Previously, pension schemes were established under the repealed Employees Superannuation Fund Act of 1954 and the Income Tax Regulations 1996, and pension schemes were approved by the Mauritius Revenue Authority.

There was the need to modernise the legal framework for the private pensions industry and the FSC spared no effort over the past years to ensure that this legislation comes into force. Since 2009, the drafting of the Bill was the result of extensive discussions and working sessions between the FSC, the Ministry of Finance and the Economic Development, the Attorney General’s Office and the industry representatives.

On 10 February 2012, a finalised copy of the Bill was sent to the Ministry of Finance and Economic Development. The Bill was passed and voted in the National Assembly on 10 July 2012.

Objectives of the Private Pension Schemes Act

Under this new legislation, the FSC is now the only regulator for the private pension industry in Mauritius. The role of FSC is to ensure that pension schemes comply with provisions of the Act which has for main objective to maintain a fair, safe, stable and efficient private pension industry. The Act further aims at enhancing regulation of pension schemes while seeking to keep regulatory costs low and preserving competitiveness in the pension sector.

 Major changes brought for the sector with the proclamation of the Act are:

• All new Pension Schemes shall be set up as Trusts or Foundations;
• Pension schemes will be administered by a governing body which shall be the board of Trustees or the Council;
• Assets of the pension schemes can be managed by wide range of financial business providers: long term insurers, investments advisers, asset managers or CIS managers that are licensed by FSC;
• Pension scheme assets shall be held by a Custodian licensed by the FSC;
• Penalties and fines for non-compliance with provisions of the Act;
• Whistle-blowing provisions;
• Disclosure requirements;
• Minimum Funding requirements.

 Transitional provisions with regards to the Act

The Act provides that:
Private pension schemes licensed with the Commission under the Financial Services Act shall, at the commencement of the Act, be issued with a licence or authorization, on such terms and conditions as the Commission may determine.
Private pension schemes which are not licensed or authorised shall, within 12 months at the commencement of this Act, apply and obtain a licence or authorisation under the Act.

Rules to be issued by the FSC with the proclamation of PPSA

• Private Pension Schemes (Governance) Rules 2012
• These Rules provide for the composition, suitability of members, duties and accountability of the governing body.
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• Private Pension Schemes (Licensing And Authorisation) Rules 2012

The Rules cover namely the following requirements:

• Form and manner of applications
• Applications fees
• Provisions relating to compliance in foreign jurisdiction and in Mauritius
• Financial Services (Consolidated Licensing And Fees) (Amendment No. 2) Rules 2012