Mauritius: FSC Holds Training on Effective Oversight of Capital Markets

The Financial Services Commission (FSC) in collaboration with the United States Securities and Exchange Commission (US SEC) is hosting from 5 to 8 August 2013 a training programme on Effective oversight of Capital Markets. The aim is to familiarise participants with the latest developments in the Capital Market regulatory oversight.

Both local and foreign participants from financial regulators of African and neighbouring countries namely Angola, Botswana, India, Kenya, Malawi, Namibia, Nigeria, Maldives, Seychelles, Singapore, Sri Lanka, Swaziland and Tanzania, are attending the training. It is being conducted by experts from the US SEC and is in line with the FSC’s strategy of enhancing cooperation to combat malpractices and develop higher standards to reinforce its supervisory approaches.

The training programme is serving as a platform for the participants to exchange the best practices in the development and regulation of securities markets presented through a series of discussions and case studies. The resource persons from US SEC will also share practical solutions to common market problems and abuses including how to address financial frauds such as Ponzi schemes. Discussions will also focus on investigation and prosecution cases.

Speaking at the opening ceremony on August 5, the Chief Executive of the FSC, Ms Clairette Ah-Hen, highlighted the importance of the training programme for the FSC to further enhance cooperation with its regulatory counterpart. According to her, the FSC is today an important contributor to the Mauritian economy, not only in terms of GDP and employment, but also for its linkages to other sectors in terms of investment facilitation.

According to Ms Ah-Hen for a sustainable growth and development of the economy, funds must be effectively mobilised and allocated in the most effective and efficient manner. She also commented on the emerging role of the capital markets sector and the increasing importance for an effective capital markets regulator to understand the market comprehensively, identify trends in the markets, re-construct market movements and spot malpractices.

On this score she also referred to the Ponzi schemes involving ill-intent investors seeking fraudulent ways to benefit from the growth in financial services. Ms Ah-Hen pointed out that following the recent Ponzi cases in Mauritius, the regulatory authority needs to step up investment regulation and fraud detection measures.

A strong legal enforcement framework is necessary but not sufficient to ensure adequate handling of Ponzi schemes and protection of investors, she said. Regulators should keep the public informed about how to protect themselves and the actions that are being taken to prevent particular schemes, she added.

So far, the FSC has already embarked on a consumer protection and awareness campaign to keep the consumers informed of financial products and services available on the market. The FSC has also adopted a prevention model against Ponzi schemes and changes have also been brought to its Risk-Based Supervision framework to consolidate the anti-money laundering policies as well as instil a compliance culture amongst service providers.