New Financial Services Legislation Introduced In Mauritius

by Lorys Charalambous, Tax-News.com, Cyprus

11 March 2005

The Government of Mauritius has introduced into parliament two important bills affecting the financial services sector. Minister of Industry and Medium Enterprises, Financial Services and Corporate Affairs, Mr K C Khushiram explains them as follows:

The Financial Services Development (Amendment) Bill (No 10 of 2005) intends to:

• amend the existing power of the Financial Services Commission to enable it to administer administrative penalties;
• provide for the establishment of an Enforcement Committee within the internal structure of the Financial Services Commission, with a view to provide for an internal disciplinary mechanism to separate the investigatory and enforcement functions of the Commission;
• provide for the establishment of a Financial Services Review Panel to review the full merits of a decision made by the Financial Services Commission or a self-regulatory organisation; and
• enable the Financial Services Commission to institute criminal proceedings, subject to the consent of the Director of Public Prosecutions, against any person in respect of any offence under the various enactments falling under the administration of the Financial Services Commission.

The Securities Bill (No 11 of 2005) intends to:

• establish a framework for the regulation of securities markets, market participants and self-regulatory organisations, the offering and trading of securities and other related matters, to ensure fair, efficient and transparent securities markets and to strike an appropriate balance between the protection of investors and the interests of the securities market.
• help develop Mauritius as a leading business and financial services centre in the region. It draws on modern legislation in analogous jurisdictions and underpins the Government’s intention to expand financial services in Mauritius while assuring appropriate regulatory and supervisory standards, recognising the on-going economy.

The Bill builds on the establishment of the FSC in December 2001, and the enactment of the Financial Services Development Act 2001 (FSDA), which set the legal and institutional framework for a unified regulator responsible for the integrated supervision of the non-bank financial services sector in Mauritius.

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