Objective of the National Regulatory Sandbox Licence Committee (NRSL Committee)

The NSRL Committee has been attributed with the following functions:

coordinate the processing of RSL applications submitted to the Economic Development Board (EDB) in relation to FinTech activities;

act as the central point to evaluate Fintech applications which require RSL and that are lodged with EDB as well as all newly announced applications under the National Budget 2018/2019; and

allocate the supervisory function of the RSL Licensee either to the Bank of Mauritius or the FSC, subject to the nature of the Fintech activity.

Eligibility

In order to be eligible, applicants should meet the following criteria:

invest in an innovative project;

promote a project in respect of which there is either no legal framework or a lack of adequate legislative framework

establish the innovative nature of the proposed activity at the local, regional and international levels.

Documents to be submitted:

duly completed application form;

Business Plan or feasibility study outlining proposed business activity;

Particulars of promoters, beneficial owners and directors;

Certificate of character of beneficial owners and directors;

Financial forecast and financial capacities of applicant;

Details regarding the lack of regulatory framework in the country in relation to the conduct of the proposed activity;

Details regarding the known risks associated with the proposed activity;

Information on whether the applicant is licensed in any other jurisdiction for the proposed activity; and

An exit strategy to be implemented by the applicant in the event that the proposed activity is not implemented.

Successful Applications

An applicant is entitled to to commence his RSL activity and develop the project within a controlled environment as soon as it is notified of the EDB’s acceptance of the application. The development of the RSL activity remains of course subject to licensing conditions that may be imposed.

Furthermore, a licensee will be requested to submit what are known as interim and final reports.

Rejected Applications

The NRSL Committee has discretion to recommend that the EDB should turn down an application on the grounds that the proposed activity is not suitable for the Mauritian jurisdiction or because it may cause prejudice to the country’s good reputation. In the event that the EDB effectively turns down an application the applicant is notified in writing with reasons for the rejection.

Revocation/Suspension of License

The NRSL Committee and the EDB may, revoke or suspend a RSL in the following circumstances:

a licensee has failed to start operations of the proposed activity within 3 months;

the licensee has breached its RSL;

a licensee is conducting business in an unsound manner;

a licensee is failing to ensure risk control.

Conclusion

The introduction of the Regulatory Sandbox Licence to the Mauritian business landscape undoubtedly marks the ambition of Mauritius to position itself as a serious and innovative nation in the pursuit of establishing itself as a reputable financial centre as well as an international hub for blockchain start-ups.

Type

Insight

Locations

Mauritius

Share
Twitter LinkedIn Email Save as PDF
More Publications
27 Sep 2022

Similar but Different

While the basic features of the trust remain, there are some notable differences in how trusts can b...

9 Sep 2022

Attachment Orders – A useful debt enforcement tool for creditors

One of the unsettling questions that lingers in the minds of creditors is how to secure or recover t...

25 Jul 2022

APPLEBY MAURITIUS NEWSLETTER, JULY 2022

There have been interesting developments in our legal landscape since our last issue with the Govern...

22 Jul 2022

Digital Banking - Being future ready

One of the positive aspects of digitalisation is the opportunity which it has offered for financial ...

21 Jul 2022

Concurrence Déloyale

This article reviews the approach which the Mauritian Supreme Court adopts on the concept of “Conc...

21 Jul 2022

Case Summaries

The Supreme Court had to address a preliminary objection raised by co-respondents Nos. 1, 2 and 3 on...

21 Jul 2022

FSC Rules issued under the Virtual Asset and Initial Token Offerings Services Act 2021 (VAITOS)

On 15 July 2022, the Financial Services Commission (FSC) issued the following rules under the VAITOS...

10 Jun 2022

‘’With the people, for the people’’ – the Mauritian National Budget 2022-2023

On 07 June 2022, the Minister of Finance, Economic Planning and Development (Minister of Finance) ta...

Contributors: Vaishali Damonaiko
26 Apr 2022

Appleby Mauritius Newsletter, April 2022

In the April 2022 issue of Appleby’s newsletter, we give you an overview of the latest legal and r...

26 Apr 2022

Employment rights during and following a pandemic under the Workers’ Rights Act

In view of the ongoing COVID-19 pandemic which is currently affecting the community at a global leve...