Financial Crime World

Financial Reporting Regulator Mauritius (FRMU) Mandates Annual Financial and Non-Financial Reports from Public Interest Entities

Introduction

The Financial Reporting Regulator Mauritius (FRMU) has announced that it will require Public Interest Entities (PIEs) to submit annual financial and non-financial reports. This new regulation aims to ensure compliance with accounting and reporting standards as well as the Code of Corporate Governance.

Reports Required

PIEs will be required to submit three types of reports annually:

  • Annual Report: Including financial statements and an auditor’s report
  • Report of Compliance or Non-Compliance: With the National Code of Corporate Governance
  • Corporate Governance Report (if published)

Financial Reports

Financial reports must comply with the requirements of “Sub-Part C - Financial statements” of the Companies Act 2001 and other requirements as specified by the FRMP. In many cases, the financial statements contained in a reporting entity’s annual report to shareholders and submitted to the Registrar of Companies will be sufficient.

Review Process

Upon receipt of the reports, the FRMP will conduct a “spot” review for completeness, which includes an accompanying auditor’s report, comparative balance sheets, income statements, and other financial statements. If the initial review reveals any omissions or non-compliance with filing requirements, the reports will be returned to the reporting entity with a listing of deficiencies.

A comprehensive review will also be conducted, focusing on matters of substance, including:

  • Accounting policies
  • Extraordinary items
  • Disclosure of non-consolidated subsidiaries

The reviewer will retain a perspective that accounting standards apply to reportable transactions and events, and information is material if its omission or misstatement could influence users’ decisions.

Non-Compliance

Failure to register or file the required information without an adequate reason may result in a reminder letter being sent to the PIE. Continued failure to comply with filing requirements will be referred to the Financial Reporting Council (FRC). If the reporting entity is unwilling to correct deficiencies, the matter will be referred to FRC.

Miscellaneous Procedures

The FRMP will submit a report to the CEO and Council summarizing the results of its monitoring process for the year. The regulator will also ensure that matters noted in its monitoring procedures are promptly reported to other activities of the FRC.