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New AIFMD dual regime for funds puts Gibraltar on a level playing field with non-EU jurisdictions

30.03.2022 News

Her Majesty’s Government of Gibraltar (“HMGoG”) has today published legislation that creates Gibraltar’s dual regime for experienced investor funds (“EIFs”).

Gibraltar joined the European Economic Community (as it then was) with the United Kingdom in 1973 and exited the EU with the United Kingdom following the Brexit referendum. Whilst it formed part of the EU, Directives were transposed into Gibraltar law: this included the Alternative Investment Fund Managers Directive (“AIFMD”). Whilst a large majority of the funds domiciled in Gibraltar were exempt from the AIFMD because their assets under management did not exceed €100M or €500M in the case of certain closed-ended funds (commonly referred to as the de minimus exemption), larger funds continued to generally be domiciled outside of the EU because they would otherwise have to comply with the AIFMD. This unfortunately made it difficult for Gibraltar to compete with non-EU fund jurisdictions. 

With the implementation of the dual regime in Gibraltar we are able to maintain the transposition of the AIFMD, but funds that would have fallen within the scope of the AIFMD, may now opt-out. It is particularly important in the context of crypto funds that would otherwise have had to comply with AIFMD and for example, appoint an AIFMD depositary: which is simply not available. This puts Gibraltar on a level playing field with the likes of the Channel Islands and the Caribbean and coupled with the benefits of the EIF regime, a professional services sector and regulator that understands the industry and an appealing tax regime.

Director Jay Gomez commented “It has been a pleasure to work on the dual regime in my capacity as the Chairman of the Gibraltar Funds & Investments Association. With the creation of a dual funds regime in Gibraltar, we can usher in a new era for Gibraltar’s fund sector as a non-EU jurisdiction. I am confident that this will lead to a significant increase in interest in Gibraltar as it positions itself as the jurisdiction of choice on the European continent."

 

For further information on the dual regime please contact Jay Gomez and Javi Triay: Jay.gomez@triay.com & Javi.triay@triay.com

Disclaimer:
This document has been issued on the 30th Mar 2022 by Triay Lawyers Limited, trading as Triay Lawyers, a Gibraltar private company limited by shares with registered office at 28 Irish Town, Gibraltar, GX11 1AA and with incorporation number 112599. The information in this document is for general information purposes only and does not constitute professional advice, legal or otherwise and does not intend to be comprehensive. Triay Lawyers does not accept responsibility for any loss that may arise from accessing or relying upon the information contained in this document.

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