MAFH Insights on Regulations I April 2021

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New regulations promulgated by the Bank of Mauritius
 
On 7 May 2021, the Cabinet has taken note that the Bank of Mauritius would promulgate with the approval of the Minister of Finance, Economic Planning and Development, the Banking (Processing and Licence Fees) (Amendment) Regulations 2021 which would allow the Bank of Mauritius to consider the possibility of waiving the payment by financial institutions of licence fees, or their refund where –
 
(a) the Central Bank has, on account of an exceptional event, authorised a temporary cessation of the operations of the financial institution or the closure of one or more of its branches for a period of more than three months; or
(b) the financial institution is able to demonstrate to the Central Bank that it has experienced a period of reduced business activities for more than three months due to an exceptional event.
 
 
Money lenders are now under the purview of the Financial Services Commission
 
The Banking Act was amended through the Finance (Miscellaneous Provisions) Act 2020 to remove the licensing and supervision of money lenders from the purview of the Bank of Mauritius and transfer this responsibility to the Financial Services Commission. Provision is being made in the Banking (Processing and Licence Fees) (Amendment) Regulations 2021 to also revoke Regulations 9 and Part VIII of the Schedule to the Banking (Processing and Licence Fees) Regulations 2015, which relates to the moneylender licence.
 
The Banking (Processing and Licence Fees) (Amendment) Regulations 2021 would be deemed to have come into operation on 01 July 2020
 
 
Upcoming amendments to the Securities Act
 
On 16 April 2021, the Cabinet has agreed to the Ministry of Financial Services and Good Governance conveying drafting instructions to the Attorney General’s Office for the preparation of the Securities (Amendment) Bill. The proposed amendments to be brought to the Securities Act aim at –
 
(a) bringing in the concept of “retail investor” compared to “sophisticated investor” in the legislation;
(b) enabling the licensing of other exchanges and depository institutions over and above the Stock Exchange of Mauritius and the Central Depository and Settlement Ltd;
(c) recognizing foreign funds whose securities are marketed to retail investors in or from Mauritius; and
(d) waiving the requirement for foreign reporting issuers to be registered with the Financial Services Commission