CONSOLIDATION OF THE FINANCIAL SERVICES REGULATORY FRAMEWORK
The Financial Services Commission is pleased to announce that the National Assembly has last week passed the following legislation:
§ The Financial Services Development (Amendment) Bill;
§ The Securities Bill; and
§ The Insurance Bill.
These enactments build on the establishment of the FSC in December 2001 as a unified regulator responsible for the integrated supervision of the non-bank financial services sector in Mauritius. They have been designed to help develop Mauritius as a leading business and financial services centre in this part of the world. They underpin Government’s intention to expand financial services in Mauritius while assuring appropriate regulatory and supervisory standards.
The Securities Act 2005 hinges on a modern approach to regulation and supervision of securities markets based on international standards recommended by the International Organisation of Securities Commissions (IOSCO)-of which Mauritius is a member. The Securities Act 2005 establishes a framework for the regulation of securities markets, market participants, self-regulatory organisations, the offering and trading of securities to ensure fair, efficient and transparent securities market. It aims at striking an appropriate balance between the protection of investors, the interest of market makers and market participants and the financial system in general.
The Insurance Act 2005 aims essentially at enhancing the regulatory and supervisory framework for the insurance industry and providing greater protection to policyholders and other beneficiaries. The Act provides for the implementation of the International Association of Insurance Supervisors’ (IAIS) Standards and Core Principles and focuses on specific regulatory issues relating to capital adequacy, solvency, corporate governance, early warning systems and the protection of policyholders and the financial system at large.
The main objective of the Financial Services Development (Amendment) Act 2005 is to further enhance the quality and effectiveness of financial regulation and supervision by providing the FSC with the power to impose a wider range of administrative sanctions including, a public censure and an administrative penalty. The Act also provides for the establishment of a Financial Services Review Panel to whom any person who is aggrieved by a decision of the FSC or of a Self Regulatory Organisation may apply for review of such decision.
These new enactments are not yet promulgated. They will come into operation on such dates to be fixed by proclamation. The FSC has already set itself at work on the regulations and rules to be made under these enactments. In the meantime, unofficial versions of the texts of these legislation as well as brief summaries may be accessed through the links below.
Downloads (.pdf):
Summary : The Securities Act 2005
Summary : The Insurance Act 2005
Summary : The Financial Services
Development (Amendment) Act 2005
The Financial Services
Development (Amendment) Act 2005
Financial Services Commission
30 March 2005