Representatives from Gibraltar’s financial services and gaming sectors gathered with UK partners in the City of London on Monday to celebrate what a Labour minister described as the “fundamental, unbreakable bond” between the Rock and the UK.
The annual financial services lunch is an opportunity for Gibraltar to showcase its offering, while also building and strengthening relationships with UK counterparts.
The messages this year were focused on a commitment to the highest standards of regulation, alongside an appetite for innovation and opportunity and a skilled workforce to deliver it.
The guests gathered this year at Mansion House, the Guildhall venue being booked by the UK Government’s high-profile investor conference.
Some 300 guests and dignitaries packed into the dining room in Mansion House, sitting at long tables as they networked and listened to speeches before lunch, the speakersintroduced by former financial services and gaming minister Albert Isola.
“Gibraltar Day is about more than just business and commerce,” said Lord Collins of Highbury, the Deputy Leader of the House of Lords and Parliamentary Under Secretary of State in the Foreign, Commonwealth and Development Office.
“It’s a reminder of the fundamental, unbreakable bond that exists between the UK and Gibraltar.”
As a former union official, Lord Collins is no stranger to Gibraltar and has worked here in the past on labour issues while a senior official at the then TGWU and later Unite.
He reflected on how Gibraltar had chosen to remain British back in 1967, adding: “That strength of feeling hasn’t changed and neither has the United Kingdom’s steadfast support for Gibraltar.”
“I can assure you of this Government’s commitment on sovereignty and the double-lock.”
“Gibraltar will remain British, distinctly Gibraltarian, but British, a treasured and core member of the United Kingdom family.”
Lord Collins said Gibraltar and the United Kingdom are committed to the highest international standards of financial regulation, highlighting the FATF’s decision to put Gibraltar on its white list of compliant jurisdictions earlier this year.
And he said the UK and Gibraltar were working “side by side” to deliver a treaty that provides certainty for people and the economy in the context of a “constructive new relationship” between the UK and the EU.
“This Government will continue to work with the Government of Gibraltar which protects sovereignty and UK military autonomy while boosting the future prosperity of Gibraltar and the region,” Lord Collins said.
Guests at the lunch also heard from Gemma Arias Vasquez, the Minister for Health and Business, who addressed the event on behalf of Chief Minister Fabian Picardo, who was unable to attend due to treaty-related matters.
Ms Arias Vasquez reflected on the past few years of challenges but said these had strengthened Gibraltar’s relationship with the UK.
“Like every jurisdiction, the past few years have really tested our resilience,” Ms Arias Vasquez said.
“From dealing with the challenges and, yes, consequences of the United Kingdom’s decision to leave the European Union to a global pandemic, Gibraltar has faced its fair share of challenges.”
“And yet, these very challenges have served to reinforce what is unarguably our greatest strength – the depth and breadth of our relationship with the United Kingdom.”
“The bond between Gibraltar and the UK is not just a political partnership.”
“It is a relationship of shared values and mutual support, a relationship not just of geostrategic significance but also of commercial resilience and of deep importance to consumers in the United Kingdom.”
Ms Arias Vasquez said Gibraltar was a place where “money cannot be hidden” and that this had helped it attract better business as a jurisdiction that led the way in establishing the highest standards of regulation in areas such as online gaming and financial services.
The single market regime between Gibraltar and the UK was “a vote of confidence in our jurisdiction” including its robust regulatory standards.
Gibraltar-based gaming firms contribute nearly £500m to the UK Treasury every year through the point of consumption tax alone, she told guests at the event, “because gaming companies in Gibraltar do not evade or avoid UK taxes”.
“Gaming companies in Gibraltar collect taxes for the UK Exchequer,” Ms Arias Vasquez said.
On the treaty negotiations, Ms Arias Vasquez said Gibraltar remained optimistic of a successful conclusion to the talks soon.
“As the Chief Minister reported to the United Nations a week ago today in New York, ‘the ball is in Spain’s court’ and Gibraltar and the UK negotiating teams have proposed ‘a balanced, imaginative and sovereignty neutral solution’ to the few remaining issues,” she said.
“We all know and understand the importance of these negotiations to your industries, and I can assure you, we will not relent.”
“However, let me also assure you that, as we must, we are preparing for all outcomes so that your business and new business will be able to continue to operate and come to Gibraltar whatever the outcome of treaty talks.”
Guests at the lunch also heard from Nigel Feetham, the Minister for Financial Services and Gaming, who said Gibraltar’s financial sectors continued to grow, “in no small measure because of your continued confidence and trust”.
“It is also as a result of our very special relationship with the UK that Gibraltar is the only part of the world that is able to have access to the UK financial services market on the same basis post-Brexit,” he told guests at the lunch, highlighting the work that had gone into delivering the Gibraltar Authorisation Regime under the UK’s Financial Services and Markets Act granting that access.
“We must and will continue to work closer together to ensure we are all meeting the highest international standards whilst energising our entrepreneurial firms to innovate in a manner that is safe and protects our consumers.”
“As a part of the British family, we put a premium on our reputation as a well-regulated jurisdiction, ensuring that businesses operating within Gibraltar can rely on transparency, security, and confidence.”
“Furthermore, we are proud to uphold the British principles of the rule of law and good governance.”
“Our goal is simple: to be a trusted partner of the City of London and by extension a leader in shaping the future of international business.”
Mr Feetham announced three new pieces of legislation that will bring Gibraltar closer to the UK in terms of overall regulatory approach and shared values.
A new Gambling Bill will modernise Gibraltar’s existing framework, ensuring that Gibraltar-based operators uphold the highest international standards of consumer protection, alongside already robust anti-money laundering measures.
Separately, a Financial Services Bill will align Gibraltar with the UK in the remaining areas where alignment is needed.
“This Bill is a clear demonstration of our commitment to the shared internal market between the UK and Gibraltar, ensuring that our financial services sector operates smoothly within the same regulatory framework.”
“By doing so, we reinforce our close ties and maintain the high level of trust and cooperation that is vital to our economic relationship.”
Mr Feetham said Gibraltar also remained committed to ensuring that the Rock’s geographical advantages were never misused for illicit activities.
“We will shortly be introducing Unexplained Wealth Order legislation in Gibraltar mirroring the UK provisions, reinforcing our shared commitment to British values of transparency, fairness, and the rule of law,” he said.
“Aligning our legal framework with the UK in this area strengthens our close ties further and demonstrates our dedication to upholding the same high standards.”
“This move not only boosts already solid confidence in Gibraltar as a jurisdiction but also enhances our shared legal and economic ties with the UK.”
Mr Fetham told guests that Gibraltar’s share of the UK motor insurance market now stood at over 35%, while its share of the UK online gaming industry remained at over 50%.
He said a focus on diversification would ensure that Gibraltar was not solely reliant on any one sector or market.
“Whether it is in banking, insurance, investment management, or the growing FinTech and blockchain sectors, Gibraltar has developed an ecosystem that is global in nature,” he said.
“Of course, none of this would be possible without our greatest asset: our people.”
“In Gibraltar, we promote an environment where talent, both homegrown and international, can flourish, and our Government is committed to continue to invest in education and training of our people.”