Access to Financial Services Markets Market access arrangements for financial services between the UK and Gibraltar The Gibraltar Authorisation Regime The condition of alignment
The GAR will be underpinned by the principle of alignment under which the relevant law and practice of the UK and Gibraltar are sufficiently aligned. This will ensure that regulatory and supervisory standards are applied in a consistent manner both in the UK and Gibraltar.
	The new framework respects Gibraltar’s regulatory autonomy by giving the Government of Gibraltar the choice as to whether to remain aligned with the UK’s law and practice in the areas where market access is of interest to the territory. In those areas, Gibraltar-based firms’ market access will be dependent on Gibraltar’s law, regulatory standards, supervision, authorisation and enforcement practices being sufficiently aligned with those of the UK in relation to that activity and any related areas of relevance, such as data protection law and insolvency law.
	In considering whether the relevant law and practice of Gibraltar and the UK remains aligned, HM Treasury will consider the alignment of law and practice as regards to both its effect and text and the alignment of supervision, authorisation and enforcement practices. HM Treasury will also have regard to the advice of the UK financial services regulators.
	The principle of alignment under the GAR reflects the historic relationship between Gibraltar and the UK and the uniquely broad scope of market access available. It is therefore a more exacting test than exists under the equivalence regimes intended for more distant and narrower relationships.