- Gibraltar open for business, says fund administrator Helvetic -

With the regulatory changes coming in under AIFMID, Gibraltar is being hailed as the ideal place to support hedge funds looking to re-domicile in Europe, according to Gibraltarian minister for financial services, Gilbert Licudi.

Nicola Smith, CEO of Gibraltar based fund administrator Helvetic, commented: "The incoming AIFMD passport regime, alongside other regulations that will make it more complicated for non-EU domiciled funds to gain approval and to market to EU-based investors, is resulting in many Hedge Funds seeking a foothold in a member state. With Gibraltar's combination of low tax and full AIFMD compliance, Gilbert Licudi's announcement that Gibraltar is open for business is the latest shot in the battle for funds now sniffing around EU shores."

“For a hedge fund looking to re-domicile in Europe, one of the biggest draws of Gibraltar is it offers a fund regime that is based on UK common law, domestic legislation, and European Union directives.  Fund legislation in Gibraltar was drafted in close consultation with the industry and is therefore easy to understand for most European based fund managers and compliance teams.

“The legislation in place is aimed at experienced investors to allow the creation of funds that are readily available, open and flexible enough to include all types of investments, without being prescriptive or restrictive in nature.”

Smith continued: “As more and more regulations come into play, it is becoming much more of a focus for managers and their fund vehicles to be domiciled and regulated in an EU location. As one of the five EU based jurisdictions where you can domicile a fund, Gibraltar is ideally placed. Historically, people have used Dublin and Luxembourg as EU bases, however in recent years limited capacity and cost issues in the more traditional centres have allowed for Gibraltar, Malta and Cyprus to develop as viable alternatives.

“Combined with a number of incentives, which may assist different types of high net worth individuals taking residence in the jurisdiction, and access to a highly skilled workforce means that Gibraltar is proving to be the location of choice for many companies looking for a fund regime that is based on UK common law and with legislation, and compliance, that is conducive to supporting fund management businesses – coupled that with the bright skies and Mediterranean sun make it a very attractive option,” concluded Smith.