Launch of International Financial Centre: Promoting Mauritius as a financial hub

The Financial Services Promotion Agency (FSPA), operating under the aegis of the Ministry of Financial Services, Good Governance and Institutional Reform, has launched this week the Mauritius International Financial Centre. Objective: build the appropriate eco-system to propel Mauritius as an IFC of excellence, with sophisticated services and bespoke financial products, along with international recognition. The launching took place in the presence of the Lord Mayor of the City of London, Alderman Jeffrey Mountevans. Several measures to be implemented soon were announced by Minister Roshi Bhadain. For over two decades, Mauritius has been operating an offshore financial services sector, heavily reliant on tax treaties and substantially focusing on back office operations. So says, Minister Bhadain. Mauritius did not have an identity of its own, let alone a logo or a collectively-approved brand, he added. “The vision of this Government, in line with its strategy of graduating the products and services we offer to the international business community to a new level of sophistication, is positioning Mauritius as an international financial centre of excellence, repute and substance which would act as a platform and add value to cross-border investments into the region and into emerging markets,” he explains. To him, it was therefore important for the MIFC have a new identity, that is recognized by the world as a jurisdiction of choice, and which is synonymous with transparency, good governance, and international best practices. Key announcements Introduction of Commodity Exchange After the implementation of the Captive Insurance Bill, the Ministry will soon launch the “Commodity Exchange”. The aim is to create a platform in Mauritius for the buying and selling of gold and other precious metals as well as precious stones with other countries. Setting up of a derivative market Another measure in the pipeline is the setting up of a derivatives market whereby African currencies can be hedged on a trading platform in Mauritius against the US dollar. For the Minister, this initiative will help to mitigate risks linked with currency when investors will invest in African countries. Attracting wealthy families to settle in Mauritius This concerns the creation of an OFC (Overseas Family Corporation). Financially well-off families who wish to settle in Mauritius will make it through an OFC license offered by the Financial Services Commission. “They may even buy a villa in the Heritage City,” says the Minister. Amendment of certain legislations In order to attract law firms to set up in Mauritius, Roshi Bhadain announces that amendments will be brought to legislations as regards to Global Law Firms. This will be done as soon as the Parliament is resumed. He is of the opinion that by reviewing the legislations, more economic activities will be created. As a result, young graduates in the financial and law fields will have more job opportunities not only in Mauritius, but also abroad.

[[{"type":"media","view_mode":"media_large","fid":"12443","attributes":{"class":"media-image wp-image-20380 alignleft","typeof":"foaf:Image","style":"","width":"157","height":"187","alt":"Roshi-Bhadain"}}]]Roshi Bhadain on the DTAA: “There are more important goals” In the context of the renegotiation of the Double Taxation Avoidance Agreement between India and Mauritius, the Minister of Financial Services, Roshi Bhadain, believes that there are more important goals to achieve besides reconsidering the treaty. “A Treaty is there to serve for a certain purpose for a certain period of time. However, as a responsible government, we must look beyond the Treaty. We are not here to see if international treaties will remain for eternity or not. What is more important is to develop Mauritius as an international financial centre and create jobs,” he argues. It is to noted that an Indian delegation had a working session with the Minister of Finance, Vishnu Lutchmeenaraidoo, on Monday on the renegotiation of the treaty.

Revival of the FSPA: Job creation for graduates The Financial Services Promotion Agency (FSPA), operating under the aegis of the Ministry of Financial Services, Good Governance and Institutional Reforms, is mandated by the Financial Services Act 2007 (as amended) for the promotion and development of Mauritius. The FSPA works closely with Governmental bodies, public sector institutions and private sector companies to promote Mauritius as an International Financial Centre and ensure that its strategy is congruent with the needs of the financial services sector. “With the revival of the Financial Services Promotion Agency (FIPA), we now have all the necessary support to further promote the financial sector. Graduates will also have the opportunity to get training on sophisticated financial products,” says Roshi Bhadain. Objective: more than 15,000 persons to be employed in the financial services sector by 2018.