FSC Mauritius: Revocation of the Management Licence held by Belvedere Fiduciary Ltd

The Enforcement Committee (the “EC”) of the Financial Services Commission (the “FSC”) has, on 21 December 2016, revoked the Management Licence held by Belvedere Fiduciary Ltd (“BFL”) pursuant to sections 7(1) (c) (vi) and 52(3) of the Financial Services Act 2007 (the “FSA”)

Public Notice

Offshore Pilot Quarterly (December 2016, Volume 19 Number 4)

Exceptional Behaviour

I read recently that politics in the United of America have become “infested with Latin-American-Style populists”. As readers of my Latin Letter column in the Offshore Investment magazine will know, I have made several observations, including in this month’s column, about the declining number of populist governments on the subcontinent whilst the opposite is true in other parts of the world. It is yet another example of the abnormal replacing the norm, as it has done in economies. (I detest “the new normal” phrase, having thought the obsequious “reach out” was bad enough.)

Imagine, if you will, what Donald Trump’s reaction in the US would have been if the presidential election result had mirrored Peru’s results in June, when Pedro Pablo Kuczynski defeated Keiko Fujimori by a win of 50.1 per cent? Would he have echoed Fujimori’s words: “In a democratic spirit, we accept these results”? In America a contingent lawsuit, subsequently rejected, was already in the pipeline if the results in Nevada (more about that state to come) had contributed to a possible Trump election defeat. Would pre-election claims of rigging have been replaced by riots and revolt? A few years ago, had the Peruvian result sparked chaos, one would have met it with a shrug of the shoulders and a resigned, facial expression, as if to say, “well, this is Latin America after all”. How things can change.

But today in the West we have entered the epoch of the estranged: those who are disaffected and distrustful of their governments. As European history tells us, it is a formula for the rise of populism with all its unknown consequences. We have also entered an age where governments wish to strip naked privacy; this, too, will have unintended consequences. The belief in the sanctity of one’s personal banking information has been disabused to the extent that bankers have become weapons of mass obstruction when attempting to open an account in an offshore jurisdiction. Not so in the country where, in 2013, Devin Nunes, as chairman of a Congressional working group on tax, urged reforms so that it could be turned into “the largest tax haven in US history”. That country is the US and my fellow speaker, Richard Hay, at September’s Oxford symposium, as he had in a Financial Times article, spoke of “another example of how the US has elevated exceptionalism to a constitutional principle” following the Tax Justice Network’s claim that the US is one of the world’s top three “secrecy jurisdictions” (the others being Switzerland and Hong Kong). And it doesn’t matter what efforts are made by the US president in Washington to weaken opacity because material changes require Congressional approval, frequently stymied by business lobbyists and various state representatives (remember that the incorporation of companies – the starting point for transparency – is a state matter and not a federal one). The workings of Congress were inspirational for Mark Twain: “Suppose you were an idiot, and suppose you were member of Congress, but I repeat myself”. 

In the late 1930s the US Treasury secretary, Henry Morgenthau, informed his president that some wealthy American tax evaders were, as he described it, setting up dummy corporations with dummy directors in British colonies and he said that “Legalised avoidance or evasion by the so-called leaders of the business community… throws an additional burden upon other members of the community…” So America has been very aware of the issue for well over 75 years. 

No Need to Try Harder in Nevada 

But a wink is as good as a nod to a blind man and so just last month I was sent an email attachment with a very picturesque scene of rural Nevada by a trust company operating there, inviting me to white-label some of my services, especially my trustee business, under the Nevada state flag. It amounts to concealment of the reality; because it is a case of the service which is produced in Panama being rebranded in Nevada. Suddenly the stain of the term “offshore” disappears at a wave of the white label wand. Now, of course, concealment can have legitimate or nefarious motives; as the International Consortium of Investigative Journalists has stressed, concerning the Panama Papers, persons who have engaged the Mossack Fonseca law firm for legitimate, legal uses are named and who have not, therefore, broken the law. In this time of transparency, “concealment” has become a very delicate word to use – whether it’s a whitewash versus white label situation. I have absolutely no doubt that both the offer made by my counterpart in Nevada and its motive, are genuine and above board. So why would this trust company in Nevada feel that a Panamanian trust company would want to operate behind this façade? A clue lies in the phrase “privacy environment” which was used in the promotion materials sent to me. 

“Privacy environment” is a softer term to use today; it certainly beats “concealment”, and in that context, let’s compare Panama to Nevada. In October the Panamanian government signed the Organisation for Economic Cooperation and Development’s Convention on Mutual Administrative Assistance in Tax Matters which establishes a legal framework for the implementation of financial transparency and international cooperation initiatives. The OECD considers Panama a big fish to catch in its net; in the local and regional press coverage of the event at that time (almost) outshone the Trump and Clinton election road show.

Angel Gurría, the OECD’s Secretary-General, was exuberant and declared that Panama had now moved much closer to meeting “the global tax transparency standards”. This is not the same, however, as Panama adopting a no-strings-attached policy of automatic exchange of nonresident financial account information with a person’s tax authorities. No. In Panama’s case, as in some others, it will enter into country-by-country (bilateral) agreements and Panama’s ambassador in France, who co-signed the Convention together with Mr. Gurría, observed that it allows for both assistance in some matters only, and flexibility in others, adding that this “will be determined by Panama”. One must accept, however, in all this that the OECD’s initiative goes some way towards appeasing the angst of those who feel marginalised by a society that is more unequal than ever; as John Kenneth Galbraith observed, “The salary of the chief executive of a large corporation is not a market award for achievement. It is frequently in the nature of a warm personal gesture by the individual to himself”.

The OECD Convention document signed by Panama is at the heart of the Common Reporting Standard, developed by the OECD. The standard, however, despite Mr. Gurría’s remark about global standards for tax transparency, is not global, simply because the US has declined to be committed to it. So no wonder trust companies in America see opportunities abroad, and which brings me back to Nevada. Neither trust companies nor corporate service providers anywhere in the US are as thoroughly regulated as they are offshore in responsible jurisdictions, and so a Nevada trust company naturally sees itself as very real competition, particularly for offshore centres either nestled in the Caribbean or operating in Panama that are really just not that far away. And, of course, the US is on the Financial Action Task Force’s white list; there’s the plus.

The Ignited States of America

The US presidential election showed us, at a basic level, just how information stored electronically can be compromised by following the Hillary Clinton email scandal which blew up in her face in October. Professor Jason Sharman at the Centre for Governance and Public Policy at Griffith University in Brisbane, Australia, could not be more passionate about tax transparency, but even he has his doubts, and I quote: “What right to financial privacy do citizens of democracies have? Should we protect citizens from undemocratic nations? What is legitimately private? For example, the state knows how much I earn, but strangers do not. Where you have states that are not bound by the rule of law, that are corrupt and commit human-rights abuses, do you want to help oppressive governments get more information about their own citizens in a way that might help those governments further oppress them? I’m not sure that’s really been thought through enough”. That understatement has few rivals in 2016 and is a rare example of he and I being in agreement over offshore matters.

No wonder Panama, as it has persistently done, told the OECD that it will not provide tax information to just any country that knocks on the door. There must first be an agreement in place with the enquiring country. Panama has joined more than a hundred other co-signatories to the OECD Convention and that will require an equal number of separate agreements because, like Professor Sharman, Panama knows that not all countries are democratic (even if they are, democracy is having a tough time in a few of them – democracy’s vanguard, to me, is now the Ignited States of America).

H. L. Mencken (1880-1956), an American commentator and journalist, was a grand exposer of trumpery (any similarity to living persons is purely coincidental – it has been in usage for centuries) in all its forms, insisting that Americans did not speak English, they spoke American. In 1919 he published “The American Language” which was a monumental study in the field of philology. How America distinguishes itself from the rest of the world – not just by language – raises Mr. Gurría’s comment about “global tax transparency standards”, with a nod to my colleague Richard Hay, because it is neither standard nor global if the West’s leading power is excluded. This is important to those in the West who live outside America’s orbit because, for better or for worse, still today, all roads, which once led to Rome, lead to Washington, whether or not the barbarians are gathering at its gates.

One commentator has described Donald Trump’s win as giving him a mandate to blow up Washington, especially with the Senate and Congress enjoying Republican majorities. This upheaval of the establishment is not dissimilar to the civil rights protests of the 1960s, echoed at the time by Bob Dylan’s protest songs. He has earned his Nobel prize and those particular words he wrote in 1964 surely have resonance again today: “There’s a battle outside ragin’/ It’ll soon shake your windows / And rattle your walls / For the times they are a –changin’. It was the time of the sceptic and the distressed, as it is today, and similar maladies haunt his melodies to those words.

Frankly, blowing up Washington (metaphorically speaking, before I’m placed on a terrorism list somewhere) doesn’t mean one jot to me. I’m not an American, and neither do I live there. What does, however, bother me are all those roads that lead to Washington, and the global reach of America’s influence; what is not needed is the blowing up of the world order – certainly not in the West – which would destabilise the existing fragile political and economic framework, despite its imperfections.

A Hard Rain’s A-Gonna Fall

Cicero said that if we do not learn from history we remain children. History, both modern and ancient, has taught us the importance of understanding the different cultures which make up mankind; but learning and applying are always, of course, very different things. Still, there is an obligation to fuse both together if you wish to be a country that boasts being the leader of the free world; I repeat: it’s not an opinion, its an obligation. One does not need to study anthropology in depth, but one should perhaps accept President (soon to be former) Obama’s viewpoint: “I believe in American exceptionalism. Just as I suspect that the Brits believe in British exceptionalism, and the Greeks believe in Greek exceptionalism”. I made this very point in the September Offshore Pilot Quarterly about the national pride which Latin Americans have. It is no coincidence that he is a US president who has experienced living in a foreign country.

I would suggest to every future US president – and particularly the members of the foreign policy team – that readings from the late American anthropologist, Ruth Benedict, should be mandatory (“Patterns of Culture” would be a good place to start). She had a profound influence on cultural anthropology, insisting that “The purpose of anthropology is to make the world safe for human differences”. T.E. Lawrence, last century’s Lawrence of Arabia, and who, incidentally, also appreciated (vital today) the different cultures in the Middle East, once said: “All men dream: but not equally. Those who dream by night in the dusty recesses of their minds, wake in the day to find that it was vanity: but the dreamers of the day are dangerous men, for they may act their dreams with open eyes, to make them possible.” So, yes, those dreaming of making America great again need to be sure not to repeat past mistakes and create international animosity that will make America only grate again.

When admiring scenic views of Nevada, one should consider carefully the comparative safety on offer from trust companies in a country with not just more guns, but lawsuits (even against an incoming president), for which trustees serve as magnets. When absorbing the arguments against international investments under the stewardship of offshore financial services centres versus the perceived safety onshore, the largest being the US – but Europe should not be left out - just reflect on what you see and (for those of my generation) also what you read in books and journals, to aid deep and measured analysis. The caretakers of assets in foreign parts, usually those labelled “offshore”, still today have the ability to offer preservation and protection in uncertain times.

A tune in 1967, inspired by Bob Dylan, includes the lines: “Starting from today I’m going to be a cynic / It’s not just a phase and it’s not just a gimic”. When I wrote it, I did not realise that I was displaying the first signs of becoming a curmudgeon, a person who is, as defined in the dictionary, someone who dislikes hypocrisy and pretence and has the temerity to say so, but in an engaging and humorous manner. The master was H. L. Mencken, and although I can’t even stand in his shadow, with Menckenian certainty I can declare, nearly 50 years later, that I remain a cynic; it wasn’t a phase then, in the turbulent 1960s, any more than it is today in the tumultuous 21st century. As Bob Dylan put it, I fear that “A Hard Rain’s A-Gonna Fall”.

Offshore Pilot Quarterly (independent writing for independent thinkers) has been published since 1997 by Trust Services, S. A. and is written by Derek Sambrook

Mauritius President: role of rural women is key in climate change-threatened island states

The President of Mauritius, Ameena Gurib-Fakim, today met FAO Director-General José Graziano da Silva in talks that focused on the crucial role played by rural women in Small Island Developing States (SIDS), which are particularly vulnerable to the impacts of climate change.

Citing her own country as an example, President Gurib-Fakim said climate change is increasingly putting food security and nutrition at risk and women represent the “key means to improve and secure livelihoods.”

The President met Graziano da Silva at the sidelines of a high-level event on rural women co-organized by FAO, the European Commission and the Slovak Presidency of the Council of the European Union in collaboration with the International Fund for Agricultural Development (IFAD), the World Food Programme (WFP) and UN Women.

At the event, Graziano da Silva noted that achieving gender equality and empowering women is not only the right thing to do but is a critical ingredient in the fight against extreme poverty, hunger and malnutrition.

Women, the backbone of work in agriculture

About 80 percent of the food consumed in developing countries comes from family farming, a crucial sector in which almost 45 percent of the labor force is formed by women. The figure rises to 60 percent in parts of Africa and Asia.

Noting how droughts, floods, and other extreme climate events related to El Niño and La Niña have particularly hit SIDS countries, President Gurib-Fakim said that the knowledge and experience gathered by FAO through the years is needed to assist  rural communities, especially women, to address the challenges.

FAO’s expertise in  water harvesting systems and technologies to improve seeds and farming systems, is particularly valuable she said. The President and FAO’s Director-General also discussed the importance of technologies to give women access to information through mobile phones.

Achieving resilient food systems

Graziano da Silva noted how FAO supports SIDS countries to achieve food systems that can cope with shocks and can adapt in the face of new and emerging challenges. This includes those related to nutrition security, social protection, sustainable natural resource management, disaster risk management, resilience, climate change and agricultural trade and investment.

With FAO’s support and following the SIDS Accelerated Modalities of Action Samoa Pathway - an action plan to address food and security challenges facing the SIDS- countries are developing a Global Action Plan for Food Security and Nutrition.  

In this context, Graziano da Silva praised President Gurib-Fakim’s efforts in championing research, science and innovation in Africa with a focus on women. 

Watch President Ameena Gurib-Fakim's remarks:

President speech on the occasion of the High-level Event “Step It Up Together with Rural Women to end Hunger and Poverty” organized by the Food and Agriculture Organization of the United Nations (FAO)

The Mauritius IFC: Driving Growth in Africa

As a jurisdiction of substance, the Mauritius International Financial Centre (Mauritius IFC) has been instrumental in driving quality investments in Africa, leading to sustained growth and prosperity across the continent.

It is therefore with deep regret that we take note of the misperceptions and misconceptions about the Mauritius IFC reported in the Oxfam policy paper on “Tax Battles” published on the 12th of December 2016.

It is unfounded to claim that Mauritius is a tax haven when the country has:

1. adopted all of the internationally acclaimed standards in tax matters;
2. enabled quality foreign investments in Africa leading to inclusive economic development;
3. always practiced a policy of transparency and exchange of information;
4. always prone a model for its jurisdiction based on substance;
5. adopted a friendly, homogenised and flat system of taxation; and
6. a real multi sectoral economic model.

Mauritius, as a fully collaborative and responsible international financial centre, has taken significant steps to adhere to international best practices as set by leading globally recognised institutions.

To enhance its transparency and collaboration framework, in June 2015, Mauritius signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, developed by the Organization for Economic Cooperation and Development (OECD). Mauritius is equally a member of the Early Adopters Group committed to the early implementation of the Common Reporting Standard (CRS) on the automatic exchange of financial account information, developed by the OECD.

Mauritius is also the first African country to have signed up to the Intergovernmental Agreement with the United States for the implementation of the Foreign Accounts Tax Compliance Act (FATCA).

Mauritius has actively participated in the Ad-Hoc Group set up by the OECD to work on the drafting of the Multilateral Instrument under Action 15 of the Base Erosion and Profit Shifting (BEPS). More recently, Mauritius has equally joined the Inclusive Framework to implement the BEPS Recommendations and the new initiative on exchange of Beneficial Ownership information. Mauritius is committed to implement minimum standards in the BEPS package, as well as, other BEPS recommendations.

Mauritius also remains an active member of the Eastern and Southern Africa Anti Money Laundering Group (ESAAMLG), the purpose of which is to combat money laundering in Eastern and Southern Africa by implementing the FATF recommendations. As such, Mauritius has always been at the forefront in the fight against international tax evasion and other malpractices.

The OECD Global Forum on Transparency and Exchange of Information for Tax Purposes has rated Mauritius as a “Largely Compliant” jurisdiction – a rating which equals that obtained by developed economies such as the USA, the UK and Germany. This bears testimony to the good standing of our jurisdiction in so far as transparency and exchange of information is concerned. The Mauritius IFC also has the required exchange of information mechanisms in place through its bilateral treaties and Tax Information and Exchange Agreements (TIEAs) that it has signed.

The fiscal regime of Mauritius is underpinned by a transparent system which provides for a level playing field and a competitive tax bracket for businesses and individuals at a single rate of 15%. This regime has successfully generated substantive economic activities across all sectors of the Mauritian economy.

Furthermore, the Mauritius IFC continues to address the growing needs of development of the African continent by significantly contributing to the increase in prosperity in Africa, along with job creation and poverty alleviation.

It is noteworthy that some of the most active social impact investors, investment funds as well as philanthropic foundations have chosen Mauritius as their financial centre as the country boasts a friendly and conducive environment to do business. Mauritius tops a number of rankings in Africa by international institutions including the African Index on Economic Transformation; the Mo Ibrahim Index of African Governance; the World Economic Forum Global Competitiveness Report and the Fraser Institute on Economic Freedom of the World Ranking, amongst others. Mauritius does not only enable impactful projects across the continent, but is equally a recipient of significant amount of these investments in its economic sectors.

Investors are equally attracted by the political and economic stability of the country, the risk mitigating avenues that it offers, its sound legal and regulatory framework, its pool of professionals as well as state-of-the-art infrastructure.

The Financial Services Commission (FSC), the integrated regulator for the Non-Bank Financial Services sector, and the Financial Services Promotion Agency (FSPA), the national agency responsible for developing and promoting Mauritius as an International Financial centre, therefore firmly maintain, in light of the above-mentioned facts, that Mauritius is not a tax haven.

As an African country, Mauritius has and continues to be a strategic development partner, in and for, the continent.

Ronny Lam: «The acquisition of IFS is a strong vote of confidence for the offshore sector»

Ronny Lam explains how the coming of SANNE within the local landscape should help raise the ante and encourage existing operators to get out of their comfort zone and innovate.

L'Express

World’s worst corporate tax havens exposed - Oxfam report reveals dangerous race to the bottom on corporate tax

Bermuda, the Netherlands, Ireland and Luxembourg are among the world’s 15 worst corporate tax havens, according to new Oxfam research published today. The report ‘Tax Battles,’ reveals how these tax havens are leading a global race to the bottom on corporate tax that is starving countries out of billions of dollars needed to tackle poverty and inequality.

The full list of the world’s worst tax havens, in order of significance are: (1) Bermuda (2) the Cayman Islands (3) the Netherlands (4) Switzerland (5) Singapore (6) Ireland (7) Luxembourg (8) Curaçao (9) Hong Kong (10) Cyprus (11) Bahamas (12) Jersey (13) Barbados, (14) Mauritius and (15) the British Virgin Islands.  The UK does not feature on the list, but four territories that the United Kingdom is ultimately responsible for do appear: the Cayman Islands, Jersey, Bermuda and the British Virgin Islands.

Oxfam researchers compiled the ‘world’s worst’ list by assessing the extent to which countries employ the most damaging tax policies, such as zero corporate tax rates, the provision of unfair and unproductive tax incentives, and a lack of cooperation with international processes against tax avoidance (including measures to increase financial transparency).

Many of the countries on the ‘world’s worst’ list have been implicated in tax scandals. For example Ireland hit the headlines over a tax deal with Apple that enabled the global tech giant to pay a 0.005 percent corporate tax rate in the country. And the British Virgin Islands is home to more than half of the 200,000 offshore companies set up by Mossack Fonseca - the law firm at the heart of the Panama Papers scandal.

Esme Berkhout, tax policy advisor for Oxfam said: “Corporate tax havens are helping big business cheat countries out of billions of dollars every year. They are propping up a dangerously unequal economic system that is leaving millions of people with few opportunities for a better life.”

Tax dodging by multinational corporations costs poor countries at least $100 billion every year. This is enough money to provide an education for the 124 million children who aren’t in school and fund healthcare interventions that could prevent the deaths of at least six million children every year.

Yet Oxfam’s report shows that tax havens are only part of the problem. Countries across the world are slashing corporate tax bills as they compete for investment.  The average corporate tax rate across G20 countries was 40 percent 25 years ago – today it is less than 30 percent. The use of unproductive and wasteful tax incentives is also ballooning – particularly in the developing world. For example, tax incentives cost Kenya $1.1 billion a year – almost double their entire national health budget. 

When corporate tax bills are cut, governments balance their books by reducing public spending or by raising taxes such as VAT, which fall disproportionately on poor people. For example, a 0.8 percent cut in corporate tax rates across OECD countries between 2007 and 2014 was partially offset by a 1.5 percent increase in the average standard VAT rate between 2008 and 2015. 

“There are no winners in the race to the bottom on corporate tax. Ordinary people – particularly the poorest – are paying the price for this reckless competition through increases in personal taxes and cuts to essential services, such as healthcare and education. Governments must work together to stop this crazy race to the bottom on corporate tax and ensure companies pay their fair share,” said Berkhout.

Oxfam is calling for all governments to work together to stop tax dodging and the race to the bottom on corporate tax:

• Stop unfair and unproductive tax incentives and work together to set corporate tax at a level that is fair, progressive and contributes to the collective good
• Ensure tax blacklists are based on objective, comprehensive criteria including whether or not a country offers zero rates of corporate tax; 
• Improve tax transparency by requiring all multinational companies to publish financial reports for every country in which they operate, so it is clear what taxes companies are paying and where.

‘Tax Battles: the dangerous race to the bottom on corporate tax.’

MCB is The Banker’s “2016 Bank of the Year for Mauritius”

MCB was awarded the 2016 Bank of the Year accolade for Mauritius by The Banker magazine, part of the Financial Times Group, at an awards ceremony held last night at The Hilton London Bankside. MCB has now won this trophy six times since 2008 and has retained its 2015 title. 

Luke McGreevy of The Banker, said: “The judging panel felt that MCB made the most progress over the 12 months; something which is not only in terms of the bank’s strong financials, but also in the wide range of initiatives which the bank undertook during this period. This award recognition, by the world’s longest running international banking title, is testament to the strong management, sound business model and strategy of MCB.” 

In its December 2016 edition, The Banker highlights the impressive financial results obtained by MCB in a highly sophisticated and competitive banking market. “For the second year in a row, Mauritius Commercial Bank (MCB), the country’s largest lender, has scooped the country award. This is no small feat in such a highly sophisticated and competitive banking market. But backed by impressive financial results, a sound growth strategy and a commitment to innovation, MCB emerged as a clear winner”. 

The Banker highlighted the fact that MCB has a leading position in the domestic market in terms of financing large corporates as well as small and medium-sized enterprises (SMEs). It also pointed out that MCB is “the only bank in Mauritius with a comprehensive mobile and online banking platform, known as Juice, and the only bank in Africa to offer standout mobile features including cardless ATM transactions”. 

Antony Withers, Chief Executive, MCB Limited, dedicates this award to customers and staff. “I would like to congratulate and thank our customers because they are our raison d’être and inspire us to keep moving boundaries in terms of service excellence. The award is also a true recognition of the dedication, team work and strong commitment of the staff to raising the level of service MCB provides to its customers”. 

In The Banker’s December 2016 edition, he stated that “alongside strengthening capabilities to be ready for the next growth cycle, MCB will pursue its strategic objectives across market segments. Locally, the bank will look to strengthen its relationships with its individual and non-individual customers, helped by the widening use of digital technology.”

Cassam Uteem: ‘Maurice souffre d’un manque de leadership chronique. Certains s’interrogent même s’il y aurait un pilote à bord!’

• ‘La colère gronde dans la rue. Mais quel visage de l’alternance les différentes composantes de l’Opposition parlementaire et extra-parlementaire nous présentent-elles?’
• ‘La proposition de la ‘Deuxième République’ était la recette toute indiquée pour une instabilité politique permanente’

Mauritius Times

Sanne: Proposed Acquisition of International Financial Services Limited and IFS Trustees

Sanne, the specialist provider of outsourced corporate, fund and private client administration, reporting and fiduciary services, is pleased to announce that it has entered into an agreement to acquire International Financial Services Limited and IFS Trustees (the "IFS Group") for a total consideration of approximately $127.3 million (£101.9 million).

The consideration for the Acquisition will be satisfied through a payment of approximately US$91.1 million (£72.9 million) in cash, which will be financed through the net proceeds of the Capital Raising, and the issue of approximately 5.8 million Consideration Shares, representing approximately 4.1 per cent. of the Company's Enlarged Share Capital following completion of the Capital Raising and Completion.

The Company proposes to use the net proceeds of the Capital Raising of £90.1 million to fund the cash consideration payable under the Acquisition Agreement and associated transaction fees, as well as to reduce the Group's net debt.

The Acquisition is of sufficient size relative to the Group to constitute a Class 1 transaction under the Listing Rules and is therefore conditional on, among other things, the approval of the Group's shareholders at a General Meeting to be held at 11.30 a.m. on 16 December 2016. 

Highlights

• The IFS Group is a highly profitable and cash generative business, reporting operating profit of USD18.4m in 2015 at an operating profit margin of c.65%, operating cash conversion of c.100%, and assets under administration in excess of $82 billion
• The IFS Group will form the core of a new standalone division operating as Sanne's new emerging markets-focused platform
• A visible capability in Mauritius, which is of scale, is important in allowing Sanne to take advantage of the significant growth opportunity in Asia and Africa
• The Acquisition consideration and associated transaction fees are to be funded through the net proceeds of the Capital Raising (c.£90.1 million) and the issue of c.5.8 million Consideration Shares to the Vendors
• The Acquisition is expected to be immediately earnings enhancing
• The Acquisition is conditional upon, among other things, Sanne shareholder approval, receipt of proceeds from the Capital Raising and regulatory clearance, and is expected to complete in Q1 2017
• The Board is very confident that results for the full 2016 financial year will be in line its expectations following continued strong performance in the second half

Dean Godwin, Chief Executive Officer of Sanne, commented:

"This acquisition enables Sanne to further realise its ambition of building a leading, global business. The IFS Group is highly profitable, with a service offering and client base extremely complementary to Sanne's. Mauritius is one of the leading international financial centres for foreign investment into Africa and India and this transaction provides us with a significant platform to both support clients in these attractive regions and grow our emerging markets presence. I am delighted to welcome the IFS Group team to the Group and we are excited about the opportunities to come."

Couldiplall Basanta Lala, a founding Director of the IFS Group, commented:

"We are extremely proud of the business that we have established over the past 20 years and, whilst Sanne is a large organisation with global reach, they share many similarities with our business, in particular the value they place on client service. We look forward to being an integral part of the next phase of growth."


Proposed Acquisition and Capital Raising - RNS - London Stock Exchange

Mauritius: Global Legal Advisory Service Licence – Are We Ready For It!

Following the announcement made in the Budget Speech 2016, the Finance (Miscellaneous Provisions) Act 2016 was enacted. This Act amends the Financial Services Act to empower the Financial Services Commission, Mauritius (the 'FSC') to grant licences in the field of Global Legal Advisory Services. The way the amendments in the Finance (Miscellaneous Provisions) Act 2016 have introduced the concept of 'Global Legal Advisory Services' is at best confusing and raises a number of challenging issues. It would appear that the FSC would not be issuing new regulations to regulate the Global Legal Advisory Services.

Global Legal Advisory Service Licence – Are We Ready For It!

Mauritius Has So Much More To Offer Than Just Treaty-Shopping

Sharona Rambocus spoke to MIFC Newsroom on how Mauritius IFC is the 'go-to country' to do business in Africa.

Mauritius Has So Much More To Offer Than Just Treaty-Shopping

DTAA: Mauritius being accorded 'Most Favoured Nation' status by India

Mauritius being accorded ‘Most Favoured Nation’ status under the Double Taxation Avoidance Agreement (DTAA) with India

Milan Meetarbhan: “Investors vote with their feet when governments act with total disregard for what is right and wrong”

* ‘A future government will need a lot of time to rebuild our institutions. But it will need to have the individuals in positions of leadership who have the competence, the commitment and the integrity to do so’

* Chagos: ‘A negotiated solution remains the preferred option’

Milan Meetarbhan, constitutional lawyer, who has had wide experience at the level of the Prime Minister’s Office, in the financial sector as head of the FSC and then as UN Ambassador for Mauritius, when he defended the Chagos dossier. In light of an apparent conflict of interest between the Executive and the President, he gives his views about the functions of the President according to our Constitution, arguing in favour of a needed constitutional reform that would take into consideration the changed circumstances in the polity. He also comments on the Chagos issue following the statement issued by the FCO.

Mauritius Times

Dawood A. Rawat - Global Memoirs: Bringing Out The Worst In People. Why? And How?

Why do political events bring out the worst in people? The polls everywhere where there are elections seem to get it wrong. Billions of dollars are spent every year on selling products and services which clearly indicate that people can be influenced when looking for goods and services. Why then does it not work when political events are scheduled? What is therefore the difference between on one hand the willingness to follow advertising guidance whereas the same does not work when choosing leaders of our destiny? The answer lies in the natural genes of animals and humans.

The Huffington Post

Mauritius: PMO Communiqué - Chagos Archipelago, 17 November 2016

The Government of Mauritius has taken note of the statement made to the UK Parliament on 16 November 2016 by the UK Government concerning decisions it has purportedly taken to the effect that:

(a) the Chagossian community will not be allowed to resettle in the Chagos Archipelago;

(b) a £40 million package will be funded over the next 10 years by the UK Government to support improvements to the livelihoods of the Chagossians; and

(c) the US presence in the Chagos Archipelago under current arrangements with the UK will continue until 2036.

The Government of Mauritius reaffirms that the Chagos Archipelago has always formed and continues to form an integral part of the territory of Mauritius and that it does not recognise the so-called “British Indian Ocean Territory”.

The Government of Mauritius wishes to reiterate that it does not also recognise the legality of the actions that the UK has purported, or is purporting, to take in respect of the Chagos Archipelago as they are in breach of international law. This includes, but is not limited to, the unilateral decisions purportedly taken by the UK Government with regard to resettlement in the Chagos Archipelago and the continuation of the UK-US agreement in respect of the Chagos Archipelago until 2036.

The Government of Mauritius considers that the UK has acted in blatant breach of the letter and spirit of the Award delivered on 18 March 2015 in the case brought by Mauritius against the UK under the UN Convention on the Law of the Sea, inasmuch as the UK has failed to fully involve Mauritius, as required by the Award, in the renewed use, until 2036, of the Chagos Archipelago for the purposes for which it is currently being used.

The Government of Mauritius notes with concern that the fact that the statement is completely silent both on the discussions that were intended to take place between Mauritius and the UK on the completion of the process of decolonisation and on sovereignty, as agreed in New York last September and the clear obligations of the UK under the UNCLOS Award is very revealing of the UK Government’s approach to the rights of Mauritius and the plight of Mauritians of Chagossian origin.

The Government of Mauritius protests strongly against the unilateral decision of the UK Government aimed at denying Mauritian citizens of Chagossian origin their legitimate right of return to the Chagos Archipelago.

The Government of Mauritius also reiterates that the denial of the right of Mauritians in general, and those of Chagossian origin in particular, to settle in the Chagos Archipelago is a manifest breach of international law and outrageously flouts their human rights.

While any financial assistance could provide some relief to Mauritians of Chagossian origin, no amount of money and no public apology by the UK Government can make lawful what is unlawful, or dilute the rights of Mauritius under international law and as reflected in the various resolutions of the United Nations. The Government of Mauritius remains fully sensitive to the plight of Mauritians of Chagossian origin and supports their relentless struggle to remove all obstacles to the full enjoyment of their human rights.

The Government of Mauritius will relentlessly pursue its initiatives in conformity with international law to complete the decolonisation of Mauritius, thereby enabling Mauritius to effectively exercise its sovereignty over the Chagos Archipelago.

In light of the above, and in view of the purported unilateral actions of the UK, Mauritius would be fully justified in taking forward the completion of the process of decolonisation, which is now on the agenda of the current session of the UN General Assembly, with a view to putting the matter before the International Court of Justice for an advisory opinion.

Prime Minister’s Office

17 November 2016

New World Wealth: Mauritius Investment Review

New World Wealth: Mauritius Investment Review

Frances McCaw: «If there is a lack of good corporate governance in a market, capital will leave that market…»

N’y a-t-il rien de troublant en matière de bonne gouvernance lorsque le Premier ministre, Sir Anerood Jugnauth, dit ne pas être au courant de ce qui se passe à Air Mauritius? Alors que la compagnie nationale d’aviation tombe sous la tutelle du bureau du Premier ministre? Frances McCaw, Fellow of the Institute of Chartered Secretaries and Administrators, a un avis intéressant sur la question. Elle l’a fait ressortir dans Business Magazine publié ce mercredi 9 novembre.

Pour Frances McCaw, il est «incompréhensible» que le PMO n’ait pas été mis au courant de la révocation du CEO Megh Pillay. «…so it has either failed to brief the Prime Minister or it didn’t understand the seriousness of the situation. Both are worrying symptoms», soutient-elle en élaborant, plus loin, sur l’importance de la bonne gouvernance au sommet d’un pays et l’impact dans le monde des affaires. «In this arena, good corporate governance practices matter. If there is a lack of good corporate governance in a market, capital will leave that market with the click of a mouse»

Lisez l’intégralité de son analyse:  Why good governance matters?

Mauritius Times: Are Our Cats Fat and Cozy?

When top-brass of the civil service bend over more than prudently to assuage short-term political demands and desires, while propping up their own career, lifestyle and juicy perks on a variety of public sector Boards, it is more than proper administration or even management that is at stake. It concerns the country's soul, its oxygen, its credibility and respectability in the eyes of international watchdogs, investment drivers and the population at large. Our fat cats cannot cozy up to the politics without due regard for the risks and dangers inherent in such abandon.

Mauritius Times

Mauritius Times: Sacking the CEO of MK - Perception of a Pathetic Saga

The Prime Minister whose office is responsible for determining the general policy of the national airline, to the extent that the enterprise is considered to be a strategic instrument in defining the geo-spatial positioning of the country, is specifically given a right of veto as regards the appointment of the Chief Executive Officer of the company. In a distinct Ponce Pilate style, he has washed his hands with respect to the events that have rocked the company since that fastidious board meeting and is now haranguing those who are responsible for the mess.

Mauritius Times

Mauritius Times: Mauritius deserves better

The latest in a series of replacements of the company’s CEOs will expose clearly the heavy price public companies are made to pay. It is not only a company like Air Mauritius which suffers when such overturning unexplained decisions, which sully the reputation of the company, are taken. It is the general image of the country which takes a beating. The time has come perhaps to concentrate on the actual job to be done to improve the working of several public sector enterprises.

Mauritius Times

Statement from the MIoD on the situation involving Air Mauritius

The Mauritius Institute of Directors (MIoD) has been set up by an act of Parliament and the first object of the MIoD according to the FRC Act, section 70, is to promote the highest standards of Corporate Governance and of business and ethical conduct of Directors serving on boards of companies and public interest entities.

Based on the information available in the press, the MIoD considers that in the case of Air Mauritius, there has been a serious departure from corporate governance best practice:

• The principles of good governance dictate that directors should receive adequate notice for a board meeting, unless there is an urgent matter. In the case of Air Mauritius, the board meeting was called at very short notice. The board of directors should be able to meet at very short notice only if there is an emergency that could have a serious impact on the company. However, there are no elements to show whether this was the case here.
• Good governance principles also require that arrangements are made to facilitate the participation of all directors to board meetings. This requirement is even more crucial when it comes to urgent matters as in such circumstances, it is recommended to have the participation of the maximum number of members. Were there any arrangements made for attendance through a teleconference or a videoconference? Did the secretary try to establish the most appropriate time for the meeting, which would have therefore enabled the participation of a maximum number of members?
• Furthermore, no agenda was circulated. Good governance principles require that an agenda be circulated to all board directors.

Dawood A. Rawat - Memoirs of A Global Life: Who Conquers, and Why?

Will the world change from the fundamentals of civilization as we have learned from history to something entirely different? History has shown how mankind behaved at different stages of human evolution, but is there a new danger that, through condemnable behavior, we are de-evolutionizing?

The Huffington Post

Reimagine Holiday Joy With The Festive Collection From Nespresso

As the year-end celebrations approach, Nespresso is inviting coffee aficionados to reimagine holiday joy this festive season. Nespresso is launching three Limited Edition OriginalLine Variations and three Limited Edition VertuoLine Variations, which are inspired by rich Viennese coffee houses and traditional American holiday desserts respectively. 

Every holiday season, Nespresso creates eagerly anticipated holiday-inspired Limited Edition coffees to continually surprise and delight as well as deliver new sensory pleasures to some of the world's most discerning coffee lovers. Only the top one to two percent of the world's coffee supply meets the rigorous quality standards to become Nespresso Grands Crus. All Nespresso Grands Crus feature silky and generous crema – the sign of world-class coffee and unprecedented quality.

FESTIVE ORIGINALLINE LIMITED EDITION VARIATIONS

Over the centuries, Vienna has established a coffeehouse tradition like no other city in the world. Its grand marble tables, iconic Thonet chairs and tradition of serving coffee on an elegant silver platter alongside a glass of water have served as inspiration for the Nespresso OriginalLine Variations. Nespresso coffee experts have combined the splendor of Vienna with the taste of some of its most famous pastries to create three delicious OriginalLine Grands Crus using the permanent Livanto Grand Cru, a well-balanced espresso with roasted caramelized notes, as the ideal base. All three OriginalLine Variations have an intensity level of six on Nespresso's intensity scale of one to twelve.

Variations Sachertorte

Inspired by the popular Austrian Sachertorte, a glazed chocolate cake with a thin layer of sweet apricot jam, and best enjoyed as an Espresso, Variations Sachertorte combines the balance and roundness of Livanto with soft chocolate and apricot notes.

Variations Apfelstrudel

Variations Apfelstrudel is inspired by the classic layered puff pastry dessert, which contains a sweet apple filling delicately spiced with cinnamon. In this tempting Espresso, Livanto's balance and roundness is complemented with the rich aromas of pastry, baked apples and a hint of cinnamon.

Variations Linzer Torte

With this Grand Cru, Nespresso pays homage to the popular Austrian Linzer Torte: a tasty red fruit tart topped with a recognizable lattice design. This Espresso is a delightful marriage of Livanto's balance and roundness with the taste of red fruits and spiced dough notes.

FESTIVE VERTUOLINE LIMITED EDITION VARIATIONS

Inspired by traditional American-style desserts and the roaming fireplaces, bright lights, and tempting smells of the holidays, Nespresso is introducing three Limited Edition VertuoLine Grands Crus which will transport the senses to the cozy and indulgent season. Each VertuoLine Variation is a smooth Arabica blend from Ethiopia, Central America, and South America and has an intensity level of five on Nespresso's intensity scale of one to twelve.

Variations Banana Bread

Delicate vanilla notes and sweet banana flavors unfold in this smooth blend for a delicacy inspired by banana bread. Adding milk to this large-cup coffee enhances the sweet banana notes and brings forward a caramel aroma.

Variations Pumpkin Spice Cake

A wide range of spice notes, including cloves, cinnamon, and cardamom combine with a sweet pumpkin flavor to create this Grand Cru inspired by pumpkin spice cake. With milk, the spice notes in this large-cup coffee soften for a sweeter, smoother coffee.

Variations Gingerbread

Spicy ginger notes are coupled with a cereal flavor for a gourmet blend inspired by gingerbread. With the addition of milk, the ginger flavors are even more magnified for a lovely large-cup coffee.