Valsen Fiduciaries Funds

Gibraltar EuVECAS and EuSEF Funds

The Gibraltar Financial Services Commission (GFSC) regulates financial services industry including Experienced Investor Funds under the Financial Services (Experienced Investor Funds) Regulations 2018. This Act sets out the guidelines pertaining to the application and licensing of mutual funds and other collective investment entities in Seychelles.

About Gibraltar EuVECAS and EuSEF Funds

European Venture Capital Funds (EuVeCa’s) are funds which place a percentage of the investments supporting young and innovative companies. European Social Entrepreneurship Funds (EuSEF) are funds that focus on investing in European social businesses.

The EuVeCa and EuSEF regimes is available to managers of undertakings for Collective Investment established in the European Economic Area falling below the Alternative Investment Fund Managers (AIFM) Directive threshold of €500 million applicable to managers managing unleveraged, closed-ended alternative investment funds (AIF). EuVeCa and EuSEF regimes are allowed to passport and raise capital across Europe in return for complying with the investment rules, registration and minimum regulatory capital.

EuVeCa – Every fund wanting to use this label will have to evidence that a high percentage of investments (a minimum of 70% of the capital received from investors) will be spent in supporting young and innovative companies.
EuSEF – Every fund wanting to use this label will have to prove that a high percentage of investments (a minimum of 70% of the capital received from investors) will be spent in supporting social businesses. The fund will need to evidence that the achievement of measurable positive social impact will be the primary objective of each of the undertakings the Fund invests sin.

Gibraltar EuVECAS and EuSEF Funds Legal Requirements

Requirements Description
  1. Applicable legislation

Financial Services (Alternative Investment Fund Managers) Regulations 2013

Financial Services (Collective Investment Schemes) Act 2011.

  1. Supervising Authority

Gibraltar Financial Services Commission (GFSC)

  1. Corporate vehicle permitted

Gibraltar permitted:

Limited Company

PCC (Protected Cell Company)

Unit trust

Limited partnership

  1. Share capital or equivalent
  • Minimum subscription

€ 100,000

  • Minimum investors

None

  1. Directors / Partners / Trustees
  • Minimum number

2

  • Corporate Directors / Partners / Trustees allowed

Yes

  • Local Directors / Partners / Trustees required

Yes

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

No

  • Eligible custodian

Licensed Financial institution

Licensed Trustee services provider

Any other person as the authority may approve

  1. 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

  1. Fund administrator
  • Fund administrator required
Yes
  • Local fund administrator required

No

  • Eligible fund administrator

Administrator of an EuVECAS and EuSEF 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.

The appointment of fund administrators established outside of Gibraltar requires the Commission’s consent and is also subject to the consent of the Minister with responsibility for financial services.

  1. External auditor
  • External auditor required
Yes
  • Local external auditor required

No

  • Eligible external auditor

Qualified local auditor or

Foreign auditor if fund is structured as a domestic company

  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

£2,500

  • Annual license fee

£2,500

  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 EuVECAS and EuSEF Funds:

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