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www.gibraltarinternational.com Gibraltar International 3 Feb/March/April 2015 Volume 21/ Number 1

Contents News p6 Accountancy p20 Tax agreements in ‘fair play’ bid to neuter black lists A head for figures Stock Exchange p8 eCommerce p22 Listing on GSX, Gibraltar’s new exchange Balancing benefits and risks for supporting crypto currencies Regulation p10 Swift-to-market enabling decisions can also News p25 mean a fast license ‘no’ Clash over central information sharing scheme Philanthropy p14 Business p26 The Philanthropic Rock Ready, Steady, Start-Up! Profile p16 Business round up p28 Unforgiving focus on priorities gets results Editorial Comment Maintaining EU connections provides 2015 challenge

he concept of ‘fair play’ is very much a British thing, so we therefore having a shared policy and acceptance of each other – hope to gain by should perhaps be unsurprised that various countries around the adopting discriminatory tax measures; perhaps to appease Spain’s ideological world seem oblivious to the idea – and feel able to change the and political campaign over ‘ownership’ of The Rock. Tgame – ignore it even – whenever the opportunity arises. Such is There’s hope too of establishing Double Taxation Agreements with the situation British Gibraltar finds itself in when dealing with various several countries to ease doing business with Gibraltar companies in some countries over tax. situations, which must be good news for this New Year. More than two years ago, the then financial services minister told me But 2015 holds other challenges for the finance and gaming sectors that of his expectation for the imminent removal of this jurisdiction from a account for nearly half of Gibraltar’s economy. Public disclosure of beneficial handful of countries’ so-called tax ‘black lists’, a hangover from the deroga - interests in companies, and maybe also trusts, is a looming issue with Gibraltar tory ‘offshore tax haven’ label of yesteryear. In 2015, Gibraltar still holding out against a centralised registry amid security and legal concerns. That “expects” to make progress according to the present Minister, Albert Isola, position mirrors the ones taken by Bermuda and Cayman Islands recently in to end this discriminatory practice. going against UK Prime Minister David Cameron’s call for Overseas Territories Italy has been high on the target list and – like a half dozen or so other (OTs) to also establish central public registers. Unlike other OTs however, countries - still has not yet fully accepted that The Rock’s record and Gibraltar as part of the EU, could be forced to adopt such measures if present preparedness for tax transparency is amongst the highest in the world; the plans to extend the Anti-Money Laundering Directive are passed by the OECD rates Gibraltar tax information exchange performance equal to the European Parliament this spring. UK and Germany, for example, and the territory was an early adopter in full A continuing issue in 2015 will be how Gibraltar will be affected should a of the EU Tax Information Exchange Agreement Directive. proposed UK referendum next year result in a move to leave the EU. This along Portugal too promised early remedial tax ‘black list’ action in 2012, with other EU-related matters – not least the edge given by being able to but then changed the game by implementing a different interpretation of ‘passport’ services throughout all 28 Member States – will be targets for the acceptable countries with a new formula relating to comparative planned Gibraltar lobbying office in Brussels from Spring. Gibraltar’s corporation tax rates that in theory would adversely affect Ireland, Malta, government is undertaking an in-depth economic analysis “in order to best cali - Luxembourg and other countries, but in practice is unfairly only applied to brate our response to such a potential challenge in the future”, as Chief Minister Gibraltar. Fabian Picardo, put it in a New Year message. It is hard to see just what these countries – all part of the EU and Ray Spencer

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Within the European Union Single Market 4 Gibraltar International www.gibraltarinternational.com News BBangorangor Business School – ExExecutiveecutive EducEducationation French TIEA not been signed. A DTA would CharteredCharterChartereded BankerBanker MBAMBA remove Gibraltar from the list. Tax agreements in ‘fair play’ However, DTAs present other difficul - ties. They work best where countries have a bid to neuter black lists similar type and level of taxation; the cake can be divided down the middle, each getting The OECD 2nd stage Peer Review of countries that operate “preferential” tax whatever is owed from the other. tax information exchange in practice, regimes with a higher level of taxation on Nevertheless, Isola revealed: “We are Cutting Edge and businesses from black listed countries. working extremely hard on DTAs - the private has judged Gibraltar “largely Portugal is an example, where companies sector is very keen on them - and we expect to compliant”, with just three aspects effectively are discouraged from doing have two under our belt in the first quarter of still to be remedied through law business with Gibraltar companies if they face 2015.” Asked if DTAs were necessary given Innovative Learning higher levels of taxation. the plethora of TIEAs, he observed: “I have changes this year. Greece, also within the EU where my own personal reservations, but I listen to multilateral tax information exchange applies the sector and I work with them closely and for the Financial Services Sector hat rating puts Gibraltar on a par with universally, has Gibraltar on its ‘black’ list. they believe there is good reason to go down the UK and Germany, but is in “It is sometimes argued that there is no actual this route.” T marked contrast to some other damage to Gibraltar companies caused by major financial services centres such as being on the list, but because it can DTAs client driven Luxembourg and British Virgin Islands, both be interpreted as a negative status, some One of the first DTAs is likely to be with the labelled “non-compliant”. By October businesses are put off dealing with our firms”, UK, because, as Isola explained: “When we Gibraltar had signed 135 tax information Jimmy Tipping, Gibraltar Finance director, speak to an EU country and say we would like exchange agreements (TIEAs) - 80 of which maintains. a DTA, they first ask whether we have one are active - with a total of 101 countries. Within the EU there should be no with the UK.” The case for DTAs is client Now Gibraltar is getting tough with barriers or impediments as in the case of driven; it is easier for Gibraltar businesses to countries that continue to have it on tax ‘black insurance companies passporting throughout say there are DTAs in place and there is also a lists’, and it is also pressing for a series of Europe. Sometimes it is more subtle; a network of international tax agreements. double taxation agreements (DTAs). particular benefit may not be available to A continuing concern is the possibility Local companies have identified six black listed countries. that the UK - and therefore Gibraltar also - countries as priority for a change in status. It is recognised that some countries may may leave the EU, something Isola believes Now Two – Estonia and Canada – have taken steps not realise that Gibraltar has tax agreements in will not happen. That didn’t stop Gibraltar’s to remove the Rock from, respectively, an place through the EU Directive and all Chief Minister, Fabian Picardo, telling BBC Recruiting unofficial black list and being classed as “a ambassadors have been alerted to Gibraltar’s Radio 4 listeners at the start of this year: “Of f non-qualifying” country. Romania has just strong TIEA record. course Gibraltar would always be able to or Spring ended Gibraltar’s black tax listing. survive, but I don’t think Gibraltar would be Over recent months, Gibraltar Finance – Changing stance able to thrive economically should we be 2015 the government-led marketing and promotion Although progress is being made, some coun - outside the EU as we are able to thrive today. arm – has written to 75 countries worldwide tries have introduced new discriminatory bar - “We can tell businesses from third BangorBangor UnivUniversityersitysity Business School is cconsistentlyonsistently rrankedanked in the world asking if they have a ‘black list’, whether riers. After a tax agreement was ratified with countries to come to Gibraltar to access the toptop 20 and number one UnivUniversityerersity in EurEuropeope fforoorr its Banking rresearchesearchch (Federal(Federal Gibraltar is on it and what more must be done Gibraltar, Portugal changed its stance, saying EU and create jobs here much as you might to be removed. The action forms part of a if a country has a tax rate less than half that of see is the case in the UK, where a Japanese car RReserveeserve Bank of St Louis/RePEc,Louis/RePEc,ePEc, 2015). TThehe school is also rrankedankeedd independentlyindependently in wider initiative to ensure Gibraltar gets Portugal, then it is ‘black listed’, so 50% of company might access the EU through a thethe top 25% of the UK business schools ffororor its Business and Management rresearchesearch treated equally in dealings with other Portugal’s corporate tax rate is 13½%, which production facility that creates jobs in the countries – a level playing field. compares with Gibraltar’s 10% level. EU”, Picardo pointed out. The idea that the (Times(Times Higher EducEducation,ation, 2015) As Financial Services Minister, Albert (However, other countries with similarly low UK might vote in 2016 to leave the EU he Isola, explained: “We still appear on black business tax rates – Ireland, Luxembourg and described as “an existential issue” for lists. Leaving Spain aside (which is totally Malta, for example - are not on the list!) Gibraltar. • SStudytudy the global, part-time-time Chartered Banker • Now reecruitingcruiting foorr Spring 2015 – early unfair), in November we came off the Estonia Minister Isola told Gibraltar The government is preparing an MBA and gain the dual award of a top MBA in enroolmentlment incentives and part funded and Canadian lists; we met with the Italian International : “It is a huge focus for us this economic study on the potential effect of loss BankingBanking and Finance with the No1. University in sscholarcholarships available foror selected routes Ambassador in December and expect in year to be treated fairly by the jurisdictions of EU status and what might be done, and February to come off that country’s list, that told us ‘if you enter into exchange of consulting with the Chamber of Commerce Europeope and Chartered Banker Institute • Faastst track routes foror those with professional and we’ve worked closely with the UK information mechanisms with us and ratify and the Small Business Federation. BBankinganking and Accountingounting qualifications government on [changing the situation in] them, we will remove you from the list’. We “But remember that in 2017 we will FOR MOREORE INFORMATIONINFORMAATIONTION AND Portugal and France.” do that – implement and ratify – and then they have automatic exchange of information with Countries previously classed as overseas start moving the goal posts to change things.” 54 countries and in 2018 another 34 in ENROLMENTENROLMENT CONTACT:CONTTAACT: tax havens usually meant being on a tax France, although not a priority at this addition, so we will have close to 90 countries Tel: +44 1248 365966 ‘black list’ - although few countries call them time, has a list that means Gibraltar in total and that has the world pretty much www..chartercharteredbankeermba.bangorrmba.bangor.ac.uk/admissions that - and Gibraltar lacked TIEAs with those companies face a higher withholding tax rate, covered”, Isola noted. jurisdictions; the lists apply generally in which would have been higher still had a Ray Spencer

6 Gibraltar International www.gibraltarinternational.com Stock Exchange

which the applicant intends to invest, or currently invests. Listing on GSX, Gibraltar’s l The Controllers of the applicant must be able to demonstrate their ability to act new exchange independently of any appointed investment manager of the applicant. By Joey Garcia, a Financial Services Partner at l The aggregate market value of the Units of ISOLAS and Chairman of the Gibraltar Funds & an applicant must be at least €1,000,000 or the foreign currency equivalent within 12 months Investments Association (GFIA). He was the advisor to of the applicant’s launch if the applicant is a GSX Limited through its authorisation process new Fund, or above €1,000,000 if the Fund has been active for more than 12 months. ith Listing Members market to investors looking for greater l Once listed, an applicant must continue to now signed up and transparency and visibility through an comply with all requirements of the CIS Wapproved, and listing EU listing. Code. applications being filed with The GSX portal allows investors to filter GSX Limited (GSX), interest is their searches by individual or multiple Application process: an outline turning towards the listing process itself. criteria in order to identify their preferred Typically, the fund will select a Listing What are the benefits and how does the listing choice of investments including geography, Member (who are approved by GSX, and process work? asset class, manager, and currency. listed on the GSX website). The Listing GSX was granted its authorisation to Over time, GSX plans to adopt a Member will manage the application process commence its operations as Gibraltar’s first graduated progression to a full service stock adhering to the application for admission to ever regulated stock exchange on the 10th exchange providing trading and execution listing set down in the CIS Code. October 2014 with the listings business services across a wide range of products, but The Listing Member is then responsible expected to commence during the first quarter not limited to debt and equities. for dealing with GSX on all matters relating to of 2015. GSX currently operates as a listing the listing application and will work closely only exchange for open-ended funds that are Listing of open-ended with their advisors and the applicant in licensed, registered, authorised and/or collective investment preparing the applicant for listing. The Listing regulated as a Collective Investment Scheme schemes: need to know Member will also work with the applicant (CIS) by a competent authority empowered to Other than the conditions specified in the CIS post-listing in ensuring that the applicant is supervise financial services in a GSX Code, the following general conditions must aware of and adheres to its continuing recognised State. To that end, GSX is a be met for those wishing to apply for listing: obligations, fulfilling its regulatory responsi - regulated exchange that operates in many l An applicant must be duly incorporated or bilities. ways as a European fund distribution otherwise validly established according to the The applicant will require that its Listing platform. Some allocators are restricted from relevant laws of its place of incorporation or Particulars comply with the GSX investing a % of a fund or clients assets in establishment of a GSX Recognised State, requirements. This will involve the disclosure vehicles that are un-regulated or unlisted and and must operate in conformity with its of detailed information relating to the fund GSX provides a straightforward solution to a Constitutive Documents. and its business, including the fund’s European listing option for a fund. Similarly, l An applicant must be an Open-Ended Fund controller names and contact information, its a listing can form an important part of any and must be regulated by the Competent location, legal status, investment strategy and investors due diligence process on a fund and Authority of a GSX Recognised State or be assets under management. the approval of a regulated exchange, support otherwise acceptable to GSX Limited and the Once an application has been completed from a Listing Member (or ‘sponsor’), and Listing Authority. and submitted, membership is then consid - approval from the listing authority can l An applicant must have audited accounts for ered by GSX’s Membership Committee. provide a strong message to potential the last financial year. Documents that need to be submitted include investors. l An applicant may not change its principal the application for the listing, as well as GSX offers a simple, cost effective, and investment objectives and policies as set out a completed checklist, and the listing professional listing option for a fund in a in its Listing Particulars unless the consent of particulars which will need to be compliant European jurisdiction. In the most recent the unit-holders representing a majority of the with the Listing Code. Once the application is independent Global Financial Centres Index Units of the applicant that are in issue has completed, GSX will then consider the (16th Edition) Gibraltar ranked higher than been obtained in advance. application and, once approved, deliver this to the Cayman Islands, Malta, the Isle of Man or l An applicant must not be permitted to the Listing Authority. Jersey as a Financial Centre. issue bearer shares and/or Units under its www.gibraltarlawyers.com constituting documents. The advantages of a GSX listing l The applicant must satisfy GSX and the GSX provides a secure platform for investors Listing Authority that its Controllers together and managers to come together, and it with any appointed investment manager have delivers a reliable, fast to market, and cost sufficient and satisfactory experience in the effective service that enables applicants to management of investments of the type in

8 Gibraltar International www.gibraltarinternational.com

Regulation $.!0!,6-*) Swift-to-market enabling decisions .$!$*,%4*)1!60! #*.3*/, & can also mean a fast license ‘no’ *,''.$.'%"!(3,%)#1$!.$!,#**

Gibraltar’s financial services sector has been reassured that professional services, conduct of business or *, %-*)3*/,-% ! changes this year to the structure and operation of their Regulator prudential”, Mrs Barrass declared. will mean a speedier service and more face-to-face contact, but at Some insurance companies early last year felt that the FSC may not have been on ,*+!,.35(%'35*,+*,.!
*((!, %'52.%*) the same time there will be greater emphasis on enforcement top of the issue of Solvency II, which will %.%#.%*)5,/-.-5%''-
,*.!5$%++%)#5,%0.!'%!). n a series of six December presentations to applications and four extensions and is fundamentally change the capital adequacy 5!'.$()#!(!).5+*,.-'1
()#!(!). more than 300 people, the Financial working on 33 new applications and 3 exten - and risk management regimes for the *,"/,.$!,%)"*,(.%*) IServices Commission (FSC) has sions to licensable activity. European insurance industry by establishing emphasised the rationale for its restructure The new structure sees a shift from a harmonised set of EU-wide capital *). . %)"*%-*'-#% from January is “to strengthen and reinforce sector specific teams, (insurance, funds, requirements and corporate governance and the FSC so it is easy to do business with – banking, for example), to establishment of risk management standards. being safe through being on top of risks, and specialist teams and a strengthening of This perceived lack of direction fuelled achieving swiftness to market”. disciplines in the four areas of authorisation, frustration with the FSC, particularly as some As Samantha Barrass, FSC chief professional services, prudential and conduct insurers were having difficulty in preparing executive, explained: “It is better for us to be of business. for the capital sufficiency requirements in able to make a quick decision, including relation to possible claims levels by the time decisions to say no; we will only authorise Solvency II is enforced from next January, but safe applications. in large part EU indecision had hindered *,.') */-!' %-* *2 %,'., “If someone comes to us with a poor progress. The capital issue remains for a !'  111#%,'.,'13!,- *( application, not properly thought through – handful of Gibraltar insurers to resolve.    
 perhaps the business plan doesn’t stack Since June, Ken Hogg, a former up, risks not fully covered, or having an Director of the insurance sector at the UK insufficient range of competences required to Financial Services Authority, has been the operate, for example – then we will say so at FSC lead on Solvency II requirements “and as an early stage.” a result, the insurance industry in particular In practice, the more complicated the has seen a step change in our approach”, Mrs application - the new retail Gibraltar Barrass maintained. “With the additional International Bank (GIB) which is preparing resource, we have had much more time to to launch in Spring, and the newly licensed work with people, in their offices and in ours.” Gibraltar Stock Exchange (GSX), for She explained: “The key in all of this is example - the more critical it is that the FSC to move away from Email ping pong to and applicant prepare jointly a ‘to do’ list from Getting a grip: Samantha Barrass, Gibraltar’s establish facts, an approach I find is regular meetings together. financial services Regulator. unproductive and caused us some concern. Some applicants have been told early in The fact is that some members of our team are .0%#)1)-,
#-,2),3)26 the process that they must “get a grip on the Mrs Barrass is supported by three better at financial analysis work, while others ),$)1.%,1!"*%/3!*)2)%1-&!#-+.!,6 issues” and that they need to do more work. A new heavy weight director level roles excel at being front facing, meeting people potential insurance intermediary application - legal, enforcement and policy; regulatory and dealing face-to-face, so staff are being $%$)#!2%$2-1!&%'3!0$),'6-30!11%21 and two company applications for example, operations; and strategy and planning - and in moved into those roles which they enjoy and &-02-$!6!,$&-0&3230%'%,%0!2)-,1 were voluntarily withdrawn by the applicants part it is a reflection both of her desire to feel comfortable with in their respective following discussions with the FSC, which ensure greater focus on identification and teams.” otherwise would have formally declined management of risk, as well as addressing Mrs Barrass recruited Joe Perdoni, who them. industry concerns at a perceived lack of had 20 years experience with heavy hitting -+.!,6
%#0%2!0)!*%04)#%1 Currently, within insurance sector the involvement in some areas. The FSC will now insurance companies having started out at %!*2(!,!'%+%,2 authorisation team is considering three regulate insurance intermediaries, from a con - Lloyds of London and held senior insurer 03121
-3,$!2)-,1 extensions to current insurance company duct of business viewpoint and initially will roles, including responsibility for compliance, 3,$ $+),)120!2)-, licenses, three new insurance company cover financial advisers in the pensions area. risk management and internal audit in applications and one new intermediary, “There is a depth of knowledge on each licensed firms to bring “a greater appreciation !#(2%')120!2)-, having already since mid-year granted for financial services sector in the authorisations of both the industry and regulatory example, extensions to one intermediary’ team of eight people for example, and now viewpoints; his dealings with companies are     license and four insurance company licences. each firm has a nominated FSC contact in a tough love sort of way”. Since June, the FSC in other financial person, similar to a relationship manager, who Perdoni’s appointment as head of    services areas has approved 78 new will be working in one of the teams - Continued page 12 -02*!,$-31%*!#)1)"0!*2!0 %*  ),&- &)$3#)!06'0-3.#-+ 555&)$3#)!06'0-3.#-+

10 Gibraltar International www.gibraltarinternational.com         
   Regulation

Continued from page 10 by thinking ‘outside of the box’, finding imposing financial penalties, for example - temporarily but still compliant solutions that which now will be directed and undertaken prudential supervision takes in the new GIB, allow a firm space to manage initial costs, in-house by a specialist team. and comes against a backdrop of likely further whilst the business develops”, she said. On enforcement, the FSC Strategic Plan growth in the depth and breadth of the “The senior staff members are is succinct: “We will take a proportionate

insurance sector, amongst others as the competent, experienced and confident in what approach to supervision, that allows us to government proposes. they do. They can think creatively on how to focus on the bigger issues and higher risks Kathryn Morgan had a senior role at the get things going in a safe way without having across the financial services industry, specific

UK Prudential Regulation Authority having to block new applications”, the Regulator told sectors or within individual firms, and will be joined the UK Financial Services Authority in Gibraltar International . proactive in acting or intervening where 2007, and from October has been the new New service level standards well below appropriate earlier and decisively.” FSC director of overall regulatory operations. the general six months’ statutory requiremen‘ ts Recruitment is current for all three key Andy Baker, former chief executive of have been promised to meet the territory’s positions in the new enforcement directorate, Gibraltar’s Argus Insurance (Europe) and a speed to market aim. “But being realistic, including the new director of legal, enforcement and policy. “The person in that role will be supported by a specialist head of enforcement, also being recruited, both A tick box approach to Regulation can end up hopefully coming from Gibraltar’s legal being a block to the development of good business profession. We require professional people in these roles and it sends a clear signal that we mean business, that there is a new emphasis”, ‘ past president of Gibraltar Insurance Institute, there are two parts that need to perform in Mrs Barrass declared. is assisting the FSC on a temporary basis, but this process – the FSC’s handling and the “We have been building up to will continue for at least another year. He applicant’s quality of submission - to ensure implementing our new structure since I recently wrote guidelines to enable the fast- those timescales are achieved. Also out of our arrived early in the year to be effective in developing Insurance Linked Securities control, is sometimes the timing on checks identifying and addressing risk to the delivery market to become established in the that need to be made with third parties, such of Gibraltar’s reputable financial services”, jurisdiction and has helped senior FSC staff as regulators in other jurisdictions,” Mrs the Regulator stated. get to grips with the ways in which such new Barrass emphasised. The Commission’s headcount has risen risks must be managed. “Until we are more FSC Chairman, John Tattersall, when from 47 people in March to become 61 early familiar with that sector, we are involving unveiling the licensing authority’s 3-year this year and as a result, the Commission’s more senior staff in the early authorisation Strategic Plan in October, said: "The context budget for the current year is rising by up to stage to ensure that mind, management and for the plan is a fast developing and moving 20%, funded partly through annual fee competencies are in Gibraltar”, Mrs Barrass environment, where international and increases, with the interim shortfall made up declared. European standard setting bodies, the finan - by a government keen to broaden areas of the She has emphasised that whilst cial services industry and other stakeholders, finance centre which the FSC must regulate. supervision remains a key function, the FSC are setting future challenges the FSC needs to “We might want to do it (provide a does not want to be a barrier to new business be well positioned to meet.” license to operate) in 48 hours, but we have development. “If you have a tick box A separate enforcement function has got to be realistic and ensure that it is not just approach to Regulation you can end up being been introduced to ensure a more efficient tick and turn Regulation – each submission a block to the development of good business, regulatory operation overall; significant time must go through a proper process,” Mrs but by meeting with the people involved, we previously was spent on non-compliance Barrass concluded. can often get around mind and management activity – chasing late payment of fees and Ray Spencer

Three new heavyweight director roles for Regulatory structure

12 Gibraltar International www.gibraltarinternational.com Philanthropy The Philanthropic Rock By Trino Cruz, on behalf of The Gibraltar Philanthropy Forum hilanthropy is about positive change, key players from the UK philanthropic SuperSwift about conviction that there is much and charitable space including the Charities Pthat can be done to improve the world we Aid Foundation (CAF), the Education live in. There is no blueprint on how this Endowment Foundation (EEF), ActionAid should be done, but what has clearly been and Philanthropy Impact. The rich dialogue bre broadband established is that if philanthropy is to address we have with these organistaions and some of society's more complex and slippery specialists is providing a crucial input. problems, flexibility and innovation are We are confident that what the required. philanthropy forum has set out to do, is now We can sense that there is a powerful better understood. movement globally in which philanthropic The forum intends to act as a catalyst in Albert Isola, Minister for Finance and Gaming, considerations are extending their reach the philanthropic space as well as a promoter addresses the audience deeper and deeper into our lives, impacting of Gibraltar as a centre of excellence for individuals as much as organisations and philanthropy. We initiated this by encouraging the global philanthropic ecosystem which corporates, large and small. There is a the exchange of ideas, experiences and the supports, encourages and facilitates local and growing awareness that if we align our efforts sharing of best practice in philanthropy, con - international giving and philanthropy in the and more clearly define our objectives we can necting people with common philanthropic broadest sense. It is paramount that we collectively achieve much more in a objectives and thus helping to uncover participate in the debate and exchange of sustainable manner, with a far greater impact. opportunities for collaboration. ideas that will lead to its increased effective - Philanthropists are increasingly recog - ness and success. nizing the importance of adopting a more The four firms who have supported the business-like approach to philanthropy to Philanthropy Forum from its inception, Credit maximize social and environmental returns of Suisse, EY, Hassans and Isolas are fully their philanthropic investments. Today’s committed to taking this initiative to the next entrepreneurs may be looking to support level. entrepreneurial solutions to social problems. As was so well presented at our recent Strategic philanthropy has clear performance conference by our local social historian expectations and aims to find the best oppor - Richard Garcia, philanthropic initiatives have tunities for achieving social, environmental been a part of Gibraltar’s history since the and/or financial returns. 18th century. Although there is certainly much There is also a clear trend towards more that can be done, there are sound foun - investing in a more responsible and sustain - dations on which to build. Terry Waite We have learned much since we able manner, in social enterprises, with clear We have a very busy year ahead as launched our Philanthropy Forum almost ethical criteria in place. There is increasing we head towards our third philanthropy From only three years ago, as we continue to explore pressure for endowments, charities, pension conference. what else philanthropy can do for Gibraltar funds and others to invest more responsibly We are addressing some of the issues we and what Gibraltar can do for international and sustainably. In the case of impact invest - have identified as being central to the philanthropy. We clearly realise that we are ing the traditional separation of charity and philanthropy debate, to remove barriers and only at the very beginning of a long and investment is overcome by uniting traditional become a credible enabler of philanthropy in worthwhile journey and that there is much philanthropy with mainstream investing. the international arena. £28 * work required to create a more supportive There is also a central role for The Gibraltar Philanthropy Forum is an per month environment for both local and international technology in the charitable and philanthropic initiative launched in 2013 by Peter philanthropy. space. Technology can be a great enabler, Montegriffo (Hassans), Jose Pisharello During our conferences and roundtables, making greater transparency possible, helping (EY), Joey Garcia (Isolas) and Trino we have been very fortunate to have counted charities to be better organised and more Cruz (Credit Suisse) to promote with the participation of numerous specialists effective, matching recipients and donors, philanthropy in and from Gibraltar. from the world of philanthropy and charities. facilitating fundraising and enhancing www.gibraltarphilanthropyforum.com The second Gibraltar Philanthropy communication using the social media. An Forum Conference, which took place last excellent example of this which was To make this advert come November, had a widespread echo across our discussed at this year’s conference is Marcelle alive, simply download the community. We greatly benefitted from the Speller's very successful experience with www. brebroadband.gi iPlayAR app on your smartphone or tablet and participation and support of Terry Waite and localgiving.com. scan the advert. See what our ex-governor Lord Luce as well as that of Gibraltar needs to be an integral part of happens next!

14 Gibraltar International www.gibraltarinternational.com Profile

developers and bank funders of develop - ments, including many developments such as Unforgiving focus on Europort, Eurotowers, Euro Plaza and Kings Wharf. With his children now between 15 and priorities gets results 23 years old, Isola felt able to return to politics – this time as part of a Gibraltar Socialist & Liberal Party government - winning a June A quietly-spoken, mild mannered barrister in a long-standing legal 2013 bi-election. “Without question, the only practice is hardly the image conjured up for someone who sees his thing that attracted me was the ability to get role as marketing - raising the profile - of Gibraltar, and ensuring things done; things that I had been moaning and groaning about over the past 20 years”, he that the 45% of the economy for which he is responsible continues rationalises. to grow, writes Ray Spencer . He’s nevertheless “surprised at what can and cannot be done; I better understand how “It gives you an idea of what the system works and why some things take can be achieved, if we put in the time longer than they should do. But by the same and resources”, he notes, adding “in token, if you focus on your priority list and the next 12 months our focus will be you are unforgiving in your perseverance of on maintaining the energy and the it, you will get there”. momentum on raising our profile. It’s easy to start, but harder to keep Levels of tax going, so we must do that”, Isola Isola cites UK insurance run-off business, reflects. which Gibraltar has been prevented from It is the second time he has taking on, but which as a result of “a huge served as an MP; Isola held the amount of energy and resource” he is hopeful Opposition financial services brief in of changing shortly - something the industry the 1996-2000 Parliament, a role has been seeking for over 7 years. “The only he found “extremely frustrating”, question now is how do we do it, because spending “too much time in my there are a number of different options to view, criticising the [Gibraltar Social resolve the issue”, including a potential legal Democrat] government and not process, or use of a UK parliamentary sufficient time making alternative statutory instrument, he explains. “But we are proposals and suggestions on what all on the same side [the UK and Gibraltar] the way forward should be”. and we are sitting around the table sorting out He quit to spend more time which is the most effective and quickest way with his family, which was not a to get this done”, he emphasises. euphemism. “When I went into With the financial services sector politics in 1996 I had two children accounting for 20% of the jurisdiction’s and I left four years later with four – economy and his other portfolio in gaming fter 18 months as minister for financial so it was productive in that sense, but accounting for another 25%, Isola depends services and gaming, Albert Isola really I didn’t have the time to spend [on pol - heavily on his civil service teams – under, A remains “bullish about financial itics] as I would have liked, so therefore I respectively, Jimmy Tipping, Finance Centre services and insurance in particular” and stepped back”, he said. director, and Phil Brear, the gaming regulator predicts, “in two years’ time we will be the Albert is the third generation Isola in – “so I don’t feel the weight of responsibility Insurance Linked Securities (ILS) capital of Gibraltar law firm Isolas, that was started for the fortunes of this economy”. Europe”. more than 200 years ago by his father’s great Even so, the world-leading on-line Kickstarting that ambition, Horseshoe uncle, who married into the Parodi family gaming companies are under cost pressure Group, the world’s largest independent ILS originally from Genoa. The family of Albert’s from new UK licensing of operators and a service provider gained a license from the wife, Graziella, is also from the Italian city. 15% point-of-consumption (POC) tax since Financial Services Commission (FSC) in December, both forcefully opposed in bids by October, and now the second biggest firm is Getting things done Gibraltar Betting and Gaming Association shortly expected to file an application for a Having graduated from Kingston University (GBGA) for High Court Judicial Review. licence, Isola reveals. in 1983, Isola was admitted to the English and There is potential negative for local impact on More firms connected with this type of Gibraltar Bars in 1985, and made partner in jobs, income tax and corporation tax catastrophe insurance are expected to follow the Isolas firm 21 years ago. Albert’s legal revenues. shortly, his financial services team having work has mostly been in financial services - From his first day in office, Isola worked visited ILS providers last year in New York private client work, funds, and dealing with with the gaming sector to deter the UK and then in Bermuda. High Net Worth Individuals - and acting for Continued page 18

16 Gibraltar International www.gibraltarinternational.com

Profile

Continued from page 16 an FSC license in principle, will open with 50 and Gaming Association have begun; the first staff in March 2015 – late running premises dealt with power supply issues and the way government moves, which it was felt would work has caused a near five months delay and Telcos responded. “We were found wanting also damage consumer protection. “We staff training begins with Swiss operational and it was important to front up and deal with wished for the best and prepared for the providers in mid-February, but Isola says “it these things head-on”, Isola says. The second worst”, he declares. There is still a GBGA will be worth the wait”. meeting is in part around bandwidth costs and case before the UK Courts on the POC tax Initially, Isola was charged with trying to Telcos, which he has met “and exchanged that will be heard this year. persuade other bankers to open in Gibraltar views!” And Isola emphasises: “It is about the and he says, “the answer was not ‘no’; people Compared with a decade ago, when principle of the tax, but also the amount of tax were extremely interested, but not now”, bandwidth, speed and resilience was is relevant to the principle, because the impact unsurprising given continuing bank moves to “absolutely woeful”, there has been of the quantum is what would push business retrench. His determination, however, may substantial investment and improvement, with [UK gaming customers] into the ‘grey’ yet pay off. costs at some 50% less. “But of course, when market. If it is 5%, 9% or even 10% tax, it’s we compare with other jurisdictions where less likely that clients are going to go looking Interests aligned Telco costs have come down significantly

for alternative grey areas to the traditional “You will hear in the coming months that our further than ours, it becomes an issue”, he markets – the well-known brands – but when efforts were not all answered with a ‘no’ – I acknowledges. “Operators will tell you that you start pushing it up to 15% the likelihood can’t say much more at this stage – but I can bandwidth costs are probably less than their

is – and the historical evidence shows, as tell you it may not be a traditional bank or the legal and accounting fees, so it needs to be put happened in Spain, Italy and France – that way in which you would expect them to come into context. there is a massive increase in the unlicensed in, but there are a number of different things “It isn’t a red line and it isn’t a deal grey market.” that we continue to work on, which I hop‘ e breaker, but I am acutely conscious that it [the Gibraltar’s operators have been planning will bring other banking houses into Gibraltar cost] is high, it’s getting on their nerves and for the UK effect for 18 months and “I live the in one way or another,” he asserts. we therefore need to deal with it. I am sure we will come up with a process that they will find pleasing”, Isola reveals. People flooding me with ‘requests’ was one of my Although government consultation is Co-location biggest fears in doing this job, but it hasn’t continuing on whether the territory should Premier co-location facility materialised at all seek to join the Schengen agreement, he knows the gaming community is “extremely Co-location brought to you by Gibraltar’s Albert Isola negative” on the prospect in terms of VAT, but specialists in enterprise ‘ “we need to understand all possibilities”, he Co-location Internet solutions life assuming it’s always a threat and I’m very A “communicator” who professes to get suggests given that “VAT can be on both happy when we seem to be coping well with on well with people working in teams, Isola goods and services and they can be separate, that threat”, he reasons. Gaming employment says his weakness may be that “sometimes I so you could well have VAT on one and not on has continued to rise even though one communicate too much”, as well as “becom - the other”. The Sapphire advantage is now also Power company, Betclic has closed its small ing less tolerant with age and probably a little Similarly he is not dispirited by talk of available for hosting services Modern, redundant power operation in Gibraltar and some others have impatient”. Not that this applies to his the UK potential to leave the EU, something • Space immediately available in generation plant reduced numbers. “If you are going to have a ministerial responsibilities. he believes will not occur. But he notes: Gibraltar's latest co-location data 15% tax thrown on you, you are going to have But with two brothers – Peter as senior “There are successful financial jurisdictions Cooling to find that money from somewhere else, I partner in the family law firm, Lawrence, as outside of the EU, like Jersey, Guernsey and centre understand that, but other firms have chief executive of Sapphire Networks, the Isle of Man and they don’t have the ability to • Designed and built specifically Gibraltar’s only resilient, chilled increased staff levels and we have new number 2-positioned telecommunications passport services in Europe as we do, so there for thee-gaming industry, with water-cooled hosting facility, with operators coming in and are happy with the firm, and a property developer – and friends is life outside of the EU. unmatched standards of additional DX system providing full way we are coping with the issues”, he in financial services and gaming, Albert “More importantly, with the City of resilience to deliver your global N+N redundancy maintains. There are some 3,300 in gaming admits: “It can be awkward. London – the largest financial capital in the services without compromise employment in Gibraltar, 1,000 more than in “We all understand and know the red world and certainly in the EU - our interest Environment 2011. lines; we understand what responsibility and theirs are very much aligned. The issues • Ideal location in the heart of the means and they wouldn’t ask me for anything they are pondering and considering in terms business district, with access to Ideal environment - clean with Worth the wait that I wouldn’t be able to say anyway. of whatever arrangements they enter into Gibraltar's leading stable temperature and humidity UK high street banks have consolidated in the Frankly that has never been an issue, although were there to be an exit are very similar: it telecommunications throughout weather extremes, wake of the world-wide recession and there have been times when you think ‘I bet would be negotiated, over a period of time, infrastructure delivering Gibraltar's optimal changing international regulations to limit risk he’d like to know this or that’.” Having and we would seek to ensure the interests of mitigation for summer and this inevitably also affected Gibraltar; people flooding him with ‘requests’ was “one Gibraltar and the City continue to be aligned.” • Located in a modern building Barclays quits retail banking locally this of my biggest fears in doing this job, but it Gibraltar’s port has now been added to with 24x7 onsite support heat/humidity and winter storms spring, for example. hasn’t materialised at all”. Isola ‘s brief; “it makes sense when we are However, the government announced an Now Isola is taking on Telco providers fronting our offering in countries around the independently run, State-owned Gibraltar to appease largely gaming industry concerns. world to also include maritime services and International Bank to fill the void, which with Quarterly meetings with the Gibraltar Betting bunkering”, he explains. www.sapphire.gi +350 200 47 200 - [email protected] Suite 3.0.3 Eurotowers, PO Box 797, Gibraltar 18 Gibraltar International www.gibraltarinternational.com Accountancy A head for figures Accountants, unfairly, have a reputation for accountants often frequent nightclubs). But we’re a tolerant lot and make plenty of being boring. John Tricker , a qualified room for the quiet ones too. Being bright and chartered accountant and the audit business a problem-solver also helps no end. Having some aptitude for maths can also leader and partner responsible for learning at help but – perhaps surprisingly – it’s not Deloitte, Gibraltar sets the record straight necessarily a tragedy if maths wasn’t your thing at school. APARTMENTS “Is there an accountant in the numbers (I rarely use a calculator – in There is no requirement to have studied the house?” is a question fact, I use it so rarely that I lost my accounting or finance at university to NOW ON SALE which is sadly asked calculator years ago and never got round to become a chartered or certified accountant – relatively infrequently. replacing it); for me the best part of the job firms pay for studies over a period of three Beautifully designed The good news for us is is in the interaction with clients and years during which all the skills of the job are spacious luxury homes that, if the question were colleagues, both in the social context and in learned through exams and on-the-job to be asked in Gibraltar, there is a good terms of the work challenge, all of whom learning. chance that the answer would be yes. generally share common backgrounds and There is also the possibility that As you would expect, the chances of interests and are usually good for a coffee, the planned University of Gibraltar will offer finding an accountant “in the house” are particularly in a friendly place like Gibraltar. accountancy in the not too distant future, increased further as the number of people in which will improve the quality of training on the house increases, the exception being Numerous other paths open offer to local graduates yet further. establishments where accountants are Personally another huge point which If your son or daughter are considering relatively more unlikely to be present such as contributes to my enjoyment of the job I what they will do after school or university,

schools, fire stations and nightclubs. have is in watching others grow and succeed. becoming an accountant will not be a But what motivates so many people to A consequence of working for one of the decision they regret. You can take my word become accountants? Why on earth would leading firms throughout my career is that I for it – I only got the job when I was 22

anyone want to do something so boring with have worked with some extremely talented because I wanted to get my dad off my back their life? people, and by extension they are constantly for the Summer holidays so I could go on a Well, firstly it’s not boring - there I’ve challenging me. prolonged holiday with my then girlfriend; I said it - accountants and accountancy are There are numerous other paths open ‘ was convinced before I started that I would boring is a vicious rumour presumably to those who qualify – ranging from pack it in in no time … and then I found that the reality was much, much better than I could have imagined, and I haven’t looked back since. A qualified accountant is a thoroughly employable commodity in both good times Three years training In fact, in this world in which nobody wants and bad to miss a potential experience, if you don’t have a particular “calling”, spending three years training as an accountant gives you the ‘started by jealous lawyers (I should point out working within a company as financial opportunity to gain exposure to a broad at this stage that many of my best friends are controller or finance director to roles as cross-section of the business world and gives lawyers). analyst, internal auditor, tax specialist and you the time to make an informed decision Accountancy is both challenging and so on. about which career path you would most like rewarding, it’s just that us accountants are A qualified accountant is a thoroughly to follow. different to and generally not as forward as employable commodity in both good times And the reality is that I have seen many our legal brethren. Of course the level of and bad, and the broad understanding of people decide later in life to become an challenge and job satisfaction depends on the any business gleaned from a thorough accountant, but not many people, once they job. understanding of the figures and the internal are accountants choose to change course I have chosen throughout my career to systems and controls means that many totally. stay in “practice”, meaning working in a firm businesses seek out qualified accountants www.deloitte.gi dedicated to providing accounting, audit, tax when looking for their CEO. and consulting services to clients of varying What makes a good accountant? backgrounds and industries. The most successful accountants are I thoroughly enjoy the job – and no, not outgoing, confident and social (in fact we Tel: (+350) 200 51010 Email: [email protected] BMI Group Limited, Unit 7 Portland House, Glacis Road, P.O. Box 469, Gibraltar www.bmigroup.gi

20 Gibraltar International www.gibraltarinternational.com eCommerce eCommerce

“The reputational risks presented by to the jurisdiction’s financial community.” virtual currencies are our greatest concern, Sian Jones, who jointly leads the UK Balancing benefits and risks for which is why we are taking a cautious Digital Currency Association regulation approach rather than rushing in to embrace working group, explained: “The approach to supporting crypto currencies this business”, Minister for Financial regulation presently varies from outright bans Services, Albert Isola, told Gibraltar – Russia, where legislation is proposed against With security, regulation and taxation To find out more about crypto currencies Bitcoin is not issued by any jurisdiction International . use of ‘unofficial currencies’, and Bolivia issues to be considered, Gibraltar’s and how they operate, Gibraltar’s Financial and operates through recognition by the “Traditionally, we have had quite a – to technology-specific licenses, payment Services Minister Albert Isola, visited in community of users – willing buyers and negative outlook on this sector, but the quality regulation, and to no regulation at all, and government is debating whether it September a similar KPMG seminar in the sellers of a ‘coin’ whose value is determined of people now getting involved and also the sometimes with positive encouragement.” should provide a home for rapidly Isle of Man attended by over 200 entrepre - by demand. Formed in 2009, Bitcoin first potential link with eGaming caused us to take a China had no formal regulation, but growing virtual currencies, like Bitcoin. neurs building and funding new businesses in gained an initial exchange rate of fresh look at the potential benefits”, he added. restricted the crypto currency to business the digital currency space. US$0.0008:0.08btc, but the first real-world (rather than personal) use, she said, whilst the Eric Benz sees crypto currency ‘exponential growth’ fter UK Chancellor of the Exchequer, The term “Crypto” or digital currency is transaction was in the US in mid 2010 for a Protecting consumers US had a diverse approach with some States George Osborne, last summer used to cover all forms of electronic currency pizza! By late 2013, Bitcoin reached gaming will be in Bitcoin – or perhaps even in However, he believes there is not yet suffi - requiring regulation and others, like Texas, A prompted a Treasury investigation that does not have legal tender, including the US$1250:1btc and there is high price three years”, he speculated. cient clarity on the subject for firm decisions with no regulation other than for money into the positive impact digital currencies digital representation of value that can be volatility. But will sufficient new business come to to be made, “but the indications are that if we transmission, and New York with technology- could have on monetary policy and economic traded: it functions as a medium of exchange, Gibraltar if it embraces the concept of do get involved it would be in a limited way specific Bitcoin licensing. development, Gibraltar similarly is now being store of value or unit of account, but does not Mainstream by 2030 crypto currencies with legislation to regulate and with the aim of protecting consumers”. “There is no EU-wide regulation, urged to suggest a licensing regime that have legal tender status. Crypto currencies use cryptography to control activities – and what about the potential effect The UK was “trying to create more although there has been some discussion on would help legitimise the sector and create a Of the 500+ virtual currencies that exist, its creation and management on line; holders on the jurisdictions financial services reputa - excitement around virtual currencies whilst this, but the UK has adopted a favourable tax business opportunity for the jurisdiction. the 21m Bitcoins account for around 93% and are usually anonymous. As Eric Benz, tion if things go wrong? the entities involved want regulation to gain position [for digital currency transactions] to Described by some as “this year’s sexy they are the most widely used. Operations Director Europe, Middle East and A working party of industry experts in greater credibility”, Isola suggested. Take up treat like VAT and encouragement and support subject”, electronic currencies offer the Miles Paschini, Group president, of Africa for GoCoin, an exchange for conjunction with the Gibraltar government by the eGaming sector may not be as strong as from the Chancellor and the Treasury is possibility of reducing payment processing Gibraltar-based Wave Crest (WC), which crypto currencies, noted: “There has been has prepared a report that has been shared with has been suggested, and Isola emphasised that looking for benefits – however, they are not costs and improving eGaming player provides a payment solution that bridges exponential growth and interest in crypto interested parties for comment during the first “above all we do not want to be involved with rushing to regulate”, Jones admitted. experience, according to KPMG Gibraltar currencies generally since the summer. quarter of this year. anything that will cause reputational damage The Isle of Man government required managing director, Micky Swindale. “Bitcoin will be mainstream by 2030 when consumers and businesses will be accessing crypto currencies, in a similar way to that experienced with the internet today.” However, he also noted that the success of virtual currencies depended on transparency and trust. International Business Solutions Benz, who is a founding member of l Company, Trust, Foundation Formation and Management Administration United Kingdom Digital Currencies (UKDC), l explained how Bitcoin is a decentralised Worldwide Vessel Registration currency – no banks or clearing houses (the l Ownership Administration, Procurement of Marine Insurance account cannot be frozen) and it can be and vessel operating permits exchanged for various different existing l traditional currencies with alterna - currencies like Sterling, Euro and US Dollar, Radio Licensing At a December tive ones, told delegates: “Bitcoin is an for example. And he maintained: “It is already l Marine crew licenses and payment set-ups ‘Decrypting the Myths’ innovation with early adopters and early having an impact on financial markets, seminar that KPMG organised at the Sunborn usage, but by 2030 there will be a Bitcoin particularly in developing regions, in real Hotel, she revealed: “Over the past year, we credit card.” Bitcoin is only the first applica - estate, on-line gaming, the travel sector and have been surprised on many occasions by the tion of this new technology. charities where the coins are accepted.” suspicion and sometimes fear we encountered In the meantime, it was necessary to when we raised the subject of digital make Bitcoin easier to buy and sell and to see Gaming to benefit currencies with our fellow professionals.” that it is accepted by merchants and banks In 1993 people were urged to develop internet Tony Provasoli, senior Partner at local everywhere, which is where the WC technical strategies he argued, but “by 1994 we needed law firm Hassans, the event’s lead sponsor, platform could assist. to wise up and see how the technology could declared: “This industry could very easily He said: “There are existing miners be leveraged and add to business”. become the ‘next eGaming’. It is of extreme [currency creators] and some 100,000 As with other presenters, Benz felt importance to us as a jurisdiction that we stay merchants now using the electronic currency, eGaming – where Gibraltar is the leading abreast of the technology’s development - as while the buyers and sellers of crypto jurisdiction worldwide – was likely to benefit well as the tax, regulation, and security issues currencies are traders, investors and there are most quickly from the growth of crypto Suite 24, Watergardens 6,Gibraltar surrounding this opportunity so that we can be some financial transactions, as well as use by currencies, which provided payment certainty, Tel.+350 200 79013 Email [email protected] prepared - in order to ensure Gibraltar does some private individuals; but to succeed the instantly. Virtual currency payments are not www.europa.gi ISO 27001 Information ISO 9001 Quality not miss out on this global trend.” system needs to expand.” reversible. “In five years more than half of all Security Management Systems Management Systems Financial Services Commission Licence No 00108B Gibraltar Registration No 10511

22 Gibraltar International www.gibraltarinternational.com www.gibraltarinternational.com Gibraltar International 23 eCommerce News

licensing of virtual currencies, but not money from traditional bank accounts to – it has four member-firms currently, but “we prudential or business conduct regulation, eMoney accounts and to then buy crypto are seeing increasing interest from other firms Clash over central information sharing scheme however the sector will be included in the currency, and back again, which will not be a looking to come to Gibraltar from the USA Financial Services Commission anti-money problem in 2030; but until then there is a need and elsewhere”, said lawyer Peter Howitt, Gibraltar could be on a collision course with the UK over an EU technology is their business. It certainly isn’t laundering oversight, she said. for a process”, Paschini explained. who is GEMA’s secretary. requirement for company and trust beneficial ownership our business and the amount of money that we Paschini’s Wave Crest, which also has Given his work experience in regulated information to be made public, as part of a worldwide drive for would require to be investing to begin to offices in India, US and UK, is already Jobs opportunity online gambling and ePayments, and repre - become - even to a tiny extent – comfortable, licenced as an eMoney issuer by Gibraltar’s Ben Robinson, Europe, Middle East and sentational role for the local sector, Howitt greater transparency in financial transactions. is disproportionate and the risks in my opinion Financial Services Commission and WC is a Africa sales and marketing director for noted how the Bitcoin community is “looking he result of government consultation specific companies. If adopted by the are too great.” founder member of the Gibraltar Electronic GoCoin, a US-based international payments for a supportive regulatory environment to with local business and UK non- European Parliament, Gibraltar will have to Isola agrees a central register of Money Association (GEMA), an industry platform for Bitcoin, told delegates: “As with add regulatory credibility and consumer Tgovernment representative organisations concede. information in theory could accelerate infor - body acting in dealings with regulators and eGaming, high risk industries tend to confidence to the use of crypto currencies”. was to be published in late January, after However, information held about trusts mation exchange, but questions the necessity international organisations. innovate more quickly and attract entrepre - And he declared: “Clearly this new Gibraltar International went to press, or early will only be available to authorities. The given “we all do that now pretty damn Currently, for digital currency to gain neurs. However, banks first need a brand for technology can be quite challenging to the in February. UK is also against including trusts in public quickly, because Gibraltar service providers greater acceptability there is a need for people to join before getting involved, and existing financial services framework and Although supporting in principle the registers that otherwise would include keep those details by law. When information bridging stations – a link for eMoney things will need to be regulated. central banks and so it will be very important compilation and exchange of information for companies with over 25% public shareholding. is requested, it is delivered almost without accounts, payment services for virtual curren - “For Gibraltar, there are opportunities in to get the regulatory balance right if Gibraltar the benefit of law enforcement, tax and other But as Albert Isola, Gibraltar Financial exception, immediately, but it will never be cy ‘wallets’ and exchanges for transfer of Fiat job creation and new innovation businesses,” does wish to provide a supportive, business inter-governmental organisations, Gibraltar is Services Minister, explained in late- on-line”, Isola insisted. And that “would put [not paper money] between parties, whilst he said. It was a point picked up by Jon friendly and safe regulatory environment for unlikely to approve a public register. December: “Just imagine we compile a Gibraltar out of step with the UK – we don’t performing Anti-money laundering (AML) Matonis, founding board director of the this new sector. Central to the opposition is security amid central registry and put it on line for ease of agree with it”. and Know Your Customer (KYC) checks. Washington-based Bitcoin Foundation who “Digital currency is a very big opportu - fears that the centralized information store access to law enforcement agencies, how can British Overseas Territories say a far Having experienced firsthand the said: “Gibraltar can become a jurisdiction nity for Gibraltar, if the balance can be struck could be illegally ‘hacked’, as well as there we guarantee the security of that information bigger issue is achieving a level playing field complexity of international payments whilst leader in Crypto currency deals. It’s not black between supporting innovation and protecting being possible Common Law conflict issues. – of course we can’t.” when “there are competing jurisdictions, like chief operating officer for Gibraltar-based arts, but it will enhance our credibility; the existing regulated sectors and finding a The EU’s draft 4th Anti-Money He emphasised: “Once it’s on-line, in the Delaware in the US, that pay scant regard for PartyGaming (now bwin.party), Bhagwan D. possibly even formation of a Bitcoin Bank in suitable regulatory structure for Bitcoin, etc”, Laundering Directive would give journalists Cloud and in an open space, (as Sony has anything to do with exchange of information Goel, founded Wave Crest in 2009. Gibraltar!” Howitt confirmed. showing a “legitimate interest”, as well as learnt to its misfortune), anybody can be and details of ownership”, the Minister The company aims to “help transfer Gibraltar’s eMoney association is small Ray Spencer ‘authorities’, access to ownership details of hacked even when safety, security and asserted.

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Understand the strengths of their 6. Don't accept just any investor. ty of your employees and don’t be afraid to products/services and their customer base to Raising funds for your new business may be let go of anyone who doesn’t measure up to Ready, Steady, Start-Up! be able to identify your core competitive perhaps one of the biggest challenges you your expectations. advantage and position yourself at the lead - may face, but don’t be tempted to accept just 9. Try to obtain free money. There are Eran Shay is the economy as entrepreneurial spirit is an There are many risks and uncertainties but ing edge of the competition. anyone’s money. Funds from family and plenty of grants, sponsorships, interest-free managing director of essential part of a nation's ability to succeed also great opportunities and rewards. In 4. Consult with professional service friends may be easier to raise but in case of a loans, tax breaks and other aid funds ear - in an ever changing and increasingly order to avoid some of the pitfalls and obsta - providers (lawyers, accountants, tax advi - business failure may cost you your most pre - marked for new businesses. Make sure you Benefit Business competitive global marketplace. Gibraltar is cles along this path, careful planning is nec - sors etc) . While their advice may be costly, it cious relationships. By taking “stupid explore these opportunities and learn how to Solutions Ltd , a an ideal place for entrepreneurs and start- essary. Below are the Top Ten Tips for the may often give you the best value for money, money” from unprofessional individuals, obtain them. It may often be easier than you Gibraltar registered up businesses as it offers a business- new entrepreneur: as well the ability to tap to their network of you may find yourself stuck with partners think... company that friendly environment characterised by low 1. Don't be afraid to talk about your contacts and learn from their experience. It who have no added value to your business, 10. Use social media to get exposure. bureaucratic obstacles, low taxation, various idea. If you keep your idea a secret and don't will also help you structure your business in yet have the power to control your business In the internet era you don’t necessarily need specialises in financial assistance programs, and numerous consult with anyone, you will find it very dif - the most effective way, thereby saving you decisions. to spend huge amounts on expensive adver - jumpstarting new industry associations. Moreover, Gibraltar’s ficult to progress your idea. Listening to var - greatly once your business matures. 7. Protect your IP. If your business is tising. Word of mouth and viral marketing businesses, through small size makes it a great place for pilot- ious opinions will help in validating your 5. Prepare a business plan. While you based on some Intellectual Property, make over social media sites have become a pow - business plan preparation, market testing new products and technologies prior idea as well as giving you further “food for are most likely to be asked for a business sure you take the relevant actions to protect erful, yet cost effective way to potentially surveys, valuations, capital raising and to rolling them out in larger markets; thought”. plan at one stage or another (by the bank, these intellectual assets as early as possible, reach millions of customers. benefiting from an EU-complaint 2. Research the market. Make sure investors, regulator, or others), preparing a such as applying for patents, registering Start-ups are born out of passion and are outsourced CFO services. The company jurisdiction, with a cosmopolitan mix of you thoroughly study and familiarise your - business plan is your opportunity to set out trademarks and copyrights, and look after led by people who want to address a distinct also provides local agent representation population, concentrated in a small area. self with your target market, whether it is a for yourself the objectives and goals for your your key employees. problem. Individually, start-ups are drops in services to businesses new to Gibraltar. Indeed, some of the world’s best known new territory, a niche industry sector or a business, as well as the process by which you 8. Hire only the best. While employees the nation’s economic bucket, but in aggre - centres of entrepreneurship and innovation specific population segment. Conduct mar - will execute your plan and the financial fore - are often the biggest business cost, they are gate, these innovators are actually responsi - n entrepreneur is someone who is have developed in the smaller nations such ket surveys, use focus groups and read rele - cast you expect to attain. Such business plan also its biggest asset. No matter how good ble for a vast majority of economic growth willing to bear the risk of a business as Israel and Singapore, which means vant literature. should be reviewed and updated as your your product may be, people do business and their contribution should never be under - Aventure where there is a significant Gibraltar is by no way disadvantaged 3. Know your competition. business progress. Lacking a business plan is with people and it is this human interaction estimated. chance for making profit. Entrepreneurs are because of its size. Familiarise yourself with both direct and one of the main factors why some start-up that will determine the success of your busi - often regarded as the lifeblood of the Starting a new business is a bold step. indirect competitors in the marketplace. fail. ness. Hence, don’t compromise on the quali - www.benefitgibraltar.com

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26 Gibraltar International www.gibraltarinternational.com www.gibraltarinternational.com Gibraltar International 27

BUSINESS ROUND UP BUSINESS ROUND UP

Publication of Gibraltar marketing, legislation, new efforts, which we fully intend to an EU listing. Delegates were led through the or FRS 102. Whilst the new excess of 500 participants Finance’s Business initiatives, as well as the full, up to do.” To obtain a copy of the plan, Neil Gogan, a CFA director, changes to the UK and Gibraltar framework will take time to who want to spend time in Development Plan date schedule of events for 2015 go to: commented: “We are finding an Generally Accepted Principles assimilate into firms there are Gibraltar and take on the The Minister for Financial Services, across the entire financial services http://issuu.com/gibraltarfinancecentre/ increasing proportion of our client (GAAP) which came into effect significant benefits to its famous Rock Run. Albert Isola MP published in sector. docs/20150113_2015_exec_summary_final base is considering the from January. One of the key implementation. Amongst these, The charity event is January the 2015 Executive Minister Isola Commented: “I incorporation of some fund points of the seminar was that all global groups have an improved schemes. However, by Q3 2015, it held to help raise funds for the Summary of the Gibraltar Finance value very highly the enormous Castle joins new structure in their overall structures companies currently following UK ability to streamline processes, align is targeted that it will start listing Royal Marines Charitable Trust Business Development Plan. The contribution that the financial Gibraltar Stock due to the implementation of AIFM or Gibraltar accounting policies and reduce closed ended funds and thereafter Fund, which help Royal Marines plan follows a review of the services sector professionals make Exchange to list funds and our GSX Member status can GAAP for reconciliation risk and effort. There will be looking to expand into the who have been wounded or injured programme of events undertaken to the success of our finance centre Castle Fund Administrators (CFA) - bring significant benefits for them.” their is also a cost saving opportunity listing of securities other than in Afghanistan or other hazardous during 2014 in close consultation and it is clear to me that we achieve part of the 22 year old Castle Trust statutory through Shared Service Centres for shares. Further ahead, the listing of operations. significantly Group - has been accepted as a EY seminars advise on accounts financial reporting”. non-fund entities is envisaged. more when we founding member of the new critical changes to need to Ian Felice, CEO of Line work closely Gibraltar Stock Exchange (GSX) Generally Accepted consider Line Management Group commented: “This is an together. It is that began listing open-ended funds Accounting Principles moving to the new framework. Services approved as extremely welcome essential in January and aims to appeal to The implications of the new Commenting on the new listing member for GSX development. Due to the therefore that we non-EU funds, particularly in Asia financial reporting framework in the framework, Dale Cruz said: “There Line Management Services Ltd association LMS has with with the sector. The summary give the sector as much notice as and the US, as a preliminary step UK and Gibraltar was presented to are some important decisions that (LMS), a subsidiary of Line Group Hassans, we will be able to offer our The Rock Run is well known includes a brief account of the possible regarding our strategy for towards EU domiciliation. delegates over two seminars, held at need to be made now. For example, (associated with Hassans), has been clients, both Gibraltar and to Royal Marines and Royal Navy initiatives undertaken by the the year so that they can plan for CFA will act as listing agent of the Eliott Hotel in December. The from 1 January 2015, the new UK approved as a founding member of internationally based, a seamless personnel, who take part in a run to Gibraltar Finance team during 2014 these events and join us in raising GSX, which provides a fast-to- seminars, which attracted over 30 GAAP framework became effective the Gibraltar Stock Exchange full service for those that wish to list the top of the Rock. The individual and clearly sets out in detail the the profile of our jurisdiction. market and cost effective service for delegates each, were led by Dale and mandatory for periods (GSX) which was launched in on the Gibraltar Stock Exchange. record for the 2.7 miles run is 17 ambitious objectives for 2015 and There is no question that we have collective investment schemes that Cruz, Executive Director at EY and beginning on or after that date. November 2014. minutes, 29 seconds, held by a crew beyond. The document offers an made significant progress and we wish to make themselves available Joynul Adedin, Senior Manager Entities currently applying UK The Stock Exchange is Gibraltar Rock Run member of HMS Glasgow. update on the various work streams need to continue the good work by to investors looking for greater from the EY Financial Accounting GAAP must decide whether to currently only open for the listing of The Gibraltar Rock Run For more information, please presently being undertaken covering investing further in our marketing transparency and visibility through Advisory Practice in London. apply EU adopted IFRS, FRS 101 open ended collective investment Community are looking for in visit: www.gibrockrun.co.uk

Specialist Tax Advice Cut to your liking Welcome to the newly refurbished Rock Hotel, Gibraltar

We provide specialist tax advice on a whole field of private and business issues, making it easier for clients to safeguard their family assets and wealth.

Deloitte offers a straightforward personal service specifically tailored to clients’ requirements. We make the most of our expertise and experience to reduce your tax burden and plan effectively for the future.

For more information, call Stephen Reyes or Joe Montovio on: Tel: +350 200 41200, Fax: +350 200 41201, [email protected]

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TTelephone:elephone:e: +350 200 73000 | wwww.rockhotelgibraltar.comww.rockhotelgibraltar.com | [email protected]@rockhotel.gi Merchant House, 22/24 John Mackintosh Square, P.O. Box 758, Gibraltar © 2014 Deloitte Limited. A member of Deloitte Touche Tohmatsu Limited

28 Gibraltar International www.gibraltarinternational.com www.gibraltarinternational.com Gibraltar International 29 Contacts WHY SHOULD YOUR COMPANY SPONSOR OR ADVERTISE IN Professional Bodies based in Gibraltar THE GIBRALTAR INTERNATIONAL MAGAZINE? Gibraltar Association of Pension Fund Administrators (GAPFA) Gibraltar Federation of Small Business (GFSB) Steven Knight, Chairman, Tel: + (350) 200 40466 Stuart Rodriguez, Chairman, Tel: + (350) 200 47722 Answer: Email: [email protected] Email: [email protected] l We produce a quality, informative, business publication, with the aim of informing and Association of Trust & Company Managers (ATCOM) Gibraltar Funds & Investments Association (GFIA) Marc X. Ellul, Chairman, Tel: + (350) 200 70921 Joey Garcia, Chairman, Tel: + (350) 200 64740 encouraging international companies and investors to choose Gibraltar to invest and do Email: [email protected] Email: [email protected] business with YOUR COMPANIES Bar Council Gibraltar Insurance Association (GIA) David Dumas, Chairman, Tel: + (350) 200 59026 / 79075 Chris Johnson, Chairman, Tel: + (350) 58452000 l 10,000 Printed Copies Each Quarter, of which 2000 are mailed to Financial Advisers, Email: [email protected] [email protected] Email: [email protected] Bankers, Lawyers, Accountants, HNWIs, across the UK and Continental Europe * Gibraltar Association of Compliance Officers (GACO) Gibraltar Insurance Institute (GII) Ivan Perez, Chairman, Tel: + (350) 200 73520 Neil Entwistle, President, Tel: + 350 200 52908 l Exclusive Magazine Stands in the Arrivals, Departures and Executive Lounge at Gibraltar Email: [email protected] Email: [email protected] International Airport ( 2,500 copies on average taken each quarter) - Europort - Atlantic Gibraltar Bankers’ Association (GBA) Gibraltar Society of Accountants (GSA) Suites - Ocean Village Business Centre - Cruise Liner Terminal Christian Garcia, President, Tel: + (350) 200 44144 Colin Vaughan, President, Tel: + (350) 200 73520 Email: [email protected] Email: [email protected] l Distributed in all the Top Hotels, Restaurants, Bars and Office Receptions in Gibraltar Gibraltar Betting & Gaming Association (GBGA) Society of Trust & Estate Practitioners (STEP) Peter Howitt, Chief Executive, Tel: + (350) 200 68450 Peter Isola, Chairman, Tel: + (350) 2000 1892 l Distributed through the Government of Gibraltar (UK) offices, The Strand, London Email: [email protected] Email: [email protected] Gibraltar Chamber of Commerce (GCC) Gibraltar HR Forum l Sponsors receive special rate for adverts Christian Hernandez, President, Tel: + (350) 200 78376 Ruth Halsall, Chair, Tel: + (350) 200 43865 Email: [email protected] Email: [email protected] l Direct link to your company’s website, from our website Gibraltar Finance Centre Council (GFCC) Gibraltar Electronic Money Association (GEMA) – www.gibraltarinternational.com (Sponsors only) Peter Montegriffo, Chairman, Tel: + (350) 200 79000 Dani Spier, Chairman, Tel: + (350) 200 79645 * Mailing list compiled in association with Gibraltar Finance, HM Government of Gibraltar Email: [email protected] Email: [email protected]



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