On 20 December 2022, the FSC issued the Financial Services (Global Shared Services) Rules 2022 (the “Rules”), which came into operation on 3 January 2023.
Under these Rules, any entity whose main activity is to provide any 3 or more Global Shared Services (listed below) to a related entity providing financial services outside Mauritius, would be required to apply to the FSC for a Global Shared Services licence (the “Licence”):
- Records keeping
- Financial Statements preparation
- Invoicing and Payment of Bills
- Periodic regulatory filings
- Administration of Board proceedings
- Tax support services
- Debt collection
- Data capture and reporting
- Other services as may be approved by the FSC.
The Rules highlight that any such entity applying for a Global Shared Services licence shall:
- be incorporated in Mauritius;
- not hold any other licence, authorisation, registration or approval, as the case may be, under the relevant Acts except as approved by the FSC; and
- not be engaged in the provision of any services or activities other than those specified at items (1) to (9) above.
Section 5 of the Rules also provides for the substance requirements relating to the holders of the Licence, which include, amongst others, the following:
- The board of directors would be required to consist of at least 2 resident directors (one of whom would be an executive director and the other, a non-executive director);
- The Global Shared Services would be required to be carried out in Mauritius;
- An office as well as the relevant infrastructure is to be established in Mauritius for the provision of the Global Shared Services (including staff employment);
- The principal bank account is be opened in Mauritius; and
- Reasonable amount of expenditure is to be incurred in Mauritius proportional to its activity.
It is clear that these Rules will help regulated financial services companies and their related entities enhance their business operations and centralise their key functions, thereby unifying these functions across companies within the same group.
For further information, please contact:
Ashley Oogorah, Appleby