Financial Services (Crowdfunding) Rules 2021
mu-crowdfunding-2021 · Regulation
The Financial Services (Crowdfunding) Rules 2021, made by the Financial Services Commission (FSC) and effective from 4 September 2021, establish a licensing and conduct regime for crowdfunding platforms in Mauritius. Crowdfunding raises capital, typically equity or debt, from a large number of investors through an online platform, and these Rules brought that activity under FSC supervision as part of the jurisdiction's fintech licensing suite. Scope and applicability: the Rules apply to any person operating, or seeking to operate, a crowdfunding platform in or from Mauritius. An operator must hold a crowdfunding licence from the FSC. The Rules define the permitted activity, the operation of an electronic platform that facilitates the raising of funds from investors for issuers/project owners, and distinguish the roles of platform operator, issuer and investor. Core obligations: licensees must satisfy minimum capital and fit-and-proper requirements, maintain sound governance, risk-management and operational systems, and segregate investor money from the operator's own funds. The Rules impose due-diligence duties on the issuers and offers admitted to the platform, require clear, fair and non-misleading disclosure of investment risks, fees and issuer information, and may set limits on the amounts an issuer may raise and on individual (particularly retail) investor exposure. They address conflicts of interest, custody of funds, complaints handling, business continuity, data protection and AML/CFT compliance. Supervision and enforcement: the FSC supervises licensees through statutory returns, reporting, inspection and audit, and may impose conditions, administrative penalties, and suspension or revocation of a licence for breach. Operating a crowdfunding platform without a licence is an offence under the financial services framework. The Rules complement the FSC's Peer to Peer Lending Rules 2020 and virtual asset framework and form part of Mauritius's broader strategy to develop a regulated fintech ecosystem.
- Requires an FSC crowdfunding licence to operate a crowdfunding platform in or from Mauritius
- Minimum capital, fit-and-proper, governance and operational-systems requirements
- Mandatory segregation of investor money from the operator's own funds
- Issuer/offer due diligence and clear risk, fee and issuer disclosure to investors
- Possible caps on issuer fundraising and on individual/retail investor exposure
- Conflict-of-interest, custody, complaints, business-continuity, data-protection and AML/CFT obligations; FSC may penalise, suspend or revoke licences