p6 Budget moves p28 Lasry’s passion Aug/Sept/Oct 2009 INTERNATIONAL FINANCE AND BUSINESS strategy in the making

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 http://www.gibraltar.gov.gi

DELOITTE HASSANS Tel: +(350) 200 41200 • Fax + (350) 200 41201 Tel: +(350) 200 79000 • Fax + (350) 200 71966 www.deloitte.gi www.gibraltarlaw.com

SG HAMBROS PIRANHA DESIGNS SG Hambros Bank (Gibraltar) Ltd Tel: +(350) 200 45599 • Fax + (350) 200 52037 Tel: +(350) 20002000 • Fax + (350) 200 79037 www.pdg.gi www.sghambros.com QUEST INSURANCE MANAGEMENT LTD. EUROPA TRUST COMPANY Tel: +(350) 200 74570 • Fax + (350) 200 40901 Tel: +(350) 200 79013 • Fax + (350) 200 70101 www.quest.gi www.europa.gi JYSKE BANK (PRIVATE BANKING) INVESTGIBRALTAR OFFICE Tel: +(350) 200 59282 • Fax + (350) 200 76782 Tel: +(350) 200 52634 • Fax + (350) 200 52635 www.jyskebank.gi www.investgibraltar.gov.gi LLOYDS TSB MONARCH AIRLINES Lloyds TSB Bank (Gibraltar) Ltd Tel: +44 (0) 8700 405040 Tel: +(350) 200 50999 Fax + (350) 200 47346 Tel: +(350) 200 47477 www.lloydstsb-offshore.com www.monarch.co.uk www.flymonarch.com

www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 3 Aug/Sept/Oct 2009 EDITORIAL COMMENT Volume 15 / Number 3 21st Century vision for tourism? Contents t would be easy to dismiss as NEWS trivial the notion that more 2010 budget tax progress needs to be spent on Gibraltar’s tourism Two more TIESs? development. The Rock Finance Centre 2015 Ialready attracts 10m+ visitors a year. Airlines grow But as the more astute point More berths for Ocean P6-8 out, turning visitors into tourists, appreciating more than BANKING the cheap fuel, alcohol and cigarettes that are offered, is a Call for ‘balance’ in reactions P10 bigger task. And potentially, a very rewarding one. LAW No-one seems to know the full extent to which ‘Helicopter’ views P12 tourism contributes to the Gibraltar economy. And for this reason, one of the main pillars of The Rock’s INVESTMENT economy is under-valued, possibly by Government and Risk Up, USD down P14 certainly by the many residents who see tourists as an TOURISM intrusion, an unnecessary hindrance. Strategy promised by year-end That tourism is a big contributor to the Rock’s £850m More ventures proposed P16-19 GDP is clear, but just how big? TAXATION Official figures suggest £247.5m was spent by ‘tourists’ last year, but even if truly by tourists and not Moves to shed ‘tax haven’ label substantially by shopping day trippers to the supermarkets Wealthy individuals’ non-taxing lifestyle and petrol stations, much still will be accounted for as Cross-border considerations P21-24 import costs. The net impact is less. NEWS Then there is the effect on the wider Gibraltar Trafalgar goes P25 economy - the laundries, bakeries and liquor merchants PEOPLE AND PLACES P26-27 serving hotels, for example - both in terms of money spent in varying tourism sectors and in terms of the employment PROFILE in those enterprises. Funds ‘a consuming passion’ for James Lasry P28-30 Both branches of the influential Gibraltar Bland LAST WORD family, who together - but separately - are involved in a Cautionary tales for travellers P31 large part of Gibraltar tourism - independently claim their enterprises are “very profitable”. This is why the prospect of a ground-breaking Strategy for Tourism by the year-end, led by the Government, which owns or is responsible for much of GIBRALTAR INTERNATIONAL MAGAZINE The Rock’s tourism sites and infrastructure, is to be warmly welcomed. Published by Gibraltar No part of this publication International Publications Ltd. may be reproduced without Joint-venture partnerships, with the private sector 1/5 Irish Town, Icom House, the written permission of the investing alongside government, and taking a lead in Suite 6/PMB 104 publishers. The publishers managing sites to maximise opportunities, also seems to PO Box 561, Gibraltar have tried to ensure that all information is accurate, but make good sense. Editor emphasise that they cannot The question is whether all this will turn a locally Ray Spencer accept responsibility for any frustrated and sometimes embarrassed business [email protected] errors or omissions. The publishers accept no community, into advocates of Gibraltar Tourism Inc. Sales responsibility for statements Much will depend on the extent of vision displayed, C.A. Tanner made by contributors or for [email protected] any claim made in an the coherence of bold plans, the adoption of meaningful advertisement. statistics to aid development, and the availability of Design finance. Bil Brooks Gibraltar International [email protected] Magazine is available on It’s certain however, that promotion of “Gibraltar, the subscription, 4 issues posted destination of choice in southern Europe” will not be UK Agent: to: UK £24 - EU £32 - enough for competition in the 21st Century! Tel: 0044 (0) 1993 703560 Rest of World £44.

© 2009 Gibraltar International Publications Ltd.

4 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com NEWS NEWS

again in surplus for the year Cat 2 High Net Worth Centre grows Low tax rate confirmed for 2011 as to March by £17m, or 6 per available macro economic residents pay more, however. cent of recurrent overall indicators show an economy With a rise of £2,000 in the Gibraltar now hosts 103 expenditure, and higher than that continues to perform minimum amount of tax licensed insurance operations ‘essential for economic prosperity’ anticipated. very well, even in the most payable to become £20,000. - 63 in licensed companies challenged global economic Gibraltar’s super-low 10 per cent tax rate for utility providers - electricity, remains in good shape the Net public debt of and the maximum taxable and a further 40 in protected fuel, telephone service and government is to “maximise £62.5m, or just 7.5 per cent environment in living income increased from cell companies, 28 intermedi- businesses is to take effect from January 2011, water - then will face a 10 per our vigilance for any early of estimated GDP, was “very memory”. £60,000 to £70,000. aries and nine managers, later than hoped by most businesses already cent surcharge making their signs of adverse effect of the low by all usual economic Against this background, To the surprise of some, Chief Minister Peter Caruana paying tax. The date was the latest possible rate 20 per cent. Users are global economic environ- measurement”, Mr. Caruana the financial services centre there was no reference to told Parliament. under legislation and EU requirements to unlikely to see price reduc- ment … by keeping a much declared, and compares with continued to grow during up-coming Tripartite talks “There are 27 investment 2008 and 2009, and Mr. remove the Exempt Companies nil rate tax. tions as a result of the tax closer eye on indicators of £78m in 1994 when it repre- expected in July - and firms, 95 collective invest- changes. very current economic sented 23 per cent of GDP of Caruna was “confident” that no date given - nor any ment Schemes, 87 licensed Determined to press activity”. only £340m. it would do so in the coming reference to progress with trust and company services The move foreshadowed a Effectively, companies ahead with tax reform, Mr He pointed out that “in years. Tax Information Exchange providers, two pensions year ago, was announced will be paying tax at a higher by Chief Minister Peter Caruana spoke confidently of many countries government Agreements (TIEA)s providers and 19 credit insti- rate – or not at all for Zero Employment up Caruana, in his late-June an economy and the number borrowing is used to fund (see below and p21). tutions”, he added. rated enterprises - for the first Pointedly, he said that while Budget statement, saying it of jobs - now 4.1 per cent annual budget deficits”, but half of the 2010/11 financial other finance centres had was “essential for Gibraltar’s higher at 20,509 – continuing “this does not happen in year and the common low shed jobs on a large scale, socio economic prosperity to grow to record levels, in Gibraltar, not least because rate thereafter. There will be Gibraltar had seen a small Start-ups get low tax now that our corporate tax marked contrast to experi- our budgets have been and wide ranging and far reach- increase and employment lev- New businesses and some recently established businesses rate should be as competitive ence elsewhere in the world. remain in permanent, struc- ing anti – avoidance provi- els were being broadly main- stand to benefit immediately from much reduced as is compatible with “Current economic indi- tural surplus, year after year. sions in place. tained judging by first and corporation tax rates, as a means of encouraging start-ups Government’s revenue needs”. cators all point to continuing second quarter statistics. and early development needs of existing operations. significant growth in the And he noted: “Without Property transactions The 2009 budget changes mean that the 10 per cent Huge windfall economy during the current No deficits this there would be large slowed in 2008 to 618 (805 rate will be applied from July to any new business on an The basis of the tax however, period of time”, he main- “The question of funding scale loss of economic activi- in 2007), but the total value actual year basis. will not change from the tained. deficit budgets therefore ty and job losses.” involved of £188.9m As part of anti-avoidance measures, businesses cannot present source based system. In the year to end-March simply does not arise As an interim measure, (£184.4m) rose. Early indica- re-organise in the name of a different entity for the purpose “Existing corporate tax the government provisionally Many indicators of cur- here.”Even whilst improving corporation tax was reduced tions for the current year are of benefiting from the scheme. payers will be huge windfall estimates economic growth rent levels of activity will be health and social services, from 01 July by 5 per cent to for fewer transactions and a Even businesses set up since 01 July 2007 stand to beneficiaries of the need to slowed a little at nearly 6 per assessed monthly, rather than cutting personal and corpora- become 22 per cent and a fall in values. benefit with the low rate applying for the 2009/10 tax year. eliminate tax exempt status, cent to reach £850m, and quarterly or even annually. tion tax and investing an esti- further cut is expected in a Personal tax under both The company must agree to be taxed on a preceeding year and its replacement with a compares with an almost 9 The Government’s over- mated £105m in on-going year’s time, prior to introduc- systems that operate in basis, and not on an actual year basis in the context of low rate for all companies”, per cent rise a year earlier. all recurrent revenue and capital projects – including a tion of a general 10 per cent Gibraltar have been reduced commencement provisions. Mr. Caruana told Parliament. To ensure Gibraltar expenditure Budget was new airport terminal and rate. However, energy and frontier access road – “all the and taxable bands altered.

Gibraltar currently is on was not in Gibraltar’s best the UK, was essential to the appeal by Spain, in circum- and terms of its tax case what the OECD calls its ‘grey’ interests to disclose in Spain tipped to follow Irish planned tax changes for busi- stances which the appeal, stands as a monument list of countries willing to advance which countries were ness. Commission itself thought of very recent creation”. enter into TIEAs, but that had involved. But Spain, along with the not worthwhile, and the lan- As part of its case, Spain with joint tax agreement not yet implemented a signifi- EU on separate and different guage, terms and tone in argues that the OECD consid- cant number. The list Spain challenges grounds, has launched an which it has been, unnecessar- ers Gibraltar to be a tax is to be ‘reviewed’ in Spain is believed to be Representatives of UK Gibraltar”. low tax plan appeal, throwing into doubt ily, formulated, is an act moti- haven with ‘harmful tax November. on the verge of signing a insurance companies are Information typically Gibraltar’s June budget reaf- the certainty of Gibraltar’s vated exclusively by political measures’. The ECJ was Mr. Caruana said: “We Tax Information Exchange understood later to have been sought would be “bank firmed its determination to plans, which it regards as desire on Spain’s part”, the wrong to agree that no com- are moving very quickly and I Agreement with Gibraltar. told at a London seminar that account information and ben- cut corporation tax by “absolutely essential to our Chief Minister asserted. parison could be made am confident that we will It would follow a similar The Rock’s government was eficial ownership information announcing the January 2011 continued economic, and thus between business activity in have the necessary number of agreement that Ireland’s close to agreeing a TIEA with for companies and other enti- start date for a historically social and political viabilityDialogue continues Gibraltar and in the UK, as it agreements, and more, in very Minister of State at the Spain, which has long ties established in Gibraltar”. low 10 per cent rate, regarded as a small country.” Gibraltar remained commit- was in breach of the OECD good time.” Department of Finance, Dr. claimed that Gibraltar is a tax And Peter Caruana, as positive to the territory’s Peter Caruana toldted to political dialogue with principles. The first TIEA was Martin Mansergh, said haven for individuals and Gibraltar’s Chief Minister, economic outlook. Parliament in late June thatSpain, but there was unlikely Finance Centre business secured with the US in April. Gibraltar had signed with his companies evading tax. told Members of Parliament, The Government’s victo- he was “confident of successto be any significant, leaders displayed to Gibraltar Negotiations for tax country. The Gibraltar Minister Mansergh said that he anticipated having in ry in the European Courts of in the appeal brought byimprovement in relations International strong confi- information sharing agree- Government revealed in mid- the agreement - Ireland’s fifth place more than the 12 TIEAs Justice (ECJ) decision that Spain” and added: “Thatuntil Spain rid itself of “pre- dence that the original ECJ ments have already been June that it was in “very - represented “a significant required to fully satisfy reaffirmed Gibraltar’s free- appeal is very long on politicscisely the instinctively hostile decision would be upheld and closed with several other advanced negotiations” with development in relations OECD international tax dom to have its own tax sys- and short on legal merit. and offensive mindset to the outcome known this countries, he declared, but it numerous countries. between Ireland and transparency requirements. tem, separate and different to “The bringing of thatwhich the fact, language, tone autumn.

6 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 7 NEWS Spending more to reach super yachts discounts for longer- Over £500,000 is being largest up to 90m-long craft term or annual invested by Ocean Village in worth over $US200m. agreements. creation of 50 premier berths But according to at its new marina develop- Stevendale, increasingly own- Cut price fuel ment to offer from August a ers of more expensive craft adds to appeal making for a significant 42 service that will match Spain’s are demanding a better qual- But the “mega-rich in their per cent saving and potential- Puerto Banus. ity of service, including securi- mega-yachts” that Ocean ly thousands of pounds to It is the first stage of “sig- ty gates, shore-based showers Village aims to appeal to may owners of very big yachts. nificant further investment” and other bathroom facilities, be attracted more by low fuel At the same time, in this area over the coming Satellite TV, wireless Internet costs: Gibraltar is already said Stevendale told Gibraltar year, says Brian Stevendale, access, yacht brokerage and to be the most important ship International that at least sales & marketing director of full concierge. re-fuelling point in the three luxury yacht brokerage the Village that already “With this development, Mediterranean, with Athens businesses had signed up to includes dining, entertain- Gibraltar can now legitimate- in the number two spot. establish a base at Ocean ment, retail, office space and ly compete with other estab- For example, at end-June Village, “reflecting the confi- three residential plazas up to lished marinas around the over 300 litres of marine fuel dence they have in this 17 storeys high accessing Mediterranean coastline”, he was available at 61.5p per strategically placed marina seven swimming pools and a says, adding: “We know the litre in Gibraltar, equivalent at the entrance to the health club. demand’s there; we already to 1.02 per litre in Spain, Mediterranean.” The multi-million pound have a waiting list for our pre- development, which also mium berths.” embraces Marina Bay, boasts Costs for a 25m mooring 155 berths and can accommo- off-peak are £125 per day for Finance centre looks date some of the world’s example, but there are ahead to 2015

Gibraltar’s Financial Services issues facing those working New flights taking off Centre is planning its first in insurance, or the trends The promised 90-minute schedule, alongside services to all-embracing conference for in the funds industry, for flights to Barcelona with Luton. mid-October with “Gibraltar example”, he told Gibraltar new airline Andalus from easyJet continues to use 2015” as a working title. International. Gibraltar began in early July London Gatwick to connect Some of the numerous Finance Centre Council on three days each week - with The Rock, usually twice professional associations on chairman, Emilio Gomez, said Monday, Friday and Sunday daily. The Rock previously held the event is expected to at a cost of e74 each way. In the meantime, Minister day-long conferences for their involve most, if not all, of the The airline’s twice daily for Joe Holliday members and guests, but even associations represented. Madrid route is now at a has told Parliament, that the the local Bankers’ Association Aimed at those involved reduced e59 price each way, government “will continue to did not organise one in 2008, with the various sectors of which Andalus says is slighty develop a strategy to attract the first time in 5 years. financial services locally, “the less than the 5-hour train more operators to coincide “There are overlapping conference will not be mar- journey from Malaga. with the opening of the new interests between the organi- keting orientated, but have And from 25 October, BA air terminal”’expected in the sations and people were the primary aim of creating a is switching its once daily first quarter of 2011. sometimes involved in a num- broader awareness of all London flights from Gibraltar Despite difficult commer- ber of such events”, explained aspects of financial services to Heathrow’s year-old cial circumstances experi- Thomas Westh Olsen, presi- and of the extent to which Terminal 3 on a later schedule enced by the airline industry dent of the GBA, which has these are inter-linked to create rather than using Gatwick, to worldwide, the number of provided a lead on the project a financial services industry”, better connect with the arrivals at Gibraltar by air last within the Finance Centre he said. airline’s worldwide network. year at 183,663 was 2.2 per Council. A venue and exact date Meantime, Monarch says cent higher than in 2007. “But there is educational has still to be decided for its Manchester flights are However, in the first 5 value in pooling knowledge of the conference, which will proving especially popular months of this year, there had the different sectors so that explore how the finance and it will keep the been a 16.5 per cent increase bankers, for example, better sector might look in six year’s destination within its winter on the same period last year. understand the workings and time.

8 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com BANKING Bankers’ chief calls for ‘balance’ in reaction to higher costs and scarce funds

mposing greater regulatory and liq- uidity requirements on banks in the wake of the world economic crisis, But Ms Knight cautioned: “Just as inevitably will lead to higher costs this is possible to see exactly why these and scarcer financial services. initiatives are up and running, so at the IBut in a spirited defence of the role same time, judgement and balance are banks have played, Angela Knight, chief vital.” executive of the British Bankers It was important to recognise that Association, called for ‘balance’ in the changes will result in a significant reactions of governments and consumers. increase in the cost of doing business. “If we proceed to implement the However, “there is a need to have a clear many changes required of the industry idea on what sort of size the banking then the cost of supplying the services industry should be in the UK, and indeed [including credit cards, debit cards and not get everything right, it did not get what activities should or should not take mortgages] will go up significantly and everything wrong either. The banking place here in future.” their availability will diminish as well”, industry was not responsible for regula- Already, hedge funds were re- said Knight. tion and it didn’t run central banks, nor registering in Switzerland, predominantly A former Economic Secretary to the make government, monetary policy, because of European Commission pro- Treasury, she told the Gibraltar Bankers fiscal, or economic policy. posals. “Higher cost of regulation equals Association 100-strong audience: “Yes of “What it does do is handle the affairs higher costs of operating, equals higher course you will see some people paid less of hundreds of individuals right through prices of goods and higher process of and everybody will think that that is a credit cards and debit cards, mortgages, services”, she emphasised. good idea. pensions and onto the more complex Whilst public authorities were intent “But an industry that cannot supply finance required for companies”, Ms on plugging regulatory gaps, consumers its own economy competitively and is not Knight pointed out. The banks were also too will have a view. “Will they be pre- able to take sensible risks, and does not into gilts, market making and many pared to pay the extra money for the give a return to its investor is not one that stock broking facilities as well as proving same service? I do not know, nor does is going to serve this country well.” free financial advice. anyone and that is why having a clear And speaking for a second time at view of the end game - and not just pur- the annual Prestige lecture, organised Since the late 1990’s most policy suing all the changes without that assess- jointly with the Institute of Financial relating to financial markets had been mentThere - is ofwas very understandable significant importance”. public Services, Knight went on to warn: “Just decided by the European authorities and anger over the banking sector, but “the as balance is required by the industry so implemented in the UK – “sometimes majority of banks are managing without balance is required by policy makers and well, sometimes not so well and often Government intervention”. Those banks indeed by the general public as well.” very differently to that of other European taking advantage of the asset protection In her analysis, some banks lent too countries”. Much of European policy was scheme were paying for it. “Interventions much, some borrowed too much and driven by “the view that Anglo Saxon are often thought to be free – they are not, government and regulators had let it hap- capitalism has caused the problems and nor should they be”, she declared. pen! Banking has been the driver of the there needs to be some European variant Use of central banks to provide liq- UK economy, the largest payer of corpo- which exercises more control”. rate taxes and created the largest interna- uidity remains a feature of lending, but tional banking centre in the world. the cost to the banking industry was The industry could be either EU wants to lead greater in Britain than in Europe and the demonised, with responsibility for every The EU wants to lead in many areas; US, which strongly influenced the Bank problem heaped on its shoulders, or “we ensuring derivatives, as much as possible, of England’s latest accounts that show a work collectively for a quick and effec- go through a clearing mechanism and £1bn profit mainly paid to the Treasury. tive sensible set of regulatory and fiscal netted off to reduce risk and capital In the UK, the government polls responses” to enable the UK economy to changes beyond the advisory internation- ratings and actions of opposition parties, recover quickly,” Ms Knight urged. al standard of Basel II via the Capital resulted in “continuous pressure for “We have made mistakes and so Requirements Directive. initiatives to be brought forward, a have others. The global crisis is not just Europe also wanted to lead on out- competition for more and more change, one in the UK but in our hands rest some lawing tax havens on new, more united an over raising of expectations on what of the solutions”. and coherent pan-European regulatory any initiative can do – plus how quickly But just as the banking industry did structures, and on very significant con- it can take effect – and a blaming of all straints on the shadow banking or near the economic problems onto the banking banking entities and activities. sector.”

10 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com LAW Keeping an eagle eye on legal deals

Too much information in legal this means having to review it at a later date (when hopefully both sides have matters can cause clients to benefited). Another reason may be a become bogged down in the detail. desire to keep costs down where cash flow is of growing importance to busi- A young Gibraltar law firm is nesses. finding interest from those One can of course counsel perfec- tion and argue that advice should be seasoned clients who are happy to given fully or not at all; a more realistic receive only the big picture, as view would be to appreciate that the Steve Marsden explains. advisor is there to assist rather than to direct. ince the partnership began three Instead in such a case, the client If a canny businessman has a deal in years ago, Magister Law has wants to know if anything vital is miss- hand and wants to obtain a ‘helicopter identified an unexpected niche ing from the deal, or whether the other view’ of the implications, with a proper market for its service - increas- side is asking for terms that, in the understanding of the necessary limits of ingly, interest is growing among lawyer’s experience, are unusual. such an approach, why should the advi- Sclients looking for a ‘helicopter view’. What is more, they are prepared to sor deny him? This ‘zoomed out’ approach is par- take what they see as a calculated risk Of course, this is not about cutting ticularly relevant to clients either and accept the potential downside to corners in the lawyer’s duty to the client, involved in a deal with numerous docu- this approach, namely that the ‘devil in but rather offering advice within defined ments on which they would like a sec- the detail’ does not get picked up. At the limits. The engagement letter would ond opinion, or who are contemplating same time, the lawyer needs to be satis- clearly set out the scope of the work so a possible business transaction. fied that the client clearly understands that there are no misunderstandings. The traditional lawyer-client rela- the limitations of this approach. The modern approach should be to tionship is still very much alive, in which There is a mix of reasons for this acknowledge that one size does not fit the client sets out a summary and the type of client instruction. all, and that professional advisors can lawyer builds the necessary documents The current economic climate has rightly employ a variety of methods to to achieve the goals set. its crunches and deflations that we read help clients further their business. This is not something that everyone may be able to offer as it is essential to have an understanding of the client’s commercial needs, together with a quick turnaround time; the advisor needs to be If a canny businessman has a deal in certain that they can deliver to the required standard under that time pres- hand“ and wants to obtain a ‘helicopter view’ sure. A final reason for the appetite for of the implications, why should the advisor this type of advice may, in fact, come from the seasoned nature of clients that deny him? Gibraltar is attracting - clients who are quite at home in dealing with advisors However, business people increas- about daily, but equally, offers opportu- and getting value from the advice. ingly are now asking for” an overview of nities for business people who are will- The breadth of work the advisors documents that have already been circu- ing to take that extra risk. Sealing the can take on in this way and the contact lated between the two sides of the deal. deal in these circumstances is key for with such individuals and businesses They do not want a line-by-line critique such clients, and a drawn-out comple- both offer a positive outlook, and an or the lawyer to spend a lot of time on a tion (from the entrepreneur’s perspec- opportunity to relish. matter that may be relatively small, or tive) could see the transaction evaporate. Steve Marsden, is a partner at between parties who have worked Better, in this view, to be clear on the Magister Law, Ocean Village. together before. key points and enter the contract, even if www.magisterlaw.com

12 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com INVESTMENT

June, the highest level it has recorded in over seven months. The marked improvement in Risk up, Sterling’s fortunes also coincided with the release of the Purchasing Managers Index (PMI) for May which showed that the UK’s USD down sector contracted at its slowest pace in a year as the The markets continue to remain choppy as decline in new orders, output and equities and bonds jostle to be in the driving employment eased. The Euro has also capitalised seat, says Gerald Rodriguez, RBS International’s against the US currency, hitting the 1.42 Director of Treasury & Investor Solutions, in a person- level (a level not seen since 2008). The start of June saw a flurry of al comment on money markets. central bank activity with the Bank of England, European Central Bank (ECB), hile equities have gen- already been seen, it may risk being the Reserve Bank of Australia and the erally been the main pushed aside. If it increases its purchases Bank of Canada all convening. sentiment driver in to the point where they dominate the The Bank of England is unlikely to recent weeks, rising market, this could be viewed as serious- say much beyond restating the US Treasury yields ly inflationary, thereby further compli- Monetary Policy Committee’s commit- haveW introduced an unsettling tone. cating the quantitative easing (QE) exit ment to QE and this will give little direc- Such fears stem from worries over plan. tion to Sterling. holding US assets at a time when the US Whichever way the Fed chooses, it’s The ECB still has room to cut inter- government is issuing record amounts of clear that QE will need to be extended. est rates given the negative print seen in debt. The sharp sell-off in bonds has This creates a major tail risk for the the German inflation numbers. increased the likelihood that the Federal US Dollar. For now, yields have dropped However, the move towards QE in May Reserve (Fed) may have to step up its back around 20bp from the highs seen at and the fact that recent survey data has purchases of longer-dated Treasuries. the end of May, which has ensured that shown signs of improvement implies The Fed will be particularly con- the underlying themes of a weaker USD that the repo rate will be kept on hold cerned that higher long-term yields have and rising risk appetite remain intact. for now. fed through into end-user borrowing While this relationship holds, riskier Swap rates in the UK have contin- rates, driving up the cost of financing US currencies will continue to benefit. ued to rise and the curve has steepened. mortgages. The Fed cannot let yields go Indeed this has provided a signifi- There has been little economic data too high and so faces a tough choice. cant impetus for Sterling strength, with behind this move, it has been precipitat- If it increases its quantitative easing Sterling reaching a high of 1.6432 ed by rises in the underlying government purchases on a similar scale to what has against the Greenback at the start of bond yields as sentiment turns even more negative FX and Interest rate forecasts (as at early June) This has been in part supply related This is a forecast and should not be relied upon for future performance and driven by ongoing fears over the Current +1m +3m +6m +9m +12m risks of a downgrade, but concerns that foreign participation in both the gilt and GBP/USD 1.64 1.570 1.500 1.380 1.450 1.550 Treasury markets maybe waning added GBP/EUR 1.154 1.146 1.136 1.104 1.151 1.174 a level of negativity to the market. GBP/CHF 1.749 1.743 1.725 1.700 1.795 1.829 It’s worth noting that according to GBP/JPY 156.6 160.1 150.0 129.7 137.8 151.9 the British Bankers Association mort- EUR/GBP 0.866 0.873 0.880 0.906 0.869 0.852 gage approvals rose 27,700 in April EUR/USD 1.42 1.370 1.320 1.250 1.260 1.320 from 26,700 close to forecasts. But net EUR/CHF 1.509 1.521 1.518 1.540 1.560 1.558 mortgage lending fell to an 8-month BoE Policy Rate 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% low. Nationwide said house prices unex- Fed Policy Rate 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% pectedly rose 1.2% month on month. ECB Policy Rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% UK Manufacturing PMI rose to GBP 3m Libor 1.28% 1.25% 1.25% 1.20% 1.15% 1.15% 45.4 in May from 43.1 in April, the USD 3m Libor 0.67% 0.65% 0.65% 0.65% 0.65% 0.65% Office for National Statistics reported. 3m EURIBOR 1.27% 1.25% 1.25% 1.30% 1.30% 1.30% Forecast had been for a more modest GBP 5y Swap 3.31% 3.35% 3.35% 3.45% 3.60% 3.80% improvement to 44 (a reading below 50 USD 5y Swap 2.97% 2.60% 2.55% 2.20% 2.85% 3.55% signifies contraction, whilst a reading of EUR 5y Swap 2.90% 2.55% 2.50% 2.00% 2.05% 2.20% over 50 signifies expansion).

Source: RBS Global Banking & Markets

14 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com TOURISM TOURISM First tourism strategy promised by year-end Over 10m people visit Gibraltar each year, but only 10 per cent see the Rock’s International earlier this year: “I am not greatest tourist attraction. Now private enterprise is making a bid to get sure of the answer in my own mind. I know more closely involved in running Gibraltar Tourism Inc and calling on it is very important to us and I know how important it is for us to get it right.” The Moorish Castle is to be converted from prison to government to act. Ray Spencer reports. His Tourist Board chief executive, tourist site. Picture Gibraltar Tourist Board. Nicky Guerrero, explained: “There are des- ehind-the-scenes pressure from tinations that can define their product, major players in Gibraltar’s suc- because they are either a beach destination, you cannot stand still. We need to invest to cessful tourism industry has and overseas. level, to see the three colonies of some 200or say, a City centre destination. maintain our market share,” he asserts. prompted Ernest Britto, Minister The 2008 tourism statistics just out Barbary Apes, extensive views - of the Ports “But the beauty about Gibraltar is that Whilst a Disney World type of new for Tourism, to prepare a strate- show 10.2m people visited the Rock, nearly of Gibraltar and Spanish Algeciras, as wellwe have all of that rolled into one – and attraction was not needed, “we could make gy for development – but it is unlikely to be 8 per cent up on a year earlier, the vast as - and access to the undergroundwith our extensive history - so much more. A wrecked Federa provided an unexpected Europa more of what exists here in Gibraltar B Point attraction. Picture: www.discovergibraltar.com published until the year-end. majority being British; it is estimated that on labyrinth of tunnels in nearby St Michael’sYou can’t sell Gibraltar as one product; already”. After months of research and consulta- average tourists spent £247.5m, around 7SurveyCave. sees quality there are many facets, many markets for us, “Europa Point is the most southern tion with hoteliers, tour operators, retail per cent more than 2007. and we promote it as being unique”. “Tourism for us is a given thing because of place in Europe with great views of Africa The firm has just invested over £1m in mod- representative bodies and other leading But as George Gaggero, deputy chair- The Tourism annual marketing budget our rich heritage, the views and position at and the Straits of Gibraltar, but there’s noth- ernising the cable car top station – a new industry players, the plan must now be man of M H Bland (MHB), one of the is £900,000 and in 2008 there was around the southern most part of Europe and easy ing much there.” restaurant, souvenir shop and a Mons Calpe agreed by the Gibraltar cabinet. largest firms involved in local tourism, £2m+ recurrent spending on tourist sites. access to Spain. By comparison, at Portugal’s Cabo da Suite, a popular new wedding and function Although Britto had hoped to publish points out: “Only around 800,000 people a Franco Ostuni, general manger of the “But tourism is like any business – you Roca “you can get a nice certificate for d1 venue for up to 60 people. his findings in late June, he says the report year go to the Nature Park, our largest 4-star Caleta Hotel for ten years, feels: can go forward, you can go backwards, but Continued P19 The two cable cars were upgraded in still “needs to go through a consultative and tourist attraction. 1986 and Gaggero promises new larger cars commercial stage”. “Of the 10m people visiting Gibraltar, within the next 5 years. Part of the problem is that tourism mat- let’s says half are day trippers for petrol or The MHB operation includes 22 ters, despite a reshuffle last year, are still supermarket shopping, and then take a fur- Calypso Tours’ coaches and specialist tour More tourist ventures proposed split between two ministers – Britto’s guides to account for 80 per cent of cruise Environment & Tourism department, and At least two or three new history-linked ven- tourists an additional fee. ship shore excursions, and competes with Joe Holliday’s Planning and Transportation tures to help modernise Gibraltar’s tourist “Unfortunately the time limits imposed Gibraltar’s Taxi Association for tours of the How to attract still more department embracing infrastructure, roads, appeal are being proposed by Richard by some tour operators – those that want to Rock. Ideas being promoted for government public transport, the port and airport. Desoiza, the first private operator of The do just a quick sightseeing trip before drop- Cruise ships accounted consideration, from simple to complex, There are budgetary implications too, Rock natural history attractions, under an ping people back in town – means our tun- for 325,000 tourists overall include: given the large capital sums already commit- open-ended licence from the Gibraltar nels are included in only a few of the tours. last year and the number ● ted to building a new airport terminal, the Government. Why would a taxi stop for an hour whilst a move to high-value products, continues to grow as this airport ring road and other large-scale proj- His 500m of World War II Tunnels and people came around this place too”, he high-spending visitors and top class group represents a particu- restaurants and hotels - think Monte Carlo ects. 200m of 18th century tunnelling, staffed by points out. lar sector success story for rather than Southsea Accused by many of allowing tourism, seven at Hay’s Level, has attracted The tourist sector carries the greatest the Rock. ● one of the mainstays of Gibraltar’s econo- 120,000 people over 4 years. growth potential given the establish a regular link with Morocco, Above: Cable car painting by local Indeed, Princess Cruise my, to slip down the government’s priority artist Vin Mifsud & (right) a Barbary “It’s very financially success- opportunity for job creation which could be a strong facilitator of Ape is actually a Macaque monkey! ship passengers last year list, Britto last year set about preparation of ful,”, says Desoiza, having con- and significant wealth gener- economic activity, by a new regional air Picture: Gibraltar Tourist Board. placed Gibraltar second the strategy document on gaining responsi- tributed over £600,000 to public ation both to the Government link, or re-establishing a ferry only to Naples for quality bility for tourism. ther 1m people off to be safe; revenues in taxation, fees and and to private enterprise, the● extend Park ‘N Ride principle with a hop- of excursions at 23 ports of that leaves around 4m people other receipts since 2005. Chamber of Commerce main- on-hop-off inclusive ticket transport system call surveyed. as genuine tourists. A former British Army and tains. James Gaggero, Bland● develop a tourism theme covering history There were big hitters in the list, includ- “Our task must be to Gibraltar Regiment soldier, who Group chairman, says: “No and culture that all of Gibraltar can be ing Venice, Monte Carlo, Lisbon and Strong lead needed convert more of the total of visitors into spent many years in private matter how many high flying persuaded to buy into with costumes and Cannes. The private sector, bristling with ideas, has tourists – to be more than just shoppers – banking, identified his idea 20 company finance and managing activities, so that people stay longer into However, Gibraltar was placed 7th best promised fresh financial investment and without any need for significant additional years ago. The tunnels, built directors Gibraltar encourages, the evenings for a total Port experience, behind Malaga operational support, but requires govern- marketing spend,” he maintains. in 1940 were built within The there needs also to be job oppor-● promote the endangered Barbary (4th) but ahead of Barcelona and Lisbon. ment to take a strong lead in co-ordination If the Spanish border is running Rock by Winston Churchill as ‘a fortress tunities for ordinary people, par- Macaques species as part of a nature Princess Cruises, now part of Carnival and spending on overall tourism-related smoothly and people arrive by 11am, they within a fortress’ to act as ‘guardian of the ticularly youngsters who need to get on the experience with information and Group, has had liners visiting since the early infrastructure and transport solutions. have time for a tour and for shopping Mediterranean’. job ladder. background on the monkeys 90’s. The key task is seen as defining the –“they become not just a visitor, but a The Tunnels could entertain many more “Tourism in its broadest sense – retail,● But the difficulty is in deciding what the extend and upgrade the historic Great Gibraltar product, injecting money to tourist”. people if access was easier to the tunnels. hotel, transport, etc – is an ideal generator. Siege tunnels and develop an Eisenhower Gibraltar tourism product is. upgrade tourist sites, motivating and mobil- MHB has a vested interest: its 1966- Although part of the Nature Reserve all-in It helps to provide the social cohesion, and Operation Torch Exhibition to attract Minister Britto told Gibraltar ising the local community, and more wide- built cable car takes 125,000 people a year regulated ticket area, his attraction costs Gibraltar so badly needs.” US cruise visitors spread marketing, both within Gibraltar to the top of the Rock, 412m above sea

16 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 17 TOURISM

Tourism strategy from P17 to say you have been to mainland Europe’s Western-most point. “It has a £12m of taxpayers money could be spent lighthouse, landscaped gardens, smart on building a modern leisure centre, then bathrooms, café and an information a similar sum on tourism could bring office - a 45-minute experience, that “some fantastic improvements”, the doesn’t cost a lot of money to create,” Chamber adds. Ostuni reasons. That said, tourism surveys continue In its latest annual report, the to indicate 90 per cent satisfaction with Lower St Michaels Cave Chamber of Commerce analysis of Picture Gibraltar Tourist Board. the Gibraltar experience. It’s a safe envi- tourism, emphasises: “We need to regain ronment and all interest sites are nearby. more control of the Gibraltar tourist BG’s Gaggero notes: “The business product and keep the money spent in model is working. bristling with tourism1/2 assets.sq miles Its andhistory Gibraltar.” The smart person will get the best comparedappeal iswith disproportionately other small communi- large for a return from the smallest impact – it’s ties”,place enthuses covering James. only 2 good for Gibraltar Inc.” “Its quirky, a little bit of Britain in Defining the product Cousin George at MHB, suggests: the sun, a vibrant City centre, with cafes Many are highly critical of the lack of “To make more of what we have, I think and restaurants, and Main Street shops, good statistical information about the the attractions should be run by some (which may not be everyone’s cup of tea), tourist market. Meetings with hoteliers form of joint venture – private sector led, but there has been investment are being held to sharpen up occupancy since because it is able to move faster and less and destination figures; questionnaires1995 in the street scene - street bureaucracy - with a licence to operate are being planned to discover what furniture, properties smartened up and from a government holding, say 51 per tourists spend on, what motivated them pedestrianisation. cent”. to visit, and their reactions. “And it attracts millions of people a Whilst the sometimes long border year. It’s undeniably very popular and Private sector can help crossing experience is an issue, Britto that’s not to be sniffed at!” The government needs to “provide incen- says that since environment and tourism Marielou Guerrero, vice president of tives to encourage private sector invest- now fall under his remit, co-ordinated the Gibraltar Small Business Federation ment into a coherent and long term strat- solutions can be found to several other with a 12 years tourism brief , complains: egy,” says the Chamber. tourism problems. “There are just no figures available on Britto believes “the private sector “I am looking at the Gibraltar prod- the real value of tourism, the numbers can often market and do things a lot bet- uct overall - looking at what we are offer- employed, turnover, or numbers of busi- ter than Government agencies can”. ing, what we can offer, and whether we nesses in each part that makes up Rather than prepare a 5 year plan with can offer it in a different way - and then tourism, such as shops, hotels, restau- built-in costings, Britto aims first to putting forward an action plan.”, he rants and alcohol and other suppliers. establish policy – “including whether to revealed. “Undoubtedly, tourism is one of the involve the private sector”. James Gaggero, chairman of (the pillars of the local economy – finance He’s warm on the idea of franchising separate, but family related) Bland Group centre, e-gaming, the Port are others – operation of tourism assets, in much the (BG) says Gibraltar tourism has achieved but it is the only one that always will be same way as the government did with the much in the last ten or more years, hav- here with certainty; because our history historic Kings Bastion, now preserved ing withered in the previous decade, hin- and heritage always will be with us.” and remodelled into a privately-operated dered by Franco’s closure of the Spanish BG’s Gaggero maintains: “Tourism leisure centre, working under govern- frontier. provides a significant benefit, but unless ment-set rules and owenership. it is regarded as importantly as the other “There have been [private sector] sectors of Gibraltar economy, it will not proposals in the past, which are still on Top three destination grow – there is a need to invest on a the table. We are looking at what we Now so called “Duty Free” visits are big strategic basis.” would like to see and then looking at business, with Gibraltar placed in the top Minister Britto agrees that budget how best to do it”, the Minister declared. three visitor destinations – along with restraint in recent years means more now “Policy on transport on the Upper Morocco and The Alhambra Palace in needs to be done. Investment had been Rock - problems caused by circulation at Granada - by guests at southern Spain’s “reactive rather than proactive”. St Michaels’ Cave, for example - raises hotels. The Chamber puts it more strongly: issues; do we replace coaches and taxis BG employs 180 staff in Gibraltar “There does not appear to have been any by buses, or control the numbers [of vehi- tourism, including all airport handling, meaningful investment in existing or new cles] – this is part of what I’m hoping to the iconic Rock Hotel that claims up to government run tourist sites in many achieve.” 30 per cent of local demand, Bland years, most especially in the Upper Rock The Chamber however, is clear on Travel coach tours with an 18 per cent Nature Reserve and related facilities. what it expects here – “a commitment to share overall, (but 72 per cent of general “It’s a patch-up job at best and parts liberalise the transport system serving the visitors), and a travel agency. of it are a public liability at worst.” If industry.” “Gibraltar is very lucky in that it is

www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 19 TAXATION Moves to shed ‘tax haven’ label

With a continuing focus on the role of started at London’s G20 Meeting of leading global economies in April. tax havens in the world, Steve Quinn There have been several different takes a look at where Gibraltar stands pronouncements from European and reviews the moves being taken by Governments and Brussels in the last few weeks. the US and EU on the subject. Clearly, this issue is not going away, and many of the European non-EU mem- ber states (such as Switzerland, Monaco, Liechtenstein) are planning to cooperate he Organization for Economic side some of the strongest Washington fully with investigating countries to avoid Cooperation and Development lobbyists, as well as influential sponsors the stigma associated with the tax haven (OECD) has declared that any and supporters in Congress. label. State refusing to cooperate That combination will ensure the Gibraltar has signed only one with the international push to process is a significant test of President cooperation agreement - a symbolic one reduceT tax fraud would be declared a Obama’s ability to resist the traditional with the US - and remains on the “grey” Tax Haven. corridors of power in US politics. list. However, the Gibraltar Government To this end it produced lists to At issue are tax laws that were origi- has stated a desire to have 12 agreements denote the status of States depending on nally intended to prevent multinational in place by November of this year. their preparedness to cooperate with corporations from being double-taxed, Gibraltar says it is well on the way to international standards on bank informa- by the US and by foreign countries, by moving to the desired “white” list and tion disclosure: “grey” (originally 30 allowing companies to defer reporting the Government is actively engaged in then 34 countries – in which Gibraltar their foreign income to the Internal negotiating agreements with other OECD currently sits - with the addition of for- Revenue Service and to get tax credits in member states willing to cooperate. mer black listed countries); and “white” the US for foreign taxes paid. As part of the EU, Gibraltar is (40 countries). US economists are divided over already required to implement and be White listed countries have signed at whether higher taxes - the top corporate compliant with EU legislation such as the least 12 separate agreements with other tax rate is already 35 per cent - would EU Savings Directive and means it is fully international states and are fully give corporations incentives to move jobs cooperating with other EU Member committed to international standards of overseas or impair economic growth at States on a wide range of related matters. information exchange. home. Both sides are already claiming Gibraltar has positioned itself well in President Obama has led the way that their argument will ultimately save the last few years to combat criticism recently in terms of a global crackdown US jobs. being levelled at other offshore centres. on offshore tax havens, and proposed The US Government Accountability The Tax Exempt Company status changes to US legislation that he Office has found that 83 of the 100 was withdrawn for new entrants several estimates will raise $210bn over the next largest American companies have sub- years ago and the Government is decade. sidiaries in tax havens; it counted 83 sub- expected to announce a new 10 per cent The changes would take effect in sidiaries for Procter & Gamble alone. corporate tax rate for all Gibraltar com- 2011 when the US Government antici- Financial Services companies had even panies from July next year pates that the economy will have more, with Citigroup showing 427 and This will place Gibraltar firmly recovered from the ongoing recession. Morgan Stanley 273. alongside other onshore EU competitors. Not all in the US agree with the Some US Tax experts, including This strategy has been coupled with President’s thinking however, with some with political allegiance to the a movement over the last ten years or so business groups lining up to challenge President, warn that the proposals to the requirement that companies proposals for tax increases during a time could put American corporations at a maintain a physical presence in Gibraltar of an unprecedented global downturn. competitive disadvantage. and do not operate as just brass plate The proposals would especially hit The US is part of a dwindling minor- operations. pharmaceutical, technology, financial ity of industrialized countries that tries to The economy is now well used to and consumer goods companies includ- tax corporate profits on a global basis. this model and any further evolution as a ing Goldman Sachs, Microsoft, Pfizer Most European governments tax corpo- result of additional cooperation with and Procter and Gamble. rations on the basis of their profits other countries will not lead to a painful Many of these organisations have within their borders. transition process. overseas operations or subsidiaries in tax However, the EU has been quick to havens such as the Cayman Islands. follow suit; the UK’s Gordon Brown and Steve Quinn is a former London These businesses are united in their other EU leaders have pledged to attack banker, and chairman of Quest Group opposition to the US Government, along- tax havens in a similar way, a process www.quest.gi

www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 21 TAXATION TAXATION

activities are investment related, or if have obtained a large contract, or are Non-taxing lifestyle appeals to business related, they do not compete expecting a large inheritance and want Cat 2 benefits with established Gibraltar businesses. then to be resident in a low tax viduals to retire in Gibraltar. The status The fact that the legal and commer- jurisdiction. Gibraltar’s special Category 2 status - wealthy individuals has indeed proved very popular - over cial system in Gibraltar is based on They are then able to organise their more commonly referred to as Cat 2 - 350 individuals are registered as Anglo-Saxon principles, and that such affairs, perhaps set up trusts or founda- allows individuals with demonstrable For many years the has provided a Category 2 residents - but the surprise matters are transacted in English, means tions, before they then move into a high worth of over £2m to limit to £70,000 very appealing alternative to those looking for a has been that not so many have been that many of the difficulties encountered tax jurisdiction in subsequent tax years. the amount of income considered for wealthy retirees. by entrepreneurs originating from the UK One thing that all Category 2 tax in Gibraltar. British way of life in a Mediterranean setting, says In fact the status has proved very in other foreign jurisdictions do not arise. residents require is the access to excellent The minimum tax payable is accountant Martin Lord. attractive to three other main categories The second category of individual professional services. £20,000 and the maximum tax payable of individuals. that has found Category 2 status benefi- In addition to taxation planning and will be around £22,000. The first of these, we can call the cial, we can call the “tax nomad”. compliance services, HNWI’s also often ibraltar is a small and lifestyle, then eventually the quality of Only income remitted to Gibraltar “mobile entrepreneurs”. This is an individual who travels require wealth management services, friendly jurisdiction offering life will win out. is taken into account, unless the These are individuals who can per- around so much that he does not spend offering investment monitoring and a Mediterranean climate In this respect Gibraltar has a pro- individual opts for his worldwide form their services from anywhere in the long enough in any country to make him reporting, to ensure investment managers and sitting beside a world’s found advantage over other jurisdictions income to be included. The individual’s world and have chosen to do so from a tax resident there. operate within the parameters set and tax return can also include any income premier leisure location, seeking to attract (HNWI) individuals, in In order to avoid being inadvertently performance and wealth reports are location where telecommunication facili- that a spouse or children may have, so GSouthern Spain. that it combines institutions which noticed by the tax authorities of any high customised to individual needs. ties are excellent and the quality of life Category 2 tax status has provided operate in a familiar way and are easy to that they will not be separately taxed! for their family is second to none. tax jurisdiction who might want to bring The challenge for the professionals in an opportunity for High Net Worth integrate into community, with leisure This special status is only The business activities that a them into that jurisdiction’s tax net, the Gibraltar is to continue to meet the Individuals (HNWI) looking for a tax and lifestyle opportunities. available to those who have not Category 2 resident is allowed to engage individual can register in Gibraltar, and service expectations of HNWI’s and thus efficient jurisdiction to base themselves in In fact, many of the individuals who previously been resident in Gibraltar in under the Rules are restricted, but the then “belongs” here. Sports people and sustain the flow of new Category 2 this British Overseas Territory and have have taken up Category 2 tax status find and in order to qualify, the main restrictions have been relaxed recently, entertainers may fall into this category. applicants to the mutual benefit of all. an annual tax liability of £20-£22,000. themselves spending more time in condition is that they must have a mainly to reflect the trend that increas- The third category is the “temporary However saving tax is only a means Gibraltar than originally had been their suitable property, which they can rent ingly more “mobile entrepreneurs” are resident”. These individuals may be to an end – that end being a better intention for precisely this reason. or buy, exclusively available to them being attracted to Gibraltar. expecting a large windfall, perhaps quality of life. If in order to save tax a When this status was implemented, Martin Lord, a senior manager with and their immediate family. They are now allowed so long as the because they are selling their business, or person has to severely compromise his the intention was to attract wealthy indi- Deloitte, Gibraltar specialises in advice for Cat 2 individuals.

www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 23 TAXATION NEWS

Gibraltar whilst also working there, could be caught also by Spanish tax. Trafalgar goes Tripartite considerations The real issue arises on taxes that do not exist in Gibraltar, but do exist in Spain As part of a wider re-branding exercise and the UK. In the case of Capital Gains at the end of a successful 10th year in on cross-border residency Tax, for example, where a Gibraltar resi- operation, Trafalgar Insurance Brokers dent became inadvertently Spanish or UK you will be deemed resident for the whole will now be known as Ibex Insurance Being in two places at once can tax resident, they would suddenly be of that year, although tax relief will nor- Services. liable to tax on any disposals made as a present problems; Francesco mally be given for tax paid overseas. Trafalgar began in Gibraltar in 1995 resident of that country. If therefore, anyone inadvertently writing motor policies from its offices in Bertagnin, international tax adviser The position is further complicated in became resident in Spain, they would be Horse Barrack Lane. Ibex chairman John Harrison, (centre) and Roger respect of Inheritance Tax, which does not Bickmore, non executive director, (right) chat to and Spanish Office Manager for liable to Spanish tax on worldwide assets, “Considering the past year has been exist for Gibraltar residents, but does Baker Tilly director, Charles Serruya income and gains. Gibraltar legal firm, Marrache & Co, apply – in different ways and to a different a tough one for the financial industry, It is important to note that tax resi- extent – to Gibraltar residents with assets I’m pleased to say that Ibex is still hold- Ibex Group was founded in 2000 takes a look at the implications. dency is principally based on time physi- (houses for example) in Spain or the UK. ing strong in Gibraltar”, John Harrison, and as coverholders for Lloyd’s of cally spent in Spain, and not whether you ibraltar, with its geographic And for those who believe that the Chairman of Ibex told guests at a London, Ibex works with leading have obtained a residency card, which is summer reception to mark the change. insurance providers. proximity to Spain and vidual who brings special skills to tax authorities never tests an individual’s primarily used for immigration purposes. “The Trafalgar business has been a Last year, a minority shareholding in historical and legal proximi- Gibraltar. residency, last year in Andalusia alone great success but with the Ibex brand Ibex was taken by R J Kiln & Co, an ty to the UK, has a fiscal sys- These residents usually have their there were 4,677 individuals residency growing strongly in Spain and Portugal, international insurance and reinsurance tem that often comes into taxes capped. For example, CategoryUK 2 investigations; of these the tax authorities were able to prove 3,968 were Spanish it made sense to streamline the branding group owned by Tokio Marine. Kiln’s contactG with the tax systems of both these individuals pay income tax calculatedLike Gibraltar and Spain, tax residency in resident - which equates to an 85per cent and keep it all under the parent name of UK operation has five Lloyd’s syndicates countries. using normal income tax rates and bands,the UK is also primarily based on physical success rate! Ibex,” he told more than 60 guests at and, in terms of capacity, is one of the A very common scenario involves the but are liable on income only up presence.to Ocean Village. largest agencies trading in the market. tax residency of individuals who have ties £60,000. This effectively caps the maxi- The basic rules state that if you spend Based on some aspects of a recent to Gibraltar, Spain or the UK mum tax payable to just over £20,000,183 days or more in any tax year (from The Estepona office was re-branded “This partnership is helping Ibex to presentation to the Spanish Chamber of The tax residency rules in Gibraltar, (but with a minimum payable of £18,000)6th April to the following 5th April) you as Ibex in June, and other offices in grow its business network and open up Spain and the UK and their interaction Commerce in Great Britain. Fuengirola, Pilar de la Horadada, new markets to ensure further growth in Spain are automatically tax resident there. can, if not careful, make life difficult in You can also become resident if you Tenerife and the Algarve are to follow. 2009 and beyond”, said Harrison. Individuals are deemed to be tax resident unexpected ways. spend more than 91 days on average over in Spain if they spend 183 days or more in four years in the UK. the country in any calendar year (the Unlike Spain, the residency of the Spanish tax year). Any temporary Gibraltar spouse or civil partner is decided on inde- absences are ignored, unless it can be As in most jurisdictions, tax residency in pendently. proved that the person is habitually resi- Gibraltar is primarily based on physical Personal interests will not automati- dent in another country. presence in a tax year (in Gibraltar this is cally dictate where someone is resident, Private Client Services If you do not spend 183 days in from 1st July to the following 30th June). even though recent case law suggests that Spain, the tax authorities can still deem The Gibraltar “Income Tax Act” it can be an influence when looking at you to be Spanish tax resident if your cen- states that an individual is deemed to be whether or not an individual has left the tre of personal or economic interests/pro- ordinarily resident in Gibraltar; UK for a “settled purpose”. Building prosperity ● if the individual “resides in fessional activity are in Spain. Gibraltar except for such temporary An example of personal interests absences as to the commissioner may seem making an individual tax resident in Spain The Private Client Services team at Deloitte reasonable” or; is if their spouse and/or (dependant) chil- Dual residency are passionate about developing innovative ● any individual “who is a British dren habitually live in Spain. The most Gibraltar does not have any signed double approaches, using the many opportunities subject or citizen of the Republic of common way the Spanish authorities test tax treaties in place as yet and this is Ireland, who is employed or self employed this is to see if the children of the individ- important when looking at any Gibraltar that Gibraltar offers, to protect and enhance in Gibraltar and who resides within the ual in question attend school in Spain. tax resident individual who has a presence your wealth and minimise your tax liabilities. Campo district or partly within Gibraltar An example of economic/professional or connection with either the UK or Spain. and partly within that district, except for interests would be an individual’s main In those circumstances, it is possible Our services cover tax structuring, strategic such temporary absences as aforesaid”. job or main source of income/wealth to become dual resident in Gibraltar and wealth management, estate planning and being in Spain. (Campo being La Linea and Algeciras in the UK/Spain. much more. Whatever fi nancial challenges Spain taxes its residents on their If this occurred you would be liable to Spain). life throws up, we’re equipped to develop worldwide income (including investment tax in both Gibraltar and the UK / Spain. Therefore, a person who “resides”, - the most effective solutions on your behalf. that is has a habitual abode in Gibraltar - income) and capital gains as they arise, But the UK and Spanish tax authorities is considered tax resident. whether remitted to Spain or not; tax is usually allow a credit for any tax paid. However, it is possible also to be tax also levied on any gifts or inheritances This is also particularly important for resident in Gibraltar if an individual holds received. people living in Spain, but working in a special type of residency status, they There is also no provision for split Gibraltar where tax usually is paid on a either are a high net worth individual years on arrival or departure. This means PAYE basis, for example. For more information, call Adrian T Mansfi eld or Stephen J Reyes on: that in any year you are deemed resident, Similarly, people with homes and (under the Category 2 scheme), or an indi- Tel: +350 200 41200, Nightline: +350 200 48282, Fax: +350 200 41201, [email protected] families in Spain, but living part time in www.deloitte.gi

Merchant House, 22/24 John Mackintosh Square, P.O. Box 758, Gibraltar 24 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com © 2008 Deloitte Limited. Member of Deloitte Touche Tohmatsu PEOPLE AND PLACES PEOPLE AND PLACES An oasis...

Navy man for Company, has been elected chairman of Cruise Governor well for Gibraltar that 30-member strong control initially in the City of London Villero, with his wife, practitioners from and since 1988 in Gibraltar. Marie Angeles, returned to Gibraltar’s new Association of Trust Albert Poggio, jurisdictions such as their home town of La Linea Governor, & Company director of Gibraltar’s He leads Deloitte’s tax our own play a with their three young appointed by The Managers London operation, practice recognised role in the children six years ago to Queen as de facto (ATCOM), , for a has been elected to advising both international private head of state from second time – his the newly-created international become Restaurant client wealth in a busy world the autumn is to be first term was for post of UK companies and Director at the town’s La industry.” three years from ambassador for private clients. Marina specialist fish Vice-Admiral Sir Over 25 years, he Albert Poggio 2000. MedCruise, the Mr. Reyes eating place. bedrooms Adrian Johns, has specialised in takes over at Local takes 104 Bedrooms and suites in a colonial Vice-Admiral Sir promotional association of 72 who will succeed Adrian Johns financial services, ATCOM’s immediate style all with a sea view Mediterranean and near what is the lead Gen Sir Robert interest as arguably the second Stephen Reyes corporate, gaming Atlantic ports. expected to be conference facilities Fulton after a three year term. and trust law, and largest finance centre a time of The first Gibraltarian to head Full upgraded conference facilities Married with four has developed Fiduciary employers, is in the detail Having served four years “great change for the up RBS International since the available for board meetings, training children, Sir Adrian was Group, a corporate and trust. behind impending Gibraltar as MedCruise senior vice- accountancy profession locally Bank set up a local operation courses and presentations in 1989 is Second Sea Lord & 2-4-1 at Lloyds corporation tax reforms and president, Mr. Poggio’s new with the introduction of the Marvin Cartwright, Internet Commander-in-Chief Naval TSB responses to the continuing role comes after serving as a Auditors Approval and who adds country head for FREE Wireless broadband available Home Command (as Vice agenda of international Director for nine years, the Registration Act, which will RBSI and NatWest in Gibraltar throughout the hotel and an internet Admiral) between 2005-2008. Lloyds TSB International organisations seeking changes maximum term permitted to his existing head of room for our guests to use see supervision of auditors for Prior to various high-level Banking has appointedMark in the way ‘tax havens’ under Association rules. the first time, and with commercial banking and weddings Staff posts, he was Johnson , as Gibraltar Country operate. imminent tax reform.” financial intermediaries role. The Rock is an ideal wedding venue Commanding Officer of the Manager and Marina “We are pretty much in Having joined RBS Group whether it be a small intimate wedding support of an enhanced HMS Campbeltown, Ariadne, Dominguez Steglich as Head 13 years ago, Cartwright has or large family gathering. We are also a Juno and Yarnton between financial landscape, provided recognised venue for civil marriages of International Private headed up the corporate and ceremonies can now be conducted 1981-1996, and Captain of that jurisdictions such as Around Banking for the region. division of both RBSI and Gibraltar are not made a in various parts of the hotel HMS Ocean between 2001- They jointly succeed NatWest since 2003 and 03. scapegoat for the failings of Swimming Pool Albert Langston, who retired becomes a director of RBS other countries’ economies”, The Governor has sole after spending 18 of his 23 (Gibraltar) Limited. in a Outdoor swimming pool with pool Cruz says. side bar and pool side menu. We responsibility for defence and years with the Bank in About restructure designed to “unify He believes ATCOM has welcome private pool membership, security and for formally Gibraltar, where he served as and strengthen the banking our lido club, with private pool hire an “obligation to appointing the Chief Minister President of the Gibraltar services”. for parties and barbecues constructively assist the of Gibraltar, along with other Bankers’ Association, and the In this role Marvin, who Government in its plans to Restaurant members of the Government first President of the Gibraltar Gibraltar& was a Founder Avante-garde has led the Bank’s local complete the repositioning of The restaurant has stunning views after a general election. Centre of the Chartered Member in 1998. corporate banking division for over the bay. Our “house” menu is the finance centre from its influences Institute of Bankers’. Mr. Poggio has been six years, will oversee the excellent value for three courses historically offshore status to Gibraltar’s UK representative New Executive Chef at including an aperitif Manzanilla, Johnson, adds his new incorporation of the Bank’s Wealth winner its onshore status”. The aim Gibraltar’s Caleta Hotel is 39 olives and coffee. A full á la carte role to heading up Lloyds for 20 years and early on was business banking is for Gibraltar to come out of years oldJavier menu along with a superb eclectic Expatriate Banking operation tasked by the government to operation into the wine list is also available The first Gibraltar lawyer to that process “brimming with Villero, who most in the region, as well as senior oversee the promotion of corporate banking gain the Citywealth Leaders opportunity.” recently had a wisteria terrace management oversight for all cruise tourism as part of a business. award for leading advisers and A local man, Cruz restaurant in his The Wisteria Terrace for lunches, the Bank’s local operations. team now led by Minister for In the meantime, intermediaries in the wealth worked for six years with own name in La dinner, barbecues, afternoon teas, Steglich was previously the Port, Joe Holliday, and in the new chief executive evening drinks and informal dining management and private client Gibraltar’s oldest law firm Linea, having Manager of Private Banking, consultation with Peter Hall, of the entire RBSI sector is Peter Isola, senior Isolas & Isolas before starting worked previously bank Barbary bar for five years. Captain of the Port. partner for the last two years his own practice, Cruz & Co, as Chef de Party is 43 years old Adrian Barbary Bar and terrace for a Lloyds TSB International at Monaco’s of local law firm, Isolas & in 1996 and the Acquarius Gill , who is based in relaxing drink and for the wine Private Banking is Alaine Ducasse buff, a choice of nine wines by Isolas. business a year later. Javier Villero Jersey with based at new offices in Accountancy Restaurant, and the glass The He celebrated moving to responsibilities also Ocean Village while the change 5-star hotels in Ibiza and CityWealth new Irish Town offices in June including Guernsey, Isle of Lounges Expatriate Banking Barcelona as Chef de Cuisine with a reception at which he Man and Gibraltar. Take a good old fashioned English magazine’s 2009 operation is at Main Stephen Reyes, managing and Executive Chef was presented with the ISO tea in one of the spacious lounges awards go to Street. partner of Deloitte, has respectively. “RBS Group has made it “the most highly 8000 quality and ISO 14000 succeeded Jose Julio Pisharello very clear that RBSI is a core recommended, environmental certificates – as President of the Gibraltar He began his 20 year business, which will be international Second time only the tenth Iberian legal Society of Chartered & career working under Santi instrumental in helping the figures in Private practice to achieve those Certified Accountants. Santamaría, a prominent Group return to standalone Europa Road, Gibraltar around Wealth standards and one of only 60 avant-garde Catalan chef at strength,” said Adrian who Tel: +350 200 73000 Nick Cruz He has worked in public Management”. worldwide. Fax: +350 200 73513 Nick Cruz of Gibraltar practice as a Chartered his first Michelin 3-star was managing director of the E-mail: [email protected] Mr Isola said: “It bodes firm, Acquarius Trust Accountant for over 20 years, restaurant Can Fabes. Corporate Banking division. www.rockhotelgibraltar.com

26 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 27 PROFILE PROFILE

deviate from this”, he says with typical legal reserve. The idea of dividing responsibilities to give up financial control of their funds. Today Gibraltar has over 50 funds Funds, really are a had its roots back in 2002, when Lasry Gibraltar had £10.7bn of funds and in addition around 40 sub funds. competed to establish an open-ended under management in March, a rise of After the jurisdiction implemented the client fund for the then Credit Agricole’s more than 70 per cent in 5 years. two resident director rule as part of the consuming passion! Yan Delgado, (now head of Credit Suisse Lasry grew up in New York City’s Experienced Investor Funds (EIF) regime, Front Office operations locally). Upper West Side and had as Manhattan Luxembourg and the Channel Islands fol- Lasry was up against Helvetic Fund for NASDAQ-listed Gilat Satellite neighbours Mia Farrow, Carly Simon, lowed suit. Credited with being involved with the formation Administration managing director, Diane Networks, he realised that “financial James Taylor, Mick Jagger, and James “We were in the vanguard, leading Moss to see who was best at doing all of more than three quarters of Gibraltar’s investment services is consumer protection for the Levine, conductor of the Metropolitan the way for the regulation of funds”, says aspects of fund work. funds, James Lasry’s quiet, laid-back approach belies investor. Opera. Lasry. “We were extremely lucky to have a sharp consumer-orientated mind that has long “That really turned me on, because I Both parents had Doctorates and a very receptive government with the very much wanted my work to be mean- No-one can do everything worked in academia. His Gibraltar-born legal background of the Chief Minister worked to bring about a better deal both for fund ingful and of benefit to someone other Lasry insisted he was a lawyer, not an Mother, nee Anita Benaim, grew up in making him prepared to implement an promoters and investors alike, as Ray Spencer than just me. accountant so shouldn’t be involved with and Madrid, and is a Professor of “excellent regime for alternative funds”. “Working in funds, I can put a lot of administration. He also felt that estab- Medieval Spanish literature, and an Lasry notes: “In my trips to London, discovers. consumer protection in place for lishment of the fund is more of a legal author on Jewish religion, spirituality, I find a good reception for Gibraltar, investors and into the way the industry is imagery and healing. compared to even two years ago”, In a soft-spoken American accent, private equity funds - Eurindia Ltd - for a matter so the administrator should not developing,” he explains. remembering earlier trips where he had the lawyer who arrived in Gibraltar group of Deutsche Bank managing direc- do this alone. For example, with the 75+ funds that to remind lawyers and accountants that for a year’s career break, explains tors and their clients investing in private “In the end, Yan cleverly got us Lasry has set up at Hassans (including Gibraltar is a part of the European how not owning a briefcase nearly Indian technology-based, services compa- together, me for the legal aspects and over 35 Experience Investor Funds), he Union. stopped him championing forma- nies. Diane focusing on administration, which has insisted that as a principle, only reg- Positively riveting tion of investment funds on The Rock. “Frankly, I was in way over my was, in a way, when the funds industry I ulated people will control a fund’s assets, Moves now being made by the EU was born here.” Moe Cohen, then a “Having arrived here on honey- head”, recalls Lasry. “The first big meet- through its Alternative Investment Fund whereas under the law it is possible for partner at Deloitte and now a partner in moon, James Levy QC, senior partner of ing in London was attended by lawyers, Managers Directive to instil some control any Fund Board member to have signato- Benady Cohen & Co, was bought in to Hassans, (where I had worked summers nominated advisors, brokers, clients and and transparency to funds handling, ry authority for use of the Fund’s assets. focus on audit. as a law student), asked if I could stay a auditors - two people from each - and “should not dramatically affect the way “That is the huge strength of the while - maybe a year”, explains 41 years me!! we handle funds, because we have many funds industry - no one person can do old Lasry. That was in 1999. “I thought I shouldn’t go - I didn’t of the measures already in place. Two to be authorised everything. Not that they can’t do all of However, he felt both too junior for even have a briefcase - but James Levy “There are some measures that could As part of good corporate governance, the work, it’s just that they shouldn’t his marketing brief and not suited to sell- insisted that I would do well and he even change funds business somewhat but they Gibraltar law says there should be two - it’s very dangerous for clients and for ing; he asked to be given some substan- lent me a beautiful Cartier briefcase that will affect the whole EU and I suspect people who can perform this task. everyone really”, Lasry insists. tive work. he’d received as a gift. I still have it - I they will be substantially diluted in the However, Lasry goes further and It has been a very successful element When he began working on a never managed to give it back to him, it final draft. On the other hand, the believes only those directors specifically for Gibraltar, despite some early criticism His American father George, studied Canadian Public company that had re- meant so much to me.” prospect of being able to passport an EIF authorised and locally regulated - or that in suggesting the two authorised philosophy for a degree at Yale before domiciled to Gibraltar, Lasry successfully The meeting went well, and so throughout Europe is positively rivet- more usually in combination with an director regime, he was just trying to cre- moving to the University of Barcelona for drew on his first year law experience - Lasry’s love affair with funds began. “I ing,” he enthuses. administrator - should be able to control ate jobs for the boys. his Doctorate in Aramaic philology. He shareholder rights, regulatory filings and am passionate about funds,” he says Funds regulation aims to protect the movement of money in a fund. “But that is not the case - you need then worked for many years as an inde- obligations. smiling. investors, not from losing their money - Warming to his theme, Lasry main- local directors for tax reasons, for sub- pendent investment advisor! any attempt to do so at best would not tains: “I don’t have a problem with the stance. If the expense of those directors The eldest of seven children, Lasry work, and at worst, hamper its ability to investment manager or director with is a foregone conclusion being required favoured liberal arts, reading literature make money, Lasry says. experience, being authorised to make by circumstance, then let’s use those and music at Baltimore’s Johns Hopkins “But it is there to ensure that money investment decisions with a mandate to directors for so much more, fiscal com- University. is used correctly - according to the man- financial services is consumer buy and sell. pliance and also regulatory compliance. His dream was to be a professional “But they can’t move anything out of violinist, but that never happened,date for which it was given - and so that protection for the investor.. that really the account. The authorised directors although he plays in chamber groups andthe Regulator can get involved, in a “ must supervise and indeed control it on even sometimes with the orchestras thatgreater way than the law gives to direc- turned me on an appropriate basis, which provides the New York grounding are brought to Gibraltar by fellow direc-tors, to deal with issues when things start necessary consumer protection”. “The authorised directors are not neces- tor of the Gibraltar Philharmonic Society,to go wrong.” sarily going to be the brains that make Karel Mark Chichon. After a slight slow down in funds But his involvement with funds His fist job was in international In time, he wants to introduce this the fund go up 20 per cent a year, but A year into his first degree, Lasryformation work at the start of this year, began when Deutsche Bank asked James trade and consumer protection for thetwo regulated persons rule as part of a critically they will be the people who was more than a year ahead of his con-Lasry, who was made a Hassans partner Levy initially to set up a company ”to be Israeli Ministry of Trade and Industry. “ICode of Practice for the members of the ensure that the investors’ interests are temporaries so, aged 19, he left to studyin 2005, sees an increase in fund listed on AIM. Levy considered Lasry liked the idea of protecting consumers,Gibraltar Funds and Investments properly looked after.” at a religious school for 12 months. formation requests. He also sees private was ready to assist. but became bored after a while, because IAssociation (GFIA), of which he has just He’s surprised at how few clients He stayed there longer than initiallyclient work in Gibraltar eventually giving Given the early 2000 economic was only dealing with small issues.” been elected chairman. objected to his two director principle of planned and he eventually completed hisway in importance to institutional downturn, the venture did not list and Whilst writing Regulatory Filings for “But I don’t think it should be a only authorised directors controlling the studies in literature, music and law at Barwork as it substantially has done in instead emerged as one of Gibraltar’s first the SEC in his next job as legal counselregulatory matter, because there may be rare occasions when it is appropriate to fund’s accounts, admitting he did have Ilan University. Tiring of studies, he fol- run-ins with a couple of clients unwilling lowed friends to get his first job, aged 28. Continued P30

28 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 29 PROFILE LAST WORD

Continued from P29 fund opening in Gibraltar and it’s only inSociety, whose music director, Chichon, Luxembourg and Dublin. the last couple of years that we have been“has a knack for finding excellent per- Cautionary tales for travellers Looking ahead, the Cayman Islands accepted by prime brokers as a jurisdic-formers and bringing them to Gibraltar may no longer be the best place for all tion with which they can do business,before they become too expensive for the Society’s budget,” says Lasry. There’s nothing that gets people talking more easily Hedge Funds he feels, given that “the without the need for jurisdictional due items that can incriminate them to part- Now Lasry can combine his two proximity to each other of directors and diligence.” than travel horror stories. Everyone has one. ners on just how much has been spent? administrators is important rather than He points out: “It’s hard for big insti-pasions, funds and music. An international airline electronic being in a place that is hard for tutions to change. Gibraltar will attract Having been involved in drafting and f travelling by air is the safest form at check-in. But I hadn’t counted on a luggage tracking system failed to locate Europeans to get to; directors ought to be them eventually, perhaps in a couple ofadvising on much of Gibraltar’s fund leg- of transport in the world, then in no-letter-no-fly, but-you-let-me-travel the bag, even after several months. able to go to directors meetings quite eas- years or so. islation, Lasry sees GFIA representing the my experience, the airlines that argument. It took a sympathetic supervi- And by the way, it’s not new-for-old ily and see what is going on”. funds and investments industry both at carry us are the butt of the most sor to call the airline’s headquarters, replacement either. We pointed to the He enthuses: “The balance struck in Music too home to Government and the FSC, and tales of woe. having tantalisingly felt my half-cast Montreal Convention consumer regula- this jurisdiction between flexibility and abroad to potential clients. “I don’t think we will ever compete with IMy latest encounter was when protecting a stretched Achilles tendon, to tions and after months of e-mails to and regulation is excellent. The EIF product, GFIA change of name this year from Luxembourg or Dublin in terms of size, returning from the UK. Admittedly, I was get permission. fro and threats of County Court legal together with PCC legislation, is very Gibraltar Association of Stockbrokers but I think we can offer a very good solu- one of only a small band of travellers It’s on the web site in the small print action, we eventually agreed compensa- strong and competitive with our peers - and Investment Managers reflects the tion to funds that are either too small for requiring ‘special assistance (SA)’ – not to terms and conditions of carriage, I was tion at 75 per cent of the around £1,000 Luxembourg, Cayman Islands, Channel importance of funds in the jurisdiction, those places, or for funds that feel they carry overweight, bulging luggage, or a told. But not on the SA, special page, I maximum under the Convention. Islands and Malta. along with other investment services such don’t want to be swallowed up in a steadying hand from too much bon countered – not even a message flagged Airlines and insurers allegedly pay “Each jurisdiction has quirks. We as advice, management and brokerage, crowd.” voyage spirit. up to check section ‘x’, sub section ‘y’ of out just 10 per cent of the value of claims, are different because we are within the having raised membership by a third. The year ahead is likely to be busier No, I was fairly freshly on crutches the aforesaid multi page conditions! so the EU plans now to step in with a EU, and because we are small, the rela- So what about the first fund he with my overnight bag swaying to and fro Lucky me; if it had been a full cast, I for Lasry than his current hectic sched- European travel compensation claim after tionship with the Regulator is much clos- established, for which he remains a direc- across my chest as I made my way, Long would not have been allowed to travel at a reported 42m bags failed to arrive at the ule, made possible by the support of er. Our product is very good.” tor? “It was fairly successful until a few John Silver-style, to the check-in desk. all without the dreaded medical letter. same time as their owners. South African born wife Lianne and three However, Lasry feels: “The major months ago - it should still return An efficient, but an unobservant, So be warned, before flying check all Travel insurance claims are unlikely children. defect is that it’s not well known and investors 150-200 per cent over the 8 young lady went through the usual for- the small print. It’s surprising what you to prove any better – some say less so – In addition to the new lead role in doesn’t have brand recognition. years - not fantastic, but not terrible malities of passport identification, bag- might find. nor easier. But at least with insurers, we the GFIA, he’s also just become “We haven’t had a large Fidelity either.” gage liquid content and security ques- Having one of two suitcases missing know from wider experience to always Chairman of the Gibraltar Philharmonic tions, was preparing to dismiss me ready on landing past midnight at Bangkok check the small print first. to deal with the next passenger, when I en-route to Australia last year, we One piece of internet advice by pointed out that I’d requested SA, as it’s dutifully filled out report forms for a worldly wise travellers is to make a full known. sleepy airport representative. list of all items in a suitcase and have the BAR ■ RESTAURANT She peered at me doubtfully, asking Claiming against the airline under airline check-in clerk sign it as correct. what was wrong. I was tempted to tell World Travel rulings, we were met on our Oh yes. her about my headache, or sore arms return four weeks and two weddings, a Fourteen pairs of knickers, bras, Modern Mediterranean unused to items stuffed under my armpits Christening and Christmas and New socks, two sun dresses, a dozen tops, six dining to help me hobble along, but instead Year’s Eve parties later, by a charming swimming costumes and countless cos- 14 pointed to my bandaged right calf. young airline assistant to fill in still more metics and other female paraphernalia Pointing accusingly, she asked: “Is forms – and provide, there and then, later; I think not! that a cast under there”, adding: “Do you receipts for all of the clothing and other Of course you can take a laid back, On the Quay have a doctor’s note with permission to items (including the suitcase) that had more worldy-wise point of view. Only fly?” been lost! take things you don’t mind loosing – I was thoroughly taken aback. When We had the receipts for replacement holey socks, discoloured pants, frayed Restaurant I’d left the Estepona hospital casualty goods, but the original receipts? What shirts... department five days earlier, the doctor person, particularly woman, keeps these Ray Spencer said I could fly – but no letter. And no-one had asked me for one when I was efficiently, and considerately handled by Gibraltar SA staff on the way out to the UK. The latest edition of I did have to wait nearly 45 minutes when I landed for a requested wheelchair GIBRALTAR – but that was lucky, according to the air INTERNATIONAL crew, waiting to disembark, because the Business lunches Magazine and archive a speciality previous day a passenger waited an hour and a half. (It’s so frustrating being at the editions are available Unit 14, Queensway Quay privileged front of the aircraft and leaving Gibraltar 54 Irish Town, Gibraltar after the cleaning crew had almost online at our website open:10am-late finished with the cabin). Opening hours address closed Sundays + Saturday lunch So it was good that I was really early 12.30pm-11.00pm, last orders 10.45pm Tel: +(350) 200 51738 www.gibraltarinternational.com

Tel: +(350) 200 43731 ROJO CAFE to reserve a table

30 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 31