Gp6 BudIget NBews RAp10 Tax LTAuAg/Sept/ORct 2011 INTERNATIONAL

FINANCE l INVESTMENT l

BANKING : A Solid Rock in a hard place

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 LIMITED 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 www.monarch.co.uk www.flymonarch.com Tel: + (350) 200 52200 • Fax: + (350) 200 71673 HASSANS www.gibtele.com Tel: +(350) 200 79000 • Fax + (350) 200 71966 www.gibraltarlaw.com KPMG Tel: + (350) 200 48600 • Fax: + (350) 200 49554 GRANT THORNTON www.kpmg.gi Tel: +(350) 200 45502 / Fax: +(350) 200 51071 www.grantthornton.gi SAPPHIRE NETWORKS Tel: +(350) 200 47200 • Fax + (350) 200 47272 BAKER TILLY (GIBRALTAR) LTD www.sapphire.gi Tel: + (350) 200 74015 • Fax: + (350) 200 74016 www.bakertillygibraltar.gi 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 LOMBARD ODIER DARIER HENTSCH HILL INSURANCE COMPANY LIMITED PRIVATE BANK LTD Tel and Fax: +(350) 200 62407 Tel: + (350) 200 73350 • Fax: + (350) 200 73475 www.hillinsurance.eu www.lombardodier.com

www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 3 Aug/Sept/Oct 2011 EDITORIAL COMMENT Volume 17/ Number 3 Budget brings mixed message

hen says Gibraltar’s economy has never been so well, generally few will disagree. Presenting his 16th budget, the Chief WMinister reported still further economic growth, with near 100 per cent employment, personal and Contents business taxes at their lowest, rising pensions, and a budget surplus. NEWS P6 Being the last budget before a general election, you’d expect numerous references to improvements during his Economy growth brings lower tax government’s tenure and no-one can deny the jurisdiction’s transformation from pariah off-shore tax haven to and business support in Budget mainstream EU finance centre. Concern surrounds how everything has been achieved FUNDS P8 – ‘hocking the future’ as some describe increasing Gibraltar’s Recognition as an International borrowing to finance infrastructure and other improvements. Caruana stoutly denies the charge, pointing Centre for Investment Management – as with so many other facts and figures demonstrating The Rock’s progress – to a performance that is way better TAX P10 than the UK or almost any other EU economy. Whilst accountants KPMG applauded “another set of Gibraltar Budget 2011 impressive figures” and the often-critical Chamber of Commerce conceded it was “a good budget for business” FUNDS P12 overall, new Opposition Leader was (perhaps predictably) less enthusiastic. Gibraltar’s Fund Sector goes from strength to strength It’s not that he feels the economy is doing badly, more that Gibraltar could be doing so much better: the principal PROFILE P14 shopping area of Main Street was his only example though, chief executive Joe Corvelli and he thought spending could be “better calibrated.” True, many still believe the £50m new airport terminal with up-to-date facilities and greatly increased capacity, is BANKING P18 over the top given the present (albeit slowly growing) airline Gibraltar: A Solid Rock in a hard place activity. Some, judging by appearances, even doubt Caruana’s notice that the building will be finished this FINANCE P24- 27 August and opened shortly after. Delay is the only area of dissent over the building of a Promotional push for business £123m power station at the south end of the Rock, to replace three old facilities in residential areas with poor Going Public - Is your Company Ready emission and other standards - it’s the jurisdiction’s largest for the Capital Markets? investment by far. For the first time in recent years, the expected growth BUSINESS ROUND UP P28 in GDP was, surprisingly to many, not quantified. And a negative feel was created by Caruana’s continued concern at the effect of not having available large-scale quality office space to satisfy the insurance companies, fund managers and gambling firms attracted by Gibraltar’s low business and personal taxes and stable economy. Without GIBRALTAR INTERNATIONAL MAGAZINE speculative space, he suggests, the finance centre Published by Gibraltar No part of this publication development will “grind to a halt”. International Publications Ltd . may be reproduced without That doesn’t sit comfortably with plans to intensify G7 Cornwall's Centre the written permission of the marketing and development of the Finance Centre. The PMB 104 publishers. PO Box 561 The publishers have tried to Minister has again threatened injection of public money – Gibraltar ensure that all information is indeed a government company has already been primed to accurate, but emphasise that do so – if a major building project doesn’t get under way Editor they cannot accept soon: the Opposition has vowed not to invest. [email protected] responsibility for any errors or omissions. The publishers And with full employment, any newcomers are Sales accept no responsibility for inevitably forced largely to import their teams, most living [email protected] statements made by across the border with . No reference was made either contributors or for any claim to aspirations for a tax information exchange agreement, as Design made in an advertisement. a prelude to a double taxation agreement, with Spain under [email protected] the Tripartite Agreement that also includes the UK. UK Agent: © 2011 Gibraltar International There’s a clear impression that politicians are keeping Tel: 0044 (0) 1993 703560 Publications Ltd. their powder dry for an autumn election! Ray Spencer

4 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com NEWS Economy growth brings lower tax and business support in Budget

Gibraltar’s economy grew last year by “at doubt the Government’s firm estimates it will spend some determination to do so should £110m on projects, including least another 5 per cent” to exceed £1bn real projects not begin to £4m on new land reclamation, in sharp contrast to most of Europe, Chief physically materialize soon. and completion in August of the Gibraltar’s macro economic £50m air terminal opening in Minister Peter Caruana revealed in his July interests require it,” he . Budget speech. But he made no forecast declared. In the meantime, opportu - nities need to be “seized and for 2011-12 beyond “continued expansion”, Difficult markets converted into real business. reports Ray Spencer Nevertheless, the private sector They will not happen by them - “achieved a creditable perform - selves”, he asserted. owever, he observed: being addressed. ance in difficult international “Some business sec - Social security contribu - and visitor markets”. Promotion plan tors in Gibraltar tions, up 10 per cent last year, Company tax last The Finance Centre - trans - Hhave done little bet - are unchanged, but Caruana year held up at £29m, with half formed from offshore tax ter than mark time during the warned that future annual a year at the previous 22 per haven to onshore European last year, reflecting the fact that increases would be in line with cent level and 6 months at the finance services centre - is now due to economic recession else - inflation. new low 10 per cent rate. “well placed to seize the where demand for Gibraltar’s Previously tax exempt opportunities offered by our goods and services have at best Office space companies start paying in status, reputation and new tax flat lined, and in some sectors dilemma August and the government is regime”. fallen a little, even though Crucially, growth in the finance gambling that this will make up Agreement with industry some parts of the Finance sector – accounting for around a near £19m shortfall when the players on “the broad outlines Centre have continued to a quarter of the economy – was lower level is applied to all busi - of our joint approach to grow”. being stymied by lack of “a ness for a complete tax year. marketing and developing Locally, mortgages and supply of quality office space on Private sector employment our Finance Centre” means business loans remain difficult a speculative basis”, Caruana rose by 546 jobs, including 165 Government resources and staff to obtain as a result of the inter - declared. in construction, 165 Finance skills being “significantly national credit crunch, Caruana Without available offices Centre positions and 98 in gam - upgraded”. noted, and as a result the con - “insurance companies, fund ing companies. In what is expected to be struction sector was being “sus - managers and gaming compa - “As a proportion of the size an election year, tax cuts tained” by government work. nies cannot come here, create of our economy [GDP], our costing £10m a year were jobs and help grow our expenditure is lower and our announced: the top rate falls Trading help economy”, he maintained and revenue is higher than is the from 29 to 28 per cent, while To assist wholesale and retail “those companies would go case in the UK”, Caruana the bottom rate lessens from 8 firms, a 20 per cent early rates elsewhere and our finance cen - reported. to 6 per cent. The maximum payment discount will be rein - tre development would grind to The overall surplus for effective rate of personal tax troduced; in addition bars and a halt.” 2010-11 (including exceptional after allowances is 25 per cent. restaurants that ban smoking Describing it as “a real risk items) was £ 31m, representing Fabian Picardo, new qualify for a 10 per cent rates to our ability to attract business 3.1 per cent of GDP. Opposition Leader, made clear refund. To boost trade, import to Gibraltar”, he, for the second More than half of the that “our political is duty on a range of goods has year, threatened to commit £480m Government borrowing that Gibraltar could be doing been halved to 6 per cent. public money; this time is held in cash with the net much better in terms of growth Issues over new business however, Caruana revealed “a figure being around 22 per cent and that expenditure needs to tax legislation or the way it is Government owned company for 2010-11. be better calibrated. being applied - treatment of has funded itself to fill this gap That is "low by normal “There are areas where entertainment and marketing if the private sector is unable to economic measure and by things are not going as well as expenses, expenses allocation do this”. reference to most other coun - they could be and there are between taxable and non tax - While negotiations contin - tries - 40 per cent is considered areas where things are actually able income, the treatment of ue with private sector enterpris - very prudent, in the UK and going badly," he said. The goods and services procured by es and Caruana remained much of Europe it is 70 per Chamber of Commerce felt head offices and of shared “confident” intervention can cent", Caruana pointed out. overall it was “a positive central, head office costs – are be avoided, “no one should This year, the Government budget for business”.

6 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com FUNDS Gibraltar’s Recognition as an International Centre for Investment Management by Charles Melvin, Associate Lawyer, Triay & Triay ince the birth of the Financial on Gibraltar. In many respects the first Services (Experienced question is difficult to answer as many Funds) Regulations in 2005 (EIF important factors now attracting the SRegulations) the growth of the industry to Gibraltar have not changed in investment funds industry in Gibraltar has the last 5 years. been strong and steady in typical Gibraltar Thus an alternative question might be fashion. why is this growth only happening now? I sensitive but robust oversight. This growth has been fuelled largely believe the answer lies in marketing of Thus the growth of a strong invest - by the attractive environment offered by Gibraltar; for many years the benefits that ment management community should have Gibraltar legislation making it jurisdiction Gibraltar has to offer, not just to invest - some profound effect on Gibraltar. of choice for the domicile of funds. ment managers but to the finance industry Needless to say additional taxation rev - Much has been made of this growth in general, have simply not been widely enues for Government should ensure that and rightly so. Indeed, there are numerous known and it appears that the benefits are felt not just within the financial reasons to think that this growth will not message of the benefits of Gibraltar’s com - industry but within the community as a just continue but shall accelerate when, for petitive tax environment; Mediterranean whole. For Gibraltar’s finance industry the example, the proposed new EIF location in easy reach of the UK; and benefits should be wide. Additional special - Regulations (drafted by the Gibraltar English centric business and legal systems ists will inevitably bring with them wider Funds and Investment Association (GFIA) in line with the City of London is now expertise. with assistance from the Financial Services finally being heard by the right audience. It is important to note that finance Commission (FSC)); the Alternative companies rarely exist in a vacuum but Investment Fund Managers Directive Investment fund thrive around others who may bring new (AIFM Directive) are both implemented domiciliation skill and ideas to the table. Additional thus making Gibraltar even more attractive The full answer is of course a little more employment opportunities not just for for funds to be domiciled in an EU complicated than that and there have been those migrating into Gibraltar but also for jurisdiction. these advantages coupled with some important catalysts. Of course the current population will come about and a transparent and robustly regulated Gibraltar’s position as one of the four the additional professionals and opportuni - jurisdictions all combine to make Gibraltar EU jurisdictions for investment fund ties will necessarily raise financial the jurisdiction of choice. domiciliation has certainly increased education standards, Mark Maloney of Gibraltar’s prominence within the interna - Gibraltar Asset Management and Investment decision tional investment community. Chairman of GFIA’s Training Committee making The key drivers, however, are taxation has made particular progress in improving Another key pillar of the Funds and driven. The 10% corporation tax rate for the courses and training currently available Investment industry that is often Companies with taxable profits in to both professionals and students. overshadowed by fund establishments is Gibraltar has been instrumental in posi - the group of people who manage such tioning Gibraltar firmly in onshore Europe Financial Industry funds. Traditionally, investment decision and there appears to be an increase in its Finally, and firmly in line with the making has taken place by manager sitting credibility as a robust place in which to Government’s position in relation to the in London, in particular St. James’ and conduct business. growth of the Gaming Industry, a strong indeed Gibraltar is currently relatively Given the specialist skills possessed by core of investment managers will ensure the thinly represented in this area. At the time many of those working for investment term success of and provide of writing the FSC lists 18 such licensees. management companies HEPSS status is additional exposure to the Financial Whilst accurate statistics are hard to come often also an option. When these positions Industry in Gibraltar. by due to the confidential nature of the are compared with current corporate tax From this other service providers will application process, it is anticipated within rates of 28% and the 50% income tax rate benefit and in turn it should also help to the industry that 2011 should see an for high end earners in other jurisdictions accelerate the number and the size of funds expansion of 30-35% in the number of the financial benefits are clear to see. established in Gibraltar. The funds and authorised investment management entities Furthermore, the financial industry in investment industry must be more than a based in Gibraltar. Gibraltar is becoming increasingly one trick pony and investment managers This growth begs two important sophisticated and is over seen by a regula - will be the central hub from which other questions. First, what are the reasons driv - tory body that continues to expand its aspects radiate. ing it and second, what impact will it have knowledge base whilst still providing www.triay.com

8 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com TAX Gibraltar Budget 2011 Yes, it’s that time of year again, The Chief Minister surplus is a position that this time round it’s an election year, so acknowledged that the governments around the following areas of the new world can only dream of. there was an expectation that some Income Tax Act are being The cost of the capital appetising goodies would be on offer, reviewed: investment programme l Entertainment and amounted to £158m during and the Chief Minister duly obliged, marketing expenses the year, including Neil Rumford , Director, Head of Tax, l Allocation of expenses expenditure by Government between taxable and non- owned companies. This has Baker Tilly (Gibraltar) Ltd summarises taxable income pushed net government debt the tax situation l Goods and services from £139.1m as at 31 All taxpayers will pay procured by head offices and March 2010 up to £216.7m Taxation tax at an effective rate of less l Shared central, head office as at 31 March 2011 (as After the groundbreaking than 25%, with the costs. stated in the 2010 and 2011 changes announced in 2010, maximum effective rate of Budget Addresses, which impact mostly on 24.99% being reached on Import duty respectively). This represents companies, this year’s budget income of £300k p.a. Above Import duty on a range of 21.7% of GDP for 2010/11, focused mainly on the this level the effective rate of goods was lowered from which is just below the peak personal taxpayer. The tax progressively falls to 12% to 6% - mainly in predicted in the 2010 Budget decrease in tax rates for 19% at the £1m level with electronic and household Address of 23% “before individuals, whilst perhaps any income above £1m taxed goods. The inclusion of starting to fall again once the more restrained than some at 5%. sunglasses in the reduction in projects programme is expected, is still significant duty lends a seasonal flavour complete”. and is clearly part of a long- l Allowances Based system to the budget. In contrast, Looking ahead to term strategy to reduce the No change to allowances or duty on cigarettes was 2011/12, the Chief Minister personal tax burden. tax rates themselves has been increased by 12 pence per predicts a budget surplus of announced. However, all packet. £21.5, with capital Personal tax taxpayers on the Allowance expenditure of £110m The two alternative systems Based system will receive a Rates (including Government of personal taxation remain, tax credit amounting to the The early payment discount owned companies). In the with the Tax Office applying higher of £300 or 2% of tax for rates was restored to absence of any other whichever system is most payable. 20% for the wholesale and information, this would beneficial to the taxpayer. Taxpayers with large retail sector, including bars indicate an expected net debt mortgages will be pleased to and restaurants. The Chief level of around £265m by 31 l Gross Income Based note that there has been no Minister announced an March 2012. system further restriction on additional 10% rates refund During the year to 31 The Government is still keen allowances available from the for bars and restaurants that March 2011 the economy to move taxpayers from the payment of these. do not permit smoking on grew by 6.5% to a GDP of more traditional allowances- their premises. This £954 million. The based system to the gross l Social insurance somewhat innovative government's conservative income basis, with the Chief There was no change approach starts to bring us in estimate for this year is a Minister anticipating that, announced in respect of line with some European further increase of 5%, thus after the changes, around social insurance countries’ anti-smoking exceeding £1 billion. 86% of all personal contributions, but there was policies, whilst avoiding what Though it would be taxpayers will find it an indication that these has proved to be an foolish to say that the beneficial to be taxed on the would be increased next year. unpopular measure in some worldwide recession has in gross income basis. of those countries. no way affected Gibraltar, Fortunately, the gross Corporate tax the budget figures show that income system has been As expected, following the Income and we have been able to not simplified, as well as the tax new 10% rate already in expenditure only weather the storm, but rates having been reduced. force from the start of this The Chief Minister grow our economy in these The top rate has been year, no changes were announced an “overall troubled years, with an reduced from 29% to 28%, announced to the tax payable recurrent revenue and increase in employment an and the lowest rate reduced by companies on their expenditure budget surplus” added bonus. from 8% to 6%. profits. of £28.3m. Any budget www.bakertillygibraltar.gi

10 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com FUNDS HILL INSURANCE COMPANY LIMITED the Fund Administrator is responsible for Gibraltar’s Fund Sector goes calculation of the Net Asset Valuation an Auditor assumes responsibility for the from strength to strength preparation of annual Financial Statements ensuring they are in line with applicable Jayne Garnett, Head of Fund Administration, International Reporting Standards. The lifestyle advantages of Gibraltar and its Fiduciary Group, examines the role of the Fund proximity to Spain have attracted a number Administrator and the benefits Gibraltar provides of highly qualified accountants and auditors and Gibraltar counts ontributing factors to its fast able to apply the internationally recognized firms such as paced growth are the security necessary oversight Deloitte, Baker Tilly, Grant Thornton and provided by a well regulated and regulation to Price WaterhouseCoopers. Cjurisdiction, the speed at which a ensure the A Fund, as in the case of a registered Fund can be set up and the relatively low continued good reputation of Gibraltar as Company, must appoint a Board of costs involved in doing so. These benefits an offshore jurisdiction. Directors. In the case of an Experienced together with Gibraltar’s favourable tax Over the years Gibraltar has attracted Investor Fund the FSC requires that at least regime have not only attracted funds to the a large number of highly qualified legal two Directors be licensed locally. Part of Rock but have also enticed Fund Managers specialists and, due to the close ties with the licensing procedure requires that the looking for a jurisdiction also offering the , the majority of applicant for a license prove they are lifestyle advantages. lawyers and solicitors in Gibraltar are sufficiently qualified and experienced to Much has been written over time in qualified under the of England and fulfil their duties appropriately. The Fund relation to the process of establishing an Wales, initially called to the Bar in the UK Administrator liaises closely with the Experienced Investor Fund on the Rock and then called to the Bar locally. The Directors to ensure they are fully informed and indeed the tax benefits available to proliferation of local talent in this field can of all activities and therefore able to Fund Managers relocating from alternative be measured by the number of firms perform their role successfully. jurisdictions, however little has been said of established, indeed some have been in As with all jurisdictions, the local the critical role performed by the Fund existence for well over 100 years Governing body plays a major part in the Administrator. demonstrating the depth of local and jurisdictions overall success. Gibraltar is international knowledge. The ability to fortunate to have a local Government Fund Administrator work closely with legal counsel both in totally supportive of actions enhancing The Fund Administrator’s key terms of physical distance and the level of Gibraltar’s International reputation. responsibilities include liaison with the knowledge available is extremely beneficial Proposed changes to legislation are We operate under Freedom to Provide Services in various parties involved with the operation to both Fund Administrators and Legal discussed with the relevant parties, and l UNITED KINGDOM of a Fund, calculation of the Net Asset Counsel involved in the establishment of a alternatives considered when necessary. l ITALY Valuation and Transfer Agency. In order to Fund. The creation of the Gibraltar Funds and l achieve this, the critical service providers Provision of a Custodian or Banker is Investments Association (GFIA) has led to FRANCE are professional, knowledgeable and are also required when establishing a Fund. a ‘two way street’ of communication with l BULGARIA able to act promptly. Gibraltar boasts a large number of Banks the local authorities. The support provided We have a network of over 200 brokers The growth of the Finance Industry in and Financial Institutions able to provide by the Government ensures legislation is Gibraltar has provided the ideal platform Custodian/Banker services and can count continually adopted, adapted and improved for Fund Administrators to work high street names such as Barclays Bank, with the input of those closest to the Fund HILL INSURANCE activity focuses on SURETY AND BOND, successfully. The relatively small size of NatWest and Lloyds TSB, and other well Sector. Gibraltar has enabled local Fund established private and investment banks AVIATION AND ASSISTANCE: Administrators to work closely with the such as Lombard Odier, Turicum and Lifestyle benefits our goal is to provide our clients with quick and functional solutions that allow them to Regulator, the Financial Services Credit Suisse. To enable the Fund Finally whilst the points outlined above are make the most of the market opportunities Commission (FSC) and other essential Administrator to perform Net Asset critical considerations when selecting a service providers. Valuation calculations, receipt and payment jurisdiction, note must be made of the The Fund Administrator is licensed to of funds and suchlike it is imperative there numerous lifestyle benefits provided by carry out its activities by the FSC and is is a successful relationship with the relocating to Gibraltar. To find out more please contact us at responsible for submitting applications to Custodian. Many Financial Institutions in The tax advantages mentioned earlier the FSC for the establishment of a new Gibraltar can provide sophisticated online together with the fact that within a matter [email protected] Fund. Regular communication is platforms enabling the Administrator to of hours you could be skiing in Sierra or visit our website maintained by way of Annual Returns and perform NAV calculations efficiently; again Nevada, swimming in the Mediterranean, www.hillinsurance.eu notifications of changes to structures of due to the size of the community, strong scuba diving in the Atlantic or even taking Funds. The FSC takes a proactive bonds are built with local service providers a ferry trip to another continent approach and works with the Fund further enhancing communications. combine to make Gibraltar a very, Administrator to further enhance the Essential in the case of a licensed Fund attractive proposal for redomiciliation. HILL INSURANCE COMPANY LIMITED success of the jurisdiction, however it is is the appointment of an Auditor. Whilst www.fiduciarygroup.com Unit 1A, Ground Floor Grand Ocean Plaza Ocean Village - Gibraltar 12 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com Tel/Fax +350 200 62407 PROFILE Striving to do better still Having enjoyed a record 2009, turnover in the period since has been ‘static’ for Gibraltar’s only ship repairer, yet Ray Spencer finds that chief executive Joe Corvelli is proud of what is being achieved!

here was a significant lag in the for an off-plan 40-45 ft craft; “I could have effect of the worldwide recession sold a lot more if people could buy them on shipping and it wasn’t until off-the-shelf”. Tthe second half of 2009 that Entrepreneurship was proven, but in boat building. If you can find a way to work orders seriously slowed down for undoubtedly it was also his business mess about in boats and make a career out Gibdock, the firm that operates the historic acumen that attracted. of it, what a great concept”, he reflects. former and Having grown up near the water on He and Jill are “great adventurers” and dockyard. New York’s Long Island, Corvelli was with three young girls – now 10, 9 and 7 Since joining in 2007, 40 years old encouraged by his father, a civil and years – they were at a stage where their Corvelli has been slowly transforming the mechanical engineer who worked on horizons could be broadened. They live in business for a group of London private aerospace projects, to mess about in boats Surrey and he commutes weekly from The , who two years earlier had taken from a young age. Rock. responsibility for the three dry docks and He gained a degree from the Web He’s “enamoured with Gibraltar 1km of quayside at the southern end of Institute of Naval Architecture and Marine culture; the friendly and welcoming people. Gibraltar Port. Engineering, “but I never endeavoured to It’s a unique and wonderful place that “We are doing really well for a poor do design work; I realised early on that I’m I hope maintains its lustre as a small market” declares Corvelli, a native New much more energised by implementing and independent gem”. Yorker. “I see a lot of macro indicators that not designing.” The name Gibdock was introduced at show things are starting to up-tick - ship end-2009 to replace Cammel Laird, a owners investing in new capacity and no Taking control historic shipbuilding business name in the ships laid up any more - so the immediate Instead, aged 22, he joined a New York- UK and Gibraltar that in the mid-1990’s effects of the crisis are over and we should based Chinese/American family shipping went into liquidation. start to see some slow growth”, he explains. company and was sent to Tampa, Florida as Contracted not to discuss the The shareholders apparently, are pretty port engineer for a tug barge subsidiary transition, Corvelli notes: “Cammel Laird is happy about things too. “For what is a company. His operations manager’s fatal history for us. The rebranding was depressed market we are doing well keeping heart attack less than a year later saw properly bringing a name and a brand to our head above water and I’m proud of Corvelli, to his surprise, taking control there what is a key attribute – our unique location that”, Corvelli reports. for five years. and unique workforce, and the community Those unnamed shareholders offered Impressed by his work, the New York that creates that workforce. Bringing the Corvelli the opportunity of transforming firm moved him to head office, working in name back home to Gibraltar gave credence the dock’s fortunes through a long-time business development and from 1995 he and value and the name is what makes us friend and former College mate running a spent four years identifying and then great – it sings our locale.” Boston business-consulting group that was launching energy, power generating and helping to evaluate the yard’s development shipping infrastructure projects in China for Some anxiety strategy. private equity groups and other investors. However, the change – whilst well received It was perfect timing. Corvelli had just “It was a time when off-balance sheet by the firm’s international customers - did sold his specialist fishing custom boat finance was hot, as were Enron and China”. create some initial anxiety amongst the 270 building and maintenance business in south While flying to Hong Kong he met his employees. Florida. “After ten years I had bought the future wife, Jill, who was market Most of Gibdock’s full time employees business to a point where I could no longer development manager for the large US LPG have long-time careers. Last year, two 65 grow it without significant further capital, distribution company he sought to strike a years old retirees - a steel foreman at the top which I didn’t have”, he says. deal with. of his trade and a senior estimator who’d He nevertheless made money, having a By ‘99 Corvelli was ready for a life worked in many different roles - had both positive cash flow, but there were compara - change. “I had been working really hard started aged 15. tively few customers willing to pay up-front and took an opportunity to chase a dream Continued page 16

14 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com PROFILE

Continued from page 14 to gain, what Corvelli describes as “best-in- As Corvelli notes: “It’s a technical and class operators” – cruise ships, off shore heavy industrial workplace, but with a lot vessels, container ships, gas carriers and of hands-on labour involved from taking local ferry operators, all operating on tight apart ships to replacing shell plating. It’s a time scales. people business that unlike so many other But first “they send in auditors - a team labour intense industries that have managed of people for a number of days - not just to to automate and mechanise things, we real - Replacing 40 tonnes of decking this year look at the yard, but to sit with our people ly can’t do that. on the Thomson Celebration typifies "best across the board. in class" contracts. One route to bridging the small labour “They want to understand that pool (particularly in Gibraltar), has been the investment too in soft areas, training and procedures are in place - that they are actu - Government-backed mechanical and heavy management systems; things that also ally working and not just a paper exercise. electrical apprenticeship scheme that provide a real return – in particular, health That’s impressive. If we are transparent attracts on average 30 young people with and safety.” with ship owners and do everything possi - the aim of gaining a Level 3 NVQ certificate In the last three years, the accident level ble to keep to schedule, we earn their in four years.” at Gibdock has halved by adopting risk respect and earn a good reputation,” he However, “sad to say there is a pretty assessment policies, safe systems of work, says. high attrition rate - around 50-60 per cent. standard procedures, check and balance There’s a significantly higher intake than management system controls, and perform - Repeat custom those that graduate”, Corvelli admits. “We ance reporting feedback. They were built to A good measure is repeat custom that are seeing this the world over. There are the 18001 OHSAS Certified system accounts for 60 per cent of business. so many different softer career paths standard that is audited by Lloyds Register. Even so, there’s fierce price competition – computers and so forth - than even a gen - “We chose that route, because we want in the Mediterranean and in Cadiz and eration ago”, he says. to get from where we are to something bet - from Portugal, and costs in an already low- After a year of hand skills and general ter. Although accident rates were not poor, sector have risen 4 per cent annual - training, apprentices gain on-the-job they were not as good as they could be,” ly causing profit levels to remain difficult. experience in welding and steel work from Corvelli concedes, “and we are striving con - New business opportunities include around 60 tradesmen, a significant ratio, stantly to get better.” extending and converting ships, but and as a result Gibdock gains foremen, ship He recognises that change for every - Corvelli also wants bigger jobs afloat and managers and tradesmen. body brings anxiety and resistance is a sees oil rig repairs as a natural market. Even so, the firm employs up to 150 typical first reaction. “But pass that natural But the challenge is to get the first part timers for anything from ten days to human response, and through constant order. “They are the quintessential high four weeks. “We always source from engagement in these subjects, the company value clients, where timeliness is absolutely Gibraltar first, but most often its skilled has really embraced the safety management important, and their charter rates and lost trades coming from Bulgaria and Romania, system, he reports. opportunity costs of having it in a yard but also some from Spain,” Corvelli “Where the rubber meets the road, I’ve drives them to be cautious of something explains. tried really hard to keep it simple. We came new. We bid for that kind of work, so far up with 13 golden rules – straight-forward, without success, but I have every confidence Relationships simple rules that define what we thought that we will get one soon.” “Some come here for a job, finish and then are the baker’s dozen greatest risks in the He recognises that “having such a come back again when we need them – we yard and had a lot of success with that”. strongly committed workforce is notewor - keep their gear, we know them and their He meets the workforce - 12 -15 thy and there is an inherent strong work work record and we keep their certificates.” people at a time – twice yearly providing a ethic and value belief system. Being the There is also casual labour for tank repairs, valuable line of communication and only business of its type here, it’s not covering night shifts and unskilled tank feedback. Safety accounts for half of possible to think ‘If I screw up that job I’ll cleaning. discussion. go around the corner to another ship yard’. Recognising that it’s a question of It’s also a sound commercial driver. “It’s not leverage, but innately it gives maintaining a balance between full and The market place gauges the marine everyone here real pride in what they do”, part-time staff and with workload demand, industry in a critical way. Gibdock strives Corvelli concludes. he looks to create long-term relationships. “We have a great track record of having extremely little layoffs”, he says. Since the present owners gained control of the business four years ago, there has been on-going investment in replacing old infrastructure and tools. Corvelli is tight lipped about the size of investment beyond “millions of pounds”. But he quickly adds: “There’s been Three dry docks and 1km of quayside puts the Gibdock yard in a commanding position.

16 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com BANKING

interested in making any situation any Gibraltar: A Solid worse for anyone than it already is. At a Press Conference on June 24th - the first Press Conference of the newly Rock in a hard place formed Financial Policy Committee (FPC) - King was asked whether the crisis gripping Economic uncertainty is hanging over Europe as the the markets – caused by fears that Greece Eurozone faces possible meltdown. Peter Toner takes a look may default on its loans – could spark a at the situation and discovers that Gibraltar has answers of meltdown on the scale of the one caused by Lehman's collapse. its own and is truly a solid rock in a hard place… He replied: “I am not sure that the sov - hen the going gets tough, So when someone like Jean Claude ereign crisis now and what happened in the the tough put their money Trichet, President of the European Central case of Lehman Brothers have much in into gold – or so the Bank speaks, it’s generally advisable to common, other than the fact that it is a Wsentiment goes. And on listen. mess.” May 2nd of this year, gold reached a record On June 22nd he stated, “Danger Given that the role of the FPC is to high of US$1,577.57 an ounce and despite signals for financial stability in the euro become the new, “guardian of the resilience temporary offsets, is set for an 11th straight area are flashing ‘red’ as the debt crisis of the UK financial system” – the word year of gains. threatens to infect banks.” ‘Mess’ doesn’t sound encouraging from its These gains have been partly fueled by Trichet was speaking in Frankfurt after Chairman. China's demand for gold which is expected a meeting of the European Systemic Risk Red and Mess, that seems to be where to grow by a further 20% this year – but Board, “The message of the board is that we’re at. also by the uncertainty that the “European the link between debt problems and banks debt crisis might spread further” according is the most serious threat to financial The Irish/Greek Tragedy to Zhang Bingnan, deputy chairman of the stability in the European Union.” At this time of writing, the economic crises China Gold Association. unfolding in Europe is playing out faster And spread further it might. In Ireland than the plot in a Harry Potter novel, over the past year, nearly €20 billion has except that in a Harry Potter novel you at been withdrawn from Irish bank accounts, least have some idea of how the story will further weakening an already fragile end, good triumphs over bad . system. And who would feel comfortable In the case of the European Union and depositing their children's inheritance in a the Eurozone in particular, there is no such Greek bank account right now? plot and there is no certainty of a happy If that last thought sends a shiver up ending – though goodness knows that’s your spine, you’re not alone. In fact, it what everyone is working for. demonstrates that you probably have as If only we all shared the optimism much of a grasp of the seriousness of expressed by Tom Young, Chairman of the Europe’s problems, and Greece’s in Federation of International Bankers in particular, as any economist out there. Ireland (FIBI) at their annual lunch on June But grasping the scale of the problem 17th. is one thing. For leaders on the European As the representative body for stage, solving that problem has become a International Banks in Ireland, the race against time. Federation has 50 members and the Financial Services sector, of which it is part, The Bankers Dilemma European Central Bank “contributes €1.4 billion or 36% of tax Bank leaders have an everyday job to do receipts to the Irish economy”, he told his – yes, they’re trained in the skills of The European Systemic Risk Board audience. economics or banking or even mathe - (ESRB), became a legal entity on 16 He also reminded his audience that matics. But at an International level they December 2010 in response to the global growth opportunities exist in Ireland in also become Diplomats. financial crises. Its role is, “to consider how sectors such as ‘Green finance’ and ‘Islamic They’re trained in the skill of keeping the European supervisory arrangements finance’. markets steady. can be strengthened both to better protect What his speech didn’t offer was any They don’t need to bring sleepless its citizens and to rebuild trust in the finan - reference to the traumas that Ireland has nights upon themselves by saying some - cial system.” been through of late or is likely to face in thing ridiculous in public that causes may - And the considered opinion of its the coming months. hem in the markets that they then have to Chairman is that the situation is ‘Red’. And clearly, he hadn’t compared notes try and rectify. Sir Mervyn King, Governor of the with the guest speaker Joaquin Almunia, Bankers are far more considered than Bank of England, is another diplomat. In that. his capacity as a diplomat he is not Continued page 20

18 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com BANKING from page 18 From bad to worse... could be heading towards a technical Meanwhile in Greece, the situation looks default.” Vice President of the European dire. The Greek parliament has just voted Even Mr Cartwright is sympathetic to Commission for Competition Policy. for greater austerity to qualify for a further the problem, unlike so many Eurosceptics Almunia took a more pragmatic view €12 billion in aid. who say, “we told you so”. of Ireland’s banking situation. Others might suggest that the He referred to the fact that State aid to Germans and the French should just let the tune of €43 billion had so far been Greece return to the Drachma – devalue its granted to Irish banks which amounted to currency and get its tourism and economy one third (33%) of the countries Gross up and running again. Domestic Product (GDP) – by far the The problem with that last suggestion highest in Europe. is that it opens the door for Ireland to do He emphasized this percentage by the same thing, then Portugal and Italy. stating that next in line for government And then what? support after Ireland’s 33% was the If all of these countries default on their Netherlands at 6.3%, Belgium at 5.4% and obligations to the Euro – who will lend the UK at 4.4%. them money to get started again and at As if to suggest that Ireland must never what horrendous interest rates? return to its mistakes he added, “it is no The fact is that as bad as it seems, and longer possible to allow the banking sector Sir Mervyn King “It is a mess” is, the Irish/Greek tragedy can just about be to grow out of proportion relative to the maintained – for the present at least. It does size of a country’s economy.” And to drive Marvin Cartwright, Regional of course require the will of the Greek peo - his point home he added, “The Irish Manager of NatWest Bank in Gibraltar, ple - another matter. economy needs smaller, more robust and expresses his personal opinion on this sub - And keeping the Euro alive does have more prudent institutions.” ject, “Unfortunately, when the Euro was its merits – not just because of the huge Ouch! The audience can’t have been designed, no exit strategy was put in place investment that has gone into it so far, but happy with those last remarks, particularly – no Plan B. Now I find I am sympathizing the bit about ‘prudence’. with the hawks who believe that Greece Continued page 22

20 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com BANKING from page 20 opportunities or threats to the jurisdiction. applauded him. Gibraltar has demonstrat - They don’t generally make official ed a robust economy in recent years made because its collapse at this time, in this part announcements on policy as that isn’t their possible in part by its diversity. of the economic cycle, is frightening in the role. The GBA does however try to Emma Perez is President of extreme for everyone – including the UK. encourage or assist Government when the Gibraltar Bankers Association and So in the midst of this mayhem, it’s requested. Managing Director of SG Hambros Bank hardly surprising that as jurisdictions go, Mr Caruana was the GBA’s guest (Gibraltar), one of the dozen private banks Gibraltar looks like a solid rock in a hard speaker. He took the opportuni - in the jurisdiction. place… ty to run the bankers and Speaking to Gibraltar Gibraltar is part of Europe, its accountants through some sta - International she said currency is Sterling, its banks are solid and tistics. “Gibraltar has maintained a its government is stable. “The economy has trebled diversified economy and hasn’t in size in 15 years to reach £1 had the same negative exposure Gibraltar Banking goes billion GDP”, he told his to property, for instance, mainstream... audience, “and 8,000 more jobs as many other European Marvin Cartwright adds, “In the past 15 having been created in that Countries.” years, Gibraltar has come from being an period since the GSD (Gibraltar She adds, “Going forward, Offshore tax haven to an Onshore finance Social Democrats) came into Gibraltar has several growth Jean Claude Trichet centre with full EU approval and office in 1996.” “Danger signals in the industries it can build upon, favourable tax rates.” He went on to tell his Eurozone” including shipping, gaming and At more or less the same time that the audience that over the past ten technology. It all adds up to a Bankers Association was meeting in years the Government had generated stable environment to invest in.” Ireland, Chief Minister Peter Caruana budget surpluses totaling some £200m. Compared to the uncertainties facing was addressing the Gibraltar Bankers Additionally, public debt had much of Europe right now, Gibraltar is a Association in Gibraltar. remained relatively low at less than 25% solid rock. Any business or private account The Gibraltar Bankers Association of GDP and take-home pay had risen holder should take a serious look at this (GBA) is made up of 12 International by 90%. jurisdiction and gain a better Banks who meet regularly to discuss It’s hardly surprising that his audience understanding of it. FINANCE

chief executives and managing Promotional push for business directors from banks and asset management, “some ibraltar is to invest These will be in addition to long time ago about changing already known to Gibraltar, but greater effort and the traditional joint-industry views and they are only just now also there were several key resources into mar - presentations made by local facing the issue”, explained newcomers”. Gketing the attraction representatives at specialist sem - Tipping. A team of 45 represented of the jurisdiction to the wider inars and occasions in the UK A veteran of such delega - Gibraltar, including representa - financial services sector as a and Switzerland, for example, tions over the last decade, tives from Lombard Odier and means of further growing the where the Finance Centre has Tipping noted that Switzerland, Turicum private banks, and economy, amid strengthening just experienced “the most like Gibraltar, is not a large lawyers from two of the largest competition from other UK- successful visit yet”. country and the mind set of each firms, Isolas and Hassans. linked centres. Jimmy Tipping, Finance is similar. Yet financial services Two breakfast meetings in Jersey, Guernsey and the Centre Director, said: “It could accounts for only 10 per cent of Zurich (attracting 125 corpo - Isle of Man – all off-shore not have gone any better!” the Swiss economy: in Gibraltar rates and advisors) and in centres – are raising still further For the first time, it is closer to a quarter. Geneva also recorded record their profiles to appeal to Gibraltar’s experience of transi - “It takes a long time for the attendances, “and by more in the UK and other tion from tax haven to EU Swiss to make up their minds, senior decision-takers than more-distant financial jurisdic - finance centre was resonated but when they do it generally is previously. tions: but unlike Gibraltar, they with bankers and insurance for life. They see that we are not “If they are planning to set are outside of the EU. institutions in a country that predatory or pinching business, up operations outside of Three “high-end, front faces close international scrutiny but if an asset or funds manager Switzerland and need an EU office representatives” are being over its approach to confiden - is interested in gaining business base, our message was not to recruited to operate from The tiality in financial transactions. in Europe, then we are good for underestimate the importance of Rock and extensively travel to “The process Gibraltar a partnership”, he explained. financial strength; Gibraltar has present the Gibraltar advantage went through in changing from The two day trip included a a stable economy, regardless in private client business, insur - a perceived secretive financial Zurich lunch hosted by Chief of the financial chaos in ance, asset management and centre is similar to that now in Minister Peter Caruana, attend - Europe and beyond”, Tipping funds. Switzerland, except we started a ed by more than 200 people - emphasised.

24 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com FINANCE FINANCE

major shareholders, such as venture capital information is suddenly available to short-term decisions that could have a confidence, such as the Sarbanes-Oxley Act firms, require liquidity in a company. competitors, customers, employees, and harmful long-term effect on the company. of 2002 in the United States. Venture capital firms generally organize others. Information such as your compa - Going Public funds with an expected life of less than ten ny’s sales, profits, and the salaries and l Less control. l Expense. years. At the end of that period, they need perquisites of your officers and directors The sale of shares to the public will dilute The cost of going public is substantial, both to liquidate the fund. By going public, you must be disclosed not only initially, when your ownership and reduce your level of initially and on an ongoing basis. As for -Is your Company provide the venture capitalists with the you go public, but also on a continuing control of the company. In addition, you the initial costs, the underwriters’ commis - ability to sell their holdings or to distribute basis thereafter. will be required to have a Board of sion can run as high as ten percent publicly tradable to their fund Directors consisting of a majority of inde - (although typically seven percent) of the Ready for the participants. l Management demands. pendent directors. The Board of Directors total offering proceeds. In addition, you Top management must be available to is responsible for protecting the sharehold - can incur significant out-of pocket expens - Capital Markets? l Improved credibility with business shareholders, brokers, securities analysts, ers’ interests and you will be accountable to es for even a small offering. partners. and the press - all of whom want up-to- them. Additionally, as your dilution There are also significant ongoing The simple fact that you are “public” date information about company progress. increases, the possibility for a hostile expenses associated with periodic public By Eran Shay, Head of Financial provides business partners such as Executives must also be involved in takeover increases. reporting, regulatory compliance, directors Advisory Services, Deloitte suppliers, distributors, and customers with preparing written information about and officers liability insurance, independent more information and makes a strong financial results and other company l Greater legal exposure. director fees in the form of cash payments statement that your company is a business matters that must be reported to the public As a consequence of selling your company’s and option awards and other requirements. or many executives of growing your company with additional funds to of substance. and the regulatory authorities. shares to the public, there will be greater companies, going public is the meet working capital needs, acquire other Prospective suppliers and customers legal exposure to the officers and directors In summary ultimate dream. Going public businesses, expand research and develop - thus feel more secure about entering into a l Pressure to maintain growth pattern. of the company. The first half of 2011 has showed signifi - signifies, both to the executives ment efforts, invest in facilities and relationship with your company. You may Management will have to begin reporting cant improvement in IPO activity, recover - F l and to the outside world, that the company equipment, or retire existing debt. Publicly also be perceived as a more attractive part - operating results on a quarterly basis. That Enhanced corporate governance. ing from one of the most challenging exit has achieved a special kind of success. Yet, traded stock can also be effectively used in ner in a joint venture or other similar rela - means that parties will now evaluate your Due to the recent corporate failures and the environments ever faced by the venture careful and deliberate thought must go into mergers and acquisitions. tionship as a public company. company quarterly, which will intensify the loss of investor confidence, regulatory capital industry. With the appetite for IPOs the decision to go public. pressure and shorten your planning and authorities have acted to implement expected to continue to grow, perhaps now Advanced planning for an Initial l Improved financial position. l Better employee morale and productivity. operating horizons significantly. reforms aimed at strengthening corporate is the time to start preparing. (IPO) takes significant As an IPO is usually in the form of an Stock options and other incentive The pressure may tempt you to make governance and restoring investor www.deloitte.gi management time, and many are delayed- equity-based security, your company will compensation plans enable personnel to or even fail - because the amount of work experience an immediate improvement in participate in the company’s success, with - required to prepare it is underestimated. its balance sheet and debt-to-equity ratio. out increasing cash compensation. The At best, delay will result in your company Significant reliance on debt instruments chance to acquire stock in the company incurring higher costs; at worst, a rather than equity can be a high-risk they work for also causes employees to window of opportunity being missed strategy for growth companies. take a longer-term view of the company. altogether. That is why proper planning for an l Less dilution. l Personal wealth. IPO not only pays ; it is an essen - If your company is at the stage where it is Not insignificantly, an IPO can enhance tial part of being ready for the inevitable ready to go public, you may command a your net worth. Even if you do not realize change to the business that going public higher price for your securities through an immediate gain by selling a portion of your demands. IPO than through a private placement or existing stock during the IPO, you can use It is advisable to weigh fully the other form of equity financing. This means publicly traded stock as collateral to secure advantages and disadvantages, including that you give up less of your company to borrowings of a personal nature. Shares of those listed in the section below, with a receive the same amount of funding. publicly traded stock are more liquid and group of trusted advisors who can help you as such can facilitate personal financial and understand the requirements of a successful l Enhanced ability to raise equity. estate planning. offering, what your role will be, what As your company continues to grow, you regulations must be complied with, and are likely to need additional permanent The Disadvantages what effect a public offering will have on financing in the future. If your stock There are also some very challenging issues you and your company. performs well in the stock market, you may associated with going public, that some be able to sell additional stock on view as significant disadvantages that The Advantages favourable terms. should be weighed against the many Going public potentially provides both advantages: tangible and intangible benefits, including l Liquidity and valuation. the following: Once your company goes public, a market l Disclosure of information. will be established for your stock. A public As a publicly held corporation, your com - l Increased capital . market makes it easier for you to dispose of pany’s operations and financial situation When growth can no longer be financed a portion of your interest should you want are open to public scrutiny. internally, from private equity investors or to diversify your investment portfolio or if Information concerning the company, through borrowings, an IPO can provide you are ready to leave the company. Some officers, directors, and certain shareholder

26 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 27 BUSINESS BUSINESS An oasis... Bmibaby to Launch New estate planning and succession, More Monarch Flights to Ian Collinson, Mike Harvey, East Midlands Airport to and he advises on a wide range Gibraltar this Summer Pepe Canilla and Stephen Gibraltar Route of legal and commercial issues. Monarch will be flying more Reyes. Low cost airline bmibaby is to He has a wealth of frequently to ‘The Rock’ from www.gibraltaraccountants.com launch a new route from the experience relevant to his new the UK this summer, with 16 UK’s East Midlands Airport to position, having held legal flights from London Luton and JAR’s Aviation Fund Gibraltar from Spring 2012. positions at Gibraltar Manchester. According to Takes Off The new service, effective from Companies House and at Monarch Airlines MD Kevin Gibraltar-based JAR Aviation in a busy world 31 March 2012, will fly three trustee company ECS George. Fund PCC Ltd. has launched a times weekly on Tuesday, International Ltd. Gibraltar’s new terminal new high-flying fund which Thursday and Saturday. Spring Law Gibraltar’s was “a significant factor in specialises in buying, selling bedrooms clients currently include encouraging us to expand our time for Christmas. and Investments Association and leasing aircraft worldwide. 104 Bedrooms and suites in a colonial companies with existing operations from Gibraltar.” Her initial price tag was (GFIA) were announced at its Francis Menassa, COO of style all with a sea view business interests in Gibraltar, Outlining the new rumoured to be around £310 AGM held recently at the Eliott Plurimi Capital, the investment conference facilities as well as businesses keen to schedule, he said, “An extra million, but current estimates Hotel. advisers to JAR Aviation Fund, Full upgraded conference facilities restructure and take advantage four flights a week will operate are closer to one billion approached Hassans available for board meetings, training of Gibraltar’s attractive 10% from London Luton Airport to dollars. International Law Firm to set courses and presentations corporate tax rate introduced Gibraltar, in addition to the She has nine-decks, two up the legal structure for the Internet by the Gibraltar Government. daily flights currently offered, heli-pads, a spa, Jacuzzi, 16- new fund. FREE Wireless broadband available Chris also assists clients with metre pool, sundecks, salon, Several new faces replaced throughout the hotel and an internet obtaining the required licences main dining hall, reception members who have stepped room for our guests to use This service is good news from the Gibraltar Financial hall, disco, bar, and there are down. The Executive weddings for “commuters” as bmibaby Services Commission, guiding meaning double daily flights 6ft home cinema screens in Committee for 2011-2012 is The Rock is an ideal wedding venue is the only low cost airline that them through the various on Mondays, Wednesdays, guest rooms, and a total of 24 Adrian Hogg (Chairman), whether it be a small intimate wedding currently covers this route. regulatory hurdles involved. Fridays and Sundays. staterooms and suites. Raacida Amenzou (Secretary), or large family gathering. We are also a recognised venue for civil marriages East Midlands Airport is The new office will offer a “In addition, an extra two Abramovich has his own 5,000 Moe Cohen (Treasurer), Mark and ceremonies can now be conducted within easy reach of Derby, range of services, including flights a week will operate in various parts of the hotel Nottingham and Leicester and handling private client matters between Manchester and Swimming Pool transport and rail links to the and advising company Gibraltar this summer, Outdoor swimming pool with pool rest of the UK are excellent. directors, employees and bringing the total number of Business side bar and pool side menu. We Julian Carr, Managing private individuals on all flights to five per week – a Francis Menassa welcome private pool membership, Director, bmibaby, commented: aspects of their legal 62% increase on the same our lido club, with private pool hire for parties and barbecues “We were particularly requirements and local period last year. Hassans International’s impressed by the new facilities registrations to conform with www.monarch.co.uk ROUND UP James Lasry and Anthony Restaurant at Gibraltar Airport and we Gibraltar-specific regulations. Jimenez, both EIF licensed The restaurant has stunning views look forward to commencing Abramovich’s Gigayacht directors, confirmed the fund is over the bay. Our “house” menu is excellent value for three courses the new route. We will work Spotted off Gibraltar square foot master suite Maloney (Head of Training), the first of its kind in including an aperitif Manzanilla, closely with the airport to Coast complete with retractable Charles Melvin (Head of Gibraltar, possibly within olives and coffee. A full á la carte develop this service.” Yacht lovers at Ocean Village moon roof so that his partner Technical), Andrew McGrath Europe. Lasry added, “This is menu along with a superb eclectic wine list is also available www.bmibaby.com were treated to a superyacht Dasha Zhukova can sleep (Head of Marketing), John yet another success for Spring Law Group is a spectacle recently, when under the stars. Bensadon, Joanne Sené and Gibraltar’s fund industry to be wisteria terrace Spring Law Group full-service law firm, with Roman Abramovich’s gigayacht She also, reportedly, has a Trino Cruz. For more able to attract investment from The Wisteria Terrace for lunches, dinner, barbecues, afternoon teas, London Opens New three partners in London and a Eclipse – reportedly the world’s specially built-in laser shield to information about GFIA please the London investment evening drinks and informal dining Gibraltar Office further fourteen solicitors, all largest - paid a visit to keep the pesky paparazzi at visit www.gfia.gi manager community.” London-based Spring Law with specialist skills, recruited Gibraltar recently, to refuel. bay, plus a military-grade The fund has already Barbary bar Group has opened a new from some of the top law firms The 163.5 metre German-built defence system and bullet- 2011/2012 GSA raised $50 million. Jimenez, Barbary Bar and terrace for a relaxing drink and for the wine Gibraltar office at Ellicott in London. The group’s beauty is 0.5 metres longer proof windows. Executive Committee who worked alongside Peter buff, a choice of nine wines by House, No. 1 Town Range, expertise includes family, than the megayacht “Dubai”, Onboard, the crew of 92 Announced Young of Hassans, who acted the glass Gibraltar. Managing Partner commercial, tax, property, owned by Sheikh Mohammed are on hand to look after up to Following its AGM earlier this as Gibraltar counsel to Lounges Chris Keightley-Pugh, who construction, engineering, of Dubai. It took five years’ 30 guests, and make sure summer, the Gibraltar Society establish the fund, said, “It has Take a good old fashioned English heads up the Group’s new corporate and intellectual intensive design and Eclipse is shipshape 24/7. of Accountants (“GSA”) has been a pleasure to work with tea in one of the spacious lounges Gibraltar offices, began his property law, as well as construction and caused more If fellow tycoons need to appointed its Members of the Plurimi Capital and Plane career in London at Fox & employment, pensions and than a few headaches for its borrow Eclipse to get away for Executive Committee and each Business on this project. It was Gibbons before later moving to incentives, corporate Russian owner after various a while, she’s available through Faculty for 2011/12, as a challenging fund to set-up the firm’s Gibraltar base. restructuring and insolvency, glitches emerged, delaying SuperYachtsMonaco at a price follows: Freddie White with a lot of planning Chris’s specialist and private client counsel. Eclipse’s delivery to of £1.2 million a week. (President), Colin Vaughan involved, however, we finally Europa Road, Gibraltar experience lies in commercial Email:chris.keightleypugh Abramovich by almost a year. . (Vice-President), Marcus made it and I’m sure it will be Tel: +350 200 73000 Fax: +350 200 73513 and private client work, @springlaw.co.uk Last December, he finally New Changes at GFIA Hayday (Secretary and a success.” E-mail: [email protected] including wills, international www.springlaw.co.uk received his new yacht just in Changes at the Gibraltar Funds Treasurer), Desiree McHard, www.hassans.eu www.rockhotelgibraltar.com

28 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 29 CONTACTS

Professional Bodies based in Gibraltar Association of Pension Fund Administrators (APFA) Gibraltar Finance Centre Council (GFCC) Steven Knight, Chairman, Tel: + (350) 200 40466 Kerry Blight, Chairman, Tel: + (350) 2000 4000 Email: [email protected] Email: [email protected] Association of Trust & Company Managers (ATCOM) Gibraltar Federation of Small Business (GFSB) Marc X. Ellul, Chairman, Tel: + (350) 200 70921 Stuart Rodriguez, Chairman, Tel: + (350) 200 47722 Email: [email protected] Email: [email protected] Bar Council Gibraltar Funds & Investments Association (GFIA) David Dumas, Chairman, Tel: + (350) 200 59026 / 79075 James Lasry, Chairman, Tel: + (350) 200 79000 Email: [email protected] [email protected] Email: [email protected] Gibraltar Association of Compliance Officers (GACO) Gibraltar Insurance Association (GIA) Ivan Perez, Chairman, Tel: + (350) 200 73520 Chris Johnson, Chairman, Tel: + (350) 58452000 Email: [email protected] Gibraltar Insurance Institute (GII) Gibraltar Bankers’ Association (GBA) Andy Baker, President, Tel: + (350) 200 79520 Emma Perez, President, Tel: + (350) 2000 2000 Email: [email protected] Email: [email protected] Gibraltar Society of Accountants (GSA) Gibraltar Betting & Gaming Association (GBGA) Freddie White, President, Tel: + (350) 200 45502 Freddie Ballester, Chairman, Tel: + (350) 200 40595 Email: [email protected] Email: [email protected] Society of Trust & Estate Practitioners (STEP) Gibraltar Chamber of Commerce (GCC) Peter Isola, Chairman, Tel: + (350) 2000 1892 Nicholas Russo, President, Tel: + (350) 200 78376 Email: [email protected] Email: [email protected]

30 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com en you There is now no booking fee whe r how pay with a Debit Card, no matter many people in your booking .

ONLY £10 WITH CREDIT CARD PAYMENTS