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Gibraltar's chief minister Peter Caruana said the territory was aiming to cement its growing stature as an international financial centre by encouraging new entrants by fund and wealth management companies.

A number of companies, including hedge funds and institutional investment groups, have relocated to the peninsula to take advantage of its low tax rates.

Yet further demand for wealth management services has emerged as the British overseas territory continues to see increasing interest from high income earners.

Mr Caruana, who heads Gibraltar's ruling party, the Gibraltar Social Democrats, said: "We are concentrating on developing the insurance market, wealth management, investment and fund management."

Since UK chancellor Alistair Darling announced the 50 per cent income tax rate for high earners in this year's Budget, many high-net-worth investors have been considering redomiciling to other jurisdictions.

A wave of new property developments in Gibraltar should accommodate new arrivals to the territory, while also stimulating demand for investment and wealth management services.

Mr Caruana said Gibraltar had been unfairly labelled as an offshore tax haven in the past, despite being subject to European Union laws through the UK's accession in 1973.

He said planned changes to tax laws aimed at making taxation fairer for companies and residents, which would help the territory to improve its reputation.

"There is a benefit for us to complete the transition from offshore tax haven to onshore European financial services centre," he added.

Mr Caruana said the issue of tax had become even more important during recent months, as regulators and politicians cracked down on tax avoidance.

But he warned there should be a measured approach to the issue.

"I will not subscribe to the emerging view that low tax is bad and high tax is good," he said. "It should be the government's aspiration to take as little of people's money as possible, not as much."

He said Gibraltar's regulatory body, the Financial Services Commission, enjoyed a close relationship with the FSA, which he said had many of the same objectives and used a similar principles-based approach to regulation.

The chief minister said the UK and Gibraltar enjoyed a close relationship and similar operating conditions, making it easier for the two to work together.

"It's much better for the UK and the City that companies come to Gibraltar, where there are the same regulatory standards," Mr Caruana added.

Gibraltar has seen a rapid expansion of its financial services industry over the past 20 years as the economy shifted away from Ministry of Defence spending.

Mr Caruana said the government and regulators would concentrate on admitting quality companies into the territory.

However, he admitted plans for a Gibraltar stock exchange had been put on ice for the time being, until demand increased.

"That is on hold at the moment - it's not essential," he said. "We will provide support and encouragement for a stock exchange in Gibraltar if the industry wants it."