MAURITIUS Law and Practice Contributed by: Bhavna Ramsurun, Pinki Mahata, Lorna Senivassen and Shreya Mungur, BLC Robert & Associates
3.3.2 Requirements for Non-Local Service Providers The position is the same as that described in 2.3.2 Requirements for Non-Local Service Pro- viders . 3.3.3 Local Regulatory Requirements for Non- Local Managers The position is the same as described in 2.3.3 Local Regulatory Requirements for Non-Local Managers . Where a retail fund holds a GBL, it will be able to appoint a foreign manager subject to the pri - or approval of the FSC. The FSC will consider whether the licence of the foreign investment manager is issued by a regulatory body in a jurisdiction that has comparable regulation to The timeframe for the application of a fund authorisation is generally around 60 business days from the time the application is submit - ted to the authorities, assuming the application is complete and related queries are cleared on time. However, the application for a retail fund may be lengthier. 3.3.5 Rules Concerning Pre-Marketing of Retail Funds Please see 2.3.5 Rules Concerning Pre-Market- ing of Alternative Funds . Mauritius for investor protection. 3.3.4 Regulatory Approval Process In addition, for a retail CEF, unless the prospec - tus has been approved by the FSC, no applica - tion form should accompany the prospectus, no offer for subscription should be entertained, and only indications of interest without a firm com - mitment may be entertained.
• acquire more than 10% of the shares of any single CIS; nor • purchase a security nor sell a security to the investment manager, the custodian, an officer of the investment manager or the custo - dian or any affiliate of such persons, unless the purchase or sale is carried out at arm’s length. It should also be noted that a CIS can only bor - row money or create a charge over its assets when: • the transaction is only a temporary measure to accommodate a request for the redemp - tion of securities of that fund, and the out - standing amount of all borrowings does not exceed 5% of the fund; or • the charge secures a claim for fees and expenses incurred for services rendered while redeeming those securities. The investment and borrowing restrictions do not apply to CEFs. Through its guidelines, the FSC has announced that investments in digital assets and cryptocur - rency may not be suitable for retail investors, owing to the high-risk nature of such asset class. However, digital assets including cryptocurrency may constitute an asset class for investment by funds that are authorised as expert funds, pro - fessional CISs or specialised CISs. The FSC has issued the Securities (Real Estate Investment Trusts) Rules 2021, which provide a specific regime for licensing and regulating REITs. A REIT is a CIS or CEF that invests pri - marily in real estate assets with the aim of pro - viding returns to holders derived from the rental income of the real estate asset.
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