Answer ... Yes, alternative investment funds (AIFs) may be marketed by an intermediary which is licensed by the Financial Services Commission (FSC) or by the AIF manager through the prospectus (the AIF manager must comply with the prospectus requirements before marketing, and the prospectus must be registered with the FSC).

Answer ... The criteria will depend on the type of intermediary (eg, investment dealer; investment adviser).

Answer ... For a licensed local intermediary, an application must be submitted to the FSC. The process takes four to eight weeks.

Answer ... This will depend on the type of fund. Certain categories of funds can be marketed to specific investors only.

An expert fund can be offered only to expert investors (see question 2.1).

A professional CIS can be marketed only to sophisticated investors or where investors invest by way of private placement. A private placement, in respect of a professional CIS (excluding a closed-end fund which is not a reporting issuer), is one where the subscription amount is amount is at least $200,000 and where each person subscribes or purchases for his or her own account, and no publicity is made by the person making the offer.

Answer ... The Guidelines for Advertising and Marketing of Financial Products issued by the FSC in October 2014 set out illustrative minimum standards that should be followed in respect of the marketing of financial products (including securities of AIFs). It sets out general principles which should be followed, including the use of appropriate words to avoid misleading material and appropriate risk warnings. In addition, the prospectus should comply with the relevant requirements set out in the legislation (this will depend on the type of fund being set up).

Answer ... Other restrictions depend on the type of fund.

CISs that do not benefit from exemptions: A CIS offering shares in Mauritius must not issue, use or cause to be issued or used for any purpose any advertisement for or in connection with the CIS, unless a copy of the advertisement is forwarded to the FSC no later than five working days prior to the date of first issue or use. If the FSC is not satisfied with the advertisement, the FSC shall inform the CIS and request it to withdraw or amend the advertisement.

CIS managers of non-exempt CISs and closed-end funds: A CIS manager must not issue to the public or participate in or knowingly allow its name to be used in respect of any advertisement, sales literature or correspondence, or issue or send any advertisement, sales literature or correspondence in connection with its business which:

• contains any untrue statement or omission of a material fact, or is otherwise false or misleading;
• contains an unjustified promise of specific results;
• uses unrepresentative statistics to suggest unwarranted or exaggerated conclusions, or fails to identify the material assumptions made in arriving at these conclusions;
• contains any opinion or forecast of future events which is not clearly identified as such;
• fails to fairly present the potential risks to the participant; or
• is detrimental to the interests of the public.

A copy of any advertisement or sales literature proposed to be issued by a CIS manager that holds a licence issued by the FSC must be submitted to the FSC before it is issued.

Answer ... FSC authorisation is required; or alternatively, the services of a licensed local intermediary will be required.

Answer ... Assuming that the AIF can be marketed to the public, the appointment of a locally licensed intermediary is required to market the AIF to the public in Mauritius.

Answer ... Yes, in order to market to retail investors, the AIF cannot benefit from the lighter regulatory regimes afforded to the expert fund regime or the professional CIS regimes. Compliance with most of the provisions of the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008 will be required, including the required prospectus requirements under the Securities Act and associated regulations.