Banks Essential Role in Supporting Growth
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Gp26 IInsuranBce Rp1A6 InvestmenLt TFebA/March/ARpril 2011 INTERNATIONAL FINANCE AND BUSINESS Banks essential role in supporting growth www.gibraltarinternational.com SPONSORS Gibraltar International Magazine is grateful for the support of the finance industry and allied services (with the encouragement of the Finance Council) in the form of committed sponsorship. We would like to thank the following sponsors: GIBRALTAR FINANCE CENTRE Tel: +(350) 200 50011 Fax: +(350) 200 51818 www.gibraltar.gov.gi DELOITTE ISOLAS / FIDUCIARY GROUP Tel: +(350) 200 41200 • Fax + (350) 200 41201 Tel: +(350) 200 78363 www.deloitte.gi Tel: +(350) 200 76651 www.gibraltarlawyers.com EUROPA TRUST COMPANY www.fiduciarygroup.com Tel: +(350) 200 79013 • Fax + (350) 200 70101 www.europa.gi QUEST INSURANCE MANAGEMENT LTD. Tel: +(350) 200 74570 • Fax + (350) 200 40901 INVESTGIBRALTAR OFFICE www.quest.gi Tel: +(350) 200 52634 • Fax + (350) 200 52635 www.investgibraltar.gov.gi BARCLAYS WEALTH Tel: + (350) 200 41222 MONARCH AIRLINES www.barclayswealth.com Tel: +44 (0) 8700 405040 Tel: +(350) 200 47477 GIBTELECOM Tel: + (350) 200 52200 • Fax: + (350) 200 71673 www.monarch.co.uk www.flymonarch.com www.gibtele.com HASSANS KPMG Tel: +(350) 200 79000 • Fax + (350) 200 71966 Tel: + (350) 200 48600 • Fax: + (350) 200 49554 www.gibraltarlaw.com www.kpmg.gi NATWEST / LOMBARD SAPPHIRE NETWORKS Tel: + (350) 200 77737 Tel: +(350) 200 47200 • Fax + (350) 200 47272 Tel: + (350) 200 46475 www.sapphire.gi www.natwestinternational.com www.lombard.com/gibraltar TRIAY & TRIAY / TOTUS Tel: + (350) 200 72020 PIRANHA DESIGNS Tel: + (350) 200 76108 Tel: +(350) 200 45599 • Fax + (350) 200 52037 www.triay.com • www.totus.com www.pdg.gi www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 3 Feb/March/April 2011 EDITORIAL COMMENT Volume 17/ Number 1 Having the power to cut! ibraltar’s energy policy – prompted by EU demands - is to produce by around 2015 as much electricity as possible from sustainable Contents Gresources, whilst at the same time cutting demand for power. However, after two years of a five NEWS P6-10 year energy efficiency plan, very little seems to have been Six on QROPS free transfer list achieved! An updated plan is imminent. There is an urgency to Taxing times find solutions and to take action, given that The Rock’s Hotel ‘under-supply’ prompts fresh competition fuel costs already are comparatively high and oil prices Very Low Risk Gibraltar destined to keep rising. The government has had little choice but to invest in MONEY P12 a £100m fossil fuel power station to replace three ageing generating plants in 2014, but by around 2040 when the Making money proving popular time comes for it to be decommissioned, world oil stocks will have declined and prices generally higher as a result. TAXATION P14 It is unrealistic for Gibraltar to even try to be a Laughing all the way to the bank significant producer of sustainable power, there being insufficient land for large scale solar or wind power INVESTMENT P16 equipment: last summer the government was keen on A Place for All Seasons utilising wave technology, a fledgling technology that has not been commercially adopted anywhere in the world. BANKING P18 Offshore wind turbines remain a possibility. Some believe it is received wisdom that Gibraltar Banks have essential role to play in supporting growth should be self sufficient in power generation, but that’s because few want to risk electricity supplies coming from PROFILE P22 or through Spain. But thinking laterally, couldn’t a supply Gibtelecom’s chief executive Tim Bristow preparing for cable come instead from say, Portugal or even Morocco, new revenue streams from overseas and locally, just as telecommunications cables traverse the globe? Hopefully, the new government report will show the INSURANCE P26 way forward; the pace should not be set by individuals and private sector companies. An opportunity was missed to Insurers have Latin America and Spanish business incorporate large solar panels on the roof of the new captives in their sights airport terminal now nearing completion, but urgent efforts could be made for a solar retro fit! BUSINESS ROUND UP P28 And why not incentify individual homeowners and freeholders of apartment and office blocks with cash or tax rebates to install solar panels or heat exchangers instead of relying on goodwill and feelings of social responsibility to reduce demand? GIBRALTAR INTERNATIONAL MAGAZINE In large measure, the government is relying on a so far undelivered “concerted media campaign” and a range of Published by Gibraltar The publishers have tried to International Publications Ltd . ensure that all information is literature to reduce electricity demand. But it takes years 20 Engineer Lane accurate, but emphasise that to change attitudes and lifestyle choices. Suite 6/PMB 104 they cannot accept The government says it will lead by example through PO Box 561, Gibraltar responsibility for any errors or “cost-effective measures that yield the greatest energy omissions. The publishers Editor accept no responsibility for savings in the shortest time spans”. As Lester says [email protected] statements made by however, that may mean greater up-front costs to reap contributors or for any claim longer term reward. Use of low energy halogen light bulbs Sales made in an advertisement. [email protected] throughout government and public buildings would be a Gibraltar International good start – if we are serious about reducing demand! Design Magazine is available on Referring to investment for the future, Chief Minister [email protected] subscription, 4 issues posted Peter Caruana’s New Year message notes that “leadership to: UK £24 - EU £32 - UK Agent: Rest of World £44. is partly about vision; an understanding of what ensuring Tel: 0044 (0) 1993 703560 Gibraltar’s success in the future requires you to do now, © 2011 Gibraltar International and the foresight and courage to do it”. Energy policy is Publications Ltd. an area where any future government in this General No part of this publication may be reproduced without the written Election year can make meaningful Manifesto promises. permission of the publishers. Ray Spencer 4 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com NEWS Six on QROPS free transfer list Tired of waiting for established providers it has latest in Malta – “a move the QROPS, so agreement between HM vetted for standards of jurisdiction that has just transfers between any of the Revenue & Customs and the service and conditions in been accepted by HMRC Q-Wrap schemes is free Gibraltar Government over other jurisdictions, rather after two years of when many other suppliers acceptability of the than accept them in negotiation, so it must by charge up to £6,000! jurisdiction for UK pension Gibraltar at this stage. definition incorporate the Guernsey accounts for schemes to be relocated for “We are Gibraltar-based latest UK Revenue thinking around 90 per cent of non-residents, one local firm and feel sad that the territory on how QROPS should QROPS administration, “but has launched a pioneering is losing out on handling operate”, he explained. that is starting to change”, scheme giving a choice of potentially billions of pounds The new scheme had Erhardt noted, saying: “The management in at least six of investments that would also been prompted by number of enquiries received countries. come from the pension Erhardt’s concern at the lack about our QROPS has The move to create the schemes transferred by ex- of choice provided by many quadrupled and we have at multi-jurisdictional Q-Wrap patriots”, he said. QROPS UK and other Independent least a 50 per cent success scheme was prompted by provide benefits and greater Financial Advisors, who rate. “the significant loss of flexibility over UK-based tended to use only one or “It’s not just about being business resulting from our schemes. two schemes and the cheapest supplier, feeling unable to transfer jurisdictions for all their although our charges have personal pensions under the Remove clients that might not give been reduced; most High Net QROPS [Qualifying uncertainty the best, or most cost Worth Individuals are Recognised Overseas Pension “We have tried our hardest effective, solution. looking also for standards of schemes] arrangement, while to get a resolution of this “It’s crucial that a service and quality of there remains uncertainty matter to remove uncertainty, QROPS be held in a place advice.” over whether HMRC will but after voluntarily that works most efficiently If and when the disallow them if the funds suspending QROPS transfers with the taxation system of Gibraltar situation is sorted are administered in Gibraltar to Gibraltar, along with the country in which an out, then pension managers because no tax is paid locally other local pension individual lives and where will again promote QROPS on pension income”. providers, in mid-2009, we there is a double taxation in the jurisdiction. “As of STM Fidecs managing cannot wait around any agreement,” Erhardt now, most people who director for pensions, David longer”, Erhardt added. declared. wanted to transfer here are Erhardt, told Gibraltar The Fidecs schemes are If the place of residency, going to our Malta scheme, International that his firm in Jersey, Guernsey, Isle of taxation or legislation at least for the interim instead will use affiliated Man, New Zealand and relating to QROPS changes, period”, reported David companies and other Switzerland, as well as the it might also