Mauritius has taken a significant step toward regulatory modernisation with the Financial Services Commission (FSC) of Mauritius issuing on the 8th of December 2023, a draft of the Commodities Bill (the “Bill”) for public consultation.

The Bill aims to foster a more transparent and accountable commodities market, ensuring fair practices and safeguarding the interests of all stakeholders. Among the notable provisions is the establishment of a comprehensive regulatory framework that covers various aspects of the commodities market, including trading, pricing mechanisms, and dispute resolution.

Licensing provisions outlined in the Bill signify a strategic approach to ensuring that entities involved in various aspects of commodity trading adhere to rigorous standards. Clearing houses, which play a crucial role in risk management, will be subject to licensing criteria that prioritise stability and financial soundness. Similarly, the licensing of commodity exchanges and their associated dealers emphasises the need for a transparent and efficient marketplace, promoting fair practices and protecting the interests of investors. The inclusion of licensing requirements for commodity exchange trading advisers highlights the recognition of the integral role played by advisory services in guiding market participants toward informed and responsible decision-making.

The Bill marks a crucial milestone in Mauritius’ ongoing efforts to strengthen its regulatory framework and position itself as a responsible player in the global commodities market.

Industry stakeholders and the public are invited to send their comments, feedback, and suggestions concerning the Bill no later than 31 January 2024.

Contact us at info@salvusfunds.com should you have any questions about how this change impacts your business operations under the FSC in Mauritius. We are here to help you navigate and adhere to the regulatory requirements effectively and be of value.

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