The Commission is a statutory body corporate established by the Financial Services Commission Act, 2007. It consists of the Chief Executive as ex-officio member and seven other persons, at least two of these persons shall have significant experience of regulation and supervision of finance services business in another jurisdiction . The Chief Executive and the other members are appointed by the Minister with responsibility for financial affairs. The Commission has a separate Chairman appointed from within the seven members of the Commission.

The functions of the Commission are to keep under review the operation of Gibraltar legislation and the effectiveness of supervision of financial services; to monitor the extent to which Gibraltar legislation and supervision complies with European Union obligations and supervisory standards governing financial services in the United Kingdom where Community law applies; to protect the public against financial loss arising out of dishonesty, incompetence or malpractice; to advise the Government of Gibraltar and the Government of the United Kingdom on matters concerning financial services; and to draw up codes for regulating the terms of service of persons employed by the Commission.

The Chief Executive Officer, who is also the Commissioner of Banking and the Commissioner of Insurance, is charged with the responsibility of supervising institutions carrying on finance business in or from within Gibraltar. He is required to ensure that such supervision complies with any applicable obligation Gibraltar has as a constituent of the European Union and to establish supervisory standards which match those required by legislation and supervisory practice governing the provision of financial services within the United Kingdom.

Commission Members are not appointed as representatives of a constituency. They are appointed as individuals to bring their personal qualities and experience for the benefit of the Commission. Supervisory bodies need to be independent and this policy preserves the objectivity and independence of the Commission.

The Commission conducts an annual assessment of the performance of the it's Members and the Chairman. These are led by the Chairman and the Senior Independent Member respectively. Findings of the performance reviews are discussed at the Commission meetings.

Commission Members are provided with formal induction training upon appointment to the Commission and maintain regular contact with industry and related parties in order to keep abreast of current issues.