Mauritius is home to some of the most impactful and leading funds from around the world

Boasting over a thousand funds, a collective AUM in excess of USD 80 billion, and a sizeable number of them from development finance institutions and sovereign wealth funds, Mauritius is noted as the gold standard for fund management and administration.
 

The Asset & Fund Managers Scheme

The Asset & Fund Managers scheme aims at incentivising mid to big size fund and asset managers to establish their management offices in Mauritius, as well as creating opportunities for regional portfolios to be managed from the Mauritius IFC.

The activities of the managers comprise investment advisory, investment management and asset management services. The incentive will be available to holders of:

  1. CIS (Collective Investment Scheme) Manager Licence
  2. Assets Management Licence
 
LICENSING CRITERIA
  1. CIS Manager Licence - Governed by Section 98 of the Securities Act 2005 and the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008
  • Maintain, at all times, a minimum unimpaired stated capital of MUR 1 million or its equivalent in any major currency;
  • Have a Professional Indemnity cover;
  • Provide an undertaking if it is proposing to invest in India; and
  • Evidence the source of Capital/Fund to be contributed to the company.
  1. Assets Management Licence - Governed by Section 14 of the Financial Services Act 2007
  • Stated capital requirements at the discretion of the FSC;
  • Have a Professional Indemnity cover;
  • Provide an undertaking if it is proposing to invest in India.


INCENTIVE

  • Tax holidays for 10 years (according to the Second Schedule of the Income Tax Act 1995)
     

ELIGIBILITY CRITERIA

According to Part II Sub-Part A of the Income Tax Act 1995, the Fund & Asset manager is issued with one of the following certificates by the FSC:

  • Asset Manager Certificate
  • Fund Manager Certificate
  • Asset and Fund Manager Certificate

Professionals would have to manage assets worth more than USD 50 million

Funds set up in Mauritius enjoy a low tax regime and have access to an extensive network of tax treaties. There is no capital gains tax in Mauritius and no withholding tax on dividends and interest. As a result, 80% of the foreign-source income derived by a Collective Investment Scheme (CIS), Closed-End Fund (CEF), CIS manager or CIS administrator are exempted from income tax. Furthermore, there are also no exchange controls in force and funds can be repatriated freely.

Investment Funds in Mauritius can either be structured as open-ended under the Collective Investment Schemes category, or closed-ended commonly referred to as private equity funds.

Investment Funds domiciled in the Mauritius International Financial Centre are eligible to all the benefits which accrue to Global Business Companies and can also be set up as Trusts or Limited Partnerships, amongst others.

Global Funds domiciled in Mauritius may also take advantage of the flexible listing rules of the Stock Exchange of Mauritius to be listed on one of the leading platforms in Africa which is also a member of a number of international bodies including the World Federation of Exchanges, the South Asian Federation of Exchanges, the African Securities Exchanges Association and the Committee of SADC Stock Exchanges.

Such listings are attractive to investors and demonstrate substance, notably to institutional investors and development finance institutions.
 

Collective Investment Schemes & Closed-End Funds

Collective Investment Schemes (CIS) and Closed-End Funds (CEF) are regulated by the Financial Services Commission (FSC) under the Securities Act 2005. All CIS and CEF authorised by the FSC must entrust custody of their assets to an approved custodian, generally a banking institution.

There are also number of international banks in Mauritius which provide such services.

If the majority of the voting shares or voting rights or beneficial interest is held by non-citizen of Mauritius and the activities of a CIS or CEF are carried out outside of Mauritius, the CIS or CEF must be licensed as a Global Business Company under the Financial Services Act 2007.

Investment Funds can be categorised as follows:
 

Global Scheme

The Global Scheme are investment funds which are essentially accessible to the public.

The Global Scheme is a fully-regulated fund and is subject to investment restrictions and investment practices as laid down in the Securities (Collective Investment Schemes and Closed-end Funds) Regulation 2008 ( the CIS Regulations’), unless the FSC decides otherwise.

Such scheme is also subject to frequent reporting obligations.

Professional CIS

Professional CIS is a type of Investment Fund that meets one of the following criteria:

  1. A CIS which offers its shares solely to sophisticated investors or as private placements. Sophisticated investors include governments or public bodies, and banks, amongst others.
  2. A CEF which is not a reporting issuer (i.e. not listed on a securities exchange in Mauritius, has less than 100 participants nor offer is made by way of prospectus to the public).

Professional CIS is exempted from most obligations and regulations as long as the interests of the Professional CIS are not resold to the public and they are not listed on a securities exchange, whether in Mauritius or elsewhere. 

Specialised CIS

A Specialised CIS is a type of Investment Fund which invests in real estate activities or in derivatives or commodities, as well as, other products which may be approved by the FSC.

Expert Fund

An Expert Fund is targeted to Expert Investors who can make an initial investment for his own account of not less then USD 100,000 or a sophisticated investor (including governmental bodies and banks, amongst others).

Most of the obligations and restrictions governing Global Schemes do not apply to Expert Fund.

View application fees for Collective Investment Schemes and Closed-end Funds

 

Special Purpose Fund

The Financial Services (Special Purpose Fund) Rules 2021 was issued by the Financial Services Commission to govern Special Purpose Funds.

The new Rules came into force on 6 March 2021 and replaced the Financial Services (Special Purpose Fund) Rules 2013.

The mentioned Rules sets out new criteria for a Collective Investment Schemes (‘CIS’) or a Closed-ended Fund (‘CEF’) to qualify as a Special Purpose Fund.

The new criteria will make the Special Purpose Fund more attractive for promoters, who are targeting professional investors by way of private placement.

The Special Purpose Fund will continue to benefit from an advantageous tax regime subject to the substance requirements.

The FSC may authorise a CIS or a CEF as a SPF if the fund will:

  1. offer its shares, solely by way of private placements, to investors having competency, significant experience and knowledge of fund investment;
  2. have a maximum of 50 investors and a minimum subscription of USD 100,000 per investor;
  3. at all times, firstly be managed by a CIS manager; and secondly be administered by a CIS administrator;
  4. comply with any such other conditions as may be imposed by the FSC.
     

 

Key Facts

  • The management and administration of a CIS is performed by a CIS Manager which is licensed by the FSC.
  • Within 90 days of its balance sheet date, every CIS has an obligation to file an annual report with the FSC.
  • The investors do not participate in the day-to-day management of the scheme.
  • Some of the activities of the CIS Manager, as specified in the Securities Act 2005, can be delegated to a CIS Administrator which is approved by the FSC.

Regulatory Framework
  • The Financial Services Act 2007
  • The Income Tax Act 1995    
  • The Securities Act 2005
  • The Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008

Useful Links

Visit Financial Services Commission website

View List Management Companies in Mauritius (Licensees)