What is a Fund?
Funds registered with the Financial Services Commission in Mauritius are incorporated under the Companies Act 2001 and are licensed by the Financial Services Commission as holding:
- A Category 1 Global Business Licence (‘GBC1’)
- A Fund licence under the Financial Services Act 2007 and the Securities Act 2005 (as amended) (‘Securities Act’).
What are the types of funds available in Mauritius?
Under the Securities Act there are two main types of funds that can be formed:
- A Collective Investment Scheme;
- A Closed-Ended Fund.
What is A Collective Investment Scheme (‘CIS’)?
A CIS is defined as one:
- Whose sole purpose is the collective investment of funds in a portfolio of securities, or other financial assets, real property or non-financial assets as may be approved;
- whose operation is based on the principle of diversification of risk;
- That has the obligation, on request of the holder of the securities, to redeem them at their net assets value, less commission or fees; and
- Where the participants do not have day to day control over the management of the property, whether or not they have the right to be consulted or to give directions in respect of such management; and
- Includes closed-end funds whose shares or units are listed on a securities exchange.
What is A Closed Ended Fund?
A Closed Ended Fund is defined as: an arrangement or a scheme, other than a collective investment scheme (defined above), whose object is to invest funds, collected from subscribers during an offering made or from sophisticated investors, in a portfolio of securities, or in other financial or non-financial assets, or real property, as may be approved.
What are the principal functionaries of a fund?
- Fund Administrator
- Fund Manager
Is there a need to have the financial statements of a Fund to be audited?
Yes, as the Fund also holds a GBL1, the financial statements would have to be audited and filed with the Authorities.