One of the attractions of Gibraltar as a fund domicile is that no regulatory approval is required before a fund can begin to raise capital and commence with its investment activities. Gibraltar is a unique jurisdiction where a fund may be launched based on a legal opinion that confirms the fund has met all legal and structural requirements for its operations, and provided that the fund’s documentation is submitted to the regulator for registration within ten business days of its launch. The majority of Gibraltar funds make use of this preferred route, however, alternative or exotic fund structures and strategies are generally discussed with the regulator ahead of time.
Since its introduction in 2005, the EIF has been the primary driver behind the growth of Gibraltar’s fund industry, proving a robust and flexible product utilised by both EU and non-EU fund managers.
An EIF established under the current EIF Regulations 2012, is a regulated collective investment scheme exclusively for investment by experienced investors. Gibraltar EIFs are designed to invest in a wide range of traditional or alternative asset classes. EIF asset classes typically include tradable securities, commodities, currencies, property, private equity and funds, as well as alternative investments such as structured credit, mortgage tranches, credit loans, venture projects and aircraft. There are no restrictions in law as to the eligible assets classes for an EIF, and there are no diversification requirements within the relevant legislation.
Establishing a fund as an EIF presents a number of key advantages: