The Financial Services (Special Purpose Fund) Rules 2021 (referred hereinafter as the “Rules”) came into force on 6 March 2021. The Rules supersede the Financial Services (Special Purpose Fund) Rules 2013 and usher in a revamp of the existing framework for Special Purpose Funds (SPF), as it was announced in the 2019/2020 National Budget. The new SPF regime is a welcome move as it broadens Mauritius’ offering to international investors looking for an investment hub that adheres to best international practices and the highest levels of transparency. The general requirements for a SPF According to the Rules, a collective investment scheme and closed-end fund licensed by the FSC after the commencement of the Rules, is eligible to apply for an authorisation to operate as a SPF provided that: It offers its shares, solely by way of private placements, to investors having competency, significant experience and knowledge of fund investment; It has a maximum of 50 investors and a minimum subscription of USD 100,000 per investor; It is managed by a CIS manager and administered by a CIS administrator at all times
If such an authorisation is granted, the SPF will be subject to any conditions as may be imposed by the FSC. No clarity has been provided on the said conditions so far. The SPF, the CIS Manager and CIS administrator will have to carry out their Core Income Generating Activities in Mauritius by employing, directly or indirectly, an adequate number of suitably qualified persons and incurring a minimum expenditure proportionate to the level of such activities. While the SPF is exempted from preparing and filing unaudited quarterly financial statements, it is required to file its audited financial statements with the FSC within 6 months of its financial year-end. The SPF is exempt from income tax as provided under the Income Tax Act. All interest, rents, royalties, compensation, and other amounts paid by an SPF to a non-resident are considered as exempt income. ITL has a dedicated Fund Services team, which over the years has established a track record in the implementation and administration of fund structures. The Fund Services team possesses an intricate understanding of the regulations governing the funds marketplace and works closely alongside investment managers to ensure that solutions are devised and implemented according to their specific needs. For more information on the SPF or on the establishment of a fund structure in Mauritius, please get in touch with your usual contact person at ITL or write to us on info@intercontinentaltrust.com | ITL Data Protection compliance programme - Reminder As you are aware, we hold your contact details on our database and have been sending you regular newsletters and updates about the latest developments in the Mauritius financial landscape and other areas of interest. Following recent changes in the EU General Data Protection Regulation (GDPR) and the Mauritius Data Protection Act 2017, we now require your consent to hold your personal data. Please click here to confirm that you still want to hear from us and get the latest news about the Mauritius International Financial Centre. Should you wish to opt out of our future e-mail communications, please click here to stop receiving correspondence from ITL. Alternatively, you may use the unsubscribe button at the bottom of all our communications or send us an e-mail at unews@intercontinentaltrust.com Data security and protection is of prime importance to us and we invite you to read our privacy policy which provides information about how we manage and process your personal information. We are only a phone call or an e-mail away. If you have any comments, questions or concerns about any of the information in our policy, or any issues relating to the processing of personal data by ITL, please contact your regular contact person at ITL or write to us on dpo@intercontinentaltrust.com | | DISCLAIMER The information in this e-newsletter was prepared by Intercontinental Trust Limited to provide potential clients with a broad overview of the opportunities available in Mauritius. While all reasonable care has been taken in the preparation of this e-newsletter, Intercontinental Trust Limited accepts no responsibility for any errors it may contain, whether caused by negligence or otherwise, or for any loss, however caused, sustained by any person that relies on it. Readers are advised to consult with appropriate, qualified professional advisors before taking action. Intercontinental Trust Limited will be pleased to discuss any specific issues. |
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