Our Supervisory Approach

The FSC regularly reinforces its supervisory framework in response to international challenges in order to promote robust regulation of its licensees, safeguard public interest, foster investors' confidence and ensure more effective enforcement.

The over-arching aims of the FSC's supervisory framework include:

• ensuring that licensed entities are compliant with its legislative framework and are financially sound;
• identifying licensees engaged in activities that are unlawful or contrary to public interest for appropriate enforcement action;
• fostering public and investor confidence in the financial system; and
• maintaining the good repute of Mauritius as an International Financial Centre.

The Risk-Based Supervision (RBS) framework, which caters for both compliance-driven supervision and risk-based supervision, was implemented to assist the FSC to:

• monitor the progress of licensees in terms of their operational and compliance aspects;
• identify supervisory actions required in relation to the risk profile of entities;
• focus on entities whose potential failure could lead to a systemic crisis; and
• target and prioritise the use of its resources for supervision.

The adoption of the RBS framework led to the review and harmonisation of the FSC's inspections process and priorities. The RBS framework further enables the planning and the conduct of thematic inspections across its licensees.