Regulatory Alerts2025-01-01
Financial Services (Framework for the Imposition of Administrative Penalties) (Amendment) Rules 2025
The Financial Services Commission of Mauritius has amended its administrative penalties framework to implement a four-stage settlement discount schedule ranging from fifty percent for early resolutions to zero percent for post-remission cases. The updated rules stipulate that discounts apply exclusively to Commission-approved settlements, explicitly excluding proceedings where a decision notice has been issued, a review application is active, or the matter has been remitted for reconsideration. Furthermore, the amendment formally classifies financial crimes as serious breaches and takes effect on 24 February 2025.
LEGAL SUPPLEMENT 57 to the Government Gazette of Mauritius No. 13 of 15 February 2025 Government Notice No. 15 of 2025 THE FINANCIAL SERVICES ACT FSC Rules made by the Financial Services Commission under Section 93 of the Financial Services Act
- These Rules may be cited as the Financial Services (Framework for the Imposition of Administrative Penalties) (Amendment) Rules 2025.
- In these Rules – “principal Rules” means the Financial Services (Framework for the Imposition of Administrative Penalties) Rules 2022.
- The Schedule to the principal Rules is amended– (a) in Part II – (i) in paragraph 2 – (A) by deleting the comma after the word ‘shall’; (B) by deleting the table and replacing it by the following new table – Stage at which the licensee has communicated its intention to settle Discount Stage 1 - Early settlement at any stage before the matter is referred to the Enforcement Committee 50% Stage 2 - Settlement between referral to the Enforcement Committee and the issue of a Warning Notice 20%
58 Government Notices 2025 Stage 3 - Settlement between the issue of a Warning Notice and the issue of a Decision notice 10% Stage 4 - Settlement after a matter has been remitted to the Enforcement Committee by the Financial Services Review Panel for reconsideration 0% (ii) by adding, after paragraph 2, the following new paragraph – 3. For the avoidance of doubt, (1) the discount referred to in paragraph 2 shall apply only in the instances where the Commission agrees to enter into settlement discussions which result in a conclusive settlement outcome. (2) There shall be no settlement discussion where – (i) a Decision Notice has already been issued; (ii) an application for review is being heard by the Financial Services Review Panel; or (iii)a matter has been remitted to the Enforcement Committee by the Financial Services Review Panel for reconsideration. (b) in Part III, in Note 4 by adding, after paragraph 2, the following new paragraph –
Government Notices 2025 59 (3) For the purposes of paragraph (2), a breach of a serious nature includes a financial crime as defined in the Act. 4. These Rules shall come into operation on 24 February 2025. Made by the Financial Services Commission on 30 January 2025.