Welcome to the latest edition of the Gibraltar Finance newsletter. I hope you and your loved ones had an enjoyable and safe summer.
Moving away from a period dominated by the challenges of Covid, this past year has seen tremendous innovation across Gibraltar’s financial services. This includes recognition of our success in the crypto fund industry, further sector leading development of our DLT framework, and continued success in the insurance/insurtech space. Through our legislative actions, collaborative endeavours, and forward thinking, we are taking added steps towards enhancing the landscape to make Gibraltar a truly diverse and strategically prominent place to do business. I look forward to keeping you updated on further key developments as we move into the Autumn season.
Albert Isola, Minister for Digital and Financial Services, HM Government of Gibraltar
On 27th April 2022, the GFSC announced the addition of a 10th Regulatory Principle to Gibraltar’s Financial Services Distributed Ledger Technology (DLT) Providers Regulations.
The amendment requires all DLT Providers operating in Gibraltar to conduct themselves in a manner that maintains or enhances the integrity of the markets in which they take part. Read the full guidance notes here.
Gibraltar ranked third in the top three locations for domiciled crypto hedge funds in PricewaterhouseCoopers’ Global Crypto Hedge Fund Report 2022.
Giving an overview of the global crypto hedge fund landscape, Gibraltar has overtaken hubs such as Luxembourg, the United States and Liechtenstein.
On 30th March 2022, HM Government of Gibraltar announced new legislation to allow for a Dual Fund’s regime for Experienced Investor Funds. Gibraltar is now in a position to maintain its long established AIFMD compliant funds management regime (which has direct access to the United Kingdom) whilst also allowing Experienced Investor Funds to opt out of this regime when targeting global audiences.
Albert Isola, Minister for Digital and Financial Services said, “This is yet another example of the public / private sector partnership which brings together the Minister for Financial Services, the Gibraltar Funds and Investments Association and the Financial Services Commission; in developing new product lines that are fit for today’s sophisticated global investors.”
The GFIA Chairman, Jay Gomez, commented, “I am delighted that with the creation of a dual funds regime in Gibraltar, we can usher in a new era for Gibraltar’s fund sector. I am confident that this will lead to a significant increase in interest in Gibraltar as it positions itself as the jurisdiction of choice on the European continent.”
GFIA have provided detailed information in the following publication: A new era for Gib funds – the AIFMD Dual Regime
In December 2021, Gibraltar began the process of integrating blockchain with legacy services in order to streamline government processes. This initiative will enhance the functionality and usability of traditional frameworks and, in its first phase, will enable users to store digital copies of government-issued and certified credentials on Gibraltar’s eGov system.
The Solvency II consultation sets out proposed reforms to the Solvency II insurance regime to capitalise on the UK’s post-Brexit freedoms to spur a vibrant, innovative, and internationally competitive insurance industry.
In the most recent edition of the Gibraltar International Magazine, Albert Isola shared his thoughts on DeFi, NFTs, and how new technologies provide room for further growth.
As the sector grows, it is imperative that regulations are created to protect users from malicious actors.
There comes a time in any entrepreneur’s life when the wealth they have built from their business accumulates to the extent that it almost becomes a business within itself in terms of management.Investments need to be closely monitored and continuously updated. New opportunities need to be considered and old commitments revisited. Financial statements need to be prepared on assets, together with any compliance matters related to those assets including tax and other reporting obligations. Dealing with personal wealth can consume an enormous amount of time and it is often difficult to keep track of all your affairs, particularly if these are held in various jurisdictions.