GIIF: Brief on 2 recent technical committee meetings held at MOF

The purpose of the meetings of the Global Institutional Investors Forum (“GIIF”) with the Ministry of Finance (“MOF”) is to share information and to have a common understanding on how key issues regarding the Financial Services Sector would be dealt with.

• OECD Peer Review

Following the recent peer review carried out by the OECD on Mauritius, it is noted that the only element which is not in place in the Phase 1 review is in respect of GBC2 to require to maintain accounting records and underlying documentations to the standard. Mr Mosafeer explained that the next review in July 2011 will be crucial and that Mauritius would need to look very closely at the recommendations made by OECD. It was agreed that the OECD sub-committee, which comprises of MRA, MOF, FSC, ROC and GIIF, will meet shortly to take note of the draft paper prepared by GIIF and brainstorm on the OECD Peer review.

• Products and Markets Diversification

It was agreed that there are a number of financial products and markets that Mauritius could exploit. A consensus was reached to work on a strategy on products and markets diversification. The sub-committee on products and market diversification, which comprises of BOI, FSC, MOF, and GIIF, will be convened shortly to come up with a clear action plan. It was proposed to organize a public private sector brainstorming session on this matter. GIIF suggested that a matrix be developed to identify the hurdles and the solutions to unlocking them.

• GBC2

GIIF informed MOF that a paper is being prepared to encompass the industry’s views on the matter of GBC2s. It was noted that MOF expects clear recommendations of the industry on the issue of accounting records of the GBC2s raised by the OECD peer review report.

• DTA

It was also agreed that GIIF will be consulted whenever a treaty will be renegotiated in the future. The chairperson proposed that MOF, BOI and MRA work in concurrence with GIIF on a strategic paper on DTA to be submitted to the committee. As such, a sub-committee on DTA strategy has also been set up to work on a priority list of DTAs which Mauritius can negotiate.

• Limited Partnership Bill and Foundation Law

GIIF has requested for a draft of these two bills on Limited Partnership and Foundation. Once these drafts are obtained, a sub-committee will be set up to review and give our comments to MOF.

• Communication strategy

The importance of working on a communication strategy to tackle the recent misrepresentations made by the local and foreign press on the Mauritius financial services industry was highlighted.

• DTC

On a separate note, we wish to inform you that GIIF has lodged formal representations to the Standing Committee on Finance (“SC”) of the Indian Parliament and awaits to depone before the SC.