GIBRALTAR ASSET MANAGEMENT COMPANY

Under Gibraltar law, there is no legal requirement for an Experienced Investor Fund to appoint an investment manager. The management of the fund may be delegated to the Board of Directors which provides for considerable flexibility, in particular for start up or small sized funds.

However, an EIF may choose to appoint an investment manager, with the Board exclusively dedicated to the corporate governance element of management activity. An asset management company can be authorised and regulated by the Financial Services Commission in Gibraltar, providing it with a full EU license under MiFID and allowing the investment services to be passported anywhere within the EU.

There are three categories of license.

Category 3 - permits activities such as arranging deals and providing discretionary portfolio management, but does not permit the holding of client money. The Initial capital requirement for this license is 50,000EUR

Category 2 - Similar to category 3 but allows the holding of client monies. The Initial capital adequacy requirement for this license is 125,000EUR

Category 1 - The license holder, in addition to arranging deals, providing portfolio management and holding client money, is also able to deal on his own account as agent and principal. The capital adequacy for this license if 730,000EUR.

In addition to the basic capital requirements, the applicant is required to complete an ICAAP (Internal Capital Adequacy Assessment Process) which takes the Pillar 2 factors dealign with business risk and mitigation controls.

Any of the above licenses would permit the licensee to passport their service and offer management of the EIF in whilst still maintaining high regulatory compliance levels.