The government said the Financial Services (Experienced Investor Fund) Regulations, 2012 introduce a number of “improvements” to the jurisdiction’s original 2005 regulations. This includes, as previously promised by the recently elected government, a change which allows large funds re-domicile to Gibraltar while continuing to use administrators based in other “reputable” jurisdictions.
Another of the key changes within the new regulations is to allow Experienced Investor Funds to choose to file for registration ten days before the scheme is established, with automatic registration at the end of that period if no objection is received from the regulator. The government said this provides “greater choice, certainty and flexibility for new funds” in a post AIFMD environment.
This last change is in stark contrast to recent regulatory changes in Luxembourg, which has made it more difficult for what it calls “Specialised Investor Funds”, or SIFS, to register. In March, the Luxembourg Parliament passed a number of laws tightening the regulation of SIFs – largely in anticipation of the AIFMD, the most significant of which put a block on fund managers launching funds prior to receiving approval – a process which one lawyer estimated at the time takes around three months.
James Tipping, finance centre director at the ministry of financial services for Gibraltar, said the territory has set its sights on becoming one of Europe’s “premier asset management and hedge fund jurisdictions”, by leveraging its EU member state status in the area of financial services in tandem with a conscientious approach to regulation.
Gibraltar currently underwrites the insurance of one in ten UK motor vehicles on the road, according to Tipping, who said this is the kind of market penetration the jurisdiction’s funds industry players are aiming to achieve.
“We are a very serious player in the insurance industry, within the EU and the UK; that’s the kind of stake that we hope to see ourselves having in the fund [management] and the asset management industries,” added Tipping.
“And the reason we believe we will achieve this is down to our reputation and regulatory framework – because without those, nothing will happen – alongside such other factors as our low corporate tax, low personal tax, and lifestyle issues.”
Meanwhile, Gilbert Licudi minister with responsibility for financial services in Graltar said: “The changes will no doubt provide a boost to the industry and is in line with the government’s stated policy of working closely with professionals in the industry to make Gibraltar one of Europe’s premier jurisdictions for the establishment of hedge funds.”
"As part of the EU, Gibraltar provides access to a market of over 500 million people and the Government anticipates an increase in the flow of business to Gibraltar in the area of funds and hedge funds as a result of this legislative improvement."
Licudi also previously told International Adviser that he plans to revive the jurisdiction’s QROPS market. To read about his proposals click here.
