Interview with Barbara Jolly - yacht and aircraft manager at Abacus Trust Company Limited
By: Tessa Hawley
21 October 2011
Barbara Jolly is responsible for driving Abacus' yacht and aircraft business forward.
She has specialist fiduciary experience in the formation and management of ownership structures for commercial and private yacht and aircraft owners.
Barbara also has more than 17 years experience in the management of mutual and captive insurance companies within the specialist areas of shipping and aviation.
How is the yacht industry performing in the Isle of Man?
The Isle of Man is a highly active yachting jurisdiction with a strong history for excellent professional service coupled with good economic benefits.
The Isle of Man has zero corporation tax (with a few exceptions for banks and properties), is an EU member for VAT purposes and is outside of the UK for UK non-domicile “tax remittance” purposes.
The Island has continued to grow within the yachting industry with the growth in the number of vessels registered in the Island increasing year on year. In 2010 the Isle of Man Ship Registry added 139 vessels to its register and as such made itself the fastest growing register in Europe and the fourth fastest in the world.
What services does Abacus offer in this area?
Abacus has extensive experience in the specialist services for private or commercial yacht ownership and operation.
Our services are aimed at owners and their representatives, with a focus on ownership planning, tax and administration, so that clients are free to enjoy the use of their vessel in the knowledge that their ownership structure is being efficiently administered.
Our core services include the formation and management of international yacht ownership structures, purchase and administration services, EU VAT importation, provision of officers, VAT registration and administration, provision of ship representative person and international yacht registration.
The continual review and shaping of our services to meet the ever changing requirements and regulations of the industry ensures that the ownership structures we administer are compliant with current regulations and meet our clients’ specific requirements.
What are the advantages of registering a yacht in the Isle of Man?
Choosing a jurisdiction for yacht registration is an important consideration for any yacht owner as the matter is not simply a question of personal preference.
A yacht’s flag can affect its purchase and operation and therefore the decision should be made alongside the consideration of a client’s personal tax situation, their planned use of the yacht, i.e. private or commercial, and the intended cruising area of the vessel.
Furthermore a client should also review the customer service, costs and reputation of the registry and how it might affect their yacht.
The Isle of Man Ship Registry offers what most others can only aspire to - a high quality service which is customer-focused on the owner, captain and crew members, and is of relatively low cost.
It provides a premier service through their dedicated team of professionals, evidenced by their 24 hours a day, seven days a week availability, and a high response level to queries they receive.
The Isle of Man Register works to the “MCA Large Yacht Code” and is a category one (unrestrictive size and type of vessel) component part of the British Ship Register, giving ship owners the right to fly the “red ensign” and access to the support of the British consular services worldwide.
The reputation of the Isle of Man flag is held highly in the industry and is reflected by its position on the Paris MOU’s “white list”. Port states and customs authorities have a requirement to inspect yachts and will target them based upon various criteria. One of which is a flag’s positioning on the Paris MOU with particular focus on those flags recorded on the “grey” and “black” list.
The Isle of Man Ship Register has mortgage registration which, based on legislation similar to that in the UK, provides a familiar and comfortable register for financial institutions and their legal advisors.
How closely does Abacus work with the Isle of Man Ship Registry?
At Abacus we have benefited from an established working relationship with the Isle of Man Ship Registry - a relationship largely built upon the experience and acknowledgement of mutual high standards of service and customer focus.
The Registry provides a flexible, prompt and customer focused approach to the provision of their services and problem solving which makes dealing with them simple, fast and efficient. What more could you ask for?
Do you see the yacht industry as an important part of the economy for the Isle of Man?
The Isle of Man has a long history in the yachting industry and played a part in the driving force behind the creation of the UK’s Large Yacht Code. This code ensures that privately registered yachts, operating commercially, are brought within the legislative remit.
Clients and others in the industry go on to see the many other benefits of doing business in the Isle of Man and as a result more opportunities and business comes to the Island.
Based on results from the Isle of Man’s Ship Registry alone they have seen a growth in interest from new clients, such as those in the Far East which have added significant tonnage to the register, and this is in addition to business attracted from new and existing clients from within their traditional European customer base.
Growth like this plays an important part in the Island’s economy.
The Maritime Labour Convention is being brought in next year. How do you think this will impact Abacus and its yacht services?
The Maritime Labour Convention (MLC) will govern the employment of seafarers and the standards in which they live and work whilst on commercial vessels or vessels engaged in international voyages.
It consolidates the many and various employment legislations which aim to achieve both respectable work for seafarers and to secure economic interests in fair competition for quality ship owners.
15 member states have ratified the convention to date and when the EU joins those the MLC will have achieved its required majority enabling it to be enforced on any remaining members.
The Isle of Man Ship Registry has been diligently preparing for the ratification and as such it has undergone a consultation process with many ship owners and industry professionals on the Island. The Isle of Man Ship Registry has clearly defined its intentions with regard to the MLC and how it intends to inspect and regulate it.
As such we, who have been working together with other industry professionals in preparation of the ratification of the convention, are confident that there will be no negative surprises.
There seems to be a lot of companies doing yacht and aircraft administration on the Island. Is this amount of competition healthy?
There are undoubtedly a vast number of service providers both on and off the Island offering a variety of services to the yachting industry. I believe that this makes for a healthy and happy industry with a choice of providers available to cater to all types of needs and budgets.
Within the industry it is fair to say that different service providers have similar yet different target market segments and though most offer a wide range of services these services can often vary between each provider.
The real challenge is for the yacht owner to communicate their objectives, service requirements and budget to their chosen service provider to ensure that they get the product and service that they desire within their budget.
Does Abacus attend any industry exhibitions or conferences? If yes why do you feel they are important to attend?
Abacus attends a number of events, exhibitions and conferences held by professional bodies in the industry.
This year alone we have had representatives attend a number of large events across the UK and Europe including The Annual Future of Superyachts conference, Monaco Yacht Show and have representatives attending the Global Superyacht Forum, Superyacht Marketing Forum and Superyacht Fiscal Summit.
Events such as these provide excellent networking platforms to meet industry professionals - whether legal, VAT or tax advisors, charter agents and brokers, yacht managers or clients - alone but all within one convenient location.
These events are also good for brand awareness - letting the industry know who you are and what you do - although the glamour of some of these events and their locations make it easy to forget the frenetic business dealings and networking that takes place.
For more information on Abacus click here.
Abacus Trust Company Limited is licensed by the Financial Supervision Commission of the Isle of Man.