Future looks bright for Gibraltar

Quinn detailed the strengths of Gibraltar in comparison with other offshore financial centres:
• An established regulatory regime that other domiciles are looking to follow

• Specialist skills in personal lines

• Growing market for captives and protected cell companies

• A developed infrastructure, with experienced accountants and lawyers

• Historically, a virtually tax-free regime

• A strategic geographic location

• The strength and reputation of the regulator, the Financial Services Commission

• The ability to access the regulator easily.

But Gibraltar has some weaknesses:
• Only five insurers account for £700m of the £1bn worth of premium in Gibraltar

• Relative lack of quality recruits locally

• Limits to the regulator's scope

• Small geographical area.

Among the opportunities are:
• Gibraltar's new tax regime, due to be announced early next year, should be "in the single digits"

• The soon-to-be-enacted Reinsurance Directive

• Improved relations with Spain

• Fund opportunities, for example collective investments in transferable securities (UCITS)

• Islamic banking.

But the offshore centre faces some threats, according to Quinn:
• Lack of local management

• Competition from other jurisdictions

• Unresolved corporate tax regime

• Service provision

• Possible company failures.

Quinn remained optimistic, however: "The future looks bright for Gibraltar."