Creating New Opportunities in Financial Services sector

To maintain the progress achieved in the sector, Budget 2019-2020 has enumerated several measures towards Government sustained efforts to make more headway on the development of the sector and the Mauritius International Financial Centre.

Expanding accessibility of our financial products across the world remained an utmost priority and for further progress in this sphere, a new framework for fund administration and fund management will be set up in addition to the revamping of the existing Special Purpose Fund regime to ease access to new markets. Moreover, the Financial Services Commission (FSC) will enter into an agreement with the Gujarat International Finance Tec-City to recognise Mauritian licensed funds and management companies as qualified to operate in the Gujarat jurisdiction as well.

To further diversify the product base of our International Financial Centre,  a set of measures will be introduced which comprised of: new rules and an attractive tax regime to promote the development of Real Estate Investment Trusts (REITs); an ‘umbrella licence’ for wealth management activities; a scheme for headquartering of ‘e-commerce’ activities; a framework for Green Finance in line with the ‘Marrakech Pledge’ – a continental coalition of African Capital Markets Regulators and Exchanges committed to foster green financing on the continent; and a new trading platform at the Stock Exchange of Mauritius to allow medium sized profitable enterprises that do not qualify for listing on the official and DEM markets to raise capital and trade their shares.

Moreover, to facilitate conduct of business in the sector, a ‘single-window system’ will be set up at the FSC to allow for submission of documents for financial services and global business applications. To make of Mauritius a Fintech hub in the region, FSC will also establish a regime for Robotics and AI enabled financial advisory services in addition to the introduction of a new licence for Fintech Service providers which will encourage self-regulation for Fintech activities in consultation with the United Nations Office on Drugs and Crime. E-signatures and e-licences will be introduced on pilot basis along with the creation of   Crowd Funding as a new licensable activity.

With regards the strengthening of the regulatory framework to fight fraud, corruption and financial crimes to increase investors’ confidence in the financial services sector, a Financial Crime Commission will be set up to act as an apex body to ensure greater coordination and coherence among the various investigative agencies, including ICAC, the Financial Intelligence Unit and the enforcement department of the FSC. FSC will also develop a financial data handling code of conduct to address cyber risks; and the Bank of Mauritius, FIU and FSC will introduce industry-wide Practice Notes with respect to handling clients’ requests.