MAURITIUS Law and Practice Contributed by: Bhavna Ramsurun, Pinki Mahata, Lorna Senivassen and Shreya Mungur, BLC Robert & Associates
grounds that they are only offered to sophisti - cated, institutional or high net worth investors. “Expert funds” can only be offered to expert investors (ie, an investor that makes an initial investment for its own account and of no less than USD100,000) or sophisticated investors, as defined in the Securities Act 2005 (or any inves - tor similarly defined in the securities legislation of another country). Under the Securities Act 2005, sophisticated investors include the following: • the government of Mauritius; • a statutory authority or an agency established by an enactment for a public purpose; • a company whose shares are wholly owned by the government of Mauritius, by a statu - tory authority or by an agency established by an enactment for a public purpose; • the government of a foreign country (or an agency of that government); • a bank (licensed by the Bank of Mauritius); • a CIS; • a fund manager (licensed by the FSC); • a pension fund or its management company; • a CEF; • an insurer (licensed by the FSC); • an investment adviser (licensed by the FSC); • an investment dealer (licensed by the FSC); • an investor that guarantees, at the time of entering into a securities transaction, that: (a) its ordinary business or professional activity includes entering into securi - ties transactions, whether as principal or agent; (b) for a natural person, the individual net worth or joint net worth with a spouse exceeds USD1 million or its equivalent in another currency; or (c) it is an institution with a minimum amount of assets under discretionary manage -
ment of USD5 million or its equivalent in another currency; and • a person declared by the FSC to be a sophis - ticated investor. As mentioned in 2.2.3 Restrictions on Inves- tors , professional CIS cannot be offered to the public and is only available to a sophisticated investor, as defined in the Securities Act 2005, or as a private placement. In the case of an open- ended fund, the minimum subscription amount must be at least USD200,000 and – for a CEF – the subscription amount is generally more than USD200,000. Investors are not protected by any statutory compensation arrangements in Mauritius in the event of the fund’s failure, and it is mandatory for the offer document to include such disclosures along with other disclosures specific to the type The FSC is mandated under the Financial Ser - vices Act 2007 to, inter alia, ensure the orderly administration of financial services and global business activities and to ensure the sound con - duct of business in the financial services sector and in the global business sector. To achieve its objectives, the FSC elaborates policies that aim to ensure the fairness, efficiency, transparency and stability of the financial system in Mauritius. It also publishes monthly newsletters, FAQs and circular letters to provide regular updates and guidance. The regulator’s online portal contains general information, up-to-date legislation and regulations, and statistics on licensed entities operating in Mauritius. The FSC conducts investigations and imposes sanctions (including the revocation or suspen - of fund as required by the FSC. 2.3.11 Approach of the Regulator
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