FSC Regulation – Can You Trust It With Your Funds?

FSC, also known as Financial Services Commission, is a regulatory body, which operates in Mauritius. As Forex trading in this African country becomes more and more popular, the number of brokers, regulated by the FSC Forex regulator, increases gradually. Usually, those brokers who want to provide Mauritian Forex traders with their services are obliged to be licensed by FSC.

The Financial Services Commission was established in 2001 and is headquartered in Ébène, Mauritius. It operates under the jurisdiction of the Government of Mauritius and the responsible minister for monitoring this organization is the Ministry of Finance and Economic Development (at the moment of writing this review Renganaden Padayachy).

The Financial Services Commission, Mauritius (the ‘FSC’) is the unified regulatory body for the quasi financial services sector and worldwide enterprise and businesses. The FSC is authorized underneath the Financial Services Act 2007. Also, it is permitted to operate and provide customers with the services through the Securities Act 2005, the Insurance Act 2005, and the Private Pension Schemes Act 2012. All of these Acts allow FSC Mauritius to implement its purposes and responsibilities – to register, monitor, manage, and oversee the execution of commercial operations in financial fields.

The FSC objective is to be a globally known Financial Supervisor devoted to Mauritius’ long-term growth as a highly competitive Financial Services Centre.

To get the license from FSC brokers are required to take several steps and be involved in several processes. Those processes are also known as the examination process.

The main goals of the regulator are to foster the growth, justice, effectiveness, and clarity of Mauritius’ banking institutions and financial industry, repress criminal act and malfeasance in terms of protecting members of the general public investor in quasi banking assets, and guarantee the truthfulness and reliability of Mauritius’ monetary system.

How Does FSC Operate?

FSC meaning, as it’s implied through the acronym, is the Financial Services Commission. It is a self-regulatory body, which operates in Mauritius. Mauritius is located in the Indian Ocean near the east coast of Madagascar.

The body’s principal goal is to create a secure environment for consumers and investors to secure their assets. FSC’s measures continue to draw potential investors to the nation.

Moreover, this regulator has adopted an Anti-Corruption Policy, which aims to make the financial and economic environment more trustworthy and reliable for investors and potential traders. In addition to that, the organization’s main aim and value are to protect its customers from malpractice, which isn’t quite rare in Forex trading.

The FSC Mauritius’ major stakeholders include financial service users, licenses, and the Ministry of Financial Services. The FSC Mauritius has daily interactions and exchanges with numerous licensing organizations and the Ministry of Financial Services to discuss the execution of its tasks and the attainment of its legislative purposes, as well as to guarantee that state policy is followed. In particular, there is a written complaint system in place for financial services clients.

Mauritius is well-known among developers and fund managers as a fund-structuring jurisdiction. This is mostly owing to the nation’s research standards of supervision and operation, which have resulted in one of the region’s best financial services industries.

Mauritius, through the help of FSC-regulated Forex brokers, as well, has indeed been attempting to build itself as the world’s economic hub in order to serve as a gateway for cross-border investments and commerce between Africa and the rest of the globe. The Financial Services Commission (FSC) has established new requirements for its Special Purpose Fund (SPF) regime in order to achieve this goal and widen its service and product offering.

The Special Purpose Fund (SPF) was initially implemented in 2013 as part of the Financial Services (Special Purpose Fund) Rules 2013. (2013 Rules). It was created to raise funds:

• that operate only in states which don’t have taxation agreements with Mauritius;
• or whose goal is to invest primarily in assets whose gains are tax excluded;
• or whose shareholders are savings accounts or other people eligible for tax-free status.

Even though the SPF, according to the FSC website, has not gained popularity in the popular fund industry, owing to its restricted application. The 2013 Rules have since been abolished, and the Financial Services (Special Purpose Fund) Rules 2021 have taken their place (2021 Rules), which came into force in 2021, March 6.

Unlike the 2013 Rules, the 2021 Rules do not provide explicit requirements for a plan to be classified as an SPF. Instead, they provide the FSC the authority to issue such authorization at its jurisdiction and to set limitations on an approved SPF as it sees suitable.

Apart from that, according to the new rules the obligations of SPF changed and became more sophisticated and eloquent. Through the new rules, the FSC funds investors solely in those circumstances, when the investor or private placements have significant experience in the financial fields and have a big capital (minimum of 100 000 USD per investor). So, FSC Brokerage companies can be more reliable, as licensing the brokerages became more strict.

FSC Mauritius – Can You Trust Them?

FSC Mauritius, like many other overseas regulatory authorities, is appealing to numerous FX brokerages since the licensing is far less expensive than other European forex licenses. The taxation is merely 3%, and the major need to be regulated by this organization is to have an offline representation in Mauritius, which is really extremely advantageous to certain brokerages due to the state’s proximity to Europe. FSC Mauritius further provides for the provision of increased leverage, which favors customers with smaller capital.

It is crucial to remember, though, that an FSC license does not provide a dedicated account, however, the protection of the customers’ cash is ensured through the Anti-CorruptionPolicy and the rules set were set in 2021 and makes regulated Forex brokers in Mauritius even more reliable and trustworthy.