MAURITIUS: FSC PUBLISHES ANSWERS TO FREQUENTLY ASKED QUESTIONS ON VARIABLE CAPITAL COMPANIES
On 4 July 2022, the Financial Services Commission (FSC) issued a set of Frequently Asked Questions (FAQs) on Variable Capital Companies (VCCs) following the coming into force by proclamation of the Variable Capital Companies Act 2022 on 16 May 2022.
The FAQs set out further explanation on VCCs and their application, notably among others:
- the type of sub-funds that can be operated by a VCC;
- the activities that can be conducted by a Special Purpose Vehicle (SPV);
- the difference between a VCC Fund and an Umbrella Fund /Protected Cell Company;
- the application procedure;
- who can be a Promoter of a sub-fund/SPV;
- the AML/ CFT requirements applicable to VCCs;
- when a VCC can appoint directors; and
- the appointment of the functionaries and service providers of a VCC.
The FAQs also set out the fees applicable for a VCC Fund and clarify that the VCC Fund will have to pay the fees payable by a Global Business Company if it holds a global business licence.
The FSC has clarified that while the FAQs aim to provide guidance to applicants, they are for informational purposes only and should always be read together with the relevant applicable legislation.