Mauritius Hails European Move To Keep Doors Open To Its Funds

Tom Burroughes

5 June 2013

Mauritius, an offshore financial centre that is a significant hub for non-resident Indians and other groups, followed Guernsey in hailing a European agreement enabling it to continue to market its licensed funds to European clients, putting to rest some fears that new EU rules might raise a barrier.

The European Securities and Markets Authority – a EU financial regulatory organisation – produced a “Memorandum of Understanding” that relates to a cooperation agreement with the Financial Services Commission of Mauritius.

“This agreement will enable Mauritius-licensed funds to continue to market in Europe under the private placement regimes of EU member states after the introduction of the EU Alternative Investment Fund Managers Directive, or “AIFMD”, on 22 July,” a statement from the Mauritius government said.

ESMA negotiated the agreement on behalf of all 27 EU Member State securities regulators as well as the authorities from Croatia, Iceland, Liechtenstein and Norway.

“This further affirms Mauritius as an international financial centre and an attractive jurisdiction for the setting up of Funds as well as demonstrates Mauritius commitment to the highest standards in international engagement and information sharing,” the government of the island nation said.

Last week, the promotional agency for Guernsey – which is not a member of the EU – also praised the move. Non-EU jurisdictions such as Guernsey, Jersey, the Cayman Islands and BVI have been concerned at times that the new regulatory regime on alternative investment funds will raise protectionist barriers against funds outside the European bloc.