This report examines the main benefits of Gibraltar as the emerging jurisdiction of choice for traditional and crypto hedge funds, including the dual regime that permits a fund domiciled in Gibraltar to safely opt out of AIFMD and continue operating under the Rock’s robust and tested domestic regulatory regime.
In recent years, the role of the hedge fund manager has become exponentially more complex to navigate. In addition to both traditional and crypto asset markets experiencing volatility and uncertainty, the imposition of increasingly onerous legislative and regulatory requirements on the investment sector worldwide places another hurdle in front of us that we must navigate.
Gibraltar’s geographic position makes it strategically important. That is also the case in the context of financial services. Gibraltar left the European Union with United Kingdom and is now the only jurisdiction in the world that continues to have a common market with the United Kingdom, but there is more that Gibraltar offers fund managers.Â
The Dual Regime in Gibraltar has given the jurisdiction a number of post-Brexit freedoms many in the UK funds industry will look at with envy. In tandem, the formal realisation of the Gibraltar Authorised Regime (GAR) will provide the domicile with a unique opportunity, compared to other European fund centres, as it builds out market access with the UK.
2022 was certainly an eventful year for the fintech sector, including for specialist funds. Globally, jurisdictions, including Gibraltar, have felt a shift within the sector – in large part caused by the shockwaves from the FTX collapse.
Despite the devastation it caused across the financial industry, the crypto winter resulting from the fall of FTX helped highlight the rigour of Gibraltar’s legislation around the way client assets are segregated and protected.
