Mauritius: FSC Conducts Onsite Inspections for 159 Management Companies

The Financial Services Commission (FSC) has, under phase 1 of onsite inspections programme for the year 2012, conducted inspections for some 159 management companies (MC). In the wake of this exercise, 65 inspections reports have been generated out of which 45% are clean reports.

In this context, the FSC organised a workshop yesterday at its seat in Ebène targeting Directors and Senior Management representatives to discuss the key findings of the reports. It is noted that most of the MCs have proper systems for both internal and external controls and are in compliance with the Financial Services Act (FSA) adopted in 2007, which simplify the regulatory regime and consolidate the legislative framework of the global business sector.

However, some drawbacks have also been detected where some MCs do not comply with the norms under the FSA 2007 and the Customer Due Diligence requirements are not met fully. Other shortcomings pointed out are that some MCs have neither the methodology to conduct independent checks nor good record keeping, in addition to weaknesses with regard to client monitoring.

In her address at the opening of the workshop the Chief Executive of FSC, Ms Clairette Ah-Hen, recalled that the role of the commission as a regulator of the global business sector is to ensure that a licensee is complying or has complied with the requirements as outlined in the FSA 2007. In so doing, this will maintain the reputation of Mauritius as an International Financial Centre and also as a jurisdiction of substance, she said.

Ms Ah-Hen, cautioned that the FSC will take severe actions against the MCs which are not in compliance with the financial laws. The failure of not abiding to the rules may result in the revocation of the licence, she warned.

It will recalled that, the FSC is introducing as from this year an in-principle approval system for a certain period of time whereby all MCs will be required to put in place the appropriate resources and appoint adequate staffs. A MC will be issued with a licence only after the FSC has conducted an inspection to see whether the criteria have been met and upon satisfactory results.