipe the card when you pick up and drop off and that’s it. Any extra time over the allotted free half an hour is charged to you via your membership account.
The scheme has been earmarked for Gibraltar to promote a healthier lifestyle, weaning us off using the car for short journeys, saving on parking and alleviating traffic nightmares. It also goes without saying that it’s a much greener option than the car.
The downsides of the scheme are the lack of cycle lanes in Gib and the traffic, so as with all cycling, the government recommends that
a helmet should be worn at all times.

In a landmark deal for the Rock’s insurance sector, a Gibraltar-based insurer has bought a business in rival EU jurisdiction Malta.

Argus Insurance Company (Europe) has bought its long-time Malta agent Fogg Insurance Agencies for an undisclosed sum. The newly-acquired business in Valetta employs 22 staff and will now report to the Gibraltar office. To ensure that there is  proper coordination between the two, Andy Baker, the Gibraltar-based head of Argus in Europe, will keep tabs on both offices and divide his time between the Rock and Malta.
The acquisition is part of the Argus group’s international growth strategy and will open doors for staff in both locations to jointly develop their professional knowledge and experience.“Small communities, small markets need to look outside themselves for opportunities,” said Gerald Simons, Argus’ Bermuda-based president and chief executive. “This acquisition is something that provides opportunities for the sharing of knowledge and expertise.”
Mr Simons was speaking in Gibraltar following a visit to Malta to meet with regulators and insurance executives. He was accompanied by Argus chairman Sheila Nicoll. Mr Simons said that Argus recognised that it was important to diversify globally beyond the head office and operations in Bermuda.
The insurer looks to expand into similar jurisdictions, small markets where larger companies do not operate and the legal and insurance traditions are English. The focus is on finding acquisitions that fit into that mould. Argus is not trying to “notch up conquests” but rather acquire profitable businesses that meet the needs and expectations of both shareholders and staff, Mr Simons said. “We’re not hell bent on moving into territory after territory, but we do keep our eyes open,” he told B2B.
From a growth perspective, Malta provides good scope for Argus. GDP per capita in Malta is lower than in other EU jurisdictions, which means people there have less to spend and, by extension, spend less on insurance than in other European countries. But income is increasing as Malta shifts to a new economic model in which financial services play a key role. For the insurance sector, it means there is room to grow.
“They have quite an aggressive plan to increase the financial services contribution to the economy,” Mrs Nicoll said. Mr Simons added: “Malta has a relatively low penetration of insurance. The Maltese spend about a third of what the typical EU resident would spend on insurance, so there are opportunities there. We see the potential in Malta, but we also see the growth that’s occurring here in our Gibraltar office. If we could replicate the success that we’ve had here over the last five years in Malta, we will satisfy all the parties involved.”
In the medium term there will be some changes to the Malta operation, not least new premises for the business. Managers will also look for opportunities to find improved efficiencies – new computer systems will be rolled out in due course, for example – and there will also be opportunities for growth through training and professional advancement.
Mr Baker said the group was already running an exchange programme whereby “best of breed” workers from head office in Bermuda and from Gibraltar were doing week-long stints in Malta and passing on knowledge, experience and skills to staff there. Likewise, workers from the Malta office are spending time here and in other Argus offices to learn about the business and pass on ideas that could benefit the group as a whole.
Exciting developments not only for Argus but for Gibralar as a whole.

An application to establish the World Trade Center (WTC) Gibraltar was approved by the WTC at the outset of the Association’s Annual General Assembly in China, making it the 335th licence to be awarded across the globe to develop international trade.

The unanimous vote by WTC members in favour came after close scrutiny of the credentials and development plans submitted by Greg Butcher, the entrepreneur behind the large-scale mixed use Ocean Village project.
Letters of support for the WTC project that will help put Gibraltar’s financial and business centre on the world stage came from more than 30 leading companies – banks, insurers, trust and accountancy firms – as well as trade associations and the Minister for Development, Joe Holliday.
In a statement issued from Beijing, Butcher said: “The WTCA has a rigorous policy on accepting new members and requires to be satisfied on the credibility and business standing of applicants and their implementation plans, before granting any licences.”
However, the building’s proposed 3,000 m2 single floor area is the largest available in the jurisdiction, which presents a key benefit for local firms now operating from split locations, as well as newcomers attracted by Gibraltar’s new low 10 per cent headline rate of corporation tax.
Butcher’s company Fairhomes Ltd., already has outline planning permission for the development at Marina Bay and “we are now working up detailed specifications to include features – such as meeting rooms, club lounges, video conferencing and other business services – which has led to some layout alterations”, explained WTC Gibraltar development director, Brian Stevendale.
WTC Gibraltar will form part of an expanded Ocean Village, which already has 30,000 m2 of offices, 408 apartments in three towers, 10,000 m2 of restaurants, casino and other leisure activities, as well as 336 berths from 12 m to 50+ m long for superyachts.

The Gibraltar Insurance Institute [GII] has been accepted as an affiliate institute of the Chartered Insurance Institute [CII], in a move that will enhance the local sector’s international reputation and strengthen the scope for professionals here to build on their skills and knowledge.

The CII is the premier professional organisation for those working in the insurance and financial services industry. It has 90,000 members and has been at the forefront in setting professional standards for the insurance industry for over a century, promoting higher standards of competence and integrity through the provision of relevant qualifications for employees at all levels and across all sectors.
“We believe we’re the first [new affiliate institute] for 30 years, so it’s a big thing for the CII,” said Andy Baker, president of the GII and chief executive of Argus Insurance in Gibraltar. “For Gibraltar it’s a real coup because it gives us official CII status. It’s another external recognition of the professionalism of the market.”
The GII’s new status also means that it can draw on the resources of the CII for the benefit of the local insurance sector. This sector has grown exponentially over the past decade. In 2000 there were just 13 licensed insurers operating from the Rock. By 2009 that figure had risen to 63 companies, active in various areas of the insurance business ranging from general insurance to protected cell companies.
Gibraltar’s influence in key markets including the UK has also expanded, as illustrated by the fact that 9% of UK car insurance is underwritten from the Rock. “Gibraltar really punches above its weight,” Mr Baker said. “It handles £2bn of insurance premiums, most of which is written back in the UK.”
The GII was established to help bring together professionals in the insurance sector and provide a support network for training, professional development and networking.
From the outset, the idea was to establish an institute in Gibraltar that would be formally linked to the CII. Mr Baker and his colleagues contacted the CII and asked what criteria and rules should be followed in setting up an institute in Gibraltar. The requirements were quite strict and included a minimum of 100 members and three years’ of financial accounts and proof that the local institute was engaged in the role expected of it, including education.
But the project quickly gained traction and, three years later, the GII now has 150 members, 100 of whom are also members of the CII. The remaining 50 are social members. In all, 34 local companies are represented in the institute. There are over 300 insurance professionals working in Gibraltar’s financial sector, so there is still room to grow.
The GII is a dynamic organisation and its council oversees a busy calendar of training and social events.“We see our primary function as being to coordinate and run a series of professional training events,” Mr Baker said. This is aimed at both student members, providing help for them to gain their qualifications, but also for working members who need to continuously develop their skills and knowledge to keep up with market trends and legislative changes.
The second function is to further the aims of the CII, hence the move to become part of its worldwide membership. In general terms, this is about enhancing the reputation and professionalism of the global insurance sector. “One of aims is to raise the image and professionalism of the Gibraltar market, and that will come with qualifications, professional training and interaction both with the finance centre and other institutes worldwide,” Mr Baker continued.
Another function of the GII is to provide a forum for insurance professionals to interact. Some of the insurance companies in Gibraltar are run by small teams who might otherwise not have an opportunity to meet and exchange ideas with colleagues active in the same sector. The GII runs a very varied programme of events that includes a mix of both professional and social activities. It organises business breakfasts and lunches where specialists, often external speakers from others areas of the finance sector, give briefings on topical subjects. “We always aim to have high-quality, high-grade speakers,” Mr Baker said.
There are also workshops and training courses run by UK firms tailored to the syllabus of the CII exams. Running these courses under the umbrella of the GII allows small firms who might otherwise to be able to afford it to access top-notch training for their staff. “We feel there is a real appetite here for professionalism, for professional qualifications,” Mr Baker said. “We’ve got an interesting mix of people. At any one of our events, you’ve the senior people at the companies, but you’ve also got a hardcore of students.”
As from next year, the GII will also take steps to showcase the insurance sector to students at local schools, mainly through participation in the careers fair. While other finance-related professions such as law and accountancy attract many youngsters, few thinking of following a career in insurance. “Nobody automatically comes into insurance here,” Mr Baker said. “They go away to college, come back, they apply to be an accountant or a lawyer, but we haven’t got any graduate trainees [in insurance] in Gibraltar.”
“So that’s one of our initiatives, attracting professional trainees. They can come in at A-level, they can come in as graduates.”
The GII looks forward to welcoming more members both young and old going forward.

Argus Insurance are proud to be the new sponsors of the Gibraltar National team and the Argus Junior Cup tournament in a deal worth up to £6,000 for the GFA.

The sponsorship is all part of Argus and sister company WestMed’s continuing commitment to community projects, which lie at the heart of life in Gibraltar. As Chief Executive Tyrone Montovio says, “it goes without saying that companies should strive to give something back to the community they work amongst. Argus not only wants to offer the best insurance solutions to our customers, we also want to give something back to them via our different community projects and charitable donations; we see this as a crucially important part of our business ethos and we hope to build on this work and this commitment through other projects we are looking at around Gibraltar.” WestMed already sponsor the Lincoln Junior team.
The sponsorship of the national team began auspiciously with the win in this summer tournament over La Balona. The Argus Junior Cup season is set to start in December.
Argus also make regular charitable donations to St Martin’s School and headmistress Angela Lukas says that she appreciates wholeheartedly the help and support Argus give to her pupils. Without their help many pieces of specialist equipment just couldn’t be bought.

A new series of lectures are launched in memory of the law firm’s illustrious founder.

James Levy QC, Hassans’ Senior Partner welcomed more than 100 guests to the Rock Hotel on October 20th to enjoy the inaugural Sir Joshua Hassan Lecture delivered by Michael Howard, former leader of the Conservative party.
The lecture, in memory of Mr Levy’s uncle Sir Joshua – Gibraltar’s longest-serving Chief Minister and founder of the eponymous law firm – was delivered by The Rt Hon Lord Michael Howard of Lympne QC, a particularly apposite choice as he shares Sir Joshua’s history of law and political service.
James Levy began the evening’s speeches with anecdotes about Sir Joshua with particular reference to his love of the Gibraltar people. Next up was Michael Nahon, Sir Joshua’s son-in-law and Associate at Hassans, who gave a moving tribute to his father-in-law. Finally Lord Howard, accompanied by his wife Lady Sandra, shared his memories of the man who was “loved and respected in his professional, public and personal life”.

Major multinational businesses continue to be interested in establishing insurance companies on the Rock bringing fresh revenue and jobs to the jurisdiction.
They are attracted by the jurisdiction’s new 10 per cent headline rate of Corporation Tax – down from 22 per cent now.
That places Gibraltar “firmly at the forefront of potential business leader’s thoughts on jurisdiction of choice”, Steve Quinn, Quest Group chairman, assured Chief Minister Peter Caruana and more than 80 guests at the opening of new offices in Ocean Village (on Wednesday 8th September).
A change to Gibraltar’s draft 2010 Tax Act now means that even after the ending of Tax Exempt Companies status, interest on income arising from insurance premiums will continue to be excluded from tax calculations for all insurers, he noted.
Effectively, that provides a potential further reduction in the 10 per cent Corporation Tax charge, reported Quinn, who established Quest six years ago with accountant wife Liz and some other management staff shareholders.
Now the firm claims to be the jurisdiction’s largest insurance manager of third party direct writing insurers – what he calls “proper insurance companies” – with a 25 per cent market share.
“We believed in the economic success story Gibraltar had become”, Quinn declared, adding: “Now in 2010 that position has been further enhanced and we want to see more of the same”.
In 2004 Quest began with one client: five of the 10 insurance companies it now handles were at the opening.
Revealing a projected 20 per cent growth in business, a benchmark the company has set for itself in each year since inception, made possible by the new Grand Ocean Plaza offices, he said “overseas insurers can become established more quickly and generally at less cost in Gibraltar, compared to the usual UK experience”.
But Quinn appealed to the territory’s Financial Services Commission (FSC) to ensure that the forthcoming Solvency II legislation is not used to create a common, ‘one fits all’ approach to insurance company solvency measurements.
The FSC’s strength was in knowing its client base well, and “there is a distinct difference between a regulator’s knowledge of companies in a large country with an enormous insurance market and what goes on in a smaller jurisdiction like Gibraltar”, he said.
Gibraltar’s competitive edge would be blunted “by regulating all insurers across the Continent in the same way”, Quinn warned.
There was also the potential for Gibraltar to become the home to billions of pounds of insurance premiums and many new jobs if the UK keeps to previous undertakings to ensure British insurers can transfer their businesses to the territory.
The UK government has signalled previously that it would rectify a legislative omission that currently prevents insurers relocating their business base and portfolios to Gibraltar, when they can freely do so anywhere else in the European Economic Area (EEA).
Quinn appealed to Gibraltar’s Chief Minister, Peter Caruana, to help ensure the end of an anomaly in the UK Financial Services and Markets Act that fails to refer specifically to Gibraltar and take account of its special status within the EU.
It would be “Gibraltar’s greatest opportunity for further sustained and sensible growth” since the advent of ‘passporting’, he told guests.

Ibex Insurance Service Ltd have announced the acquisition of the portfolio of clients of Lloyd & Whyte International Ltd a leading UK Insurance Broker. The acquisition expands Ibex’s retail brokerage division adding four more offices to its network.

Founded in Gibraltar in 2000, Ibex have grown from a company with a handful of staff to one now employing more than 75 people across Gibraltar, Spain and Portugal. Their focus is on general insurance providing motor, household, travel, marine, pet and medical products.
“This acquisition is of strategic importance to Ibex and gives us a strong foothold in the Portuguese marketplace where we sell not only to the expatriate market but also to the local domestic Portuguese market. Having a physical presence in the country has been on the cards for some time” Richard Hill, Managing Director of Ibex told B2B.
“Everyone at Ibex is really excited to welcome the Lloyd & Whyte operation and staff to their business. We have worked together for a number of years so this should be an easy integration especially as we firmly believe in the solid business they have built up over the years”.

Network security is about prevention not cure. Yet, a staggering 85% of network attacks penetrate successfully through vulnerabilities for which patches and updates have already been released.
Many small and medium businesses (SMEs) fall into the trap of not taking adequate precautions because they think the threat is highly exaggerated and they do not hold any critical data.
While it is true that high profile security breaches involve the unauthorised release of confidential data, the reality is that most systems are not compromised for the data they contain but for other purposes such as being used as zombies in large scale attacks and even to send SPAM.
A common misconception is that hackers spend their days typing credentials into log in screens until they guess it right.
In fact, most attacks are performed using automated tools which exploit known vulnerabilities in operating systems and applications.
A “dictionary” attack can bombard a password field with thousands of dictionary words at the click of a button. The threats to network security are numerous and relentless; keeping abreast of them is no easy task that requires a thorough approach and in depth technical knowledge.
Network security is not available as a single product. Instead it is about combining multiple security elements, such as antivirus products, firewalls, internal policies, etc. into multiple layers of defence. It is critical to secure all possible loopholes – it is no good having a well configured firewall if network account passwords are simple dictionary words.
Best security practices involve a combination of both technical controls and logical processes. It is easy for bad processes to undermine otherwise excellent products and vice versa, good practices can compensate for shortcomings in bad products. At the network level, the following are some of the security elements that form the basis of a good security defence:
•    Updated and patched systems
•    An antivirus solution with up-to-date definitions
•    Properly configured firewall
•    Use of complex passwords
•    Intrusion detection systems
•    Good internal security practices
Many SMEs incorrectly believe that good security finishes with installing a firewall and an antivirus product. Unfortunately, it is not as simple as that. Virus attacks represent only a small part of many other security threats, e.g. malware, insider attacks, reckless web surfing by employees and even multifunctional printers. For example, unless configured properly a networked printer is just another potential route for hackers to get in!