Regulatory Sandbox Licences - Fintech
The Mauritian Government has taken the initial steps to embrace the Fintech wave with the objective of making Mauritius a regional Fintech hub. A National Regulatory Sandbox Licensing Committee has been set up and now fully operational and assessing applications.
The Mauritius Financial Services Commission has issued Guidance Note relating to recognition of Digital Assets as an asset-class for investment by Sophisticated and Expert Investors and Consultation Paper for the Custodian Services (Digital Asset) Licence.
In relation to Fintech projects, to be eligible for the Regulatory Sandbox Licence, the applicant must demonstrate that:
a) the product, service or solution being developed is genuinely innovative, i.e. it is novel and not similar to those already available in the market;
b) the use of emerging technology or the use of existing technology in an innovative manner in financial services;
c) the project will contribute to the development of local skills and know-how;
d) the provision of the new product, service or solution is either wholly or partly incompatible with the current regulatory requirements in Mauritius
e) the product, service or solution has potential to:
i. improve accessibility, efficiency, security, reliability or effectiveness for existing financial products or services;
ii. benefit consumers of financial services.
f) the applicant has conducted an assessment to demonstrate the usefulness and functionality of the product, service or solution and understands the associated risks;
g) the applicant has the necessary resources to participate in Sandbox, mitigate and control potential risks and losses arising from the offering of such product, service or solution;
h) the applicant will deploy the product, service or solution on a commercial scale in Mauritius after exit from the Sandbox or to deploy the product, service or solution on a commercial scale for the international market through Mauritius (for instance, setting up of the company’s Headquarters in Mauritius);
i) the applicant is proposing adequate safeguards, terms and conditions to mitigate foreseeable risks associated with the project;
j) the application will include a suitable exit or transition strategy if the proposed activity is to be discontinued or in the event that the RSL is revoked; and
k)any other criteria as the NRSL Committee may deem necessary.
Ashton will assist you in the licence application process with the documentations and liaison with the local authorities.
Ashton can also introduce you to third party service providers who are operating in the Fintech ecosystem, like online platform to monitor investments for investors (plug & play).