What We Think

January 17, 2022

There is no such thing as a work-life balance

The work-life balance concept has been thrown at us quite regularly, particularly over the last couple of years when we are (finally!) giving more importance to our mental health. This concept is about finding a balance, both in time and in energy, between work and life.

I never agreed with this concept, nor do I believe there is such a thing as a work-life balance.

The notion seems to imply that ‘work’ is a negative aspect of our life, and we need to manage it accordingly. We never hear about a ‘family-life balance’, or a ‘friends-life balance’, this is because family and friends are associated with positive aspects of our lives, and work should too! Work is not an external part our lives which we need to ensure we balance off with everything else, but it is an intrinsic part of it and possibly one we spend most time on. Therefore, it is extremely important that we are satisfied, motivated and most importantly, happy at work, because otherwise our whole life, which includes our relationship with family and friends, is going to be miserable.

The more we speak about a ‘work-life balance’, the more we make it acceptable that being unhappy at work is ok because it seems that it simply needs to be balanced out with the rest, more positive, aspects of our life. We do not need to run away from work to live our life, nor can we, work is a major part of our life, which we need to dedicate the same energy to as with everything else and ensure that it contributes to our overall wellbeing.

As with anything else, if we overdo it, and spend too much time working, this will result in a negative impact on our overall happiness. However, this applies to every aspect of our life, including the time we spend with family and friends, not just to work. I believe in a ‘life balance’, whereby we dedicate the right amount of energy and time to aspects of our life which motivate us and make us ultimately, happier individuals. This could include time spent with family, friends, traveling, and also to work. The differences with work are two-fold – firstly, we spend a lot of time there – typically around 60 – 70% of our lifetime, apart from when we are sleeping. Secondly, because, in most cases, not working is not an option. These two factors reinforce the need to ensure that we are truly happy at work and that our wellbeing at work reflects positively on other relationships in our life.

It is not something to run away from - we need to make sure that we look forward to going to work, wherever that may be, with all its ups and downs that it brings. Being happy at work doesn’t mean that things will always work out the way we want them to. It is about working hard at something we are passionate about and understanding that problems are simply situations which need to be dealt with.

I like to compare work with sports – the team that is having most fun is the one which is winning game after game, however, this is also the team that is working the hardest in order to achieve those results. Passion is key.

 

For further information on the above kindly contact:

Nicky Gouder

What We Think

January 17, 2022

There is no such thing as a work-life balance

Seed is pleased to announce that, after managing and working on a number of projects in the UAE, it has decided to set up and open an office in Dubai, UAE. Together with local partners, this office will serve the local projects which Seed is working on within the region and provide a more flexible and smooth operation within the market.

Seed’s co-founders JP Fabri and Nicky Gouder stated that they are extremely happy with the opening of the new office, which was the next logical step for Seed given the amount of work being done in the region.

Apart from managing projects, Seed also assists international companies which are looking to invest in the region in terms putting them in touch with decision makers and taking them directly to the individuals who are able to take a final decision on specific projects.

 

Our offices:

Seed

Office number 119

Sheikh Rashid bin Saeed Al Maktoum Building,

Saeed Tower 1,

Sheikh Zayed Road

Dubai

Telephone: +971 58 300 9394

 

What We Think

January 17, 2022

There is no such thing as a work-life balance

The introduction of the Second Payment Services Directive (PSD2) enables innovative financial technology companies, known as FinTechs, to enter the world of payments.  But obtaining a payments license can be an uphill struggle.  Senior Consultant Daniel Attard shares some tips for FinTechs embarking on the licensing journey after giving a brief overview of PSD2 and licensing.

PSD2 is a fundamental piece of payment legislation in Europe.  Its accompanying regulations drastically impact the financial ecosystem and infrastructure for banks, payment service providers, fintech’s and businesses using payment data for the benefit of consumers.  In this sense, PSD2 is often perceived as an enabler.  Payment data is among the most sensitive types of consumer data, and thus it is heavily regulated across Europe.  For FinTechs to make use of the enabling activities provided by PSD2, they need to obtain a financial services license, which in Malta is granted by the Malta Financial Services Authority (MFSA).  This step can be intricately complex, and as a result many FinTechs face challenges complying with the requirements and with the process. 

The proportionality principle

Whether you are a bank or financial institution with 5,000 employees or a start-up with 10, the same regulation applies.  How do you deal with this? And when is good, good enough?  How do you apply the principles on which the regulation is based without ‘overdoing’ it and staying true to the nature of your business?

The answer is not straight forward, and the reality is that one needs to remain constantly aware of the evolving rules and regulations concerning your business environment and reconciling the two.  With every change, keep asking yourself what this means for your business, how should you respond?  And what are the consequences of those choices?  Tips that can help you stay on top:

  • Stay in close contact with the regulator. Discuss what you do and why you do it, including your interpretation of the regulation, translated to your business.
  • Rethink your governance. Make sure you have a solid second and third line of defense.  Solid means someone (or multiple people, depending on the size of your business) that can relate to your business, stand next to it but at the same time act independently, distance themselves, and ask the right questions.  This can be done internally, or outsourced, depending on your size and business model.  Such a structure will allow you to generate insights that are as objective as possible, not clouded by business dilemmas, hence both improving your business as well as your compliance success. 

Align risk assessment to business activities

I often notice that companies regard obtaining a PSD2 license as a checklist exercise, whereby a set of documents are produced for the regulator and not necessarily aligned to the business philosophy or operation. This is especially true in risk assessments which run the risk of being merely desk-based exercises and not truly reflective of what is actually done in the organization. A proper risk assessment will help you ask and answer fundamental questions in a structured way, enabling you to act and take precautionary measures if and when necessary.  It is important to first visualize your business as a whole – assessing risks associated with different compliance topics will be automatically part of that exercise. 

Take compliance a step further

Despite all the differences, the one thing FinTechs generally have in common is the constant drive to innovate and improve.  In that process, being compliant is often seen as a must, and not necessarily as an integrated part of their core business.  When applying for a license your company is “vetted” on how compliant you are.  Don’t make the mistake of viewing this as a one-time exercise.  Especially in financial services, compliance-related topics and regulations are a major part of your product and service delivery.  Embed compliance as a part of your day-to-day business – not just because you must but because it will help you.

Do what you said you would do

In the process of obtaining a license, it is completely understandable that you will present the best version of yourself to the regulator.  Do however keep the bigger picture and longer-term in mind.  Knowing how your processes work, including where you might have potential gaps, is important.  Not only for obtaining and maintaining your license, but also to seize opportunities where they arise.  An external advisor, someone who knows the application procedure, can help you prioritise. 

Be patient, the regulatory landscape is fast evolving

As a final remark: the FinTech community, its participants, and regulator are fast evolving whilst technology developing even faster.  Given this fast-paced environment, it is critical for any applicant to be patient and recognize that the regulator might not have all the answers to queries or to issues as they arise. Mutual understanding and respectful communication is key to ensuring a smooth licensing process.

 

For further information on the above kindly contact:

JP Fabri

What We Think

January 17, 2022

There is no such thing as a work-life balance

Over the past few years, the cultural sector was living through a revival phase. Buoyed by the increased tourism flows; performances, cultural events and music shows and events, where also becoming a tourism niche. Then the pandemic hit, and the tourism sector and cultural sector came crashing to a grinding halt.

Along with the tourism sector, the cultural and creative sectors are among the most affected by the current crisis across the globe. The venue-based sectors including museums, performing arts, and others are the hardest hit by social distancing measures. The abrupt drop in revenues puts their financial sustainability at risk and has resulted in reduced wage earnings and lay-offs with repercussions along the value chain of their suppliers. Cultural and creative sectors are largely composed of micro-firms, non-profit organisations, and creative professionals, often operating on the margins of financial sustainability. The reduced subventions from the private sector can prove to be catastrophic for some entities and museums unless the Government intervenes.

The effects of the crisis will affect the production of cultural goods and services in the months, if not years, to come. Over the medium term, the anticipated lower levels of international tourism, drop in purchasing power, and reductions of private funding for arts and culture could magnify this negative trend even further. In the absence of responsive public and private support, the possible downsizing of cultural and creative sectors will have a negative impact on the broader society, not only just in terms of jobs and value-added but also on levels of innovation, citizen well-being and the product offering of the Maltese islands.

Going forward, it will be critical to consider cultural and creative sectors as well as cultural participation as a key economic driver in its own right with linkages to the broader economy. The orange economy coined by British writer John Howkins, refers to everything that is developed through people’s creativity and inspiration that becomes a good or service.  It covers everything from a toy to a play, including the most scientific aspects of R+D. Why orange? Orange has been historically tied to youth and happiness. Many consider it to be the color that is the most fun, often associated with culture and creativity. The creative economy, a long evolving concept, builds on the interplay between human creativity and ideas and intellectual property, knowledge, and technology. Essentially, it is the knowledge-based economic activities on which the ‘creative industries’ are based. The creative industries, an important source of both commercial and cultural value, include advertising, architecture, arts and crafts, design, fashion, film, video, photography, music, performing arts, publishing, research & development, software, computer games, electronic publishing, and TV/radio.

With the formal announcement of the 2021 United Nations Year of Creative Economy for Sustainable Development, the creative economy was finally recognised as a powerful force for good, livelihoods, social cohesion, and economic development through the trade in creative goods and services. The announcement also acknowledges the role of creative industries in supporting entrepreneurship, stimulating innovation, and empowering people, including young people and women, while preserving and promoting cultural heritage and diversity.

The sector is already an economic driver and source of innovation. The cultural and creative sectors can in fact play an important role in innovation throughout the economy especially if economic sectors are seen as clusters and ecosystems rather than silos. In fact, public and private support to these sectors is more effective when considering the strategic inter-relationships across sub-sectors that come together in an ecosystem. For example, the relationship between the creative sectors and the educational system is likely to be further reinforced by the acceleration of digitalisation processes in both spheres. This strengthened relationship will likely generate important knowledge and technology transfers across the two spheres. The strategic complementarities between the creative, cultural and the educational sectors will not only be essential for the development of new forms of digital edutainment and gamification but also for digital creation and curation of content. Moreover, these sectors are a prime field of development and experimentation of emerging technologies such as augmented and enriched reality, the Internet of Things and artificial intelligence which can complement other economic sectors including online gaming and other ICT related sectors.   

As the resumption of travelling and tourism continues, there is an opportunity for new models of more sustainable cultural tourism going forward which are more niche, resilient, and less potentially more value-adding. Here the business models would focus on longer and repeat stays rather than on very high volumes of short visits. This new trend will require additional investments in tourist attractions including efforts to expand the nature of cultural experiences, the digital training of local guides and service providers, and the creation of digital narratives that complement traditional physical experiences. With the commencement of events, Malta needs to refind and redefine its space within this context. The orange economy needs to be a holistic and integral part of our continued recovery process.

To shape better policies, national and local governments need more and better evidence on the economic and social impact of cultural and creative sectors. Despite the increased awareness of the role of culture and creativity for development, much can still be done to improve and mainstream across policy areas. Looking ahead, culture and the broader orange economy needs to be part of recovery strategies through place-based and people-based policies together with the right infrastructural support.

 

For further information on the above kindly contact:

JP Fabri

What We Think

January 17, 2022

There is no such thing as a work-life balance

A recent report by the Central Bank of Malta showed that the number of POS terminals has increased in recent years, particularly in 2020. Moreover, the vast majority of such terminals are now contactless.

The spread of POS terminals and improved functionality of debit and credit cards has also supported the increased use of these payment instruments among the resident population, as reflected in a steady increase in the volume of transactions per terminal using cards issued by local PSPs which continued unabated in 2020. At the same time, it appears that such instruments are increasingly also being used for smaller value transactions.

The way we bank and make payments is changing faster than any other financial services area. New technology and changing customer expectations are shattering the status quo and ushering in a growing number of new players that are challenging the traditional role of banks. This is also supported by regulatory developments such as Europe’s Second Payment Services Directive (PSD2) which introduces the concept of Open Banking within its regulatory framework.

The concept of open banking is gaining ground around the world with various countries embracing the spirit of Europe’s PSD2 directive and building similar strategies to it. Whereas in Europe discusseion has started on PSD3, Malta remains a laggard in its implementation. Last year, Seed had issued (r)Evolution, a dedicated report on the adoption of open banking practices in Malta.

In view of the developments and research, a number of observations can be made on payments in Malta and its future.

 

Open Banking confirms that data is the new gold

The liberalisation of consumer data through regulatory efforts such as PSD2, which introduced the Open Banking concept in Europe, has the potential to revolutionise not only the payment services sector but any other area which is able to successfully leverage the availability of such data to either enhance its existing service offering or otherwise create new products and services based on same.

Local players are ramping up interest following initial hesitance

Notwithstanding the fact that they have fully recognised the long-term potential and short-term benefits these solutions can present, local players (banks, financial institutions and fintechs) had initially taken a cautious approach to venturing into this new field. The regulator needs to take a more proactive approach in this regard.

Consumers need to be educated on Open Banking

Local consumers and merchants remain largely unaware of the Open Banking concept and the added value it can bring to the table both with respect to occasional transactions as well as in everyday usage. A nation-wide education effort spurred by both the private and the public sector will therefore be key if Malta is to replicate the success seen in other jurisdictions in this field. Such efforts should build on the population's capacity to embrace change and integrate new and value adding solutions into their ordinary expectations from the sector - this will create the necessary drive for local institutions to further embrace Open Banking and make the necessary developments. 

Open Banking empowers consumers and can revolutionise numerous sectors

Ultimately, PSD2 and the advent of Open Banking will go down as a first important step towards greater consumer empowerment with respect to the utilisation of consumer data. For this to happen, and for the Open Finance concept to fully permeate on a cross-sectorial basis, the remit of PSD2 and the data which can be made available to third parties must be sufficiently widened in both scope and purpose.

Strategic and adaptive leadership by financial institutions

The discussion on PSD2 needs to be elevated to a strategic, C-Suite and Board level so executives can determine how they want to respond, what opportunities Open Banking creates and what risks are created through inaction. PSD2 cannot merely be seen as a compliance exercise but one that is able to disrupt business models, gain efficiencies and enter new markets based on data and personalisation. Financial institutions need to focus on creating partnerships with fintechs to make the most of the opportunity. Speed to market is of the essence.

A national payment services strategy & ecosystem is required

The local market is ripe for innovation and the challenges that many companies are facing can be addressed through such developments. We are suggesting that Government develops a national payments strategy and supporting architecture to ensure that Malta can be an innovative hub and ecosystem which is further enabled by the presence of other strong sectors such as insurance, remote gaming, and technology. This should provide a cluster in payment services excellence which will be supported by the required infrastructure and regulatory sandboxes.

 

Payment services have been in evolution since the introduction of cards in the 1950s. As technology and regulatory innovations continue to pick up momentum, we believe that we are on the brink of a revolution in payment services, disrupting banks and other sectors.

The evolution in payment services continues, however a revolution is looming.

 

For further information on the above kindly contact:

JP Fabri

What We Think

January 17, 2022

There is no such thing as a work-life balance

Following the announcement of the reduced rates of income tax and stamp duty on transfers of immovable property earlier this month, the two legal notices confirming these new rates have been published.

Legal Notice 240 of 2020 provides for the reduced rate of duty for any inter vivos transfer of immovable property, or any real right over such property, made on or after the 9th June 2020 but before the 1st April 2021. The duty chargeable on the first €400,000 shall be chargeable at the rate of €1.50, as opposed to €5, for every €100 or part thereof, provided that:

  • The person acquiring the property does not require a permit for the purposes of the Immovable Property (Acquisition by Non-Residents) Act;
  • Notice of the final deed is given to the Commissioner for Revenue by not later than the 30th April 2021; and
  • No relief is claimed under article 32C of the Duty on documents and Transfers Act, which relates to transfers by a gratuitous title to related persons.

This legal notice also provides for a change in relation to the exemption from duty on the first €150,000 for first-time buyers. This new proviso states that if a person acquired an undivided share of an immovable property representing less than 25% of the real value of the whole of such property, this will not be taken into account when determining whether the person is a first time buyer on an acquisition of another property made on or after the 9th June 2020.

Legal Notice 241 of 2020 confirms the reduced rate of tax charged on certain transfers of immovable property. These rules apply to any transfer of property that satisfies the following conditions:

  • The transfer is made on or after the 9th June 2020 but before the 1st April 2021;
  • Were it not for these new rules, the transfer would have been subject to tax at the rate of 8% or 5% of the transfer value;
  • The notice of transfer is given to the Commissioner for Revenue by not later than the 30th April 2021.

In case of a transfer which satisfies the above conditions, the income tax payable on the first €400,000 will be calculated at the rate of 5% and the tax on the remainder shall be calculated at the rate of 8% or 10% according to the provisions of article 5A of the Income Tax Act.

For further information get in touch with Nicky Gouder

This article was also published on The Sunday Times

What We Think

January 17, 2022

There is no such thing as a work-life balance

The enabling role of technology was always known however the COVID-19 pandemic has brought it at the core of our being and functioning. As companies moved to the cloud and remote working became the norm; AI and big data was used by health authorities; apps were designed to support social distancing and public health and technology is being seen as a key pillar of an economic revival strategy. Malta has been investing heavily over the past twenty-five years and the public sector has played a key role in the creation of a fully-fledged economic sector.

Today, the sector accounts for around 9 per cent of GDP and employs over 10,000 people. Not only does it constitute a sector in itself but more importantly it is a key enabler for other sectors including professional services, remote gaming and financial services. Going forward, Government needs to ensure that the digital sector does not only remain an enabler but truly becomes a core and central tenant of our society and economy.

Earlier last week, the European Commission published the Digital Economy and Society Index (DESI) for 2020. DESI is a composite index that summarises relevant indicators on Europe’s digital performance and tracks the evolution of EU Member States in digital competitiveness. Over the past year, all EU countries improved their digital performance. Finland, Sweden, Denmark and the Netherlands scored the highest ratings in DESI 2020 and are among the global leaders in digitalisation. These countries are followed by Malta, ranking 5th, Ireland and Estonia. DESI is a composite indicator that is based on five main pillars which look at connectivity, human capital, use of internet services, the integration of digital technology and digital public services.

Based on data prior to the pandemic, the country performs above the EU average in all the five dimensions of the index. Malta performs well on broadband connectivity. The country records good scores on human capital, especially because of the high share of ICT specialists and ICT graduates, while also the involvement of women in the digital sector is gradually increasing. More and more people in Malta use the internet and engage in a number of activities. Maltese businesses rank first on the use of big data, and the overall level of business digitisation is relatively high. The country’s performance in digital public services continues to be negatively affected by the low use of e-government services by the general public. Low progress on open data policies is another reason for Malta falling behind other EU Member States.

Malta is making good progress however there are a number of challenges that Government and stakeholders need to address. Malta’s attractiveness hinges on our capacity to continue improving and in our continuous transition to a digital society.

First; further develop and deepen the ecosystem. Economic sectors thrive on the coming together and well-functioning of all players and actors. Therefore, Government needs to ensure that there the ICT ecosystem is working well with access to finance, grants, accelerator programmes and ability to internationalise. The establishment of Tech.MT; which was highlighted by the DESI report, is a step in the right direction. Its focus on the ICT sector and the further development of the digital economy will undoubtedly benefit the local ecosystem.

Second, much has been achieved in terms of the availability of local talent. Numerous University programmes and specialisations have supported the growth of the sector. However, it is important for digital skill acquisition to start at much younger age. Malta continues to underperform in STEM education and our educational system needs to foster and nurture digital skills from a much younger age.

Third, eGovernment services have been a key achievement of the Maltese Government for decades. However, it is not only important for them to be available, but more emphasis needs to be made on their usage. It is here that Malta performs badly. Government should ensure that the electronic ID system is improved in order to make it more attractive to use. This needs to be seen together with other important initiatives which will enhance the use of such services including digital signatures. The public service is leading the way in digital transformation and Government agencies such as MFSA and MITA have and are fully embracing the digital transformation. More business reengineering processes need to be launched to ensure that the public and businesses use such services. The Parliamentary Secretariat for Financial Services and Digital Economy will play a key role in ensuring that the public service becomes digital to the core.

Fourth, digital society is about inclusivity and Government needs to ensure that everyone has access to digital tools and internet connectivity. Social inclusion can be heavily supported through the use of technology and our smallness should facilitate this.

Although the DESI results are encouraging and have highlighted significant progress, there is no room for complacency. We believe that digital transformation needs to be a central tenant of our recovery plan and national vision.

 

This article was published also on The Sunday Times.

What We Think

January 17, 2022

There is no such thing as a work-life balance

There is no doubt that we are living in a time where data has become much more accessible; new sources of data have emerged and so has the processing power and capacity for analysis. Although we are living in an oversaturated data world, firms are unfortunately still not getting the full value and insights out of data.

From our experience working with different business leaders and boards, we are realising that too many continue to base their decisions on limited data and the COVID-19 experience has highlighted this especially with the power of hindsight. Businesses are realising that some decisions were either rushed or not based on robust data and scenario planning. More than ever, it is time for a new strategic mind-set to be developed within companies and boards. The mind-set needs to constantly ask:

  • Are we deriving insights from our data?
  • Are we taking an internal and external approach to data sources and analysis, to inform decision-making?
  • Do we have a data strategy with indicators and architecture in place?

We believe that companies need to adopt a data-mindset which will ultimately allow them to improve their strategic decision-making.

From data to insights

From our experience, we believe that a data-driven mindset can be built around 5 main pillars and processes that a company needs to implement.

  1. Discover – develop an understanding of internal and external data sources that the company can compile
  2. Design – compile a list of indicators that the company needs together with a set of decision-criteria or parameters to frame strategic decision-making
  3. Capture – ensure a data architecture that allows the company to aggregate data emanating from a number of sources
  4. Analyse – the use of dashboards and data visualisation allows business leaders to analyse trends, outliers and scenarios
  5. Review & monitor – important to continue monitoring progress with a set frequency

Building blocks

Although the process is important, it is also imperative that companies build an environment that is conducive to supporting a data-driven mindset. We recommend the following essential building blocks:

  1. Have the right tools – data capacity and capability does not only require the right processing power and software to enable data capture but more importantly it means having the right digital literacy skills within the organisation.
  2. Access the right data – it is essential for companies to ensure that they are accessing the correct data. This means that the data must be relevant, reliable, repeatable and recognised as coming from an authoritative source.
  3. Have a data culture – the decision-making style of the company and management needs to be based on evidence and not just on instinct. It is only by fostering such a culture and appreciation of data that a data-driven mindset can thrive.
  4. Start small – it is easy to fall into the trap of trying to capture all possible data. In order to avoid this trap, it is important to start small with the data at hand.

COVID-19 has shown that companies need to take decisions swiftly with foresight and hindsight. Having a data-driven strategy and decision-making process enables business leaders to take better and more informed decisions. It is therefore important for companies to start building a data-mindset and to transform data into insights.

This can not only build resilience but more importantly deliver a competitive edge.

 

Seed supports companies in their data-building efforts by helping them develop capabilities throughout the data cycle. In addition, we support the companies in extracting insights from data. For more information please contact JP Fabri or Glenn Fenech.

What We Think

January 17, 2022

There is no such thing as a work-life balance

What started as a violent police raid on Stonewall Inn in Manhattan New York on June 28, 1969; soon turned into a series of demonstrations by the gay community asking for their rights to be upheld and respected. The gay liberation movement was born that day starting a long-drawn journey towards equality.

 

Unfortunately, this year’s celebration of pride is marred by another wave of discrimination. This time, not with respect to sexual orientation but with respect to race. The murder of George Floyd has brought to the fore once again the negative side of humanity where people still discriminate. This has also been seen locally whereby discriminatory voices and anti-racial comments have too eaten away at our values and identity.

 

Although society has made great advances in technology, medicine and science we still fail to recognise that we are all one. Irrespective of colour, race, gender, orientation or creed; we are one and the same; humans.

 

COVID-19 has shown the fragility of human life and that a pandemic or any illness does not discriminate, and we are all vulnerable and susceptible. In the face of life and death; everyone is equal.  

 

Seed is a purpose-driven firm designed to make the world of whoever interacts with us a better place. We built Seed around three core values that define us, our work and our causes.

 

Empowerment is one of our founding values. It defines our culture, building trust, mutual respect and encouraging teamwork. We believe in human potential and we care about creating an inclusive atmosphere and are committed to promoting diversity and inclusion in all its forms.

 

We care about making a difference; for our employees, for our clients and the wider community. Caring is another value close to heart. We care by creating and maintaining a working environment and culture that supports and values people.

 

Integrity is also another defining value for us. As an organization we have a responsibility towards our employees, our clients and our communities. Integrity is a guiding principle which guides our approach with anyone who deals with Seed. It confirms our view of the importance of trusted relationships and continually drives us in building a strong, professionally disciplined, well-governed organization.

 

Empowerment. Care. Integrity. This is us, Seed. And this is why pride is so important to us.

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