Gibraltar could benefit from new hedge fund rules

| 27/05/2010

(City AM): The Alternative Investment Fund Managers directive which will make it harder for non-EU funds to market themselves to European investors could offer an opportunity for Gibraltar which is looking to grow as an international destination for hedge funds. As the prospect of tighter regulation makes more exotic jurisdictions, such as the Cayman Islands appear less attractive, senior figures said the British territory, which is part of the European Union, could benefit. Funds based in Gibraltar are regulated in line with those in Dublin and Luxembourg, meaning they will be automatically “passported” to customers on the continent.

James Tipping, Gibraltar’s finance centre director, said the territory wanted to emulate the expansion of its insurance sector, which has grown fivefold to 100 companies over the past decade. Gibraltar hosts around 70 fund managers, including Sirius.
“There is an opportunity for asset management firms to consider Gibraltar because of the overall package,” he said, citing lifestyle as well as the low taxation burden as attractions. Corporation tax falls to 10 per cent in January, while individual tax for high earners is levied as a flat sum of £27,000 annually.
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  1. Observer says:

    First Dublin, next Switzerland and Luxembourg followed by that well known financial centre for Italians, Malta and now Gibraltar. Just what is our beloved leader [ nice photo above] and Mr Travers of Cayman Finance doing about this? It is high time our laws and regulations were overhauled to enable Cayman to be competitive. Months ago a Mr Charles Jennings was alledged to have been appointed to review the islands’s financial laws but nothing has been heard since.Meanwhile the BVI has again been updating its laws.

    The good news is that Gibraltar has had more than its financial scandals and certainly lacks the expertise that exists in the Cayman Islands.

    Please will someone start to kick ar………