Gibraltar strengthens corporate governance as guidance is endorsed by the FSC
The Corporate Governance Code set up by the Gibraltar Funds & Investments Association (GFIA) has been adopted into the regulatory process adopted by the Financial Services Commission (FSC).
Joanne Beiso, head of the funds division at the FSC, says: “The FSC will be asking EIF directors to confirm that they comply with the GFIA Corporate Governance Code for Collective Investment Schemes. The FSC endorses the Code as it aims to promote strong and effective corporate governance.”
Following the FSC guidance, EIF directors not complying with the Code will need to provide justification in their annual return to the FSC. Choosing to not comply, while possible, will need further explanation to ensure effective corporate governance is being adopted across all EIF’s in Gibraltar.
Nicola Smith, managing director of hedge fund administrator Helvetic and a member of GFIA, says: “When writing the Code over a year ago, GFIA intended to provide guidelines for EIF directors to assist them in making appropriate and effective decisions. The endorsement by the FSC strengthens the Code and allows the FSC to monitor EIF directors and ensures transparency as to compliance with the principles of the Code across the jurisdiction.
“Getting the right balance in regulation is a critical factor in the competition for funds considering where to domicile in the EU. The FSC has sent a strong message that Gibraltar funds are supervised and controlled in an effective way to ensure strong leadership in financial diligence and responsibility, while being flexible to allow for other methods of governance that may fall outside the Code but still prove effective.
“The move also shows the strength of partnership between industry and the regulator in Gibraltar and the health of the financial sector in the territory, which has seen significant growth in recent years.”
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