The Government of Gibraltar has published the Financial Services (Experienced Investor Fund) Regulations, 2012, which various improvements to the original 2005 Regulations, including the opportunity for large funds to use reputable and substantial administrators based in jurisdictions of equivalent standing to Gibraltar.
The new Regulations will also allow funds to redomicile to Gibraltar yet continue to use their existing reputable administrator, representing a significant advantage for funds moving to the EU with, inter alia, the advent of the Alternative Investment Funds Managers Directive, due to be implemented by July 2013.
The new Regulations enable Experienced Investor Funds to choose to file for registration ten days before the scheme is established, with automatic registration at the end of that period if no objection is received from the regulator. This provides greater choice, certainty and flexibility for prospective new funds.
The definition of Experienced Investor has also been expanded to include those considered to be professional investors in Gibraltar’s other investment legislation, the Financial Services (Markets in Financial Instruments) Act.
The new Regulations also provide further disclosures which are required in the offering documentation to help investors to make an informed decision prior to investing.
Commenting on the changes the Minister with responsibility for Financial Services, the Hon. Gilbert Licudi QC said he was delighted to announce the Government’s implementation of the revised EIF Regulations. “The changes will no doubt provide a boost to the industry,” said the Minister, “and is in line with the Government’s stated policy of working closely with professionals in the industry to make Gibraltar one of Europe’s premier jurisdictions for the establishment of hedge funds”.
“As part of the EU, Gibraltar provides access to a market of over 500 million people and the Government anticipates an increase in the flow of business to Gibraltar in the area of funds and hedge funds as a result of this legislative improvement.”