Financial Services (Peer to Peer Lending) Rules 2020

The Financial Services (Peer to Peer Lending) Rules 2020, made by the Financial Services Commission (FSC) and effective from 15 August 2020, introduced a dedicated licensing and conduct regime for peer-to-peer (P2P) lending platforms in Mauritius. P2P lending connects borrowers directly with lenders through an online platform, and these Rules brought that activity within the FSC's regulatory perimeter as part of a broader push to position Mauritius as a fintech hub. Scope and applicability: the Rules apply to any person operating, or seeking to operate, a peer-to-peer lending platform in or from Mauritius. An operator must hold a peer-to-peer lending licence from the FSC. The Rules define the permitted activity, the operation of an electronic platform that matches lenders with borrowers, and set the boundaries within which platforms may facilitate loans. Core obligations: licensees must meet minimum capital and fit-and-proper requirements, maintain adequate governance, risk-management and operational systems, and segregate client money from the operator's own funds. The Rules impose due-diligence and disclosure obligations, platforms must assess and disclose the risks of loans to lenders, carry out borrower credit assessment, and provide clear, fair and non-misleading information including on default rates and fees. They set requirements on credit-risk management, handling of defaults, conflicts of interest, business continuity, data protection and AML/CFT. Caps and limits may apply to lender exposure to protect retail participants. Supervision and enforcement: the FSC supervises licensees through reporting and statutory returns, inspection and audit, and may impose conditions, administrative penalties, and suspension or revocation of a licence for breach. Operating a P2P lending platform without a licence is an offence under the financial services framework. The Rules form part of the FSC's fintech licensing suite, alongside the Crowdfunding Rules 2021 and the robotic/AI-enabled advisory services framework, and complement the Bank of Mauritius's payments regime.

1. 1Requires an FSC peer-to-peer lending licence to operate a P2P platform in or from Mauritius
2. 2Minimum capital, fit-and-proper, governance and operational-systems requirements
3. 3Mandatory segregation of client money from the operator's own funds
4. 4Borrower credit assessment and clear risk disclosure to lenders, including default rates and fees
5. 5Conflict-of-interest, default-handling, business-continuity, data-protection and AML/CFT obligations; limits may apply to lender exposure
6. 6FSC supervision through returns, inspection and audit, with power to penalise, suspend or revoke licences