Mauritius Introduces Amendments to Enhance Financial Services and Regulations
In an effort to strengthen its position as an International Financial Centre, Mauritius has introduced several amendments to its financial services regulations. The changes aim to enhance the country’s financial framework, improve transparency, and increase investor confidence.
Services and Global Treasury Activities
The Financial Services Act has been amended to:
- Enable the Financial Services Commission (FSC) to take regulatory action against individuals who have performed functions of an officer without formal approval.
- Establish a Settlement Committee to facilitate early resolution of disciplinary matters with licensees.
Regulation of Global Activities in Line with FATF Requirements
The amendments bring Mauritius’ regulations in line with the Financial Action Task Force (FATF) requirements for combating money laundering and terrorist financing. This includes:
- Strengthening due diligence measures
- Enhancing customer identification procedures
- Increasing transparency in global transactions
Companies Act 2001: Key Changes
The Companies Act 2001 has been amended to:
- Reinstated requirements for registered companies to hold annual meetings of shareholders, prepare financial statements, and file them with the Registrar of Companies within a specified timeframe.
- Repeal temporary extensions granted due to COVID-19 pandemic.
- Introduce new provisions for disclosure of information on subsidiaries in annual reports.
- Prevent companies from being registered in both Mauritius and another jurisdiction simultaneously.
- Allow the Registrar of Companies to remove inactive companies from the Register.
Securities Act 2005: Extension of Regulatory Functions
The Securities Act will be amended to:
- Extend the regulatory functions of official exchanges, enabling investigations into market abuse cases involving issuers on securities exchanges.
Financial Reporting Act: Key Changes
The Financial Reporting Act has been amended to:
- Cater for examinations and assessments by the Mauritius Institute of Professional Accountants (MIPA) for registering public accountants.
- Empower MIPA to investigate written complaints against registered public accountants.
- Prohibit non-registered individuals from giving the impression they are authorized to provide services of a public accountant in Mauritius.
- Exempt public interest entities from certain reporting requirements.
Introduction of Variable Capital Companies Act 2022
The Variable Capital Companies Act 2022 has been enacted, allowing companies to operate as standalone entities or umbrella structures comprising sub-funds and special purpose vehicles. The act aims to:
- Attract foreign investment
- Promote financial innovation
- Enhance investor confidence
Taxation of Variable Capital Companies
Variable capital companies will be treated as a single entity for tax purposes unless an election is made to present separate financial statements for each sub-fund and special purpose vehicle. This will simplify taxation and reduce compliance costs.
The amendments aim to create a more robust and attractive financial services framework in Mauritius, positioning the country as a premier destination for foreign investment and financial innovation.