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Insurance
Regulatory landscape changes for Gibraltar insurers
By Neil Jackman, Compliance & Risk Manager, Robus Risk Services (Gibraltar) Ltd
With Brexit now a reality it is a time for reflection. In Gibraltar, insurers authorised by the Gibraltar Financial Services Commission (FSC) can continue to passport into the UK (which was previously 90% of Gibraltar authorised business before Brexit) and operate as they did before the end of the transition period which expired on 31 December 2020. They do so under temporary measures in place between Gibraltar and the UK so, Gibraltar is very much open for business. The potential game changer is that the temporary arrangements will be superseded by a new long-term framework.
UK HM Treasury published their summary of responses to their consultation on market access between
the UK and Gibraltar in November 2020. The proposals have been included as part of the UK Financial Services Bill 2020 which is passing through the legislative processes with implementation likely in Q1 2022.
The Financial Services Bill will establish a new legal and institutional framework that will provide for mutual market access and aligned standards between the two jurisdictions, the Gibraltar Authorisation Regime (GAR). The access of Gibraltar based firms to the UK will depend on alignment of laws, regulatory oversight in both jurisdictions and co-operation between parties on both sides.
Local Gibraltar laws
Whatever form this alignment of laws takes pursuant to GAR, insurers will need to consider further the regulatory rules
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