Establishing an Investment Fund in Mauritius in 2024

1. Why are Investment Funds established in Mauritius

Mauritius offers a unique mix of political stability, economic resilience, and financial accessibility, which makes it a strategic location for investment funds. As a member of key international organizations, such as the African Union, the World Trade Organization, and the Commonwealth, Mauritius has cultivated solid relationships with nations across all continents. Its expansive network of over 43 double taxation treaties and 28 investment protection agreements enhances this appeal, particularly with African and European countries.

Mauritius also offers a prime geographic location and convenient time zone that align with business hours across Africa, Asia, Europe, and the Americas. With a well-educated, bilingual workforce proficient in English and French and a hybrid legal system influenced by both English and French law, Mauritius presents an appealing environment for financial operations. The local banking sector is sophisticated, well-capitalized, and equipped to handle the global transactions typical of investment funds. Together, these factors establish Mauritius as a supportive jurisdiction for setting up investment funds.

2. Regulatory Framework for Investment Funds 

Mauritius’ regulatory framework for investment funds, managed by the FSC, ensures funds are structured and operated according to strict standards. This framework is built primarily around the Securities Act of 2005, supplemented by the following key regulations:

• Securities Act 2005 – Provides the regulatory framework for the regulation, licensing and oversight of securities markets and other licenses in Mauritius, and further ensuring investor protection and market integrity.
• Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008 – Governs Collective Investment Schemes (CIS) and Closed-end funds, addressing compliance, reporting and operational standards.
• Variable Capital Company (VCC) Act of 2021 – Provides the regulatory framework for VCC funds, detailing the structure, operation and management of variable capital companies.
• Financial Intelligence and Anti-Money Laundering Act (FIAMLA) of 2002 – Covers AML/CFT obligations for all financial entities, including investment funds.

Mauritius is an appealing jurisdiction for setting up an investment fund, offering unique advantages for fund managers and investors alike; Reach out to the SALVUS Investment Funds Licensing team through info@salvusfunds.com to discuss your objectives and how we can support you in establishing your investment fund in Mauritius.

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3. Types of Investment Funds

Mauritius offers a range of fund structures to accommodate various investment strategies and investor needs. Each fund type has sub-categories to provide additional flexibility:

• Collective Investment Schemes (CIS): These funds pool investor capital to invest collectively in diversified assets and are managed by a CIS Manager, who oversees the fund’s operations and ensures compliance with regulatory and investment guidelines.
  • CIS (Single Fund): A standalone fund structure investing in a defined asset pool.
  • CIS (Multiple Funds): Allows the establishment of multiple funds under one CIS structure, each with distinct investment portfolios.
  • CIS (Protected Cell Company): Provides asset segregation for each cell*, protecting individual investor assets within each cell from liabilities of other cells.
• Closed-end Funds: These funds typically have a fixed investment term and capital structure, making them suitable for long-term investments in areas like private equity or real estate.
  • Closed-end Fund (Single Fund): A standalone fund with a fixed capital and investment horizon.
  • Closed-end Fund (Multiple Funds): Allows for multiple closed-end funds under a single structure, each with separate investment objectives.
  • Closed-end Fund (Protected Cell Company): Similar to the CIS PCC structure, offering asset protection between cells, beneficial for funds with varied investment strategies.
• Variable Capital Company (VCC): A flexible structure under the VCC Act that can issue multiple classes of shares with separate asset and liability pools.
• Foreign Schemes: Funds incorporated in other jurisdictions that meet Mauritius’ regulatory standards can operate as Foreign Schemes under FSC oversight as long as it meets certain conditions.

* sub-division within a PCC, where each cell operates as a separate entity with segregated assets and liabilities.

4. License Categories & Investment Activities 

*MUR: Mauritan rupee

5. How can SALVUS support your application

The SALVUS Investment Funds Licensing team brings extensive experience and insight into the FSC’s regulatory process. We guide clients from the initial planning stage through post-licensing support, providing:

• Needs Assessment and Fund Structure Advice: Based on your objectives, we help determine the most suitable fund type, whether CIS, Closed-end Fund, VCC, or Foreign Scheme.
• Documentation Preparation and Review: Our team ensures that all necessary documentation meets FSC standards, including business plans, governance profiles, and compliance policies.
• Application Management: We oversee the application’s progress, keeping communication clear and compliant with FSC guidelines.

Mauritius is an appealing jurisdiction for setting up an investment fund, offering unique advantages for fund managers and investors alike; Reach out to the SALVUS Investment Funds Licensing team through info@salvusfunds.com to discuss your objectives and how we can support you in establishing your investment fund in Mauritius.

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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.