Gibraltar Gains Third Passporting 'Badge'

by Robert Lee, Tax-News.com, London

09 July 2003

It was announced this week by the Gibraltar government that the UK has given its approval for passporting rights that will allow local investment firms in Gibraltar to offer services to individuals in other member states.

This is the third passporting 'badge' that the jurisdiction has received following banking and insurance passports and means that firms regulated by a recognised competent authority such as the FSA do not have to seek regulatory approval from regulators in other member states.

“We have received written confirmation from the UK Government of Gibraltar’s passporting rights into the EU and EEA single market in investment services. Investment services providers based in Gibraltar and authorised by the Financial Services Commission may therefore operate in other member states of the EU and EEA, on the basis of their Gibraltar authorisation and in accordance with established procedural requirements,” a government spokesman commented recently.

“This development now enables the Gibraltar Government to commence the Investor Compensation Scheme Ordinance which was passed by the House in July 2002. Investment Services Passporting rights will thus be operational as soon as the Investor Compensation Scheme is in place, which is expected to be the case later this month,” continued the spokesman.

However, the passport will not yet permit investment firms from the rock to offer services in the UK as this is subject to the completion of a separate bi-lateral agreement between Gibraltar and Britain which has been ongoing for the last two years.

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