Robotic and Artificial Intelligence Rules in Mauritius
The Financial Services Commission (“FSC”) on 18 June 2021 issued the Financial Services (Robotic and Artificial Intelligence Enabled Advisory Services) Rules 2021 (the “Rules”). These Rules are in line with the objectives of the Ministry of Finance in promoting Mauritius as a reputable FinTech hub and also by providing a conducive regulatory framework to support the adoption of new and emerging technologies by licensed service providers in Mauritius.
The holder of a Robotic and Artificial Intelligence Enabled Advisory Services licence will, pursuant to these Rules, be entitled to provide advisory services through expert systems and/or computer programs using artificial intelligence enabled algorithms, with limited human intervention.
The following rules have been introduced or amended to cater for this licence:
- The Financial Services (Robotic and Artificial Intelligence Enabled Advisory Services) Rules 2021
- The Securities (Investment Advice) Rules 2021
- The Securities (Solicitation) (Amendment) Rules 2021
- The Financial Services (Consolidated Licensing and Fees) (Amendment No. 3) Rules 2021
HOW CAN RENESIS ASSIST YOU?
Being a regulated entity in Mauritius and licensed by the FSC, Renesis can assist you in the following services.
- Company formation for RAIEAS
- Assistance for bank account opening
- Assistance in compliance services (Due Diligence, CRS and FATCA reporting)
- Assistance for application of data protection certificate.
- Company secretarial services.
- Directorship services and Board Meetings
- Preparation of resolutions
- Accounting services (preparation of financial Statements, liaising with auditors, FS and Tax Filing and other administrative and accounting services)
REQUIREMENTS FOR ROBOTICS AND ARTIFICIAL INTELLIGENCE ENABLED ADVISORY SERVICES LICENCE
| 1. | Application for a licence | No person should carry out Robotic and Artificial Intelligence Enabled Advisory Services (RAIEAS) without a Robotic and Artificial intelligence Enabled Advisory Services Licence issued by the Financial Services Commission of Mauritius. |
| 2. | General obligations | The entity holding the RAIEAS should: Have its principal bank account in Mauritius. Establish an office and relevant infrastructure for the carrying out of RAIEAS in Mauritius. Implement adequate internal controls, risk management (including cyber risk management), and governance policies and procedures. Put in place a business continuity and disaster recovery plan. Preserve the integrity and privacy of its clients’ information in conformity with the applicable Data Protection Laws for Mauritius. Be managed by a board of directors consisting of a minimum three directors, one of whom shall be an independent director and a resident of Mauritius. Employ an adequate number of officers with adequate competence, experience, and proficiency and commensurate with the size, nature and complexity of its services; and Have a place such code of conduct and ethics which shall be binding on its officers in relation to the provision of its services. |
| 3. | Minimum capital requirements | The RAIEAS should have a minimum stated capital of MUR 600,000 or its equivalent in another currency at all times. |
| 4. | Professional Indemnity insurance | The licensee should have professional indemnity insurance to indemnify the company employees and a person acting on his behalf against liability for the sum of at least MUR 2 million or higher amount. |
| 5. | Segregated Accounts | The Licensee should also always have a separate account from the client’s funds and the funds should be in duly licensed bank. |
| 6. | Due-Diligence Obligations | The licensee should conduct due diligence on its clients in accordance with: 1. Financial Intelligence and Anti Money Laundering Act. 2. Financial Intelligence and Anti Money Laundering Regulation 2018 or any similar Regulation made under the Financial Intelligence and Anti Money Laundering Act; and 3. Financial prohibition against listed parties under the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanction Act. |
| 7. | Robust Framework | In addition, the board of directors (the Board) should ensure that the licensee has adequate policies and control to ensure that algorithms are performing as intended as well as a framework for design and monitoring of the algorithms for periodic or random reviews. The Board should also be ensured that there are competent offices to develop and review algorithms even if the functions are outsourced. No licensee shall be allowed to outsource the key processes and management of their client facing tools. |
| 8. | Service Level Agreement | A licensee shall enter into a service-level agreement with its clients before providing any services to the clients. The service-level agreement shall contain the following information: any exclusivity agreements which may have been entered by the licensee with a particular financial services provider in relation to the provision of its services; and specific conditions or triggers which can result in the discontinuation of its services and possible use or replacement of human judgment. Prior to providing any services, a licensee shall obtain a written confirmation from its clients that they understand the scope and nature of the advisory services together with the associated risks and limitations. |
| 9. | Record Keeping Obligations | The licensee shall maintain: A copy of the advice provided through RAIEAS and the output of the investment. Information received from the client which was relied on to generate advice Details of the algorithms and software used by licensee. In addition, a licensee is mandated to submit the followings: Audited financial statement according to S30 of FSA. Independent evaluation reports about algorithms and software systems once every 2 years from the date of licence or following any material changes. The Rules also require licensees to seek prior approval before appointing independent persons or experts who shall be assigned these responsibilities. |
| 10. | Transactional Provisions | Any person who was carrying our RAIEAS in Mauritius before commencement of the rules, should within 3 months of the commencement of these rules apply for the RAIEAS license Failure to apply for the licence will result in an offence. |
