GIBRALTFebA/March/R April 2018 INTERNATIONAL FINANCE n INVESTMENT n BUSINESS Broadband competition – phenomenally good for business www.gibraltarinternational.com GIBRALTAR’S LEGAL EXPERTS IN FINTECH From 1 JanuaryJanuarryy 2018, nine principles will regulateegulate DLTDLLTT firms authorised and supervisedsupervised by the Gibraltar Financial ServicesServices Commission. TriayTriay & TriayTriay has decades of expertise in financialcial services.serrvices.vices. WeWe have prepared for the Distributed Ledger TechnologyTechnology (DLT)(DLLTT) regulationsregulations that will make Gibraltar’sGibraltar’s jurisdiction one of the most innovative in Europe. WithWith our team supporting your Fintech business, whether it is a blockchain start-up, a multi-currency digital wallet system or an ICO you can be assured of the best advice from a law firm that is respected worldwide. THE FIRST CHOICEFFOR ORFOR THE THE DLT DLT COMMUNITY. COMMUNITY. TriayTriay & Triay,TTriayriayy,, 282 Irish Town,Town, Gibraltar Tel:Tel: +350 200 72020 • Fax: +350 200 72270 • [email protected]@triay.com • www.triay.comwwwwww.triay.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 Tel: + (350) 200 50011 • [email protected] www.gibraltarfinance.gi ARTEX RISK SOLUTIONS (GIBRALTAR) GIBFIBRE LIMITED Tel: + (350) 200 65155 • [email protected] Tel: + (350) 200 74570 • [email protected] www.gibfibre.com www.artexrisk.com HASSANS BANK J. SAFRA SARASIN (GIBRALTAR) Tel: + (350) 200 79000 • [email protected] LIMITED www.gibraltarlaw.com Tel: + (350) 2000 2550 [email protected] ISOLAS www.jsafrasarasin.com Tel: + (350) 2000 1892 • [email protected] www.gibraltarlawyers.com BDO LIMITED JYSKE BANK (GIBRALTAR) LIMITED Tel: + (350) 200 47300 • [email protected] www.bdo.gi Tel: + (350) 200 72782 • [email protected] www.jyskebank.gi BCMS GIBRALTAR Tel: + (350) 200 61061 • [email protected] KPMG www.bcms.gi Tel: + (350) 200 48600 • [email protected] www.kpmg.gi DELOITTE Tel: + (350) 200 41200 • [email protected] PIRANHA DESIGNS Tel: + (350) 200 45599 • [email protected] www.deloitte.gi www.pdg.gi THE EUROPA GROUP Tel: + (350) 200 79013 • [email protected] RED RIBBON FUND MANAGEMENT LIMITED www.europa.gi Tel: + (44) 20 7183 3710 • [email protected] www.redribbon.gi EY LIMITED Tel: + (350) 200 13200 • [email protected] SAPPHIRE NETWORKS www.ey.com/gi Tel: + (350) 200 47200 • [email protected] www.sapphire.gi FIDUCIARY MANAGEMENT LIMITED Tel: + (350) 200 76651 • [email protected] SG KLEINWORT HAMBROS BANK (GIBRALTAR) www.fiduciarygroup.com LIMITED Tel: + (350) 2000 2000 GIBRALTAR STOCK EXCHANGE (GSX) [email protected] & GIBRALTAR BLOCKCHAIN EXCHANGE (GBX) www.kleinworthambros.com Tel: + (350) 200 67822 • [email protected] / [email protected] www.gsx.gi / www.gbx.gi TRIAY & TRIAY / T&T MANAGEMENT SERVICES LIMITED GIBTELECOM Tel: + (350) 200 72020 • [email protected] Tel: + (350) 200 52200 • [email protected] Tel: + (350) 200 76108 • [email protected] www.gibtele.com www.triay.com • www.ttms.gi www.gibraltarinternational.com Gibraltar International 3 Feb/March/April 2018 Volume 24 /Number 1 Contents Gaming p16 News p6 Can diversity in eGaming become a safe bet? DLT Regulations come into force Profile p20 FinTech p8 Close family encounters help ensure law firm’s progress Gibraltar at the forefront once again Investment p24 Banking p10 The route to the Capital Markets for small companies Another lap Banking p26 Telecoms p12 Gibraltar Bankers’ Association (GBA) Broadband competition – phenomenally good for business Business round up p29 Editorial Comment Spotlight on MONEYVAL iewers of the BBC fact-based drama series, McMafia, might It is welcome reassurance that all that can be done in Gibraltar is being well be acquainted with the way financial crime, money done, but also because it will give added weight to this small territory’s claim laundering and terrorist financing have become a worldwide to be a significant player on the world stage. The Gibraltar Financial Services V issue, so will have a sense of why Gibraltar is putting such Commission sees it as boosting its credentials and, according to chief executive great effort into making sure it has fully adopted identification and Samantha Barrass, recently, she is “already detecting a growing preventive measures. confidence on the part of our counterparts in the UK and Europe” in Gibraltar Nearly two decades after Gibraltar first sought to become in its own as a strong international regulator in the context of Brexit and beyond. right, part of MONEYVAL, the international anti money laundering and Although she says there is “no competition between regulators” as they financing of terrorism compliance body, it was finally successful in 2015. work together to set and administer standards, in the private sector competition Now the territory’s systems and state of preparedness to combat those is key and as a result there are going to be trading tensions, just as is being threats are to be closely evaluated and that presents a unique opportunity experienced now in Gibraltar’s telecommunications sector. The battle over to demonstrate how the jurisdiction fares against the relevant international broadband packages that feature telephone, but also TV services the supply of standards. which may, or may not, be fully kosher, is symptomatic of a market that is small Potentially any finance centre can be exposed to bribery, corruption, and growing very little - just about everyone already is being supplied. fraud and market abuse, but for Gibraltar it is “imperative” that a positive The telecoms regulator is charged with promoting competition, but with outcome is achieved from the MONEVAL evaluation in the first quarter of no power to make it happen. By far the largest supplier of services, Gibtelecom next year and the resulting report six months later. (Gibtel), has for three years been 100% State-owned, which may or may not The planned external, in-depth examination of the territory’s result in special treatment, and there is the potential for discontent. preparedness, understanding and implementation of measures to identify Privatising Gibtel may be advisable (much as the UK divested itself of and mitigate financial crime involves not just State departments, BT), or reducing State interest to less than 50%. The government instead could regulatory bodies – covering financial services and eGaming (both distance itself by not being directly Gibtel Board members, much as in Jersey accounting for around half of the jurisdiction’s GDP) and the Office of Fair or Singapore, for example. Trading – but also a host of private sector intermediaries. Ray Spencer Published by No part of this publication may be reproduced without the written Gibraltar International Publications Ltd. permission of the publishers. 21 Bell Lane PMB 104, PO Box 561 Disclaimer Gibraltar, GX11 1AA Gibraltar International Publications Limited have tried to ensure that all Editorial enquiries information is accurate, but emphasise that they cannot accept responsibility for any errors or omissions, and that they accept no responsibility for [email protected] statements made by contributors or for any claim Advertising enquiries made in an advertisement. [email protected] Design [email protected] UK Agent: Tel: + 44 (0)1993 703560 © 2018 Gibraltar International Publications Ltd. 4 Gibraltar International www.gibraltarinternational.com News DLT Regulations come into force By March 2018 “Tens of licence She added: “Over the last few months evaluation, [a report is expected in autumn we have had a steady stream of established 2019], will represent a distinctive calling card applications” for Distributed Ledger businesses [showing interest] from all four and an incredibly useful tool for Gibraltar’s Technology (DLT) will have been corners of the world – Asia, North and South Brexit-related negotiations with the UK.” America and other parts of Europe; some to In the GFSC 2016-17 annual report, processed by the GFSC after the look around to see what our approach is, and published in December, Dr Spencer technology was regulated in January subsequently some have set up Gibraltar emphasised: “It will also help to cement our companies in anticipation of submitting a position in the international arena, post-Brexit upporting FinTech (Financial Technology) license application.” and beyond. The importance of getting this - and broader technology - innovation right for both the organisation, as well as the Sis a cornerstone of Gibraltar’s bid to Regulatory certainty jurisdiction, must not be underestimated. attract start-up ventures, or others in Firms in Gibraltar using DLT (also known as “An important element here... is to make blockchain to relocate to The Rock as a blockchain) to store or transmit value sure we are a credible jurisdiction,” he noted. ‘centre of excellence’. belonging to others, must apply for a GFSC MONEVAL presented “a unique opportunity As Gibraltar Financial Services licence, and the outcome is to gain to demonstrate how the jurisdiction fares Commission (G FSC) specialist advisor, Sian regulatory certainty. Some applications against the relevant international standards”. Jones, explained: “The rigidity of financial involve use of virtual currencies such as It will show how financial crime is in “an services regulation