FSC Mauritius: Launching of the Guidelines for Advertising and Marketing of Financial Products & Competency Framework

In line with its statutory functions and powers to take measures for better protection of consumers of financial services, the Financial Services Commission ("FSC") will be launching the Guidelines for the Advertising and Marketing of Financial Products on 27 October 2014. The Guidelines fundamentally set the recommended standards for licensed entities, in terms of advertising functions, and promotional roles and responsibilities vis-à-vis consumers of financial services.

As part of the "Fair Market Conduct Programme" the Guidelines shall complement the existing legal provisions at the point of sale of financial products. The Guidelines will also serve as a valuable tool for supervision for the FSC, mainly off-site, to ensure that promoters of financial products in Mauritius do not engage in any wrongful and misleading conduct of business, which are ultimately detrimental and costly to financial services consumers or investors.

The aim of the Guidelines is to promote responsible, ethical and professional conduct among persons who are involved in the chain of advertising and marketing of financial products that are directed at consumers of financial services in Mauritius. The Guidelines further ensures that promoters of advertising and marketing campaigns will give clear, accurate and balanced information. The Guidelines finally makes adequate provision for addressing the riskiness, and duties and roles of promoters when engaged in "cold call" practices, amongst other advertising practices.

Overall, the implementation of the Guidelines shall have a positive impact on the organisational processes of the licensed entities of the FSC in terms of their advertising and marketing outcomes and allow the FSC to monitor effectively the disclosure and release of promotional materials, both in printed formats and electronically.

Competency Standards

The FSC will also be launching the Competency Standards for the financial services sector on 27 October 2014 which establishes the minimum competence for specific licensees dealing with consumers and investors. This will help in ensuring that consumers and investors can expect professional conduct from the intermediaries that they deal with.

The Competency Standards set the level of professionalism that the licensee must meet and maintain in order to qualify and remain qualified for the license. It provides the minimum level of professional knowledge, understanding and skills required for a professional to be able to practise safely and effectively.