Following on from the passing of Gibraltar’s new Financial Services Act 2019 (the “Act”) in July of this year, the GFSC and HM Government of Gibraltar have announced that both the Act and accompanying sector-specific Regulations will come into effect on 15 January 2020. At this stage, the GFSC has published 37 out of the 41 draft LRP Regulations on its website https://www.fsc.gi/regulated-firms/lrp/draft-regs, with the remaining draft Regulations to be made public shortly.
ISOLAS LLP Partner, Christian Caetano, who specialises in Insurance & Financial Services, has assisted the GFSC on different aspects of the LRP Regulations. This has consisted primarily of assistance and advice in relation to the review of a significant amount of sector specific LRP Regulations, such as those regarding Insurance Distributors, Insurance Managers or Fiduciary Services providers. Christian also provided drafting assistance and advised in respect of Insurance Companies legislation.
The sector-specific or “LRP Regulations” compliment the new structure, concepts and terminology of the Act by consolidating requirements applicable to each financial services industry within respective sets of regulations. The LRP Regulations are also comprised of a number of cross-sectoral regulations, such as those relating to complaints or fees.
For the most part, each of the draft LRP Regulations are arranged in a similar manner (taking into account any sector specific requirements) meaning that readers will be able to quickly familiarise themselves with the business conduct, prudential, passporting and other segments. It should however be noted that the substantive content of the Regulations has not been changed unless necessary for alignment with the new policies introduced by the Act.
The GFSC has also announced that, further to the prior consultation exercise carried out on the Act earlier in the year, it will be engaging with local financial services industry organisations to provide further information on key changes under the LRP Regulations.
Christian said: “The new regime introduced by the Act will entail a marked shift from the current legislative regime under which requirements for licensed entities are spread across various subsidiary pieces of primary and secondary legislation. The harmonised and coherent structure of the LRP Regulations will therefore, along with the Act, ensure that Gibraltar’s financial services legislation is transformed into a more robust and navigable framework for all stakeholders. The new regime will also provide clarity for existing firms, advisers and the GFSC itself, as well as increase the appeal for those thinking of doing business with local operators or looking to establish their operations in Gibraltar. ”