Following reports in the media regarding the refusal of a banking licence by the Bank of Mauritius (Bank) to an entity related to Mr Alvaro Sobrinho, the public is hereby informed that no such entity ever made any application for a banking licence. Accordingly, the issue of refusal of an application by the Bank for a banking licence to that entity does not arise.
As regards media reports on the issue of Investment Banking licence, the Bank wishes to apprise the public that the Ministry of Financial Services, Good Governance and Institutional Reforms made a proposal to introduce a new category of licence, namely Investment Adviser – Corporate Finance under Section 30 of the Securities Act. As the list of activities of an Investment Adviser – Corporate Finance and those of an Investment Bank would overlap and could lead to regulatory arbitrage, the Bank agreed that Investment Banking Licensing be transferred to the Financial Services Commission, provided that such activity does not entail deposit taking.
It is to be further noted that Rule 6(2) of the Financial Services (Investment Banking) Rules 2016, specifically provides that, ‘No person holding an Investment Banking Licence shall conduct Banking Business as defined in the Banking Act unless that person holds a banking licence issued by the Bank of Mauritius under the Banking Act’.