The Minister with responsibility for Digital and Financial Services, the Hon Albert Isola, has today confirmed changes to the GFSC’s annual regulatory fees for the financial year ending 31 March 2024.
These changes will apply to Distributed Ledger Technology (DLT) Providers and Credit Institutions, and include the introduction of AML Supervision Fees across various sectors.
As Gibraltar’s crypto space continues to develop, the cap relating to a regulated DLT Provider’s Trade Activity will be extended from £30,000 to £60,000. Moreover, an annual Group Supervision fee of £75,000 will be introduced for Credit Institutions which form part of a group where the GFSC carries out group supervision.
In view of the GFSC’s functions and responsibilities under the Proceeds of Crime Act 2015 (POCA), AML Supervision Fees are also being introduced across a number of sectors. An annual fee of £3,000 will be payable for DLT Providers, E-money firms, Life Insurance Companies and Market Operators. An annual fee of £500 will be payable for firms in other sectors with the exception of General Insurers, Experienced Investor Fund (EIF) Directors, Accountants, Tax Advisors, Virtual Asset Service Providers (VASPs), Occupational Pension Schemes and Private Sector Pensions.
Furthermore, and contrary to previous years, all regulated firms will not be charged a percentage increase in annual regulatory charges for 2023/2024.
Notwithstanding, the GFSC has said it will continue to enhance its effectiveness, proportionality and risk-based focus as a regulator through bespoke technology solutions such as its Digital Transformation Strategy, designed to allow more time to cooperate with firms and understand their business mod- els further.
Minster for Digital and Financial Services, the Hon Albert Isola, added: “Over the last eight years, in addition to the agreed annual subvention to the GFSC, we have made significant contributions to cover extraordinary expenses.
“This year’s subvention to the GFSC will remain at its current level and we will continue to assist the GFSC and provide financial support when required.
“In light of our current climate, the changes to regulatory fees are necessary to be able to support the adequate duties of the regulator. I am pleased that there has been careful consideration to these changes and the increase in fees has been kept to a minimum, as well as preventing the usual per- centage increase in annual regulatory charges.
“Amendments to the annual regulatory fees will be reflected in Schedule 1 of the Financial Services (Fees) Regulations 2020. The fee amendments will be effective as from 1 April 2023 and regulated firms will receive invoices from the GFSC via email by 31 March 2023.”