The Financial Services Commission (FSC) of Mauritius issued the Financial Services (Robotic and Artificial Intelligence Enabled Advisory Services) Rules 2021 to provide a regulated framework aimed at promoting the adoption of new and emerging technologies by licensed service providers in Mauritius.
Under the Rules, the holder of a Robotic & Artificial Intelligence Enabled Advisory Services Licence will be entitled to provide advisory services through expert systems and/or computer programmes using artificial intelligence enabled algorithms, with limited human intervention. As such, providers of innovative technology-driven solutions developed to comply with regulatory requirements – commonly known as RegTech or InsurTech –fall under the scope of this licence.
The Rules further clarify that advisory services include discretionary and non-discretionary investment and portfolio management services. A licensee is required to comply with the minimum competency standard and fitness requirements for its promoters, shareholders, directors, beneficial owners and key staff members.
An applicant is required to maintain a minimum unimpaired stated capital of MUR600,000 (approx. USD14,000) and subscribe to a professional indemnity insurance policy worth at least MUR2 million (approx. USD46,000).
The Rules require licensees to assure the soundness of the advisory services. They are required to implement adequate policies, processes and controls to ensure that algorithms continue to perform as intended and maintain a robust framework for the design, monitoring and testing of the algorithms through periodic and random reviews
It is important to note that, as a licensee of the FSC, the holder of this licence is considered to be a financial institution for the purposes of the Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA) and the Financial Intelligence and Anti-Money Laundering Regulations 2018 (FIAML Regulations 2018). It therefore has an obligation to comply with all applicable laws, regulations and codes relating to Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) in Mauritius, including those issued by the FSC.
Other key requirements:
The FSC’s licensing criteria for a Robotic and Artificial Intelligence Enabled Advisory Services Licence require an applicant, among other things, to:
In addition, where the applicant proposes to collect information due to the services it provides, it is required to satisfy certain conditions set out by the FSC in respect of the automation of its processes, control mechanisms and the quality of its advisory services.
How Sovereign can assist
In Mauritius, Sovereign Trust (Mauritius) Ltd (‘Sovereign’) is duly licenced as a Management Company by the FSC to provide a wide range of services, which include customized incorporation of companies involved in global businesses. It provides related services such as nominee directors / shareholders, bank accounts, tax residency certificate, back office facilities, remailing, fax, telephone and office facilities, accounts and audit.
As such, Sovereign offers the necessary expertise and experience in assisting with special licence applications. We will provide full support during the application process to ensure that your business is properly set up and licenced in Mauritius.
Beyond the application phase we will provide a full suite of services to provide ongoing support to your business, including assistance with opening a corporate bank account, accounting and payroll services, office spaces and compliance and specialist insurance services.
Sovereign further provides ongoing licence administration and management to ensure that holders remain in full compliance with all corporate and licensing requirements and to ensure that their affairs are properly managed and controlled from their place of incorporation.
Mauritius offers a wide selection of licence types to specialist financial services providers that are looking to set up and do business in and from Mauritius. Sovereign is ready to assist with any enquiry.