Gibraltar has become a full signatory to the Multinational Memorandum of Understanding (MMoU) of the International Organization of Securities Commissions (IOSC).
Nicola Smith, managing director of hedge fund administrator Helvetic, says: “This is a significant move as it bolsters Gibraltar as a location for international hedge funds looking for a geographic foothold within the AIFMD zone."
The passport system established under the Alternative Investment Fund Managers Directive allows funds to operate throughout the EU once they have received regulatory approval in one member country. The result has been an increased level of interest from international fund managers seeking territories that blend a skilled workforce, high quality provision of services such as audit and administration, and a regulatory framework that meets international standards. The MMoU is one more significant step that positions Gibraltar in the global market as the gateway to the EU.
“We will see 2014 as the first year which requires hedge fund managers to take positive action in response to the AIFMD,” says Smith. “Key to the changes introduced by the legislation is the better transparency through increased monitoring and reporting on risk management and investment activities. Gibraltar already has a strong administration sector and this should prove a significant factor for companies choosing where to locate their AIFMD-compliant operations in the EU.”