Mauritius
Financial Services Act
Act 14 of 2007
- Commenced on 28 September 2007
- [This is the version of this document at 30 June 2017.]
Part I – Preliminary
1. Short title
This Act may be cited as the Financial Services Act.2. Interpretation
In this Act, unless otherwise expressly provided—"audit firm" has the same meaning as in the Financial Reporting Act;"bank" has the same meaning as in the Banking Act;"Bank of Mauritius" means the Bank of Mauritius established under the Bank of Mauritius Act;"Board" means the Board referred to in section 4;"Category 1 Global Business Licence"—(a)means a Category 1 Global Business Licence issued under section 72 (6); and(b)—"Category 2 Global Business Licence" means a Category 2 Global Business Licence issued under section 72 (6);"Chairperson" means the Chairperson of the Board;"Chief Executive" means the Chief Executive of the Commission appointed under section 9;"Commission" means the Financial Services Commission established under section 3;"confidential information" includes any document, books of account, balance sheet, profit and loss account or any matter which is to be treated as confidential under section 83;"consumer of financial services" includes—(a)a beneficiary under the Private Pension Schemes Act; and(b)any other person entitled to benefit from financial services under the relevant Acts;"controller", in relation to a corporation, means a person—(a)who is a member of the governing body of the corporation;(b)who has the power to appoint or remove a member of the governing body of the corporation;(c)whose consent is needed for the appointment of a person to be a member of the governing body of the corporation;(d)who, either by himself or through one or more other persons—(i)is able to control, or exert significant influence over, the business or financial operations of the corporation, whether directly or indirectly;(ii)holds or controls not less than 20 per cent of the shares of the corporation;(iii)has the power to control not less than 20 per cent of the voting power in the corporation;(iv)holds rights in relation to the corporation that, if exercised, would result in the conditions in subparagraphs (ii) and (iii) being satisfied;(e)who is a parent undertaking of that corporation or a controller of such parent undertaking;(f)who is a beneficial owner or ultimate beneficial owner of a person specified in paragraphs (a) to (e) and who appears to the Commission to be a controller of that corporation;"corporation"—(a)means a body corporate; and(b)includes, where specified in FSC Rules, any trust, société, partnership or any other body of persons;"Council" means the Financial Services Consultative Council referred to in section 12;"document"—(a)means a document in any form; and(b)includes—(i)any writing on any material;(ii)a book, graph or drawing;(iii)information recorded or stored by any electronic or other technological means and capable, with or without the aid of any equipment, of being reproduced;"employee" means an employee of the Commission appointed under section 80;"Enforcement Committee" means the Enforcement Committee set up under section 52;"external insurer" has the same meaning as in the Insurance Act;"financial crime"—(a)means an offence that involves fraud or dishonesty under the relevant Acts or any other enactment; and(b)includes an offence under the Financial Intelligence and Anti-Money Laundering Act or under the Prevention of Terrorism Act;"financial services"—(a)means any financial services or financial business activities governed by the relevant Acts; and(b)includes the financial business activities specified in Part I of the Second Schedule;"FSC Rules" means the Financial Services Commission Rules made by the Commission under section 93;"Fund" means the Financial Services Fund established under section 68;"global business" means business conducted outside Mauritius by a resident corporation;"Global Business Licence" means business conducted outside Mauritius by a resident corporation;"global headquarters administration" means the activities specified in Part III of the Second Schedule;"global treasury activities" means the activities specified in Part II of the Second Schedule;"guidelines" includes codes, guidance notes, practice notes and other similar instruments issued by the Commission;"insurance manager" has the same meaning as in the Insurance Act;"law firm" has the same meaning as in the Law Practitioners Act;"law practitioner" has the same meaning as in the Law Practitioners Act;"legal consultant" has the same meaning as in the Law Practitioners Act;"licence"—(a)means any licence issued under any relevant Act; and(b)except where otherwise specified, includes—(i)a Category 1 Global Business Licence;(ii)a Category 2 Global Business Licence; or(iii)a management licence;"licensee"—(a)means the holder of a licence; and(b)includes—(i)any person authorised, registered or approved under a relevant Act; and(ii)any institution established to provide any service under a relevant Act;"management company" means a company holding a management licence;"management licence" means a licence referred to in section 77;"member"—(a)means a member of the Board; and(b)includes the Chairperson and the Vice-chairperson;"Minister" means the Minister to whom responsibility for the subject of financial services is assigned;"officer" means a member of the board of directors, a chief executive, a managing director, a chief financial officer or chief financial controller, a manager, a company secretary, a partner, a trustee or a person holding any similar function with a licensee;"public sector agency" includes any Ministry or Government department, local authority or statutory body;"qualified auditor" has the same meaning as in the Companies Act;"registered agent" means a registered agent having the duties referred to in section 76;"Registrar" has the same meaning as in the Companies Act;"relevant Acts"—(a)means this Act and the Acts specified in the First Schedule; and(b)includes any regulations and FSC Rules made under those Acts;"Review Panel" means the Financial Services Review Panel set up under section 54;"SRO"—(a)means a self-regulatory organisation whose object is to regulate the operations of its members or of the users of its services, their standards of practice and business conduct in order to better protect investors and consumers of securities or related services; and(b)includes such other organisation as may be declared or recognised as an SRO by the Commission;"technical committee" means a technical committee set up under section 11;"trust" has the same meaning as in the Trusts Act;"Vice-chairperson" means the Vice-chairperson of the Board.[S. 2 amended by s. 7 (a) of Act 10 of 2010 w.e.f. 24 December 2010; s. 57 (1) (a) of Act 15 of 2012 w.e.f. 1 November 2012; s. 13 (a) of Act 27 of 2012 w.e.f. 22 December 2012; s. 18 (a) of Act 9 of 2015 w.e.f. 14 May 2015; s. 20 (1) (a) of Act 32 of 2015 w.e.f. 29 January 2016.]Part II – The Financial Services Commission
3. Establishment of Commission
4. The Board
5. Objects of Commission
6. Functions of Commission
The Commission shall have such functions as are necessary to further most effectively its objects, and in particular, shall—7. Powers of Commission
8. Meetings of Board
9. The Chief Executive
10. Delegation of powers
11. Technical committees
Part III – The Financial Services Consultative Council
12. The Council
13. Objects of Council
The objects of the Council shall be to—Part IV – Regulation of financial services
14. Requirement to be licensed
15. Application of Part IV
16. Application for licence
17. Further information and verification
18. Granting of applications
19. False and misleading statements to Commission
20. Matters related to fit and proper person requirements
21. Display of licence
22. Licence fees
23. Approval of controllers and beneficial owners
24. Approval of officers
25. Variation of licence
26. Register of licensees
27. Suspension of licence
28. Termination of licence
Part V – Ongoing obligations of licensees
29. Record keeping
30. Audited financial statements
Part VI – Protection of consumers of financial services
31. Advertisement
32. Protection of consumers of financial services and financial products
Part VII – Self-regulatory organisations
33. Declaration or recognition of SRO
34. Rules of SRO
35. Restriction on decision making
An SRO shall not make a decision under its rules that adversely affects the rights of a person unless—36. Obligations of and in relation to officers of SRO
An SRO shall notify the Commission in the manner specified in any FSC Rules, as soon as practicable before or after a person is appointed as an officer of the SRO.37. Powers to direct SRO
38. Termination of arrangements and revocation of declaration or recognition
39. Amendments to constitution of SRO
Notwithstanding the Companies Act, an amendment to the constitution of an SRO shall be of no effect unless it is approved by the Commission.40. Protection for SRO
An SRO, an officer or employee of an SRO or a member of a committee of an SRO shall not be liable for any loss sustained by or damage caused to any person as a result of anything done or omitted by them in the performance, in good faith, of their functions and duties in connection with the regulatory or supervisory functions of the SRO, including those delegated to it by the Commission.41. Annual report of SRO
Part VIII – Powers of Commission
42. Request for information
43. On site inspections
44. Investigations
44A. Special investigations
45. Tampering with evidence
Any person who destroys, falsifies, conceals or disposes of, or causes or permits the destruction, falsification, concealment or disposal of, any document, information stored on a computer or other device or other thing that the person knows or ought reasonably to know is relevant to an on-site inspection or investigation under a relevant Act, shall commit an offence.46. Power to give directions
47. Compliance with directions
48. Appointment of administrator
49. Injunctive relief and locus
50. Freezing of assets
51. Enforceable undertakings
51A. Compounding of offences
Part IX – Enforcement Committee and Financial Services Review Panel
A – Enforcement Committee
52. Enforcement Committee
53. Disciplinary proceedings
B – Financial Services Review Panel
54. Financial Services Review Panel
55. Membership of Review Panel
56. Termination of appointment
57. Staff of Review Panel
The Commission shall extend such technical, administrative and secretarial assistance as may be necessary to enable the Review Panel to properly discharge its functions under the relevant Acts or under any other enactment.58. Composition of Review Panel for particular matters
59. Disclosure of interests by members of Review Panel
Any member of the Review Panel shall, in relation to any matter before the Review Panel, in which he or any person related to him by blood or marriage has a pecuniary or other material interest—60. Decision of Review Panel
Any decision of the Review Panel shall not be altered or set aside, or a new decision taken thereon, by the Commission, Enforcement Committee or SRO, as the case may be, except by the Review Panel or with the consent of the parties to the proceedings and with the concurrence of the Review Panel.61. Conduct of reviews
62. Proceedings of Review Panel
63. Powers of Review Panel
64. Protection of persons before Review Panel
65. Offences relating to proceedings of Review Panel
Any person who, without reasonable cause—66. Determination of Review Panel
67. Judicial review
Any party who is dissatisfied with the determination of the Review Panel may apply to the Supreme Court for a judicial review of the determination.C – Financial Services Fund
68. Financial Services Fund
69. Administration of Fund
70. Annual report of Managing Committee
Part X – Global business
71. Global business
72. Application for Category 1 Global Business Licence or Category 2 Global Business Licence
73. Conduct of global business
74. Validity of Category 1 Global Business Licence or Category 2 Global Business Licence and effect of its revocation
75. Power of inquiry
76. Registered agent
77. Management licence
77A. Global Legal Advisory Services
77B. Application for Global Legal Advisory Services licence
78. Nominee company
79. Special provisions for Global Business
Part XA – Investment banking
[Part XA inserted by s. 24 (d) of Act 18 of 2016 w.e.f. 7 September 2016.]79A. Application for Investment Banking Licence
Part XI – Administration
80. Staff of Commission
81. Conditions of service of employees
The Commission may make provision to govern the conditions of service of employees and, in particular, to deal with—82. General Fund
82A. General Reserve Fund
83. Confidentiality
84. Disclosure of interest
85. Annual report of Commission
Part XIA – The Financial Services Promotion Agency
[Part XIA inserted by s. 18 (b) of Act 9 of 2015 w.e.f. 14 May 2015.]85A. Application of Part XIA
85B. The Financial Services Promotion Agency
85C. Objects and functions of Agency
The objects and functions of the Agency shall be to—85D. Director of Financial Services Promotion Agency
Part XII – Miscellaneous
86. Administration of relevant Acts by Commission
The Commission shall administer the relevant Acts with such modifications, adaptations, qualifications and exceptions as may be necessary to bring them in conformity with this Act.87. Exchange of information and mutual assistance
87A. Records
Every record of the Commission shall be kept—88. Immunity and protection from liability
89. Exemption
Notwithstanding any other enactment, the Commission shall be exempted from payment of—90. Offences and penalties
91. Prosecution
92. Jurisdiction
Notwithstanding—93. FSC Rules
94. Regulations
95. ***
96. ***
97. ***
98. ***
History of this document
30 June 2017 this version
Consolidation
28 September 2007
Commenced