Consultation outcome

Market access arrangements for financial services between the UK and Gibraltar: a consultation

From:: HM Treasury
Published: 11 March 2020
Last updated: 9 November 2020 — See all updates

Detail of outcome

In March 2020 HM Treasury published a consultation paper inviting views on the main features of the Gibraltar Authorisation Regime (“GAR”), a new permanent legislative framework enabling UK market access for Gibraltar-based financial services firms on the basis of alignment of regulatory and supervisory frameworks and cooperation between the jurisdictions.

This document provides a summary of the responses to the consultation and the government’s decisions on the final policy design. The GAR will be brought forward as part of the Financial Services Bill 2020, which was introduced to Parliament on 21 October 2020.

Original consultation

Consultation description

In light of the special and historic relationship between the UK and Gibraltar and reflecting the unique institutional framework that was in place while we were members of the European Union, the Government has committed to enabling financial services firms based in Gibraltar to continue to access the UK market. The Government has already introduced temporary arrangements to protect access, which will be in place until the permanent arrangements are delivered. This consultation seeks views on the Government’s proposals to introduce a new long-term legislative regime enabling market access for financial services firms based in Gibraltar.

The consultation invites views on the main features of the proposed Gibraltar Authorisation Regime, including how firms will enter and exit the regime and measures to ensure the protection of UK consumers. The new regime is intended to protect financial stability, promote the safety and soundness of firms, protect market integrity and ensure high levels of consumer protection. It is based on aligned standards of financial regulation, authorisation, supervision and enforcement and will be underpinned by bespoke arrangements for information-sharing, transparency and co-operation between regulators.

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