Regulatory Alerts2021-01-01
Financial Services (Peer to Peer Lending) (Amendment) Rules 2021
The Financial Services Commission of Mauritius issued the Financial Services (Peer to Peer Lending) (Amendment) Rules 2021 to update the regulatory framework for peer-to-peer lending operators. The amendment replaces the definitions of "escrow account" and "sophisticated investors" with "expert investor", increases the applicable lending limit threshold from three to five, and exempts expert investors from these limits when lending through P2P operators. It further mandates P2P operators to segregate lenders' and borrowers' funds in designated Mauritian bank accounts, with the rules taking effect on 6 March 2021.
Government Notices 2021 1095 Irfaan/ iMac2/Govt Notices 2021/Title/1st Proof/20.01.2021 Irfaan/ iMac2/Govt Notices 2021 Irfaan/ iMac2/Govt Notices 2021/Title/ /The Financial Services (Peer to Peer Lending) (Amd)2021/ 1st Proof/20.01.2021 1st Proof/ 01.03.2021 Government Notice No. 37 of 2021 FINANCIAL SERVICES ACT Rules made by the Financial Services Commission under section 93 of the Financial Services Act
- Citation These Rules may be cited as the Financial Services (Peer to Peer Lending) (Amendment) Rules 2021.
- Interpretation In these Rules – “Principal Rules” means the Financial Services (Peer to Peer Lending) Rules 2020.
- The Principal Rules are amended – (a) in rule 2, by – (i) deleting the definition of “escrow account”; (ii) deleting the definition of “sophisticated investors”; and (iii) inserting in the appropriate alphabetical order, the following definition – “expert investor” has the same meaning as in the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008; (b) in rule 6, – (i) by deleting sub paragraph (1)(a); (ii) in sub paragraph (1)(b) (ii), by deleting the figure “3” and replacing same by the figure “5”; and
1096 Government Notices 2021 Irfaan/ iMac2/Govt Notices 2021/The Financial Services (Peer to Peer Lending) (Amd)2021/1st Proof/ 01.03.2021 (iii) by deleting sub paragraph (1)(d) and replacing same by – (d) The lending limits under sub-paragraph (c) shall not apply to expert investors lending through P2P Operators to borrowers resident in or outside of Mauritius. (c) by deleting rule 13 and replacing same by – 13. Segregated bank account (1) A P2P Operator shall, at all times, ensure that the funds of lenders and borrowers are maintained separately from its own funds. (2) For the purposes of paragraph (1), the funds shall be maintained through appropriately identified bank accounts in Mauritius. 4. These Rules shall come into operation on 6 March 2021. Made by the Financial Services Commission on 6 March 2021.