It is a fact that any financial instrument cannot exist in
isolation, neither can any proposed policy with regards to the
sector. The recent budgetary measures with regards to the financial
sector, actively promoted by the FSPA, represents a new ecosystem
for the sector. A much needed one with more substance.
The previous model encompassed mostly, banks, used primarily as
parking space for funds, management companies, lawyers and auditing
firms. That model gave Mauritius the bad image of a tax haven,
wrongly most would say, nevertheless there has been few cases which
spoilt the basket of eggs.
What makes the new eco system better than the previous one? The
new licenses or umbrella licenses, such as Overseas Family Corps,
and Investment Banking license is far reaching and intertwined
within the whole sector. The capital raising possibility of the
investment banks, allows for increased activity on the secondary
market, represented by the stock exchange. Even intermediation will
have a more prominent role in investment and capital structuring.
For example, syndicating loans to limit exposure to capital
The Mauritius derivatives and Commodities Exchange will give a
boost to the trading of high value commodities. Stock gold may be
sold as asset back securities. Which will bring another investment
class on the market.
The family offices may be the source that Mauritius lacks for
financing mega projects in Africa. It also provides an efficient
way for the family offices to diversify their portfolio and
mitigates risks, by using as investment arm, and investment
And of course what would a jurisdiction be without a sound legal
system. In that particular aspect, the MIfc is also attracting
international law firms. All this together with the Mauritius
international arbitration center tagged with the London one,
definitely gives the required comfort.
All these pulled together does one thing which is of critical
importance for the MIFC, the issue or credibility. These activities
increase substantially the activities carried out in Mauritius.
enhancing the substance of the Mauritian jurisdiction.
The FSPA certainly will see to it that with a more substance
based jurisdiction, the MFIC is no longer tagged as a tax
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Over the last 40 years, the Cayman Islands has matured into one of the world's most sophisticated and successful international financial centres, providing a competitive, effective, transparent, cost-efficient and tax-neutral platform for international capital flows underpinned by an environment of legal, political and economic stability.
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