Regulations in the Financial Services Sector
Mauritius has a hybrid legal system which draws inspiration from the French and English Legal system. Mauritius was under French rule until 1814 when it became British, but still kept its French laws and customs. Whilst the substantive laws, e.g. the Civil Code, the Criminal Code and the Commercial Code remained French, the English judges presiding in the Mauritian courts preferred English procedure, which was familiar to them. Therefore, historically, English law gradually grafted itself on French law to supplement the former.
In 1968, Mauritius became independent and the country became a Republic within the British Commonwealth in 1992. Parliament enacts the laws and in specific cases, the power is delegated to Ministers to make regulations.
Mauritius has stable and transparent regulatory framework based on international standards which caters for innovative sectors such as company, banking, finance, offshore, taxation, shipping, insurance and intellectual property.
The financial services sector in Mauritius is regulated by two bodies who have adopted the best international practices– each with specific statutory objectives: -
Financial Services Commission
The Financial Services Commission, Mauritius (the ‘FSC’) is the integrated regulator for the non-bank financial services sector and global business. Established in 2001, the FSC is mandated under the Financial Services Act 2007 and has as enabling legislations the Securities Act 2005, the Insurance Act 2005 and the Private Pension Schemes Act 2012 to license, regulate, monitor and supervise the conduct of business activities in these sectors. The current regulatory framework has many strong elements, including reliance on solvency monitoring, prudent asset diversification, international accounting standards, and actuarial methods.
Bank of Mauritius
The Bank of Mauritius (BOM), set up in 1966, well known to all, and which is responsible for the regulation of banking services. The Bank has been set up as the authority which is responsible for the formulation and execution of monetary policy consistent with stable price conditions. It also has responsibility for safeguarding the stability and strengthening of the financial system of Mauritius.