FSC issues Consultative papers on Competency Standards for Securities and Capital Markets Intermediaries

In considering whether a person is fit and proper under section 20 of the Financial Services Act 2007, the Financial Services Commission (the “FSC Mauritius”) may inter alia, have regard to the following criteria:

• financial standing;
• relevant education, qualifications and experience;
• ability to perform the relevant functions properly, efficiently, honestly and fairly; and
• reputation, character, financial integrity and reliability.

Competence forms part of the fit and proper requirements and it is assessed with regard to the person’s education, qualifications together with relevant experience.

The FSC Mauritius is working on the development of competency standards to establish an adequate level of competency in the financial sector workforce. The competency standards will be developed for specific licensees dealing with consumers and investors, which involve the provision of advice and intermediaries services in connection with financial services.

This work has been initiated after taking into consideration the following issues:

• Complaints have been received from the general public on mis-selling of financial services.
• With the growing complexity of financial services, there is the need for the financial service workforce to be more competent.
• A competent financial sector workforce is also essential to position Mauritius as an international financial centre of good repute.

A competency standard is the minimum professional knowledge and skills which the licensee must meet in order to be licensed/authorised/approved/registered, and must continue to meet in order to maintain their licence/authorisation/approval/registration.

The objectives of the competency standards are:

• To ensure fair treatment of consumers of financial services;
• To ensure sound conduct of business in the financial services sector;
• To instill confidence in the financial services sector and encourage better consumer participation;
• To establish standards in order to preserve and maintain the good repute of Mauritius as an international financial centre.

The competency standards will apply to:

• a licensed person;
• in the case of licensed corporations, they may apply to authorised/ approved/ registered persons and/or the direct supervisors responsible for managing or overseeing the activities of authorised/ approved/ registered persons.

Covering Note
Consultative Paper - Investment Dealer
Consultative Paper - Investment Adviser
Consultative Paper - CIS Manager