GFSC’s new business plan has an eye on Brexit

The Gibraltar Financial Services Commission will actively supporting the development of new markets and activities in Gibraltar, against the backdrop of Brexit.
In its latest business plan the Commission sets out its priorities for the year ahead including strengthening its position in the international community of regulators and ensuring that the firms it regulates are able to do business in other countries.
The GFSC also vows to promote innovation that is “well considered and safe” for consumers and the jurisdiction.
“We will continue to support innovation in financial services in Gibraltar, by clearly explaining our regulation to those wishing to provide financial services and intending to establish themselves in Gibraltar, or those who provide support services to financial services providers,” the plan reads.
The Commission further aims to continue to encourage innovation by supporting those businesses looking to develop and introduce innovative ideas into the market.
“We will help new or non-regulated businesses understand more about our regulatory framework as well as providing input to businesses in the early stages of developing new or existing business models.”
Also listed among its aims is ‘supporting the jurisdiction through a post-Brexit setting and continuing to develop a risk-based environment that delivers improved regulatory outcomes’.
Since 2015, the GFSC says it has adopted a more refined risk-based approach to authorisation and supervision that has sought to ensure that it is focused on “the risks that matter most”.
It adds that it will further develop this approach and will continue to supervise licensees according to its view of significant risks.
“In 2017 we will conduct thematic reviews on insurance companies’ reserving processes and governance, as well as completing the thematic review on insurance managers.”
“This will give us information about what good and poor practice is in the jurisdiction and enable us to provide firms with feedback on areas for improvement.”
In respect of Brexit, the Commission stated that it will continue to engage with industry bodies, and individual firms, in order to understand their concerns in the run up to Brexit, and “to seek input into our thematic, and any other supervisory work, that may have an impact on firms”.
“We will continue to work with stakeholders to explore avenues beyond Brexit and will actively look at what could potentially work in a post-Brexit environment whilst continuing to meet international standards,” the GFSC added.
Also featuring in the Commission’s list of aims is the delivery of increased public accountability and transparency to stakeholders.
In this respect the GFSC vows to continue to develop its engagement and accountability strategy with the firms it regulates, the general public and stakeholders more generally.
“This will include engagement with other regulators, particularly where Gibraltar firms passport and where there is a significant conduct of business risk to consumers of Gibraltar firms.”