Do you believe there is the need for clear corporate governance measures for
international financial centres?
Good governance is the key...for development.
- Without good governance, you will not attract capital flows needed for development;
international operators will not set up their business in such centres because of
- For an IFC to develop, what governance means must be clear and explicit in all dimensions,
namely political, economic and institutional.
- Basically the ingredients that build CREDIBILITY - TRUST and CONFIDENCE.
How does the FSC ensure that corporate governance principles are implemented
FSC Mauritius is the integrated regulator for non-banking financial services and
The policies of the Commission are geared to safeguarding the reputation of our
jurisdiction and ensuring fairness, accountability and transparency, considered
as pillars of Corporate Governance and also referred to as the ‘regulation
These policies are implemented at various stages:-
- in rules, codes and guidelines issued, for example our circular on implementation
of the code, circular on directorship, reminding directors of their duties and responsibilities
- at licensing stage, as part of the licensing conditions
- at post-licensing stage when approval of the FSC is required for appointment of
directors and change in shareholders, during reviews of statutory returns and when
carrying out on-site inspections; and
- through enforcement actions if there is non-compliance with laws.
FSC also collaborates with other authorities and institutions, for example with
- The Bank of Mauritius – for financial stability and prudential matters (both institutions
are member of the FSB – RCG of the Sub-Saharan Africa)
- The Financial Reporting Council which has oversight over financial reporting and
corporate governance by public interest entities and auditors.
- The Financial Intelligence Unit (FIU) for AML/CFT efforts (Combating Money Laundering
and Terrorist Financing)
Another important aspect of implementation - we consult our stakeholders and their
associations on new developments, international requirements and standards and new
We conduct workshops to build the capacity needed to meet the changing landscape.
Are the corporate governance principles implemented in Mauritius in observance
of international norms and standards?
As I stated earlier, I believe better governance leads to higher economic growth.
For economic development we need investors, institutions and all other operators
to believe in our financial system. Just ‘saying so’ is not enough.
Governance can now be measured – the IMF has aggregate
governance indicators which measure various dimensions of governance, such as
- voice and accountability;
- political stability and the absence of major violence and terror;
- government effectiveness;
- regulatory quality;
- rule of law; and
- control of corruption.
We also have the Mo Ibrahim Index of African Governance –which looks at
- Safety and rule of law;
- Participation and Human Rights;
- Sustainable Economic Development; and
- Human development
At a micro level –enterprise – Our Code of Corporate Governance is based on OECD
principles – that is, it deals with
- Responsibilities of the Board
- Disclosure and Transparency
- Shareholders’ rights and ownership
- Equitable treatment of shareholders
- Role of Stakeholders
- Enforcement and Institutional Framework
The Mauritius Corporate Governance Policy framework is assessed by Peers and International
institutions. A first assessment - World Bank ROSC (Report on Observance of Standards
and Codes) was done in 2002 and updated in 2010. Such assessments allow us and investors
to benchmark the Corporate Governance practices in Mauritius against international
standards and bring the necessary improvements.
There isn’t one model and it is not a ‘one size fits all’, but
most adhere to the same principles, namely accountability, fairness and transparency.