Editorial LAUNCH OF DTOS INTERNATIONAL (EAST AFRICA) LTD IN UGANDA Dear Readers We are pleased to announce the launch of our East African Regional Office which will operate from Kampala, the capital city of Uganda. In the context of the Air Corridor between Asia and Africa, Mauritius has launched its first direct Mauritius-Singapore flight. This is in line with the Government s economic vision to transform Mauritius as a regional aviation hub and establish the island nation as the Star and Key of the Indian Ocean. Further, the Financial Services Promotion Agency has launched the Mauritius International Financial Centre with a view to promote the country as an IFC of excellence, repute and substance. This issue summarizes the number of licences issued by the Financial Services Commission, Mauritius, during 2014 and 2015 and the geographical spread of investments by the Global Business licensees for the past four years. Enjoy your reading! Inside this issue: Didier Viney Head of Africa Desk and of Business Development Launch of DTOS International (East Africa) Ltd in Uganda Pg 1 Regulations Update Pg 2 News at a Glance Pg 3-4 Mauritius Global Business Statistical Highlights 2015 Pg 5 DTOS Ltd is pleased to announce the opening of its new regional office, DTOS International (East Africa) Ltd in Kampala Uganda. DTOS International (East Africa) Ltd provides a full range of financial and accounting (F&A) outsourcing services, work-flow support services, corporate finance and corporate advisory services. Our outsourcing services provides for operational efficiency, supported by Sage One Accounting, Xero and Sage Evolution ERP, which allows for cost effective accounting solutions as well as more flexibility as the system can be easily configured to reflect our clients business and processes. With DTOS outsourcing, companies can choose between a range of solutions tailored to the needs of the individual company and free up resources in the company s own IT department for increased focus on the company s core business activities. In addition to flexible delivery models, DTOS Ltd has a pool of qualified professionals that can be seconded for short to medium term positions to ensure the best mix of the cost and technical expertise. Ireland Blyth Limited (IBL) Group, parent company of DTOS Ltd, already has an increasing international footprint in the African market with operations in the meat processing, logistics and distribution sector. DTOS International (East Africa) Ltd forms part of DTOS Ltd s rapidly expanding global network of representative offices in India, China, France and the UAE. The opening of a local office in Uganda demonstrates our commitment to reinforce our presence and expand our network in the African continent to better serve clients global needs. The office is headed by Mr Didier Viney, Head of Africa Desk at DTOS Ltd. Mr Viney has more than 10 years of experience working within the financial services sector in Africa. His areas of expertise spans from fund management, leasing, project finance, private banking & wealth management and corporate finance. Prior to joining DTOS Ltd in July 2013, he has been working for a cane growing and sugar milling company in Tanzania for six years as Financial Controller. 2016 DTOS P age 1
REGULATIONS UPDATES Procedures for Registration of Prospectus On January 12, 2016, the Financial Services Commission, Mauritius, has issued an addendum to Circular Letter dated September 24, 2015, in relation to the Procedures for Registration of Prospectus. The addendum stated that Closed-end Funds which are reporting issuers are exempt from complying with the Procedures for Registration of Prospectus and paying the filing fee of MUR 100,000. All other requirements with respect to prospectus as prescribed under the relevant Acts shall at all times be complied by the Closed-end Funds which are reporting issuers. Implementation of the Common Reporting Standard (CRS) deferred to September 2018 The Mauritius Revenue Authority has issued a communiqué dated January 15, 2016, informing all stakeholders that the first exchange of information under the OECD s Common Reporting Standards (CRS) will take place as from September 2018. The MRA has also confirmed that the requirements for Mauritius Financial Institutions (FIs) to apply due diligence procedures to record the tax residence of clients opening new accounts will take effect from January 1, 2017. The OECD's CRS is the new global standard for automatic exchange of information for tax purposes and it obliges all participating countries and jurisdictions to obtain financial information from their financial institutions (FIs) and to exchange that information automatically with other jurisdictions on an annual basis. In due course, the MRA shall discuss and finalize the Guidance Notes for CRS implementation in Mauritius. Amendments to the Competency Standards with respect to Designated Officer for CIS Managers The Financial Services Commission, Mauritius has issued a circular letter dated February 2, 2016, with regards to the amendments made in the Competency Standards issued in October 2014 and the Circular letter dated June 3, 2015 for CIS Managers. The Circular letter stated that with effect from January 1, 2016, a CIS Manager is no longer required to appoint a Designated Officer. Prior to the above amendments, a CIS Manager was required to have at least one Designated Officer with the minimum technical competencies such as qualifications, training and experience, as prescribed under the Competency Standards in order to carry out the activities relating to the management of a Collective Investment Scheme. Mauritius FSC signs MoU with Seychelles FSA The Financial Services Commission, Mauritius (FSC Mauritius) and the Financial Services Authority, Seychelles (FSA Seychelles) have signed a Memorandum of Understanding (MoU) on March 3, 2016, with regards to mutual Assistance and Exchange of Information. Given the increasing international activity in the financial market and the need for mutual cooperation and consultation among financial regulators to ensure compliance and enforcement of their financial laws and regulations, the FSC Mauritius and the FSA Seychelles has entered into the MoU with a view to ensure and secure compliance with the respective laws and regulations of the jurisdictions of the Authorities. The FSC Mauritius has so far signed 3 Multilateral MoUs, 2 Regional MoUs, 25 MoUs regarding supervision of AIFMD Entities, 23 MoUs with Foreign Authorities and 6 MoUs with Local Authorities. 2016 DTOS P age 2
NEWS AT A GLANCE Bank of China (BOC) obtains its Banking License from the Bank of Mauritius The Mauritius Central Bank has issued a banking licence to the Bank of China (Mauritius) Limited, a locallyincorporated wholly-owned subsidiary of Bank of China (BOC), the first Chinese bank licensed to conduct banking operations in Mauritius. The Bank of China (Mauritius) Limited will conduct banking business and private banking business in Mauritius. The Bank of China is one of the five biggest state-owned commercial banks in China as well as China s most internationalized and diversified bank, operating for more than 100 years and having its footprint in 46 countries and regions. The incorporation of Bank of China (Mauritius) Limited is a significant addition to the international financial centre of Mauritius and will serve as an important financial tunnel between China and Africa. Launch of our International Financial Centre: Promoting Mauritius as a financial hub The Mauritius International Financial Centre (IFC) was launched by the Financial Services Promotion Agency (FSPA), operating under the aegis of the Ministry of Financial Services, Good Governance and Institutional Reform. The objective is to promote Mauritius as an IFC centre of excellence, repute and substance with sophisticated services and bespoke financial products, along with transparency, good governance, and international best practices. Some key announcements were made during the launch as following: Launch of the Commodity Exchange for the buying and selling of gold and other precious metals as well as precious stones with other countries. The setting up of a derivative market whereby African currencies can be hedged on a trading platform in Mauritius against the US dollar. Creation of Overseas Family Corporation (OFC) whereby financially well-off families may settle in Mauritius through an OFC license offered by the Financial Services Commission, Mauritius. Setting up of a Mauritius Commodities Exchange With a view to position Mauritius as an internationally recognised financial centre of substance, the Government of Mauritius is setting up a Commodities Exchange market for the trading, processing and storage of gold, diamond and other precious metals with the assistance of the Dubai Multi Commodities Centre (DMCC). The latter will provide the necessary guidance in developing rules/ regulations and other soft infrastructure to support the Trading Market. The Spot Trading platform would be based in the new business park in Rose Belle, Mauritius. Mauritius leads investment flows into Zimbabwe According to the latest statistics (2009-2015) from the Zimbabwe Investment Authority, Mauritius is the biggest source of investment flows into Zimbabwe, accounting for projects worth $4.56 billion in the past 5 years. China is the second largest source country at $2.81 billion, followed by South Africa at $1.54 billion, India at $1.50 billion and Nigeria at $1.45 billion. Mauritius remains the preferred route for structuring foreign investments into Zimbabwe and other African countries with its political and socio-economical stability, internationally accepted and recognized rules and regulations, an educationally sound population, good infrastructure, free port and trouble free borders. 2016 DTOS P age 3
NEWS AT A GLANCE Mauritius and Madagascar signs three MoUs to further deepen relations The Prime Minister of Mauritius, Sir Anerood Jugnauth and the President of the Republic of Madagascar, Mr Hery Rajaonarimampianina, have signed three Memoranda of Understanding (MoUs) on the special economic zone, a General Framework for Cooperation and an agreement for the setting up of a Joint Commission between Mauritius and Madagascar. In order to encourage more investments in both the private and public sectors between both countries, several initiatives have been proposed including the setting up of special economic zones, the expansion of economic and commercial exchanges and the possibility of mutual visa exemption between the two countries. It has also been proposed for Madagascar to set up an office for trade and investment in Mauritius. Over the past two decades, several bilateral agreements have been concluded between Mauritius and Madagascar in the fields of investment, culture, air services and small and medium enterprises. Both countries will work towards further deepening the existing links mainly in the areas of agriculture, renewable energy, the fight against terrorism and piracy, tourism, and political stability in the region amongst others. Launch of the Air Corridor between Asia and Africa On March 11, 2016, Air Mauritius has opened its first direct Mauritius-Singapore flight marking the launch of The Air Corridor. Henceforth, there shall be three direct flights per week scheduled on Singapore (Monday, Wednesday and Friday). The Air Corridor project is an initiative of the Mauritian Government following the signature of a collaboration agreement between Air Mauritius and Changi Airport in October 2015. It aims to improve air connectivity, stimulate the growth of passenger and cargo traffic between Africa and Asia by using Mauritius and Singapore as hubs. In order to feed the African side of the Air Corridor, Air Mauritius is expanding its operations in Africa with two new destinations as from May this year, namely Dar es Salaam and Maputo. Mauritius signs a MOU and a BASA with Germany Mauritius has signed a Memorandum of Understanding (MoU) and a Bilateral Air Services Agreement (BASA) with Germany for enhanced air links between the two countries. This in turn will facilitate the movement of people and trade between the two countries. The new agreements make provisions for the following: Multiple designation of airlines 14 weekly frequencies to be operated by the designated airlines of each country Code sharing with domestic flights, and The Mauritian airline to operate 10 points in Germany Mauritius and Australia signed a Bilateral Air Services Agreement (BASA) Mauritius has signed a bilateral air services agreement (BASA) with Australia on February 4, 2016, with a view to facilitate the movement of people and goods between the two countries. The signature of the BASA between Mauritius and Australia creates the necessary framework to promote the development of air links and exchanges between the two countries. This will contribute towards improved trade, tourism and improved people-to-people links as well as help to further strengthen the ties between the two countries. 2016 DTOS P age 4
No. of GBC1 and GBC2 licensed in 2015 No. of GBC1 and GBC2 licensed in 2014 NEWSLETTER MAURITIUS GLOBAL BUSINESS STATISTICAL HIGHLIGHTS 2015 * Data exclude struck off GBCs * Data exclude struck off GBCs New GBC1's (Including Global Funds) and GBC2's licensed in 2015 New GBC1's (Including Global Funds) and GBC2's licensed in 2014 160 180 140 120 100 80 60 40 20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec GBC1 109 109 142 108 107 120 120 111 112 118 104 107 GBC2 97 104 112 134 103 113 136 120 96 113 81 99 160 140 120 100 80 60 40 20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec GBC1 84 69 101 107 102 116 103 84 134 105 144 110 GBC2 81 123 119 154 116 108 100 113 98 131 110 126 Percentage of Investments by Category 1 Global Business Companies Target Countries 2011 2012 2013 2014 Africa 40.12% 50.95% 54.43% 56.91% India 23.25% 15.87% 9.28% 8.70% China 2.62% 2.84% 1.80% 1.77% Asia 14.45% 12.77% 13.33% 12.10% America 4.37% 3.60% 5.04% 3.30% Europe 8.80% 9.54% 12.35% 14.01% Others 6.38% 4.42% 3.77% 3.20% Source: Financial Services Commission, Mauritius 2016 DTOS P age 5
Board of Directors Yann Duchesne Jimmy Wong Dipak Chummun DTOS Ltd is a leading service provider in the Global Financial Services Centre of Mauritius. It is a Management Company duly licensed by the Financial Services Commission (FSC) to provide inter alia, corporate, trustee and fund administration services. DTOS Trustees Ltd is a wholly owned subsidiary of DTOS Ltd and licensed by the FSC to act as qualified trustee and to provide trust-related services. Should you require any further information or have any specific query on the above, you may contact: DTOS Ltd 10th Floor, Standard Chartered Tower, 19 Cybercity, Ebene Mauritius Email: info@dtos-mu.com bd@dtos-mu.com Tel: +230 404 6000 Fax: +230 468 1600 Website: www.dtos-mu.com Disclaimer: The information in the newsletter was prepared by the professional staff of DTOS Ltd. The information given is not exhaustive and readers are advised to consult with professionals such as independent accountants, legal counsel and investment bankers before taking any formal action. DTOS Ltd will be pleased to discuss specific problems. Whilst all reasonable care has been taken in the preparation of this newsletter, DTOS Ltd accepts no responsibility for any errors it may contain, whether caused by negligence or otherwise, or for any loss, however caused, sustained by any person that relies on it. 2016 DTOS P age 6