Gibraltar: Banking Regulations and Laws Update

The Financial Services Act 2019, which came into effect on July 23, 2019, marked a significant overhaul of Gibraltar’s banking regulatory framework. The act aimed to strengthen the island territory’s position as a leading financial services hub in the European Union.

Recent Amendments to Credit Institutions and Capital Requirements

In recent years, there have been several amendments to the regulations governing credit institutions and capital requirements in Gibraltar. These changes reflect the ongoing efforts to ensure that the territory remains compliant with EU regulations post-Brexit.

• Financial Services (Credit Institutions and Capital Requirements) (Amendment No. 2) Regulations 2024: This amendment aims to strengthen prudential requirements for credit institutions in Gibraltar, aligning with EU standards. It came into effect on June 13, 2024.
• Financial Services (Investment Firms) (Prudential Requirements) Regulations 2021: These regulations establish a new framework for investment firms operating in Gibraltar, setting out specific requirements for their capital adequacy and risk management practices. They were introduced on December 23, 2021.

Repeal of Existing Regulations

The Financial Services Act 2019 has also led to the repeal of certain existing regulations, including:

• Financial Services (Capital Requirements Directive IV) (Enforcement) Regulations 2016: These regulations were repealed on October 13, 2016, reflecting the need to update Gibraltar’s regulatory framework in response to changing EU requirements.

Staying Compliant in a Post-Brexit Landscape

As Gibraltar continues to navigate its post-Brexit landscape, it is essential for financial institutions operating in the territory to stay up-to-date with the latest regulatory developments. The ongoing amendments and updates to banking regulations in Gibraltar demonstrate the government’s commitment to maintaining a robust and compliant financial services sector.