08 February 2012, Bank of Mauritius
The Financial Services Commission (FSC) Mauritius and the Bank of Mauritius (BoM) have signed a Protocol to amend the Memorandum of Understanding (MoU) between BoM and the FSC at the Bank of Mauritius Tower, Port Louis, on Wednesday 08 February 2012. The signatories of the Protocol are Mr Yandraduth Googoolye, First Deputy Governor of the Bank of Mauritius and Ms Clairette Ah-Hen, Chief Executive of the Financial Services Commission.
The MoU was originally signed in December 2002 to set out the framework for cooperation between BoM and the FSC in their common pursuit to maintain a safe, efficient and stable financial system in Mauritius.
The reputation of the Mauritius International Financial Centre, however, lies on compliance with standards set by international standard-setting organisations and international norms relating, inter alia, to the disclosure and exchange of information.
While the FSC has been complying with the International Organization of Securities Commissions (IOSCO) principles for the past years in matters of exchange of information with its counterparts, there were a few amendments that were required within our legal framework to enable Mauritius to fully subscribe to the IOSCO Multilateral Memorandum of Understanding (MMoU).
The present amendment to the MoU reinforces the framework for effective exchange of information between BoM and the FSC and enables Mauritius to comply with one of the requirements imposed under the IOSCO MMoU.
BoM and the FSC are pleased that the signature of this Protocol will bring Mauritius on the same level as other internationally recognized-financial centres and reaffirm their commitment to collaborate further to safeguard the stability of the domestic financial system.
Background Information
The International Organization of Securities Commissions, commonly known as IOSCO, was first established as an association of securities regulators in America. In 1983, it started accepting members from around the world. Today, it is considered as a global organization and standard setter for Securities Regulation worldwide and it regroups around 175 members.
The three core objectives of IOSCO are:
1) Protecting investors;
2) Ensuring that markets are fair, efficient and transparent; and
3) Reducing systemic risk.
- IOSCO is now recognised as a global organization, the leading international policy forum for securities regulators, and the standard setter for Securities Regulation.
- The organization's membership regulates more than 95% of the world's securities markets in over 100 jurisdictions and aims to establish and maintain worldwide standards for efficient, orderly and fair markets.
IOSCO Multilateral Memorandum of Understanding (the “MMoU”)
The IOSCO MMoU sets an international benchmark for cross-border co-operation which is critical in combating violations of securities and derivatives laws.
The MMoU represents a common understanding amongst its signatories on how they will consult, cooperate, and exchange information for securities regulatory enforcement purposes.
The MMoU itself sets out the specific requirements for what information can be exchanged and how it is to be exchanged: legal ability to compel information; types of information that can be compelled; legal ability to share information; and permissible uses of information.
It also sets out specific requirements regarding the confidentiality of the information exchanged, and ensures that no domestic banking secrecy, blocking laws or regulations prevents securities regulators from sharing this information with their counterparts in other jurisdictions.
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