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Highlights
of some of
the major
amendments
Amendments
to the
Financial
Services Act
('FSA')
1. New
activities
regulated by
the FSC
As announced
for the
Budget 2013,
the FSA was
amended to
add two new
activities
which will
be regulated
by the FSC,
namely,
global
headquarters
administration
and global
treasury
activities.
Global
headquarters
administration
means the
provision of
at least 3
of the
following
services to
at least 3
related
corporations:
-
Administration
and
general
management;
-
Business
planning
and
development
and
coordination;
-
Economic
or
investment
research
and
analysis;
-
Services
related
to
international
corporate
headquarters
in
Mauritius;
and
-
Such
other
global
headquarters
administration
services
as
may
be
specified
in
FSC
Rules.
Global
treasury
activities
relate to
the
provision of
at least 3
of the
following
services to
at least 3
related
corporations:
-
Arrangement
for
credit
facilities,
including
credit
facilities
with
funds
obtained
from
financial
institutions
in
Mauritius
or
from
surpluses
of
network
companies;
-
Arrangement
for
derivatives;
-
Corporate
finance
advisory;
-
Credit
administration
and
control;
-
Factoring,
forfeiting
and
re-invoicing
activities;
-
Guarantees,
performance
bonds,
standby
letters
of
credit
and
services
relating
to
remittances;
-
Management
of
funds
for
designated
investments;
and
-
Such
other
global
treasury
activity
as
may
be
specified
in
FSC
Rules.
2. Protection
of consumers
of financial
services
To ensure
better
protection
of consumers
of financial
services and
the public
in general,
the FSA was
amended to
redefine the
definition
of "consumer
of financial
services" to
clarify that
it includes
all persons
entitled to
benefit from
financial
services
under the
Acts
administered
by the FSC.
Moreover,
the FSA was
amended to
enable the
FSC to give
directions
to any
licensee
where it is
necessary or
desirable to
protect the
interests of
consumers of
financial
services.
3. Increasing
substance in
Mauritius
With the aim
of
increasing
substance in
Mauritius,
the FSA was
amended to
clarify that
the FSC may
give its
approval in
writing for
a
corporation
holding a
Category 1
Global
Business
Licence to
conduct
business in
Mauritius
subject to
such terms
and
conditions
as it may
determine.
4. Powers of
the FSC
The FSA was
amended to
enable the
FSC to give
a direction
to a person
to comply
with any of
the
principles
and
practices of
corporate
governance
laid down in
the Code of
Corporate
Governance
issued under
the
Financial
Reporting
Act.
Moreover,
the FSA now
provides
that FSC
Rules may
provide for
the
imposition
of an
administrative
penalty in
relation to
such matters
as may be
prescribed.
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Amendments
to the
Securities
Act
The
Securities
Act has been
amended to
enable the
FSC to make
Rules which
may provide
for the
recognition
of remote
participants
and remote
custodians
for the
purposes of
clearing and
settlement
of
securities
transactions.
The
Securities
Act was also
amended to
empower the
FSC to
specify in
FSC Rules
the
percentage
of voting
right and
control in
takeovers.
Amendment to
the Limited
Partnerships
Act 2011
In line with
the policy
of adopting
a more
business-friendly
approach,
the Limited
Partnerships
Act 2011 was
amended such
that the
Register of
limited
partnerships
holding a
Global
Business
Licence or
having at
least one
partner
holding a
Global
Business
Licence may
only be
inspected by
an officer,
management
company or
registered
agent of
that limited
partnership.
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Amendment to
the Trusts
Act
The Trusts
Act has been
amended to
enhance the
record-keeping
requirements
of trustees.
In effect,
accounts and
records
required to
be kept by
trustees now
have to
include
proper
books,
registers
such as
receipts,
invoices and
vouchers; and
documents
such as
contracts
and
agreements
representing
a full and
true record
of all
transactions
and other
acts engaged
in by the
trust and
shall be
kept for a
period of
not less
than 5 years
after the
completion
of the
transactions
to which
they relate.
Trustees
also have to
maintain a
register of
the names,
in
alphabetical
order, and
the last
known
address of
each
beneficiary
and settlor
of a trust,
including a
non-resident
foreign
trust
administered
by them. |
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