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Gibraltar Accounting

1.1 Requirement to produce financial statements

Requirement to maintain the books and records in the local jurisdiction

There is no requirement for Gibraltar funds to maintain their books and records in Gibraltar. However it should be noted that management and control of the fund needs to be in Gibraltar and usually the administrator will maintain the accounting records. A Gibraltar administrator must be appointed.

Production of financial statements by collective investment funds

UCITS schemes and non-UCITS retail schemes (public funds) are required to produce annual and semi-annual financial statements under the Financial Services (Collective Investment Schemes) Act 2005.

Experienced Investor Funds are required to produce annual financial statements under the Financial Services (experienced investor funds) Regulations 2005. The audited financial statements must be submitted to the FSC within six months of the period end.

If the fund is structured as a corporate entity, there are also annual accounts requirements under the Companies Act and the Companies (Accounts) Act 1999.

For corporate vehicles, the directors are responsible for the preparation of the financial statements and two directors are required to sign balance sheet of the annual financial statements. For trusts, the trustee takes responsibility for the preparation of the annual financial statements. Two trustees sign the balance sheet.

A statement of compliance should be submitted to the Commissioner within four months of the end of the accounting period. The Statement of Compliance is un-audited.

Choice of period/year-end for collective investment funds

Gibraltar funds can choose their own year-end. Once chosen, public funds cannot alter the year-end without the prior approval of the Financial Services Commission.

Requirement for comparatives

Comparatives are required for the financial statements.

Restrictions on the currency under which financial statements must be prepared

There are no restrictions. The base currency is specified in the formation documents of the fund.

Accounting publications specific to the funds industry (as issued by accounting bodies or the regulators)

There are no accounting publications specific to the funds industry in Gibraltar as IFRSs or U.K. accounting standards and any technical material issued in the United Kingdom are generally followed.

In relation to public funds, the Code of Practice issued under the Financial Services (Collective Investment Schemes) Regulations 2006 provides details of the contents and disclosures for the annual and interim accounts together with disclosure requirements for auditors, managers, and trustees/custodians.

Use of short-form accounts

Short-form accounts are not permitted under Gibraltar law and regulations.

Umbrella schemes

For corporate entities, financial statements must be prepared for the company as a whole. There is also a requirement to produce separate financial statements for each sub-fund.

For unit trust umbrella funds, there is no requirement to produce financial statements for the umbrella, however, they are permitted. There is a requirement to produce separate financial statements for each sub fund.

In all cases, information on each sub-fund as stipulated by legislation should be included within the report of the manager.

Classes of shares

Financial statements are required which incorporate all classes of shares.

There is no requirement to produce financial statements for each class of share, unless each class of share represents a separate sub-fund (such as, protected cell companies) in which please refer to umbrella funds above.

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