REGULATION
Funds registered with the Financial Services Commission in Mauritius
are commonly structured as companies incorporated under the Companies
Act 2001 and licensed as a company holding a Category 1 Global Business
Licence under the Financial Services Development Act 2001. The Funds
can be structured as two tier funds, or increasingly as single tier
funds. These funds invest in a wide range of investment products,
including portfolio or fixed income securities and venture capital.
Registration Requirements
A
Collective Investment Company needs to be approved by the Financial
Services Commission before it commences business. In considering an
application, the Commission needs to be satisfied about the following:
- the track record and credentials of the promoters;
- the fund structure;
- the objectives of the fund;
- the investors and the market targeted;
- types of investment the fund will be dealing in;
- the track record of the investment manager, custodian, and administrator;
- compliance with regulations in third countries, as appropriate (e.g. SEBÍs approval if investment is to be made in India).
Once the Commission is satisfied with the above, it may give an
approval in principle so as to enable all constitutive documents to be
prepared and the company to be incorporated.
Administration & Control
The Commission generally wishes to satisfy itself that, as far as
possible, substance and central administration is in Mauritius. To this
end, the Fund must have a local administrator, a local custodian, and a
local auditor. The requirement that central administration is situated
in Mauritius implies that:
- the accounts are kept and the accounting documents are available in Mauritius;
- the share register is kept in Mauritius;
- issues and redemptions of shares are carried out in Mauritius;
- calculation of the Net Asset Value (NAV) is carried out in Mauritius.
- two directors who are resident in Mauritius
- qualified secretary resident in Mauritius
- bank account is maintained in Mauritius with an offshore bank and investments are made via that bank account
- board meetings are initiated and chaired in Mauritius.
The above does not exclude the possibility
of the Fund obtaining assistance for the management of its assets from
an investment adviser established overseas, nor does it prevent
management decisions in relation to investment and disinvestment being
executed overseas. Also the requirement for the location of the
issuance and redemption of shares in Mauritius does not preclude
foreign intermediaries from participating in the placing and redemption
operations as distributors or nominees. The Commission insists on the
independence of the manager, the trustee and the custodian.
In appropriate circumstances, it is also possible to establish a
management or advisory company in the sector to take advantage of the
beneficial tax regime.
After incorporating the company, Grand Baie Trust
provides the following services with respect to the ongoing activities
of the fund:
- Provide registered office address.
- Provide two directors and qualified secretary resident in Mauritius.
- Open bank account.
- Provide local signatories for bank account.
- Provide administrator and registrar, and carry out NAV calculations.
- Preparation of quarterly accounts to the authorities.
- Prepare and file tax returns.
