Answer ... Alternative investment funds (AIFs) in Mauritius are governed by:

• the Securities Act 2005 and associated regulations, and in particular the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008; and
• the Financial Services Act 2007.

In addition, depending on the structure of the AIF, the main legislative provisions that will govern it are as follows:

• the Companies Act 2001, where the AIF is structured as a company;
• the Protected Cell Companies Act 1999, where the AIF is structured as a protected cell company;
• the Limited Partnership Act 2001, where the AIF is structured as a limited partnership; or
• the Trusts Act 2001, where the AIF is structured as a trust (the establishment of an AIF through a trust structure is rare).

Answer ... See question 2.1, which sets out the different categories of AIFs. Certain categories of AIFs benefit from a light regulatory regime and are therefore exempt from most of the provisions of the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008. There are no special regimes that specifically govern, for example, hedge funds compared to private equity funds.

Answer ... The Financial Services Commission (FSC) may approve a foreign manager to manage a fund (see question 4.3) or alternatively a Mauritius-regulated collective investment scheme manager to manage a foreign fund. Further, the FSC has the power to recognise a fund established in a foreign jurisdiction to operate in Mauritius (see question 2.8).

Answer ... Mauritius has implemented the US Foreign Account Tax Compliance Act and the Common Reporting Standard in its domestic law. In addition, Mauritius is signatory to the Base Erosion and Profit Sharing (BEPS) multilateral convention to implement tax treaty-related measures to prevent BEPS (MLI). This covers 44 tax treaties to which Mauritius is a party. Mauritius has already deposited its instrument of ratification of the MLI with the Organisation for Economic Co-operation and Development and the MLI is effective for Mauritius since 1 February 2020.

As a result, changes have been made to the substance requirements required in respect of funds and fund managers, among others.

Answer ... The FSC is responsible for regulating AIFs in Mauritius. The FSC has wide-ranging powers, including the following:

• to make rules, set standards and provide guidelines;
• to give directions to any person to ensure compliance with relevant laws, guidelines or licensing conditions;
• to issue a private warning;
• to issue a public censure;
• to disqualify a licensee from holding a licence or a licence of a specified kind for a specified period;
• to disqualify an officer from a specified office or position in a licensee for a specified period;
• to impose administrative penalties; and
• to revoke licences.

The FSC also has the power to grant exemptions or partial exemptions from compliance with any FSC rules and guidelines, subject to such conditions as it may impose.

Answer ... The FSC cooperates with the regulators of other jurisdictions and has signed memoranda of understanding (MOUs) with several countries in this regard. The MOUs aim to:

• consolidate supervision of cross-border operations of financial institutions;
• define mechanisms to share information in accordance with international standards; and
• reinforce collaboration among institutions in the fight against crime, money laundering and terrorist financing.

Regulators in other jurisdictions with which the FSC has MOUs in place include:

• the UK Financial Conduct Authority;
• the South African Financial Services Board;
• the Securities and Exchange Board of India;
• the Dubai Financial Services Authority; and
• foreign counterparts in several African countries.