GFSC

The Gibraltar Financial Services Commission (GFSC) is the primary regulatory authority overseeing the financial markets in Gibraltar. Established in 1989, the GFSC has played a crucial role in ensuring the stability and integrity of the country’s financial sector. This article explores the history, scope, supervision, investor compensation guarantees, and organizational structure of the GFSC.

GFSC History

The GFSC was established in 1989 under the Financial Services (Gibraltar) Ordinance, which aimed to create a robust regulatory framework for the country’s financial sector. Since its inception, the GFSC has been committed to fostering a stable, transparent, and efficient financial system that promotes economic growth and investor protection in Gibraltar.

GFSC Scope and Supervision

The primary objective of the GFSC is to maintain the stability and integrity of the financial sector in Gibraltar. Its wide-ranging responsibilities include:

1. Licensing and regulating financial institutions: The GFSC oversees various financial institutions, such as banks, insurance companies, securities market participants, and trust companies, ensuring they adhere to strict regulations and maintain market stability.
2. Supervising the financial markets: The GFSC is responsible for regulating and supervising the financial markets in Gibraltar, ensuring proper disclosure, transparency, and fair trading practices.
3. Implementing anti-money laundering and counter-terrorism financing measures: The GFSC enforces compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations to maintain the integrity of the financial system.
4. Protecting consumers and investors: The GFSC works to safeguard the interests of consumers and investors by enforcing regulations, promoting transparency, and raising awareness of potential risks.

GFSC Investor Compensation Guarantees

In Gibraltar, investor compensation is provided through the Gibraltar Investor Compensation Scheme (GICS), established under the Financial Services (Investor Compensation Scheme) Act 2002. The GICS aims to compensate eligible investors in the event of a default by an investment firm licensed by the GFSC. The compensation limit is set at 90% of the total claim, with a maximum payout of €20,000 per individual claimant.

Organization Type

The GFSC is an independent statutory body that operates under the jurisdiction of the Government of Gibraltar. Its independent status allows the GFSC to make impartial decisions in the best interest of the financial markets and investors. The GFSC is governed by a board of commissioners, which is responsible for setting the strategic direction and ensuring effective oversight of the organization’s operations. The day-to-day operations of the GFSC are managed by its CEO, who is supported by a team of specialists and experts.