Asset Management firms wishing to base themselves in Gibraltar have the option of establishing themselves as a firm under the Financial Services (Markets in Financial Instruments) Act 2006, or the Financial Services (Alternative Investment Fund Managers) Act 2013.
Under the Financial Services (Markets in Financial Instruments) Act 2006 there are three different categories of authorisation by the Financial Services Commission (FSC);(i) unrestricted,(ii) money-holders and(iii) arrangers.
These categories have different application fees and minimum regulatory capital requirements.Gibraltar has a fast and efficient regulatory process. Prior to submission of an application, the applicant and/or professional advisers usually meet with the FSC in order to discuss points of principle and/or clarification. All application requirements, fee details and forms can be downloaded from the FSCs website at www.fsc.gi.
The Alternative Investment Fund Managers Directive (AIFMD) was transposed into Gibraltar law on 22 July 2013, and investment management firms which fall within the Directive can make use of the European passport and market across EU member states.
Investment management firms are taxed at the corporate rate of tax of 10%. In addition, senior executives or managers who possess skills that are necessary to promote and sustain activity of particular economic value to Gibraltar or the firm can obtain a special tax status known as High Executive Possessing Special Skills (HEPSS). This caps the individual’s personal tax liability at £30,000 if the individual earns over £100,000 per annum. Funds in Gibraltar may be managed by a third party investment manager or “self-managed” by the fund directors. The investment manager or adviser may be from any jurisdiction provided that it complies with the law of the jurisdiction from which it operates.