Financial Services Commission Mauritius (FSC)

Overview

The Financial Services Commission (FSC) of Mauritius was established in 2001 with the objective of consolidating regulation of non-banking financial activities, which had previously been overseen by multiple different bodies. The establishment of the FSC was intended to enhance investor protection, improve market oversight, and align domestic supervision with international standards.

The FSC is a principal regulator within Mauritius's international financial center (IFC), positioning the country as a significant hub for global financial services in the African and Indian Ocean regions. As a non-bank financial services regulator, the FSC maintains jurisdiction over securities, insurance, virtual assets, collective investment schemes, captive insurance, and private pension schemes sectors.

The Commission is currently led by Chief Executive Désiré Vencatachellum, appointed effective 16 September 2025. Vencatachellum is a seasoned development banker with over 30 years of international experience, including more than 20 years at the African Development Bank Group. He holds the designations of Fellow of the Association of Chartered Certified Accountants (ACCA, UK) and Chartered Tax Adviser (UK), and is a member of the Chartered Institute for Securities and Investment.

The FSC Board is chaired by Dr. Rama Krishna Sithanen, former Deputy Prime Minister of Mauritius, who assumed the position on 9 December 2024.

Mauritius is recognized globally as a high-quality international financial center, with the FSC serving as the critical regulatory backbone for non-banking financial services operations, including cross-border and offshore activities conducted under Global Business License categories.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Securities and Capital Markets

The FSC regulates securities market participants under the Securities Act 2005, which establishes comprehensive licensing and conduct of business requirements for market intermediaries and fund managers.

Investment Dealers and Brokers — Entities engaged in securities dealing, broking, or investment advisory activities must obtain FSC licensing. Licensees are subject to prudential requirements including minimum capital thresholds, professional conduct standards, and detailed regulatory reporting obligations.

Investment Advisers — Persons providing investment advisory services, whether on a professional or discretionary basis, require FSC authorization. The regulatory framework establishes standards for adviser competence, client suitability assessments, conflict of interest management, and fiduciary obligations.

Fund Managers — All collective investment scheme managers and portfolio managers must be licensed by the FSC. Managers are subject to specific requirements regarding compliance frameworks, risk management systems, governance structures, and protection of client assets.

Stock Exchange of Mauritius (SEM) — The FSC maintains direct supervision of the Stock Exchange of Mauritius through ongoing market oversight, listing rule enforcement, and oversight of exchange trading operations. The SEM serves as the primary equities and bonds trading platform for Mauritius.

The Securities Act 2005 provides a framework requiring issuers to maintain transparency through continuous disclosure obligations, prospectus requirements for public offerings, and corporate governance standards aligned with international norms.

The FSC regulates all insurance business operations in Mauritius under the Insurance Act 2005, which incorporates international best practices and IAIS standards.

Licensing Requirements — Insurance companies (both long-term and general insurers) must obtain FSC licensing prior to commencing operations. The FSC evaluates applicants' financial viability, governance quality, business plans, and compliance infrastructure.

Solvency and Capital Adequacy — Insurers are subject to robust solvency requirements with specific minimum capital and reserve thresholds. The Insurance (General Insurance Business Solvency) Rules 2024 and corresponding Long-Term Insurance Business Solvency Rules 2024 establish detailed provisions for capital adequacy, asset diversification, and liability valuation.

Technical Provisions — Insurers must establish adequate technical provisions in their financial statements for underwriting liabilities across all insurance policies. Provisions must cover unexpired risks, outstanding and incurred claims, incurred-but-not-reported (IBNR) claims, and unclaimable policy benefits. Calculations must follow methods prescribed in the solvency rules.

Actuarial Standards — All insurers must appoint a qualified actuary holding recognized actuarial qualifications and approved by the FSC. The actuary certifies technical provisions adequacy, capital sufficiency, and compliance with solvency requirements. Actuarial methods must align with international standards and IAIS guidelines.

Corporate Governance and Risk Management — The Insurance Act requires insurers to maintain robust governance frameworks, board-level risk management committees, internal controls, and compliance systems. Directors and senior management must meet fitness and propriety standards.

International Compliance — As a member of the International Association of Insurance Supervisors (IAIS), the FSC continuously aligns Mauritian insurance regulations with IAIS Insurance Core Principles (ICPs) and supervisory practices.

The FSC regulates collective investment schemes (CIS) under the Securities Act 2005 and the Securities (Collective Investment Schemes and Closed-End Funds) Regulations 2008.

CIS Definition and Scope — A CIS is defined as a scheme constituted as a company, trust, or other legal entity approved by the FSC with the sole purpose of collective investment of funds in securities, financial assets, real property, or non-financial assets. CIS operations must be based on risk diversification principles and provide for redemption of securities at net asset value on request of holders.

CIS Manager Requirements — All CIS must be managed by an FSC-licensed investment manager. While foreign-regulated investment managers may be appointed, they require FSC prior approval. CIS managers must maintain minimum stated unimpaired capital of at least MUR 1 million and establish comprehensive internal control frameworks.

CIS Administrator and Custodian — For global schemes, a CIS administrator with physical presence in Mauritius must be appointed. The administrator handles fund operations, valuations, distributions, and regulatory reporting. Changes to CIS administrators require FSC prior approval. A separate cash custodian must hold fund assets in segregated custody.

Fund Types and Licensing Timelines — The FSC recognizes several CIS fund types with differentiated regulatory oversight: (1) Expert Funds for professional investors; (2) Professional Collective Investment Schemes (PCIS) with restricted distribution; and (3) Standard CIS available to retail investors. Expert Funds and PCIS licensing can be completed within 2-4 weeks from complete application submission. Standard CIS licensing generally requires 6-12 weeks.

Governance and Reporting — CIS managers must adopt written policies for AML/CFT compliance, risk minimization, and asset segregation. Detailed investment policies, prospectuses, and key information documents must be approved by the FSC. Annual financial statements and regulatory reports must be filed with auditor certification.

Global CIS Framework — Mauritius's CIS regime accommodates global investment structures, enabling managers to offer schemes to international investors subject to FSC oversight. The regulatory framework facilitates fund domiciliation and marketing across FATF-compliant jurisdictions.

Regulatory Powers

The FSC maintains comprehensive enforcement authority to ensure compliance with financial services laws and regulations. The Commission's enforcement powers are exercised through an independent Enforcement Committee established under section 52 of the Financial Services Act 2007.

Investigation Authority — The FSC has broad investigatory powers to conduct examinations of licensees, issue written inquiries, compel production of books and records, and conduct on-site inspections. The Commission may also refer suspected violations to law enforcement or the Financial Intelligence Unit (FIU) for criminal or AML/CFT investigations.

Administrative Penalties Framework — The Financial Services (Framework for the Imposition of Administrative Penalties) Rules 2022 (as amended 2025) establish the FSC's framework for imposing monetary penalties. The Enforcement Committee has discretion to determine penalty amounts provided they are proportionate to regulatory breaches, except for specific offences (such as non-filing of statutory documents) where prescribed quantum applies.

Licence Suspension and Revocation — The FSC may suspend or revoke licences of non-compliant entities. Suspension may be applied during investigative proceedings or to enforce specific compliance obligations. Revocation is applied for serious breaches including fraud, insolvency, or persistent regulatory non-compliance.

Administrative Actions — The FSC may issue public censures, prohibit individuals from holding positions as officers of regulated entities, require reversal of unapproved transactions or corporate changes, and mandate implementation of remedial compliance programs.

Appeals and Review Process — Any licensee or officer aggrieved by an Enforcement Committee decision may apply to the Financial Services Review Panel for review within 21 days of written notification. The application must be submitted by registered post with specification of grounds for review.

Cooperation with BoM and FIU — The FSC coordinates enforcement activities with the Bank of Mauritius (BoM) regarding activities at the intersection of banking and non-bank financial services. For AML/CFT and financial crime matters, the FSC exchanges information and coordinates enforcement with the Financial Intelligence Unit (FIU).

Regulatory Role and Function

Legal Foundation

The FSC derives its regulatory authority and enforcement mandate from multiple primary statutes:

Financial Services Act 2007 (FSA) — The foundational legislation establishing the FSC's powers, functions, and administrative framework. The FSA grants the FSC authority to license, supervise, monitor, and enforce compliance across multiple sectors. Under section 52 of the FSA, the FSC established the Enforcement Committee as an independent disciplinary body empowered to impose administrative sanctions on licensees and officers for regulatory breaches.

Securities Act 2005 — Establishes the regulatory framework for capital markets activities including investment dealers, investment advisers, fund managers, and brokers operating in securities and capital markets. The Securities Act provides comprehensive requirements for market transparency, corporate governance, and prudential oversight.

Insurance Act 2005 — Regulates insurance business operations in Mauritius, including both long-term and general insurance activities. The Insurance Act is aligned with International Association of Insurance Supervisors (IAIS) standards and principles, focusing on capital adequacy, solvency, corporate governance, early warning systems, and policyholder protection.

Captive Insurance Act — Governs the establishment and operation of captive insurance companies, including special purpose vehicles and captive arrangements utilized for risk transfer by international companies.

Private Pension Schemes Act — Provides regulatory oversight for private pension scheme operators and administrators, ensuring adequate governance, asset custody, and member protection.

Virtual Asset and Initial Token Offering Services Act 2021 (VAITOS) — Establishes a comprehensive regulatory regime for virtual asset service providers (VASPs) and initial token offering (ITO) issuers, bringing Mauritius into alignment with international standards established by the Financial Action Task Force (FATF). VAITOS came into force on 7 February 2022.

The FSC's organizational structure includes specialized departments for securities supervision, insurance and pensions regulation, virtual assets oversight, and enforcement. The Commission operates under Board governance with delegated authority to executive management for day-to-day regulatory operations.

Licensing and Authorization Relevance

The FSC administers a specialized licensing regime for Global Business entities operating under the Financial Services Act 2007, section 71. This regime enables Mauritian companies to conduct financial and business activities with non-residents for taxation and regulatory purposes.

Global Business Licence (GBL) — Formerly designated as GBC1, the GBL is available to entities proposing to conduct business outside Mauritius. GBL licensees may undertake any business activity that is not illegal or contrary to public policy, including capital raising from non-residents. GBL entities are eligible for Tax Residence Certificates and benefit from Mauritius's extensive treaty network for double taxation relief.

Global Business Category 2 (GBC2) — The GBC2 structure provided exemption from Mauritian corporate taxation on worldwide profits. However, the GBC2 regime has been phased out and replaced with the Authorised Company regime as part of Mauritius's compliance with international tax transparency standards and OECD/BEPS initiatives.

Substance Requirements — Global Business licensees must maintain adequate substance in Mauritius, including physical office presence, locally-based management, and conduct of core business activities from the jurisdiction. This requirement ensures genuine economic presence and compliance with international substance-over-form standards.

Management Companies and Service Providers — The FSC licenses Global Business management companies, company formation agents, trust and fund administrators, and other service providers supporting global business operations. These entities must meet professional standards, maintain appropriate insurance, and implement robust governance and compliance frameworks.

Tax Treaty Benefits — Mauritian companies benefit from an extensive network of bilateral income tax treaties and tax information exchange agreements (TIEAs). Global Business licensees can leverage these treaty provisions for withholding tax exemptions, capital gains treatment, and treaty-based dispute resolution.

The FSC regulates virtual asset and fintech activities under the Virtual Asset and Initial Token Offering Services Act 2021 (VAITOS), which came into force on 7 February 2022. VAITOS establishes a comprehensive regime aligned with Financial Action Task Force (FATF) Recommendation 15 standards for virtual asset service providers (VASPs).

VASP Licensing Categories — The VAITOS Act establishes licensing requirements for virtual asset service providers engaged in activities including custody, exchange, transfer, issuance, and administration of virtual assets. VASPs must obtain FSC authorization prior to commencing operations.

Operational Requirements — All VASPs must maintain a physical office in Mauritius, with business activities directed and managed from the jurisdiction. This substance requirement ensures genuine economic presence and facilitates FSC supervision and AML/CFT oversight.

Customer Due Diligence and AML/CFT — VASPs are subject to comprehensive customer due diligence (CDD), enhanced due diligence (EDD), know-your-customer (KYC), and beneficial ownership identification requirements aligned with FATF standards. VASPs must file suspicious transaction reports (STRs) with the Financial Intelligence Unit (FIU) when warranted.

Custodian and Safeguarding Requirements — Virtual assets held on behalf of customers must be segregated and held in secure custody arrangements. The VAITOS Act establishes detailed safeguarding requirements, insurance provisions, and liability protections for asset loss or custodial failure.

Initial Token Offering (ITO) Issuers — Entities conducting token offerings or distributing digital securities must register with the FSC and comply with ITO-specific disclosure, investor protection, and governance requirements. The regulatory framework applies comparable standards to traditional securities offerings.

FSC Rules and Guidance — The FSC has issued detailed FSC Rules providing technical guidance on VAITOS compliance, including provisions for capital adequacy, governance, technology risk management, and market abuse prevention. These rules establish specific compliance timelines and procedural requirements.

FATF Alignment — Mauritius's VAITOS regime aligns closely with FATF Recommendation 15 standards on virtual assets and VASPs, enhancing regulatory credibility and facilitating establishment of trusted business relationships with global financial institutions.

Payments and Money Movement Relevance

The Financial Services Commission Mauritius (FSC) has the following relevance to payments and money movement in Mauritius:

Payment Systems Governed or Overseen

The Financial Services Commission Mauritius (FSC) has oversight responsibilities across multiple financial sectors in Mauritius, including payment services:

The entity regulates payment service providers, e-money issuers, and related financial intermediaries within its integrated supervisory mandate.

Relationship to Other Regulators

The FSC maintains active participation in international regulatory bodies and bilateral cooperative arrangements, ensuring alignment with global standards and facilitating cross-border regulatory cooperation.

IOSCO Membership — The FSC is an active member of the International Organization of Securities Commissions (IOSCO), participating in both the Africa Middle East Regional Committee (AMERC) and the Emerging Markets Committee. In March 2024, the FSC was re-elected as Representative to the IOSCO Board for a new two-year term, providing significant influence on global securities regulation development.

IAIS Membership — The FSC participates in the International Association of Insurance Supervisors (IAIS), ensuring Mauritian insurance regulation aligns with the IAIS Insurance Core Principles and international supervisory best practices.

FATF and ESAAMLG — Mauritius is an active member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), a FATF associate member, and is committed to implementing FATF recommendations on AML/CFT standards regionally and domestically. The FSC participates in ESAAMLG mutual evaluations and compliance assessments.

Bilateral MOUs — The FSC maintains memoranda of understanding (MOUs) with peer financial regulators in multiple jurisdictions for information exchange, supervisory cooperation, and cross-border enforcement coordination. These MOUs facilitate investigation of cross-border violations and support investor protection.

AML/CFT Standards Alignment — The FSC continuously reviews and updates its AML/CFT regulatory framework to conform to evolving standards issued by IOSCO, IAIS, and FATF. VAITOS regulatory provisions specifically align with FATF Recommendation 15 on virtual assets and VASPs.

Committee of Insurance, Securities and Non-Banking Financial Authorities (CISNA) — The FSC participates in CISNA, a regional forum for financial regulators in SADC countries and Indian Ocean regions, enabling policy coordination and supervisory information exchange.

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Official Website and Main Contacts:

• Website: https://www.fscmauritius.org
• Primary Email: [email protected]
• Telephone: +230 403 7000
• Fax: +230 467 7172

Physical Address:

FSC House, 54 Cybercity, Ebene, Republic of Mauritius 72201

Office Hours: Monday to Friday, 8:00 AM to 5:00 PM (Mauritius Standard Time, UTC+4)

Key Sections and URLs:

• Licensing and Applications: https://www.fscmauritius.org/en/licensing/
• Securities Regulation: https://www.fscmauritius.org/en/licensing/licensed-activities/securities
• Insurance and Pensions: https://www.fscmauritius.org/en/licensing/licensed-activities/insurance-and-pensions
• Virtual Assets (VAITOS): https://www.fscmauritius.org/en/licensing/licensed-activities/virtual-assets
• Global Business Licensing: https://www.fscmauritius.org/en/licensing/applying-for-a-licence/global-business
• Collective Investment Schemes: https://www.fscmauritius.org/en/licensing/licensed-activities/securities (fund administration section)
• Enforcement and Compliance: https://www.fscmauritius.org/en/enforcement/
• AML/CFT Framework: https://www.fscmauritius.org/en/aml/amlcft
• Rules and Regulations Library: https://www.fscmauritius.org/en/legal-framework/rules-and-regulations/

Leadership:

• Chief Executive Officer: Désiré Vencatachellum (appointed 16 September 2025)
• Board Chairperson: Dr. Rama Krishna Sithanen (appointed 9 December 2024)
• Leadership Team: https://www.fscmauritius.org/en/about-us/leadership-team
• Board Members: https://www.fscmauritius.org/en/about-us/board-of-the-fsc

Notes on Naming and Language