Functions of the Gibraltar Financial Services Commission and exercise of delegated authorities by the Chief Executive
The Gibraltar Financial Services Commission (the Commission) is established by the Financial Services Commission Act 2007 (the “Act”). The Commission’s functions are set out in section 6 of the Act. A copy of section 6 of the Act is set out in Schedule 1.
Section 6A of the Act establishes the Auditors Regulation Committee (ARC). The Commission has arranged for its functions to be carried out by the ARC as competent authority under the Auditors Act 2009 (the Auditors Act). A copy of section 6A is set out in Schedule 1.
The Commission must discharge its function in the manner set out in section 7 of the Act. The Chief Executive of the Commission (the “CEO”) is appointed under section 8 of the Act.
The Commission has the power to delegate the discharge of any of its functions to the CEO under section 9 of the Act. The Commission may also delegate to any other person with the consent of the Minister of Financial Services and Gaming (the Minister). Any delegation by the Commission does not prevent the Commission discharging the same functions. In the event the Commission decides it should exercise any of its functions, it can. It is able to revoke any delegation at any time.
Section 10 of the Act sets out the Commission’s powers for the discharge of its functions.
The Commission delegates its functions under section 6 of the Act and its powers under section 10 of the Act to the CEO. This delegation excludes the functions set out in section 6(1)(g), (i) and (j). The CEO must discharge the delegated functions in accordance with section 7 of the Act.
The delegation excludes the Commission’s functions under one of its Supervisory Acts, the Auditors Act. The CEO has recused herself from the ARC and from the exercise of executive functions under the Auditors Act.
The ARC delegates its functions as competent authority under the Auditors Act to Kathryn Morgan, Director of Regulatory Operations at the Commission. The delegated functions must be exercised in accordance with section 7 of the Act. The Minister has consented to this delegation.
Functions of the Commission.
6.(1) The functions of the Commission are-
(a) to supervise Authorised persons in accordance with this Act and the Supervisory Acts;
(b) to consider and determine applications for authorisations, licences, recognitions and registrations made under the Supervisory Acts;
(c) to monitor compliance by Authorised persons with such legislation, rules, codes and guidance made under this Act or any Supervisory Acts;
(d) to monitor compliance by Authorised persons with legislation, rules, codes and guidance relating to the prevention of financial crime;
(e) to monitor financial services business carried on in or from Gibraltar and to take such appropriate action as it is empowered to do against persons carrying on such business without the necessary authorisation, licence or registration;
(f) to carry out the duties and discharge the functions imposed on, or given to, it under this or any other Act;
(g) to determine subject to the approval of the Minister the terms of service of the Chief Executive;
(h) to determine the number and skill mix of employees required by the Commission to carry out its functions and to determine their terms and conditions of employment;
(i) to monitor and oversee the performance by the Chief Executive of all functions delegated to him by the Commission;
(j) to approve the annual estimates of income and expenditure to be furnished to the Minister under section 16; and
(k) in respect of those areas of financial services business where Community law applies, to supervise and regulate financial services business carried on in or from Gibraltar in accordance with Community obligations and in those areas to establish and implement standards and supervisory practices which match the standards and supervisory practices governing the provision of financial services within the United Kingdom.
6A. (1) The Commission may, by resolution, arrange for the functions conferred upon it by section 2A of the Financial Services (Auditors) Act 2009 to be exercised by a committee of the Commission to be known as the Auditors Regulatory Committee (“the ARC”).
(2) The ARC is to comprise–
(a) not more than six members appointed by the Commission from among its members; and
(b) the Chief Executive (without further appointment).
(3) All of the members of the ARC must be non-practitioners (within the meaning of the Financial Services (Auditors) Act 2009).
(4) Section 12 applies in relation to the ARC with the following modifications–
(a) a committee established under section 12(1)(b) may not discharge any function of the ARC; and
(b) section 12(3) does not apply to the ARC.