Valsen Fiduciaries Funds

Gibraltar AIFM Fund

The Gibraltar Financial Services Commission (GFSC) regulates financial services industry including Alternative Investment Fund Manager. The Act sets out the guidelines pertaining to the application and licensing of mutual funds and other collective investment entities in Gibraltar.

About Gibraltar AIFM Fund

“AIF” means a collective investment undertaking (including any investment compartments) which−

  • Raises capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors; and
  • Does not require authorization pursuant to Article 5 of Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS);

‘’AIFM” means a legal person whose regular business is managing one or more AIFs;
Each AIF to which these Regulations apply must have a single AIFM which is responsible for ensuring compliance with these Regulations and with the AIFM Directive.
An AIFMD provides depositary services to Alternative Investment Funds (AIF), and are charged with protecting the investors in each Alternative Investment Fund. The depositary has three major roles:

  • To safe keep assets of the AIF
  • Monitor cash
  • Oversee Net Asset Value (NAV) calculation and fund administration.

Gibraltar AIFM Fund Legal Requirements

Requirements Description
  1. Applicable legislation

Financial Services (Investment and Fiduciary Services) Act

Financial Services (Alternative Investment Fund Managers) Regulations 2013

  1. Supervising Authority

Gibraltar Financial Services Commission (GFSC)

  1. Corporate vehicle permitted

Limited Company

PCC (Protected Cell Company)

Unit trust

Limited partnership

  1. Minimum Capital

730,000 Euros

  1. Directors / Partners / Trustees
    • Minimum number

2

    • Corporate Directors / Partners / Trustees allowed

Yes

    • Local Directors / Partners / Trustees required

No

  1. Fund functionaries required
    • Custodian
      • Custodian required
Yes
      • Local custodian required

No

      • Eligible custodian

Financial institution licensed under the Financial Institutions Act, 2004 or

Trustee services provider licensed under the International Corporate Services Providers Act, 2003 or

Any other person as the authority may approve

    • Fund manager / Investment manager
      • Fund manager required
Yes
      • Local fund manager required

No

      • Fund manager requires to be licensed

Yes

      • Eligible fund manager

Any licensed fund manager worldwide

    • Fund administrator
      • Fund administrator required
Yes
      • Local fund administrator required

Yes

      • Eligible fund administrator

Administrator of an AIFM must be domiciled and regulated in Gibraltar or,

If not so authorised, be established in a jurisdiction where it is regulated in accordance with a legislative and regulatory regime that provides at least equivalent protection to the regime in Gibraltar.

    • External auditor
      • External auditor required
Yes
      • Local external auditor required

No

      • Eligible external auditor

Qualified/Approved auditor required

  1. Asset Requirements
    • Restriction on type of asset class invested

None

    • Asset diversification requirements

None

    • Limitation on size of the fund or total assets under management

None

  1. Local physical office required

No

  1. Prospectus / Offering Memorandum required to be filed

Yes

  1. Eligible for listing

Yes

  1. License fees
    • License application fee

£500

    • Annual license fee

£1,000

  1. Estimated license processing duration

3 months

Ongoing Obligations

Requirements Description
Monthly obligations
Office Required
Quarterly obligations
None
Annual obligations
Submit annual audited accounts to GFSC within 4 months of the financial year end
Other obligations

Notify GFSC within of any of the following changes:

Change in the registered office address

Change of its agent in Gibraltar

Change in name or address of-

  • each director of the fund, if the fund is a company
  • each trustee of the fund, if the fund is a trust
  • each general partner of the fund, if the fund is a limited partnership.

Appointment, resignation or removal of a Director or officer

Tax Obligations and Other Exemptions
Requirements Description
Business Tax
AIF are exempt from business tax.
Withholding Tax

There is no withholding tax on payments from a Gibraltar fund to its non-Gibraltarian investors.

Payments to a Gibraltar company from subsidiaries in certain European jurisdictions

Capital Gains Tax
There is no capital gains tax, inheritance tax or wealth tax in Gibraltar
Value Added Tax (VAT)
VAT is not applicable to AIFM in its entirety.
Stamp duty Act
There is a stamp duty of £10 on the creation of share capital of a company and on any increase in share capital.

Benefits of a Gibraltar AIFM Fund:

  • Ease and speed of establishment
  • Flexible structuring of the entity
  • Favourable compliance restrictions
  • Friendly regulatory environment
  • Quick and easy regulatory notification process