The Impact of Brexit on Gibraltar – Perfect Storm or Perfect Summer?

Marcus Killick dissects the impact of Brexit on Gibraltar. Despite initial concerns, this resilient jurisdiction has adapted to the challenges, discovering new opportunities and strengthening ties with the UK. Explore the entrenchment of passporting rights and a double taxation treaty, providing security for financial services and gaming businesses. Witness the development of new markets outside the EU and the welcoming environment for Distributed Ledger Technology. However, lingering storm clouds loom, with the vulnerability of a fluid border and the potential damage caused by political maneuvers. Discover how Gibraltar reinvents itself, embracing change while navigating uncertain waters.

Read the article: The Perfect Storm or Perfect Summer – The impact of Brexit on Gibraltar

(Article first published in the IFC Review, 2020.)

Any views and opinions presented in this article belong to their author and do not necessarily mirror those of ISOLAS LLP. Due to the rapidly evolving nature of legislation, the content provided should not be taken as legal advice. ISOLAS LLP does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information.

International Financial Centres — Be Careful What You Wish For

Marcus Killick, CEO of Isolas LLP, discusses the evolving landscape of international financial centres (IFCs) and their role in today’s interconnected global economy.

The interconnectedness and interdependence of the global economy necessitate the existence of well-regulated IFCs. While challenges persist, IFCs have evolved to meet international standards and provide valuable services. Instead of wishing for their disappearance, the legal industry should recognise the vital role played by compliant IFCs in supporting international trade and economic growth.

Read the article: International Financial Centres – Be Careful What You Wish For

(Article first published in the IFC Economic Report, 2019.)

The Populist Attack on Globalisation and its Threat to Smaller IFCs

A survey suggests that people with higher childhood IQ scores tend to be economically conservative and less likely to blame foreigners or support income redistribution. However, the rise of populist movements challenges the influence of intelligence on economic perspectives. International Financial Centres (IFCs) face threats from capital flow restrictions and tariffs, which harm global trade and diminish the need for their services. Increased transparency has also reduced IFCs’ appeal as safe havens. Protectionist agendas are a further threat to IFCs by hindering global trade. To survive, IFCs must adapt to new market dynamics and support different trade flows.

Read the article: Barbarians at the Gate – The populist Attack on Globalisation and its Threat to Smaller IFCs

(Article first published in the IFC Review, 2019.)

Managing Conflicts

The article discusses the issue of conflicts of interest, particularly in the context of Non-Executive Directors (NEDs) serving on multiple boards. Marcus Killick highlights the importance of preventing conflicts and the need for NEDs to manage their time effectively to fulfil their fiduciary responsibilities.

The article also addresses the concept of “chronic” conflicts, where an NED’s conflict persists on a permanent basis, potentially impairing their ability to perform their duties adequately. Regulatory concerns about “overboarding,” where NEDs take on too many roles, are mentioned, as is the need for NEDs to consider these issues seriously. The piece underscores that NEDs, especially those on the boards of licensed entities, should be cautious about the impact of conflicts and time management on their role, as regulators are increasingly focused on holding them accountable.

Read the article: Managing conflicts

(Article first published in Gibraltar International, 2018.)

Gibraltar’s personal pension regime

Marcus Killick discusses the introduction of a licensing and regulatory regime for personal pension providers in Gibraltar, which aims to address issues of consumer protection and competitiveness in the pension market.

Historically, pension activities often fell outside existing financial service regulations, leading to concerns about unsuitable investments, high fees, and fraud in the pension market. As a response, Gibraltar has implemented new requirements that subject all those involved in the personal pension market to the supervision of the Gibraltar Financial Services Commission (GFSC). This includes licensing, conduct of business rules, reasonable exit charges, and suitability requirements for pension investments.

The article highlights the collaborative efforts of the government, industry, and regulator to create an effective regime that balances consumer protection with competitiveness.

Read the article: Gibraltars new pension regime

(Article first published in Gibraltar International, 2017.)

The Undertaker of Panama: The Panama Papers Scandal

Discussing the Panama Papers scandal and its impact on the reputation of offshore jurisdictions. Marcus Killick highlights that while there may have been some wrongdoing revealed in the leaked documents, it represents only a fraction of the activities of a large law firm. The article also addresses the issue of perception and the need for international financial centres to fight against negative stereotypes and showcase their valuable role in the global economy.

Read the article: The Undertaker of Panama

(Article first published in the IFC Review, 2016.)

Being Disruptive: Building a Regulatory Framework for Virtual Currency

Marcus Killick delves into the world of virtual currencies and the pressing need for a supportive regulatory framework. As disruptive technologies reshape the financial services landscape, international finance centres must adapt and embrace innovation. Learn how Gibraltar is leading the way by establishing a comprehensive regulatory framework for virtual currency, attracting high-quality businesses. Discover the challenges and opportunities in this evolving space, and the vital decisions regarding regulatory adaptation and nurturing new areas of growth.

Read the article: Being Disruptive – Building a Regulatory Framework for Virtual Currency

(Article first published in Offshore Investment Magazine, October 2015.)

Structures for Smaller International Finance Centres: A Serious Talk About the Future

The evolving landscape of smaller international finance centres and their adoption of new, flexible structures. Explore the benefits of Private Trust Companies (PTCs), Limited Liability Partnerships (LLPs), and foundations in providing tax transparency, client control, and adaptability. Learn how centers like Gibraltar have embraced innovation and nurtured client trust to meet the changing needs of the financial world.

Read the article: A serious talk about the future.

(Article first published in Offshore Investment Magazine, March 2016.)

An Old Foe Returns: The Threat to International Finance Centres

Marcus Killick focusses on the emerging threat to International Finance Centres from a new group of individuals with socialist ideals. While previous concerns about transparency, money laundering, and inadequate regulation have been addressed, the battle now shifts to an ideological conflict.

The rise of left-wing leaders like Jeremy Corbyn and the impact of their economic policies, known as “Corbynomics” are explored, whilst touching upon the “none of the above” sentiment among the British voting public, which includes individuals weary of austerity measures.

Read the article: An Old Foe Returns – The Threat to International Finance Centres

(Article first published in the IFC Economic Report, 2016.)

Private banking, a dip or a spiral?

This article explores the shifting landscape of private banking, particularly in smaller international financial centres, and questions whether the decline observed in certain regions is indicative of a long-term trend.

Marcus Killick identifies several factors contributing to this trend, including regulatory changes such as FATCA and the Savings Tax Directive, economic considerations such as changing risk attitudes, and innovations like the rise of family offices and online banking.

These factors collectively impact the profitability and attractiveness of smaller international financial centres for private banking. Killick suggests that while the financial centres themselves will adapt, private banks may face challenges in maintaining their relevance and profitability in the evolving financial landscape.

Read the article: Private Banking – A dip or a spiral

(Article first published in 2015.)

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