Following the gazetting of the Finance (Miscellaneous Provisions) Act 2016 on 7 September 2016, the following amendments have been brought:
Financial Services Act
In line with the enhancement of substance requirements, Section 73(2) of the FSA has been amended in order to allow GBC2s to invest in listed securities. In that respect this is expected to provide local companies with the funding requirements to expand their business activities, create jobs and contribute to the GDP growth. Consequentially, this will help to enhance liquidity in the securities listed on the Stock Exchange of Mauritius Ltd.
In order to attract the expertise of internationally recognized law firms to Mauritius, a new licensable activity has now been provided under Section 77A, namely Global Legal Advisory Services. This new provision will allow the relevant licensee to advise on international law, foreign laws and be involved in international arbitration. However, this new category of licensee will not be allowed to practice law in the Courts of Mauritius but it will be allowed to advise on local laws provided certain criteria are met.
A new category of licence – the Investment Banking licence has been provided. This new licence will be an umbrella licence encompassing activities under the relevant Acts as follows:
(a) Securities Act
- (i) Investment Dealer;
- (ii) Investment Adviser (Unrestricted); and
- (iii) Investment Adviser (Corporate Finance Advisory)
(b) Financial Services Act
- (i) Asset management; and
- (ii) Distribution of financial services
In that respect, the Securities (Licensing) Rules have also been amended. The new category of Investment Adviser will be known as Investment Adviser (Corporate Finance Advisory). Only a corporation maintaining a minimum stated unimpaired capital of Rs 1,000,000 can apply for this new type of licence. The representative of an Investment Adviser (Corporate Finance Advisory) will need to hold a degree in a relevant field and have at least 5 years relevant experience in investment business.
The applicant for an Investment Adviser (Corporate Finance Advisory) Licence will need to pay a processing fee of Rs 7,500 or USD 750 and the licensee will need to pay a fixed annual fee of Rs 50,000 or USD 2,000. On the other hand, the applicant for representative of Investment Adviser (Corporate Finance Advisory) will need to pay a processing fee of Rs 2,500 or USD 250 and the licensee will need to pay a fixed annual fee of Rs 10,000 or USD 750. The Financial Services (Consolidated Licensing and Fees) Rules have been amended in that respect.