Regulated Individuals (RI)

1. When do Regulated Individuals need to be approved?

An individual can only act as an RI if the GFSC has approved the individual to perform a regulated function in an RI firm.

Individuals need to be notified and approved by the GFSC prior to the individual’s appointment.  This approach applies to all regulated firms, audit firms and incoming EEA firms with a branch in Gibraltar.  The different types of RIs are set out on our RI webpage.

Please note that during the transitional period (i.e. 12 months from the date the Act comes into force) the requirements vary.  In this case, individuals that have already been approved by the GFSC will be transitioned over to the equivalent RI function.  Schedule 28 of the Act sets out the relevant transitional provisions.  

2. What is the RI Template?

The GFSC is carrying out an information gathering exercise to understand who is currently carrying out regulated functions at firms.  The RI Template is being used for this purpose and allows firms to list the different regulated functions that are being carried out.

This exercise will assist both the GFSC and firms to understand who can be transitioned in as a regulated individual under the LRP and who will need to apply to be approved by the GFSC.

3. Do all firms now need a MLRO?

This position has not changed under the LRP and all firms are required to appoint a MLRO, unless they are exempt to do so under the Proceeds of Crime Act 2015.  

4. Will insurance companies still submit “Not Docs”?

An insurance company is a regulated firm; as such the RI Regime applies.  Instead of using Not Docs, all regulated firms will need to submit an RI Form to the GFSC when applying for an individual to be approved to perform a regulated function.  The RI Form will replace the current Individual Questionnaire (IQ).

5. How long will the GFSC take to approve Regulated Individuals?

During the transitional period, for existing firms, the GFSC has six months to approve an individual (that has not been previously approved by the GFSC) to carry out a regulated function.  Individuals already carrying out a regulated function that have previously been approved by the GFSC will be transitioned over (as set out in Q1).

Otherwise, the GFSC has 30 days to approve an RI.  The 30 day period excludes public and bank holidays and starts on the date the GFSC receives the completed RI Form.

This timeframe is paused when the GFSC requires the firm to provide further information and will start again when the required information is received or, in cases where information is provided in batches, on the last day on which the last piece of information is received by the GFSC.

6. What will the RI approval process be?

The RI approval process will remain the same, as it is current practice for notifying individuals to the GFSC. However, the Individual Questionnaire (IQ) will be replaced with the RI Form.

7. Can you outsource a function?

The GFSC has the flexibility to consider the outsourcing of a particular regulated function on a case-by-case basis, in line with the current practice. There is no change to the GFSC’s existing policy position on outsourcing, which applies irrespective of whether the regulated function is being outsourced within the group or to an unrelated third party.

The above is on the basis that the overall responsibility for that function can be assigned to an individual within the firm, who can oversee the outsourced function and ensure that the relevant requirements are being complied with. In these circumstances, the individual that will have oversight in respect of the outsourced functions would be subject to the approval process of the RI regime, i.e. they would have to be an RI.