Supervisory Approach

The GFSC’s objectives are:

  • The promotion of market confidence
  • The reduction of systemic risk
  • The promotion of public awareness
  • The protection of the good reputation of Gibraltar
  • The protection of consumers
  • The reduction of financial crime

and our supervision focuses on the risks posed to these objectives by licensees.

Every licensee will receive a level of supervision that includes:

  • An allocated supervisor
  • An annual, or more frequent, review by the senior regulatory team, of:
    • their risks
    • their business model
    • their financial situation
  • A tailored supervision plan to address risks posed to the GFSC’s objectives

Our supervision is judgment based and forward looking. We focus most attention on the areas of greatest risk within licensees and on those licensees that pose the most risk to our objectives.

In order to make these judgments, we rely on regular submissions of information.

Principles of good regulation

In metting our statutory objectives, we will have regard to several principles of good regulation -

  1. The need to use our resources in the most efficient, effective and economic way;
  2. The duty to manage a business falls upon the senior management of that business. The Directors of a licence holder, both executive and non-executive have ultimate responsibility for ensuring that the business is properly run and operates in accordance with regulatory requirements;
  3. The condition or restriction which is imposed upon authorised firms should be commensurate with the benefits expected to result from such action, so ensuring that the GFSC is proportionate in mitigating risks to our objectives;
  4. The desirability of facilitating innovation in connection with regulated activities;
  5. The international character of financial services and markets and the desirability of maintaining the competitive position of Gibraltar; and
  6. The need to consider the adverse effects of regulation on competition and consumer choice.

Download Document

A soft copy of our Supervisory Approach is available below.

Supervisory Approach