The Financial Services Commission (FSC) is the integrated regulator for the financial services sector other than banking. The FSC was established in 2001 and operates within a modern and internationally recognised legal framework which includes the Financial Services Act 2007, the Securities Act 2005, the Insurance Act 2005 (the Insurance Amendment Act 2015) and the Private Pension Schemes Act 2012. The FSC licenses, regulates, monitors and supervises the conduct of business activities in the financial services sector.
The reputation of Mauritius as an International Financial Centre rests on the quality of its services and its pool of highly qualified professionals. The Financial Services Act adopted in 2007, simplifies the regulatory regime and consolidates the legislative framework of the global business sector.
In monitoring the conduct of business activities of its licensees, the FSC focuses inter alia on market conduct, anti-money laundering and combating the financing of terrorism requirements, corporate governance principles and international norms and standards. Furthermore, Mauritius has enacted internationally accepted anti-money laundering and terrorist financing legislations, and introduced legal framework which embeds such legislations in the operational framework for doing business in Mauritius.
Entities operating in the capital markets sector are licensed under the Securities Act 2005 (SA). The SA provides a comprehensive framework enabling entities to operate in full transparency and lists all the requirements/criteria and the prudential norms which need to be followed and the relevant disclosures.
Global Funds are entities holding a Category 1 Global Business Licence under the Financial Services Act and are authorised under the SA as a CIS or a CEF. Global Funds can be structured as a company, a trust, a protected cell company (PCC) or in any other legal form as approved by the FSC.
The FSC licenses securities exchanges, clearing and settlement facilities, securities trading systems, market intermediaries, Collective Investment Schemes (CIS) and Closed-end funds (CEF), CIS Functionaries and also registers Reporting Issuers and Investment Clubs.
Global Funds can take the form of:
- A CIS which has a variable share capital (Open Ended Fund). Investors are allowed to redeem their shares at net asset value at pre-determined times in accordance with its Constitution;
- A CEF which has a fixed share capital. Investors do not have the right to call for their shares to be redeemed at net asset value by the company. The company may be formed with a limited life after which the assets are distributed to investors on winding up.