Page 43 - Pay Magazine s2014

volume 7 • fall 2014
oh, the PeoPle you’ll Meet!
Walk Gibraltar’s Main Street during lunchtime, and you’re almost certain to run into Solomon Levy, Gibraltar’s first “civic” mayor (i.e., elected by the Gibraltar Parliament), lunching at his daughter’s restaurant, conveniently located next to his real estate office. British through and through, this national treasure was honored with the MBE (Most Excellent Order of the
British Empire) in 1999 by Queen Elizabeth II for outstanding service to the community.
If you’re lucky, the spry and loquacious 78-year old (mayor from Aug. 1, 2008—July 31, 2009) will invite you for a cup of espresso while he muses on life on Gibraltar, where his family has lived for 250 years. And, if you’re even luckier, he’ll invite you into his office-cum-museum, adorned with photos, paintings and memorabilia of his two great heroes—Winston Churchill and Admiral Lord Nelson—and lots of mementos
of his life as a public figure, military officer and man about town. His easy recollections are a crash course on the nature
of Gibraltarians (warm, tolerant, diverse and multilingual) and the need for Gibraltar to attract businesses that don’t take up too much physical space in its 2.3-square-mile footprint.
“We’re not a great place for warehouses,” he quips.
“Momy,” as he’s known by all, doesn’t have any particular views on Gibraltar as an e-money hub, but he’s passionate about the need for Gibraltar to be a great site for businesses that capitalize on intellectual power.
getting e-money providers into the market faster.”
Gibbs confirms these sentiments: “The FSC had a lot to digest and they needed to get up to speed, but they’re in the right place now.
“And, the government recognizes that online businesses—like e-money—are great for Gibraltar, and it’s committed to becoming the go-to place for e-money in Europe,” he adds. “This is a tightly knit community that can put things
together in the right way, and it’s a great place to do business.”
“If we can work together to create a good market and an expert location, they will come,” Brands concludes on behalf of her fellow Gibraltar-based e-money providers. “There’s more to do, but we’re working on it together.”
And, one thing is certain: The work of the Gibraltar e-money pioneers has paved a smoother road for those that choose to follow.
Special thanks to Craig James, CEO of Neopay, and a battery of attorneys whose contributions and review of this article were invaluable: Robert Courtneidge and Siobhan Moore of Locke Lord, Peter Howitt of Ramparts Law and David Wilford of Wave Crest.
endnotes
1 e-moneyissuersincludeprepaidproviders,butane-money licensee also may participate in a variety of other regulated payment services, such as money remittance and e-wallets. Payment services fall outside of e-money regulations but are covered under Payment services directives (Psd). Closed-loop and private label programs that qualify under the e-money regulation’s limited network exemption also fall outside the Psd; but other payment services, such as money remittances, are covered by the Psd.
2 GibraltarisnotaneUmemberinitsownrightbuthasthe authority to issue passportable e-money licenses by virtue of its relationship with the U.K.
3 thereare31eeAcountrieswithpassportingrights,but Gibraltar isn’t included because it’s not an eeA country. Gibraltar achieves its ability to passport throughout the eeA because of its relationship with the U.K. and the eU single market directives, which apply in full to Gibraltar. oddly, the ability to passport between Gibraltar and the U.K. is covered by separate arrangement, the Gibraltar order.
4 Ane-moneylicenseisnotautomaticallypassportable.
A licensee must notify its “home” regulator of its desire
to passport its license to a “host” country; then the home regulator must inform the host country that the licensee wishes to conduct business there. the host country has the opportunity to grant or deny the licensee’s request.
If the host country determines, for example, that the licensee or the host regulator doesn’t meet its standards, the request may be denied. In addition, the licensee’s agents and distributors in the host country must be registered, which can cause delays and confusion because currently there is no uniform agent/distributor registration criteria or process throughout the member states. A key advantage of conducting e-money activities as part of a full banking license is that passporting is automatic; i.e., the home country does not have the opportunity to approve or reject the bank or building society from doing business in that country.
5 GibraltarChroniclereportsthattheeuropeanCouncilof economic and Finance Ministers gave Gibraltar’s income tax full approval at its meeting in June 2013 and adds: “this is the first time that Gibraltar’s tax system has been fully endorsed by both the Code Group and eCoFIn.”
paybefore.com 41