The UK Government has released a consultation to further strengthen its strong and enduring relationship with Gibraltar as a result of both jurisdictions leaving the European Union (EU).
HM Treasury has proposed a new long-term legal framework, to be known as the Gibraltar Authorisation Regime or "GAR", that will provide for mutual market access and aligned standards for Gibraltar-based firms to access the UK market and to facilitate the maintenance of the necessary regulatory and supervisory arrangements.
The Government of Gibraltar will also be legislating in order to enable UK firms to access the Gibraltar market on a reciprocal basis. This will build upon the extensive reforms of Gibraltar's financial services legislation, which was finalised earlier this year as part of the Legislative Reform Programme. This included the introduction of Gibraltar's new Financial Services Act and corresponding sector-specific regulations for each of the jurisdiction's financial services regimes.
The GAR is intended to deliver certainty for Gibraltar firms and minimise disruption to business. It has been designed to protect financial stability, to promote the safety and soundness of firms, to protect market integrity and to ensure high levels of consumer protection in both jurisdictions.
This new regime is based on high standards and alignment of financial regulation, authorisation, supervision and enforcement, underpinned by bespoke arrangements for information-sharing, transparency and co-operation between the regulators.
The proposals aims to recognise the special historic status of Gibraltar, the unique market access arrangements that were in place prior to exit from the EU and the long established bilateral economic relationships between the UK and Gibraltar.
Peter Isola, Senior Partner at ISOLAS LLP, said: "The UK continues to be a leading finance centre and this unique arrangement will ensure that both existing and new Gibraltar based businesses are able to continue accessing the UK market from Gibraltar. Once these arrangements are finalised, they will position Gibraltar as a very attractive gateway for global companies seeking to undertake business with the UK."
The UK Government welcomes views from all interested parties, in particular the insurance industry, other interested firms and consumer groups.
The condsultation may be viewed at the following website:
https://www.gov.uk/government/consultations/market-access-arrangements-for-financial-services-between-the-uk-and-gibraltar-a-consultation. The consultation will run from 11 March to 11 May 2020. You can either respond by emailing:
GibraltarAuthorisationRegime@hmtreasury.gov.uk
Or by post to: International Policy and Partnerships, 1 Blue, HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ.
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