The purpose of this page is to make sure that the application process is fully understood.
This section sets out:
- What is a Professional Trustee?
- What is a Professional Foundation Councillor?
- What would this Licence allow you to do?
- Capital Requirements
- What do you need to submit?
Professional Trusteeship is defined as an entity or individual holding out as a professional trustee for profit or reward, or soliciting for such, in or from within Gibraltar.
Professional Foundation Councillor
Professional Foundation Councillor is defined as an entity or individual who is a member of the council of a foundation registered under the Private Foundations Act 2017, and is appointed in order to administer a Foundation, in or from within Gibraltar. The following activities are now controlled activities under Schedule 3, of the Financial Services (Investment and Fiduciary Services) Act 1989:
- Acting as a Professional Foundation Councillor;
- The formation, management or administration of Foundations;
- The provision to Foundations of the services of individuals or companies to act as secretary or in any other capacity as officer of a Foundation; and
- The provision of registered office facilities to Foundations.
An applicant who already holds an existing Class VII Professional Trustee licence and intends to apply to provide Professional Foundation Councillor services are required to submit a letter together with a fee to vary the scope of a licence. This letter should include as a minimum, details on the percentage of business within the firm which would relate to Foundations, an assessment by the firm on skills and resources required to provide this service, Board Minutes when the decision was taken to undertake this new service, and confirmation of PII Cover to include the provision of services to Foundations.
An applicant who already holds an existing Class VIII Company Manager licence and intends to apply to provide Professional Foundation Councillor services are required to submit an application pack and apply for a Class VII Professional Trusteeship & Professional Foundation Councillor licence.
What would this Licence allow you to do?
Companies or individuals licensed as professional trustees and professional foundation councillors are allowed to provide company management services without needing a separate Class VIII licence.
The licencing and regulation of a professional trustee and professional foundation councillors falls within the scope of the Financial Services (Investment and Fiduciary Services) Act 1989 ("the Act"). Professional Trustees and Professional Foundation Councillors should ensure that they comply with all subsidiary legislation to the Act.
Only one licensee within a group of Class VII holders is required to be capitalised at the minimum regulatory requirement.
An applicant shall, unless previously agreed in writing by the GFSC, have a paid-up share capital of substance depending on its business which shall not be less than £50,000.
In addition to the above capital requirement, an applicant shall be expected to maintain a minimum level of financial resources equivalent to 3 months’ worth of operating expenses (or as projected at application) and the measure of these financial resources shall be the net asset figure in the applicant’s balance sheet.
Firms holding multiple licences, other than Class VII licences, may be required to hold the aggregate of the capital required for each licence prior to being permitted to conduct the proposed activity, and on an ongoing basis. The level of capital in these cases will be considered by the GFSC on a case by case basis. It is advised that you discuss this with the GFSC ahead of your application.
What do you need to submit?
Individuals applying for a licence to provide professional trusteeship and professional foundation councillors on an individual capacity are only required to submit an Individual Application Form.
Individuals requesting a licence are required to be associated to, and provide services to, an already regulated professional trusteeship firm.
An application pack is required to be submitted with all the relevant documents.
An application will not be considered complete if there are any outstanding documents.
The application pack must consist of:
- Application Fee
- Application Form
- Business Plan
- Financial projections for the next 3 years
- Profit and loss account
- Balance sheet
- Returns (these need to be on a quarterly basis for the first year and then annually for the following 2 years)
- Individual Questionnaire (for each individual holding a notifiable position)
- Body Corporate Questionnaire (for each entity holding a notifiable position)
- Trust Questionnaire (if applicable)
- Mapping assessment of how the application meets the relevant legislative threshold requirements (i.e. statutory/regulatory criteria for licensing under relevant Act/s)
Any other document the applicant considers the GFSC should take into consideration as part of the application.
The business plan should clearly and comprehensively set out:
- How the firm will comply with the anti-money laundering requirements
- Target market and how clients will be sourced
- Risk management function
- The firms risk appetite
- Corporate Governance arrangements
- Compliance arrangements
- Details of any outsourcing arrangements and how the firm will monitor and oversee these, including the controls implemented by the firm on these arrangements
- How the firms complies with the mind and management requirements in Gibraltar
- How the firms complies with the legislative requirements, in particular with the protection of consumers.
- If you wish to serve pension schemes, e.g. QROPS, then this needs to be fully documented in the business plan. It is necessary that you set out the expertise in respect of the operation of pension schemes in order to assess their appropriateness.
The GFSC will be seeking evidence that the firm has considered the risk, compliance and operational issues associated with the proposed activities, as well as evidence that these have been documented and implemented.
Applicants should ensure that the business plan is coherent with the firm’s risk appetite and capacity.
The application fee must accompany your application. Please note, if you are applying for more than one licence, aggregate fees will apply.
|Type||Nature of Application||Application Fee|
|Professional Trustee (one legal entity or group)||Application to be licensed||£2,750|
|Professional Trustee||Application for a licence of an additional entity within the same group||£500|
|Professional Trustee||Application to vary the scope of a licence||£500|
|Professional Trustee (individual)||Application for a licence of an additional entity within the same group||£500|
|Professional Trustee (individual)||Application to vary the scope of a licence||£250|
The annual fee is not payable until your application is approved. For details of these please refer to the current Fee Regulations.
Under the GFSC’s annual fee methodology you pay a minimum base fee which is dependent on the set fee block assigned to your regulated sector. In addition to the base fee, you are also required to pay an additional amount that will be calculated based upon a range of factors including activity and income. To calculate the additional part of your annual fee the GFSC will need to review audited financial data and/or supervisory returns. At licensing stage, you will not yet have the requisite audited financial data or supervisory returns available for the GFSC to calculate the additional part of your annual fee. On this basis, the GFSC will only require you to pay the base fee at this stage and, towards the end of the GFSC’s financial year end (31 March), you will then be invoiced for the remainder of the annual fee which will be calculated based upon the financial data and/or supervisory returns provided by you up until that date.
Details on the payment methods can be requested from the Accounts team.