Funds Presentation by Philip Canessa 20150323

A UNIQUE FUND JURISDICTION WITHIN THE EU

WITHIN THE EUROPEAN UNION SINGLE MARKET

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GIBRALTAR IN BRIEF

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UK Overseas Territory within continental Europe

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Self-governing

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Self-financing

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English common law system

WITHIN THE EUROPEAN UNION SINGLE MARKET

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GIBRALTAR IN BRIEF DIVERSIFIED ECONOMY

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Financial services

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E-gaming

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Shipping and port services

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Tourism

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Pound Sterling (GBP)

WITHIN THE EUROPEAN UNION SINGLE MARKET

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GIBRALTAR’S BUDGET: JUNE 2014

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GDP growth estimated at 10.2% for the tax year 2013/14

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Gross public debt stands at 32% of GDP, with net public debt at 25% of GDP

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Budget surplus for financial year 2013/2014 is estimated to be a record

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Ranked in the top 20 globally for GDP growth and placed in the top 10 ranking of GDP per capita

WITHIN THE EUROPEAN UNION SINGLE MARKET

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WHY GIBRALTAR?

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International financial centre within the EU single market

Passporting of financial services to a potential market of 520 million

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Responsive whilst regulated to EU and UK standards

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Favourable fiscal regime

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High-quality infrastructure

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High-quality lifestyle

WITHIN THE EUROPEAN UNION SINGLE MARKET

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LEGAL SYSTEM

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Only common law jurisdiction in continental Europe

(courts, statutes and principles of equity based on English law)

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Very well developed expertise (funds, trusts, company management and private banking)

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Separate and distinct jurisdiction

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Own legislature

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Business understanding of civil law systems

WITHIN THE EUROPEAN UNION SINGLE MARKET

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GIBRALTAR & AND THE EU EU Treaties are applicable to Gibraltar

Exemptions from:

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VAT

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Customs Union

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Common Agricultural Policy

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SINGLE MARKET FREEDOM

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Investment Services

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Banking and Insurance

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Freedom of establishment

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Freedom of services

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No separate licensing procedures

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Real benefits to institutions with targets in EEA territories

WITHIN THE EUROPEAN UNION SINGLE MARKET

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POWERFUL TAX PACKAGE

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10% corporate tax

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25% maximum effective tax rate for individuals

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No VAT

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No tax on investment income

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No capital gains tax

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No wealth tax

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No inheritance tax

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No estate duty

WITHIN THE EUROPEAN UNION SINGLE MARKET

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TAX INFORMATION EXCHANGES

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Implementation of UK standards and all EU Directives

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Gibraltar is FATF and IMF reviewed

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US FATCA / UK FATCA / Common Reporting Standard

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EOI arrangements with over 80 countries and territories

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OECD Global Forum Phase 2 peer review report (October 2014) rated Gibraltar as “largely compliant” (the same as UK and Germany)

WITHIN THE EUROPEAN UNION SINGLE MARKET

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REGULATORY REGIME

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Financial services regulation matching EU and UK standards

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The Financial Services Commission (FSC) is a wholly independent regulatory authority

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Sensible, approachable regulator

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Periodic audits of legislation and supervisory standards in FSC by UK experts

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Full signatory to the Multilateral Memorandum of Understanding (MMoU) of the International Organisation of Securities Commissions (IOSCO)

WITHIN THE EUROPEAN UNION SINGLE MARKET

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EXPERIENCED INVESTOR FUND REGIME

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Pre-launch approval mechanism (speed to market)

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No investment or borrowing restrictions

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Fund may be self-managed

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Expedited start-up process and competitive start-up costs

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No limit to number of investors

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Reasonable ongoing operating costs

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Tax neutrality

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Two Gibraltar resident directors

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EXPERIENCED INVESTOR

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A person or partnership whose business is investing or providing investment advice

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A body corporate with net assets >€1M, or part of a group with net assets >€1M

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The trustee of a trust with trust assets >€1M

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An individual whose net worth is >€1M

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A participant who invests a minimum of €50,000 in an EIF and has been professionally advised

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A professional investor, as defined under the Financial Services (Markets in Financial Instruments) Act 2006

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A participant in a fund that has re-domiciled to Gibraltar with the regulator’s permission

WITHIN THE EUROPEAN UNION SINGLE MARKET

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AIFM – WHY GIBRALTAR?

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AIFMD transposed into Gibraltar law effective 22nd July 2013

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Fully compliant in respect of EU business and fund legislation

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Investment firms complying with AIFMD can avail themselves of the European passport and market across member states

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Licensed depositaries under AIFMD

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Small AIFM regime to be introduced

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Quick and efficient regulatory process

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Tax of 10% on profits of investment managers

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Professionals can apply for a specialist tax category limiting annual personal tax to approx. GBP 30,000

WITHIN THE EUROPEAN UNION SINGLE MARKET

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FURTHER INFORMATION IN GIBRALTAR Philip Canessa Senior Executive, Funds & Asset Management Gibraltar Finance Tel +350 200 50011 philip.canessa@financecentre.gov.gi

Gibraltar Finance @GibFinance

facebook.com/GibraltarFinanceCentre youtube.com/GibraltarFinance

WITHIN THE EUROPEAN UNION SINGLE MARKET

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