The Securities Act 2005 and rules & regulations made under it allow for Fund or CIS Manager Companies to be set up and licensed in Mauritius.
These are particularly beneficial for Investment Houses who manage Offshore Funds or Fund sponsors who have Offshore Funds set up worldwide. Mauritius has the advantage of having a contemporary and flexible securities law. It issues clear Fund Manager licences within a reasonable time, requires reasonable minimum capital requirement and has a low tax rate.
A CIS Manager is authorised under the Securities Act to carry out the following activities for the management of a Collective Investment Scheme including:
- administrative services required by the scheme
- provision of registrar and transfer facilities
- distribution of the securities of the scheme
- maintaining accounting records of the scheme
- Providing investment advice in relation to the scheme
- managing portfolio of the scheme
Insurance Cover Required
A CIS Manager is required to subscribe to an insurance policy against the following risks:
- fraudulent activities of employees
- deceitful instructions
- losses arising from the malicious or fraudulent corruption of electronic data or electronic transactions;
- legal liability to third parties arising from breaches of professional duty.
Financial Statements Filing
A CIS manager shall file with the Commission interim financial statements prepared in accordance with International Financial Reporting Standards (IFRS) within 45 days after the closing date of each quarter.
Every CIS manager shall, within 90 days of its balance sheet date, file with the Commission an annual report which shall include audited financial statements prepared in accordance with IFRS and audited in accordance with the International Standards on Auditing.
Minimum Capital Required
A CIS Manager needs to have a minimum capital. Capital Horizons provides the following services with respect to the activities of the CIS Manager:
- Advice and Creation of the CIS Manager
- Application and Renewal of CIS Manager Licence
- Provision of registered office address
- Provision of professional directors and qualified secretary resident in Mauritius
- Bank account opening
- Carry out NAV calculations of Funds being managed (if required)
- Preparation of quarterly accounts and filing with the authorities
- Preparation and filing of tax returns