Issue link: https://maltatoday.uberflip.com/i/803478
maltatoday, SUNDAY, 26 MARCH 2017 12 News MALTA will benefit more than any other financial centre in Eu- rope from Brexit, according to international asset management firm Managing Partners Group (MPG). MPG's capital markets team will be marketing what it has dubbed 'The Malta Solution' at a company seminar in London, on 30 March. "Malta will be the biggest beneficiary following Brexit. After London, it should be the first choice for a finan- cial firm to establish a branch or secondary office because its residents speak English and are well-educated, it provides easy access to the EU and it has an efficient regulatory process," MPG chief executive officer Jer- emy Leach said. "It is politically stable, which is not so easy to say with regards to Italy and even France, while it also has a great financial rating, unlike Greece. "Dublin is good and it offers English but it is more expensive and less tax-efficient than Malta while all the other options in Europe such as Luxembourg, Liechtenstein, Norway, Swit- zerland or Gibraltar have one or more flaws that weaken their case." Leach said that while Malta offers financial firms wishing to operate in the European Union several benefits, the alternatives all have serious flaws that make them comparatively less attrac- tive. With its EU and Common- wealth membership, tax frame- work, both domestically and in- ternationally with 65 tax treaties with other countries and secu- ritisation legislation, Leach said Malta was "the only EU jurisdic- tion outside of Luxembourg that has the legislation in place to of- fer these flexible tools." CONTINUED PAGE 13 Fund's pitch for 'Malta Solution' to Brexit woes "Malta will be the biggest beneficiary following Brexit. After London, it should be the first choice for a financial firm to establish a branch because its residents speak English and are well-educated" MPG CEO Jeremy Leach 888: Brexit means Malta could be 'dot.com' alternative to Gibraltar MATTHEW VELLA 888, one of Gibraltar's biggest online gaming com- panies, is considering a possibility that post-Brexit it might have to move its headquarters from 'the Rock' to Malta. In its annual report, 888 said in a section dealing with the various future risks that faced Europe's gaming in- dustry firms – most of whose business is drawn from the UK and 31 of which are regulated and licensed in Gibraltar – that while it would retain a presence in Gi- braltar, it might move its regulated headquarters and license away from the Rock. "The proposed status of Gibral- tar in relation to the United King- dom as a result of 'Brexit' is at pre- sent unclear," the report said. "If 888 were to remain registered, li- cenced and operating in Gibraltar in these circumstances, its ability to rely on EU freedom of services/ establishment principles in sup- plying its services within the EU will be limited." Regulatory licenses issued in one jurisdiction might become ineligible in certain EU ju- risdictions. "Brexit could adversely affect economic or market conditions in the United Kingdom, Europe or globally and could contribute to instability in global financial markets, in particular until there is more cer- tainty as to the form that Brexit will take and its effect on Gibraltar, the United Kingdom and the EU," the report continued. The ability to rely on EU principles underpinned 888's regulatory strategy regarding major EU markets, the company said, adding that it would be unable to control or mitigate political changes of this nature. "However it would reconsider the appropriateness of remaining registered, licenced and operational in Gi- braltar in these circumstances," 888 added in the re- port. "Malta may be considered as an alternative 'dot com' licensing jurisdiction." On the other hand, in its 2016 interim report pub- lished before the UK's move for a hard Brexit, Bwin's GVC Holdings said Brexit could reduce the group's ability to operate in certain EU markets without a change in domicile, which could carry a higher tax burden. "Beyond the impact of currency movements there has been no visible impact on the business from the UK's decision to seek an exit from the EU. The Group has greater sterling costs than revenues and therefore the impact from sterling weakness is a net positive. The detail of how the UK intends to exit the EU is yet to be decided, however, management believe GVC's global footprint gives it significant flexibility to face any challenges that may arise." Gibraltar is home to many of the world's leading e-gaming and sports betting firms like BetVic- tor, Bet365, Yggdrasil, NetEnt, and Lottoland, and is seen as a worldwide hub for the industry. Lottoland foir example reaf- firmed its allegiance to Gibraltar, from where it oper- ates its giant lottery jackpots, attracting nearly 4 mil- lion players. Lottoland are based in Gibraltar's Ocean Village Ma- rina development and employs over 160 staff. It offers the world's biggest jackpots with an extensive portfo- lio of draws that includes EuroMillions, US MegaMil- lions, US PowerBall, Spain's El Gordo, 5 draws from Australia, Irish Lotto and a host of other lotteries from across Europe and beyond. Lottoland CEO, Nigel Birrell, said, "We began oper- ating from Gibraltar in May 2013 and it has been the perfect base for our business, providing an excellent platform for our success… Our business is thriving and the benefits of staying in Gibraltar remain very strong indeed." sent unclear," the report said. "If in these circumstances, its ability