Financial Services Act

Financial Services (Administrative Penalties) Rules 2013

[GN 269 of 2013 – 1 January 2014] [Section 93]

1. These rules may be cited as the Financial Services (Administrative Penalties) Rules 2013.

2. In these rules –

"Act" means the Financial Services Act;

"administrative penalty" means the administrative penalty referred to in sections 7(1)(c)(v) and 93(2)(aa) of the Act;

"annual fee" has the same meaning as in the Financial Services (Consolidated Licensing and Fees) Rules 2008;

"business day" means any day of the week excluding Saturday, Sunday and any other public holiday applicable in Mauritius;

"General Fund" means the fund established under section 82 of the Act;

"legal obligation" means an obligation arising under –

(a) the relevant Acts; or

(b) guidelines, licensing conditions or any direction issued under the relevant Acts;

"required" means required by law, the Commission or the Chief Executive as may be applicable.

3. (1) Where a licensee fails to comply with a legal obligation specified in the first column of the Schedule, the licensee shall be liable to pay to the Commission the corresponding administrative penalty specified in the second column of the Schedule for each business day of non-compliance.

(2) Without prejudice to the relevant Acts, any administrative penalty payable under paragraph (1) shall be a debt due to the Commission and may be recovered by the Commission as a civil debt in a Court of competent jurisdiction.

(3) Any administrative penalty payable under paragraph (1) shall be credited to the General Fund.

4. The imposition of an administrative penalty under these rules shall be without prejudice to any other power, penalty, sanction or remedy provided under the relevant Acts.

5. No administrative penalty shall be levied under these rules in respect of an instance of non-compliance which occurred before the commencement of these rules.

6. 

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SCHEDULE

[Rule 3]

Legal Obligation

Amount of administrative penalty for each business day of non-compliance (Rupees /US$*)

Obligation, pursuant to section 7(2) of the Act, to furnish the Commission with such statistical information within such time as may be required

Rs 300/US$ 10

Obligation, pursuant to section 30 of the Act, to file with the Commission audited financial statements or financial summaries within such time as may be required

Rs 300/US$ 10

Obligation, pursuant to sections 51 and 72 of the Insurance Act, to file any account, balance sheet, certificate, report, return or statement with the Commission within such time as may be required

Rs 300/US$ 10

Obligation, pursuant to sections 20, 55, 88 and 106 of the Securities Act, to file any annual report or financial statements with the Commission within such time as may be required

Rs 300/US$ 10

Obligation, pursuant to regulation 29 of the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008, to file quarterly and audited annual financial statements with the Commission within such time as may be required

Rs 300/US$ 10

* The administrative penalty in US$ shall be applicable for the holder of a Global Business Licence

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Financial Services (Consolidated Licensing and Fees) Rules 2008

[GN 47 of 2008 – 22 March 2008] [Section 93]

1. Citation

These rules may be cited as the Financial Services (Consolidated Licensing and Fees) Rules 2008.

2. Interpretation

In these rules –

"annual fee" means the fee payable to the Commission pursuant to rules 8 and 13;

"due date", for the purposes of these rules, means 1 July for every subsequent year after the licence has been issued, or the end date of such period as may otherwise be specified;

"financial year" for the purposes of these rules means the period starting from 1 July to 30 June in the following year;

"form" means an application form required to be submitted to the Commission pursuant to rules 4 and 10;

"licence" includes an approval, authorisation, a recognition or registration for the conduct of a financial services activity under the relevant Acts;

"personal questionnaire" means the personal questionnaire set out in the Third Schedule;

"reporting issuer" has the same meaning as in section 86(1) of the Securities Act.

[R. 2 amended by r. 3 of GN 201 of 2008 w.e.f. 27 September 2008.]

3. Application of rules

(1) These rules shall apply to an application for a licence under the relevant Acts.

(2) All fees and charges specified in these rules shall be payable to the Commission in such form and manner as it may approve.

(3) These rules are not exhaustive and shall be read in conjunction with the relevant Acts and Regulations made under those Acts, FSC rules or guidelines that the Commission may issue from time to time.

PART I – FINANCIAL SERVICES

4. Application form

An application for a licence to carry out financial services or financial business activities under the relevant Acts shall be made on the Form bearing the corresponding code as listed in the first column of Part 1 of the First Schedule.

5. Processing fee

(1) An application for a licence to carry out a financial service or financial business activity specified in Part I of the First Schedule shall be accompanied by the non-refundable processing fee as specified in the fourth column of Part I of that Schedule.

(2) The processing fee shall be non-refundable.

6. Processing of application

(1) An application for a licence submitted pursuant to rule 4 shall be accompanied by –

 (a) a business plan of the proposed activities to be carried out under the licence;

 (b) the processing fee;

 (c) the particulars of promoters, beneficial owners, controllers and proposed directors;

 (d) an authority from the applicant, and where the applicant is not an individual, such authority shall be given by each of the directors of the applicant or by 2 directors duly authorised by a resolution of the board of directors, for the release to the Commission of any information pertaining to the applicant and any of its promoters, officers or controllers, as may be applicable, held by any financial institution, regulatory body or law enforcement agency as required in relation to assessing the application and the enforcement of the relevant Acts;

 (e) subject to paragraph (2) and rule 7, personal questionnaires as required by the Commission;

 (f) such other matters as are required under the applicable relevant Act or as may be required by the Commission.

(2) Where a personal questionnaire has already been filed, the applicant shall indicate in his application that the questionnaire has been filed and inform the Commission of any material change in the information.

(3) Except where otherwise required by the Commission, a reporting issuer shall not be subject to the requirements under paragraph (1) and shall submit an application for registration accompanied by –

 (a) a certified true copy of its certificate of incorporation;

 (b) copies certified by a director of the reporting issuer to be true copies of its last financial statements;

 (c) a copy of the auditor's report on the financial statements referred to in subparagraph (b);

 (d) the processing fee.

7. Fitness and propriety

(1) In determining whether a person is fit and proper for the purposes of a requirement under a relevant Act, the Commission may require such person to complete the personal questionnaire.

(2) An application for a licence shall be accompanied by the personal questionnaires completed by the beneficial owners (if different from the shareholders), controllers, shareholders and every officer or proposed officer of the applicant.

(3) The Commission may require such other beneficial owner, controller, officer or shareholder of an applicant or licensee to fill in the personal questionnaire where it is deemed necessary.

(4) A personal questionnaire shall not be considered to be valid unless signed and dated by the person who is required to complete it.

(5) Where a licensee seeks the approval of the Commission –

 (a) for the appointment of an officer;

 (b) for a person to be designated a beneficial owner, controller or shareholder of the licensee,

the application for approval shall be accompanied by a completed personal questionnaire in relation to the beneficial owner, controller, shareholder or officer, as the case may be.

8. Annual fee

(1) Subject to paragraph 3(A), there shall be paid to the Commission, in respect of every financial year, the annual fee, corresponding to the licence, as specified in the fifth and sixth columns of Part I of the First Schedule, as may be applicable.

(2) The first fixed annual fee corresponding to the licence, as specified in the fifth column of Part I of the First Schedule, shall be due and payable in advance at the time the licence is issued.

(3) The variable annual fee where applicable, corresponding to the licence, as specified in the sixth column of Part I of the First Schedule, shall be payable at the end of each financial year, except for –

 (a) the long term insurance business and general insurance business, in which case variable annual fees shall be payable to the Commission on a quarterly basis and within 20 days after the end of every quarter in September, December, March and June; and

 (b) a management licence, in which case the variable annual fees shall be payable to the Commission in advance on the due date.

(3A) Notwithstanding this rule, the aggregate annual fee for a management licence for any particular financial year shall not exceed USD 20,000.

(4) Any annual fee paid within –

 (a) one month after the due date shall be subject to an additional charge of 25 per cent of the corresponding annual fee;

 (b) 2 months or more after the due date shall, in addition to the charge specified in subparagraph (a), be subject to an additional charge of 15 per cent of the corresponding annual fee for every additional month.

(5) The Commission shall not be bound to accept late payment of the annual fee where the payment is effected after the time specified in paragraph (4)(a) above.

[R. 8 amended by r. 3(a) of GN 86 of 2013 w.e.f. 1 July 2013.]

9. Termination of licence

(1) Where, in any year, the annual fee and any charges that accrue under rule 8 are not settled within one month after the due date, the Chief Executive may, in accordance with section 22(4) of the Act, terminate the licence.

(2) No fresh application for a licence shall be considered by the Commission in respect of a person whose licence has been terminated unless all annual fees due and any charges accrued are settled.

PART II – GLOBAL BUSINESS

10. Application form

An application for a Category 1 Global Business licence or a Category 2 global business licence shall be made in the form bearing the corresponding code as listed in the first column of Part II of the First Schedule.

11. Processing fee

An application for a Global Business Licence shall be accompanied by the non-refundable processing fee corresponding to such licence as set out in the fourth column of Part II of the First Schedule.

12. Processing of application

(1) An application for a Category 1 Global Business Licence submitted pursuant to rule 10 shall be accompanied by –

 (a) a business plan of the proposed activities to be carried out by the applicant;

 (b) the applicable processing fee as set out in Part II of the First Schedule;

 (c) the legal certificate as required under section 72(1)(b) of the Act;

 (d) supporting certified copies of Customer Due Diligence documentation;

 (e) incorporation documents, including –

  (i) copy of the constitution, where adopted, and legal certificate required under the Companies Act; and

  (ii) certified copies of relevant statutory forms required under the Companies Act for the incorporation of a company.

(2) An application for a Category 2 Global Business Licence submitted pursuant to rule 10 shall be accompanied by –

 (a) the applicable processing fee;

 (b) the legal certificate as specified in section 72(1)(b) of the Act;

 (c) the incorporation documents, including –

  (i) copy of the constitution, where adopted, and legal certificate required under the Companies Act; and

  (ii) certified copies of relevant statutory forms specified in the Companies Act for the incorporation of a company.

 (d) a business outline of the proposed activities to be carried out by the applicant.

[R. 12 amended by r. 3 of GN 61 of 2010 w.e.f. 07 February 2010.]

13. Annual fee

(1) There shall be paid to the Commission, in advance, in respect of every financial year, an annual fee corresponding to the licence as specified in the fifth column of Part II of the First Schedule.

(2) The first annual fee for a Category 1 and a Category 2 Global Business Licence shall be due and payable, as specified in Part III of the First Schedule, at the time the application for the licence is made.

(3) The annual fee for a Category 1 and Category 2 Global Business Company shall be due and payable on 1 July of every subsequent year after the licence is first issued.

(4) Any payment of the annual fee made after the due date shall be subject to charges as set out in Part I of the Second Schedule.

(5) The Commission shall not be bound to accept late payment of the annual fee where s

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