Gibraltar Renews the Deposit Guarantee Scheme
The financial services industry is one of the best quoted sectors of the economy, which is why the government and the relevant authorities are doing their best to offer enhanced protection to those keeping their money in banks in Gibraltar. For this purpose, Financial Services Commission (FSC) has enabled the Gibraltar Deposit Guarantee Scheme many years ago. Our company formation agents in Gibraltar can offer information on the banking system in the Rock.
What is the purpose of the Gibraltar Deposit Guarantee Scheme?
The Gibraltar Deposit Guarantee Scheme was recently revamped as a consequence of its previous success. The main purpose of the program is to offer protection to depositors in case a financial institution in Gibraltar goes bankrupt. One of the reasons for which the Deposit Guarantee Scheme has registered such great success is that it covers a wide range of depositors. These can be:
- - individuals;
- - sole proprietors;
- - companies;
- - associations;
- - non-profit organizations;
- - partnerships;
- - pensions.
Also, funds kept in trust by professional managers with bank accounts in Gibraltar banks can also benefit from the scheme. Under the scheme, all deposits no matter their currency are protected.
Our company registration consultants in Gibraltar can assist foreign investors interested in setting up trusts here.
How to benefit from the Deposit Guarantee Scheme in Gibraltar?
The scheme does no impose a minimum amount to be deposited in a bank and it does not discriminate individuals and companies in Gibraltar. The amount which can be covered per person, however, is of 100,000 euros at most no matter how many account a person has or their currency.
The compensation which will be paid to companies or individuals residing in Gibraltar is calculated based on the deposits owned at the moment the bank is in financial distress. Also, the compensation will also include the interest attached to the deposit. Considering the compensation will be granted in GBP, the amount to be credited for accounts in foreign currencies will be converted.
The new Deposit Guarantee Scheme provides for the date of the compensation to decrease from the 20 working days established for 2018 to 7 days starting with 2024.
For full information on the current provisions of the Deposit Guarantee Scheme, please contact us. Our company formation representatives can also help you open a company in Gibraltar.