Mauritius FSC New KTC Regime: Reducing Duplication, Enhancing Compliance

The Mauritius Financial Services Commission has introduced the “Known to the Commission” (KTC) concept, a new regulatory mechanism aimed at reducing duplication and streamlining approval timelines by allowing reliance on screening and due diligence information already held by the regulator.

At launch, the KTC framework applies to Investment Funds and Investment Adviser licences (Restricted and Unrestricted), covering applicants as well as relevant officers and beneficial owners who the FSC has already vetted

Below is a concise briefing document on the introduction of the “Known to the Commission” (KTC) concept by the Mauritius Financial Services Commission (FSC), incorporating all key elements supported by current publicly available sources.

Briefing Document: Introduction of the “Known to the Commission” (KTC) Concept

1. Overview

The Financial Services Commission (FSC) of Mauritius has introduced the “Known to the Commission” (KTC) concept as part of the Government’s 2025/2026 National Budget measures, with the framework becoming effective on 5 January 2026.

https://www.fscmauritius.org/media/211722/circular-letter-known-to-the-commission.pdf

The purpose of KTC is to streamline regulatory processes, reduce administrative duplication, and improve turnaround times, while maintaining robust regulatory oversight.  

KTC allows the FSC to rely on existing due‑diligence information already held on individuals or entities that have previously undergone regulatory screening. This forms part of Mauritius’ broader initiative to modernise supervision, enhance efficiency, and adopt a more risk-based regulatory approach.  

2. Scope of Application (Initial Phase)

At the early implementation stage, the KTC framework applies only to the following:

• Entities holding or applying for:
• Investment Funds licences
• Investment Adviser (Restricted) licences
• Investment Adviser (Unrestricted) licences
• Relevant officers and beneficial owners of the above entities

This targeted approach reflects a phased rollout to ensure controlled adoption within sectors already accustomed to regular FSC reporting and due‑diligence expectations.

3. Criteria for Being “Known to the Commission”

An applicant (entity or individual) is considered “Known to the Commission” when all of the following criteria are met:

a) Valid FSC Licence for at least 3 years

The applicant must have held one or more valid financial services activity licences under the Financial Services Act or any other Act listed in its First Schedule for at least the past three years.  

b) Good Regulatory Standing

The applicant must be in good standing with the FSC, meaning:

• All statutory fees are up to date
• Reporting obligations have been met
• No adverse findings, red flags, or negative screening results have been recorded  

Additionally, the FSC must already hold the relevant due‑diligence information on file.  

4. Procedural Implications

The introduction of KTC brings several significant operational changes:

4.1. Validity of the Personal Questionnaire (PQ)

Under KTC, the FSC has amended Rule 7 of the Financial Services (Consolidated Licensing and Fees) Rules 2008 to allow a Personal Questionnaire (PQ) to remain valid for up to two years, provided no material changes have occurred. Previously, PQs often required more frequent updates.  

The FSC retains the right to request updated PQs where necessary.

4.2. Requirement for a Letter of Confirmation & Undertaking

To utilise KTC, applicants must file a Letter of Confirmation/Undertaking, signed by:

• One Director or Alternate Director
• The entity’s Compliance Officer

This letter must confirm:

• Licence tenure and good standing
• No material changes to existing PQ information
• Availability of supporting due‑diligence documents (CDD, passport copies, screening evidence)
• An undertaking to notify the FSC of any material changes

The FSC provides a standard template.   

5. Purpose and Expected Impact

The KTC framework is designed to deliver the following benefits:

5.1. Enhanced Efficiency

By reducing repeated due‑diligence submissions for established operators, KTC is expected to lead to:

• Faster processing times
• Reduced administrative burden for licensees
• Streamlined approval workflows

5.2. Continued Regulatory Robustness

KTC does not weaken supervisory standards. The FSC may still:

• Request updated documents
• Seek clarification
• Conduct additional screening at any stage

Thus, the initiative emphasises efficiency without compromising oversight.

5.3. Alignment with Broader Reform Agenda

The introduction of KTC aligns with Mauritius’ broader financial‑sector modernisation initiatives, including:

• Unified e‑licensing platforms
• Centralised KYC repositories
• Efforts to enhance ease of doing business and regulatory turnaround times

6. Conclusion

The “Known to the Commission” concept represents a significant regulatory evolution for Mauritius, aimed at improving efficiency and reducing duplication for established licensees. While initially limited in scope, the framework lays the foundation for broader application across the financial services sector. It supports Mauritius’ ambition to enhance its position as a modern, well-regulated international financial centre.

SOURCE

• https://www.axis.mu/uplds/Axis-Newsbite-KTC.pdf
• https://www.linkedin.com/posts/acrioncompliance-ltd_acrion-newsflash-ktc-activity-7417889713811914752-fiHT?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAA_6EIB0wPAWyjQcuq_XiD3asUV8xpMeZ0
• [platformafrica.com]
• Assadullah Durbarry = https://www.linkedin.com/pulse/mauritius-fsc-introduces-known-commission-ktc-what-licence-durbarry-drn8f/