Gibraltar Location

3.8 Investor protection

3.8.1 General

The Chief Executive Officer of the Gibraltar Financial Services Commission (FSC) is responsible for the supervision, licensing and regulation of all companies and individuals who offer financial services or products to the public (see section 2.17). The UK Government agrees that Gibraltar has implemented the necessary regulatory and supervisory practices with regards to regulated entities that match UK standards.

3.8.2 Deposit Guarantee Scheme

Gibraltar has implemented the EU Directive on deposit guarantee schemes. This ensures that there is a level of deposit protection for depositors with credit institutions in Gibraltar. In general, the Gibraltar Deposit Guarantee Scheme covers 100% of a credit institution’s liability to a depositor in respect of qualifying deposits subject to a limit of €100,000.

3.8.3 Investor Compensation Scheme

Gibraltar has also implemented the EU Directive on investor compensation schemes that cover eligible investments made by an investor but specifically excludes deposits qualifying under the deposit guarantee scheme (see Section 3.8.2 above). In general, the compensation scheme will cover 90% of all eligible investments held by a claimant with the investment firm subject to a maximum payment of €20,000 to any one individual.

As a result of the financial crisis, the European Commission has been looking into a possible increase in the compensation limits at a level consistent with the Deposit Guarantee Schemes Directive.