New FSC Rules in respect of Family Office

Mauritius has, over the past two decades, attracted several high net worth individuals (HNWI) or even ultra-high net worth foreign investors to its shores. While most of these HNWI set up investment vehicles or trading vehicles through the Mauritian offshore sector, they also comprised a prospective new market for family office services. This potential new market, despite having existed for a long time in other jurisdictions, came to attention when in his 2016-2017 budget speech, the then Minister of Finance announced tax holidays for overseas Family Offices. But what exactly are family offices and why are they so popular?

To put it in simple terms, family offices manage the investments and assets of either a single high net worth family or several high net worth families. In addition, the family office can also handle non-financial issues such as private schooling, travel arrangements, and miscellaneous other household arrangements for their clients. It really acts as a one stop shop for services ranging from asset management to succession planning or advisory services. In March 2020, the Mauritian Financial Services Commission issued rules in relation to family offices in its Financial Services (Family Office) Rules 2020, which sheds more light on the criteria for applications in respect of the family office licence.

*SFO: means a holder of a Family office (Single) licence;

MFO: means a holder of a Family office (Multiple) licence;