Gibraltar Financial Centre

An International Financial Centre

Since the year 2000, Gibraltar has continued to develop and to consolidate its de facto role as the centre of the Financial Services Industry within Southern Iberia. The 400.000 Britons already living in Southern Spain (now dubbed Europe's Florida) coupled with the increasing inflow of UK expatriates have reconfirmed Gibraltar's role and growth shows no sign of abating. Office space has simply dried up and it is hoped that the various building projects underway will help to alleviate the situation over the next two years.  This dynamism together with greater competition in all commercial and financial segments mean that Gibraltar as an International   Financial Center will deliver even higher standards of personalised service even more suited to international clients' specific requirements.

Some of the advantages of Gibraltar as a Finance Center include:

• Favourable tax status for financial institutions undertaking international business.

• European Union Status.

• Excellent geographical location

• Attractive fiscal regime for offshore investors

• Excellent customer base for offshore purposes

• No exchange controls.

• No VAT

• Good communications.

• Regulation of financial institutions to the level of UK or better

• Deposit Guarantee Scheme.

• Investor Compensation Scheme

• Default Insurance Scheme for the Financial Sector

• Common Law

• Banking Secrecy

Financial Services

The origin of Gibraltar's burgeoning financial services sector dates back to the enactment of the Companies (Taxation and Concessions) Ordinance in 1967, which made provision for a special tax regime for international business. The industry has made great strides since those early days, and now includes a broad spectrum of professional services, ranging from private banking to captive insurance management. Recent developments include the establishment on the Rock of a number of Swiss portfolio managers, the commencement of direct trading on Eurex, Liffe and other exchanges, and the pioneering use by Deutsche Bank of Gibraltar as a domicile for securitisation/repackaging. Other major investment banks including UBS Warburg have since followed suit.

Recent legislative developments include the enactment of new laws governing e-commerce (Gibraltar was one of the first EU territories to implement the relevant directives), telecoms liberalisation and the Protected Cell Companies Ordinance 2001. PCC legislation, in particular, has boosted the captive insurance and funds sectors.

A Deposit Guarantee Scheme came into effect in 1999 and an Investor Compensation Scheme followed in 2003. As part of the European Union, Gibraltar implements all relevant EU directives, and the Financial Services Commission, established in 1989 as an independent statutory body, goes further by matching UK standards in financial regulation and supervision.

The Government established a Finance Centre office in 1997 in order to give a further boost to financial services, an important sector of the Gibraltar economy. The Finance Centre is charged with the marketing and promotion of financial services, input into strategic planning including the various international initiatives, product development, and liaison with the private sector and the regulator. Spacious offices in the prime development of Europort, which include a conference room with a spectacular view of nearby Spain and Morocco, are used as a meeting place for the various financial services associations as well as their umbrella body, the Finance Centre Council.

The Finance Centre acts as the initial point of contact for new financial services businesses wishing to establish a presence on the Rock. One important development to further the concept of a ‘one-stop shop’ for financial services was the move to adjacent offices in 1999 of the Tax Licensing Unit, which is responsible for issuing certificates to exempt and companies and qualifying individuals.

GIBRALTAR'S REGULATOR

Financial Services Commission
PO Box 940
Suite 943
Europort
Gibraltar

Tel (+350) 40283
Fax (+350) 40282
URL : www.fsc.gi
General e-mail : info@fsc.gi

The Gibraltar Investor Compensation Scheme (GICS)

The Investor Compensation Scheme Ordinance 2002 was passed by the House of Assembly on 14 June 2002 to give effect to EU Directive 97/9/EC which requires Member States to establish investor compensation schemes.  The Ordinance came into operation on the 24th July 2003.

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