FSC (Mauritius) Regulatory Entity works as a regulatory body for all global business sectors and non-bank financial services. This body began working in 2001 under the supervision of the Financial Services Act 2007.
All businesses that fall under the Insurance Act 2005 and the Private Pension Schemes Act 2012 are regulated, supervised, and licensed. The FSC aims to be the internationally recognized body for sustaining financial development in Mauritius. Their competitiveness and soundness make them the best Financial Services Centre.
Main mission
The main mission of FSC involves:
- They promote fairness, transparency, and the development of capital markets and financial institutions in Mauritius.
- It protects the investors from any crime or scam who have just newly invested in different non-banking financial products.
- In addition, they ensure the stability and soundness of the entire financial system in Mauritius.
Main objectives
Strong supervision and regulation play an essential role in ensuring the stability of any financial system. FSC’s primary goal is to position Mauritius as a significant jurisdiction. Therefore, they can find the right balance between business development and regulation.
FSC’s Risk-Based Supervision framework further strengthens financial services.
Additional legislative and supervisory tools will help ensure alignment with international standards.
FSC aims to achieve the following in a nutshell:
- Ensure that global business activities or financial services are properly managed.
- They often ensure transparency in global business and the financial services sector.
- Develop some new policies to ensure efficient, fair, and transparent capital markets in Mauritius.
They look for new ways of developing in the financial services industry and meeting upcoming challenges.
FSC fully understands how to take advantage of some new opportunities to achieve economic sustainability. As a result, a stable and sound financial system is developed with some new priorities and policies.
What are the core functions of FSC?
Essential functions of FSC are:
1. Supervising and Regulating
FSC plays a vital role where it supervises and regulates all the licensed entities under the Enabling laws.
2. Licensing
Financial Services (Consolidated Licensing and Fees) Rules 2008 apply to all entities regulated or licensed by FSC. The goal is ultimately to streamline the licensing process by defining basic requirements and criteria. This is all accomplished through a well-defined and consolidated framework.
3. Enforcement of regulatory and basic compliance requirements
FSC makes sure that all the licensed entities meet the compliance set of requirements within the legislative framework. Reinforcement of powers is done to mitigate the risks when creating an innovative business environment.
4. Formulation of Policy
FSC often elaborate the policies which are aiming to ensure an efficient, transparent, and fair stability of the financial system in Mauritius
5. Dealing with fraud or money laundering
FSC also takes some measures to address and prevent investment business abuses or financial fraud. Thus, FSC is keeping a close eye on non-banking financial services and the global business sector.
Following international standards and norms, they implement a framework of Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT).
6. Promoting development in the financial sector
FSC has the statutory obligation for the promotion of financial services and to respond to upcoming challenges. This is a way to achieve successful economic stability. Hence, FSC is also valuing the contribution between the industry and the stakeholders.
7. Consumer protection and knowledge
Using the legislative framework, FSC ensures the protection of investors and consumers. Also, there is increased awareness among the new investors who have recently entered the financial market for investment purposes.
What is the primary purpose of on-site inspection?
The on-inspection is designed to ensure that licensees comply with the supervisory and regulatory framework. As a result of the on-site inspection, the entire market conduct is assessed for transparency and fairness.
Moreover, a deep check is also performed concerning the AML/CFT legislation to ensure the licensees’ corporate governance soundness.
The licenses also evaluate the internal control procedures established by the licenses to maintain Mauritius’ jurisdiction.
What happens during off-site supervision?
Off-site supervision plays a fundamental role in monitoring all business activities of licensee holders. Additionally, it reviews and analyzes the audited financial statements and statutory returns and any reports submitted by licensees.
An FSC with off-site supervision can perform the following activities:
- Any licensee must comply with the relevant laws.
- Assess the licensees’ ongoing performance.
What is the supervisory framework of FSC?
To meet the international challenges, FSC involves strengthening the supervisory framework. This framework aims to promote a robust regulatory framework that protects the public interest. Additionally, it enhances investor confidence and ensures effective enforcement.
FSC’s main supervisory objectives are:
- Ensure that all licensed entities follow the legislative framework and are financially stable.
- Identify whether or not the licensees are engaged in any illegal activity or anything that is against the public interest.
- The framework also fosters investor and public confidence in the financial sector.
- Maintains Mauritius’ good reputation as an international financial centre.
The supervisory framework of FSC is built on prudential supervision and a code of conduct. By focusing on capital, risk, and liquidity, ensures the safety and soundness of various institutions.
The FSC is an integrated regulatory body, maintaining a sound and stable balance for adequate prudential supervision.
When does FSC cancel an entity license?
When a business sector or a banking system does not adhere to FSC’s rules, the FSC has the right to cancel the licenses. Furthermore, a license can be revoked if a business threatens the integrity of the banking or financial sector in Mauritius.
Any banking sector found to be engaged in criminal activities will also have its licenses revoked.
FSC (Mauritius) Regulatory Entity: Is it safe to get a license from?
To sum up, the FSC regulatory entity plays an important role in regulating and supervising Mauritius’s financial sectors. A proper legislative framework is followed to ensure that all the institutions are supervised and regulated according to the laws.
If any banking sector or institution wants to work under the jurisdiction of Mauritius, they must first obtain a license from the FSC.
