18 June 2018

Mauritius: Reform of Financial Services Sector enunciated in Budget 2018-2019

In light of the ever-increasing challenges faced by the Global Business sector, Government is committed to give its full support to the sector whilst ensuring compliance with the best international norms and standards, underlined the Prime Minister, Minister of Finance and Economic Development, Mr Pravind Jugnauth, in the 2018-2019 Budget speech. 

To this end, a number of measures have been announced in Budget 2018-2019, namely: the introduction of a new harmonised fiscal regime for domestic and Global Business Companies and a specific fiscal regime for banks; the Financial Services Commission (FSC) will cease to issue Category 2 Global Business Companies licences as from January 2019, with a grandfathering provision for existing companies.

Moreover, Global Business Companies will be required to comply with enhanced substance conditions and a new framework to govern and improve the oversight of Management Companies will be established.

The Prime Minister also pointed out that in view of enhancing the country’s competitiveness as a financial centre, the FSC will further develop equivalence frameworks with other key jurisdictions.  It will host a Regional Centre for capacity building and best practices in our mutual combat against financial malpractices in collaboration with the Organisation of Economic Cooperation and Development.

He recalled that the Blueprint announced in the 2016-2017 Budget, aiming to take the financial centre to a new level of development, has now been completed with the support of international consultants. In this context, a Steering Committee will be set up to ensure the timely and effective implementation of the recommendations of the Blueprint.

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