Gibraltar scraps funds location rule
Gibraltar will make a bid for the funds business of Dublin and Luxembourg as part of a strategic push to build its international financial services sector.
The government is to scrap a rule requiring a fund and its administrator to be based in the same place. Gibraltar Financial Services Minister Gilbert Licudi said he would scrap the location rule within the next few weeks and replace it with an authorisation system.
Licudi said the new rule would “permit funds to be established in Gibraltar even if the administrator is not in Gibraltar. We are not going to open the door to anyone. We need to be selective.”
Gibraltar aims to use its membership of the EU to become a gateway for international funds houses wanting to access to the market. In this way, Gibraltar aims to reshape its financial services industry away from being primarily a funds servicing business to being a domicile for fund management companies.
Gibraltar is home to 150 funds, though much of the almost £300m financial services economy is due to financial services. Banks present in the jurisdiction serving this sector include Credit Suisse, Société Générale, Barclays, Royal Bank of Scotland and Lloyds.