Collective Investment Schemes (CIS)

Service Overview

Mauritius has developed a strong regulatory framework under the Financial Services Commission (FSC) to support a wide range of investment fund structures. Among these, Collective Investment Schemes (CIS) and Closed-End Funds (CeF) are popular vehicles for pooling investor capital to pursue diverse investment strategies.

What is a Collective Investment Scheme (CIS)?

A Collective Investment Scheme is an investment fund that pools money from multiple investors to invest in a diversified portfolio of assets, managed by a professional fund manager. The main goal is to provide investors access to a professionally managed portfolio with economies of scale, risk diversification, and regulatory oversight.

Types of CIS in Mauritius

• Open-ended CIS: Investors can subscribe and redeem units or shares regularly (e.g., mutual funds, expert funds)
• Closed-ended CIS: Investors commit capital for a fixed period, with limited or no redemption rights during the fund’s life (e.g., private equity funds, real estate funds)

Features and Benefits of CIS in Mauritius

• Regulated by the FSC under the Securities Act 2005, ensuring investor protection
• Flexible fund structures catering to retail, professional, and expert investors
• Attractive tax environment with possible tax exemptions on fund income
• Ability to invest across a broad range of asset classes globally
• Access to a growing investor base in Africa, Asia, and Europe
• Professional fund governance and administration requirements to ensure transparency and accountability

What is a Closed-End Fund (CeF)?

A Closed-End Fund is a specific type of CIS with a fixed pool of capital raised through an initial offering. Unlike open-ended funds, investors cannot redeem shares at will; instead, shares are typically traded on secondary markets or through private transactions.

Key Characteristics of Closed-End Funds

• Fixed Capital: Fixed number of shares or units issued at launch
• Locked-in Period: Fund capital is generally locked-in for a defined investment period
• Illiquid Investments: Suitable for illiquid investments like private equity, real estate, infrastructure, or venture capital
• Distributions: May offer periodic distributions but usually targets capital appreciation over the life of the fund
• Exit Strategy: Fund winding up or exit event occurs at the end of the fund term

Regulatory Framework for CIS and CeF in Mauritius

• Both CIS and CeF must be licensed and registered with the FSC
• Managers of these funds (CIS Managers) require FSC licensing and are subject to capital adequacy, compliance, and governance standards
• Funds must appoint independent auditors, custodians, and Fund administrators to ensure robust operational controls
• Funds and managers comply with anti-money laundering (AML), counter-financing of terrorism (CFT), and other regulatory standards
• Reporting requirements include periodic financial statements, investor reports, and regulatory filings

How Helm Services Ltd Supports CIS and CeF Structures

At Helm Services Ltd, we offer end-to-end solutions to fund sponsors and managers seeking to establish, license, and operate CIS and Closed-End Funds in Mauritius:

• Fund Structuring & Licensing: Advising on appropriate fund types and jurisdictional advantages; preparing and submitting FSC license applications
• Governance & Compliance: Designing and implementing governance frameworks, AML/CFT policies, risk management, and investor disclosure documents
• Fund Administration: Coordinating NAV calculations, investor relations, subscription and redemption processing (for open-ended funds), and distributions
• Regulatory Reporting: Managing timely filings and liaising with the FSC, auditors, and other stakeholders
• Director & Substance Services: Providing qualified local directors and officers where required, ensuring compliance with Mauritius’ economic substance requirements
• Investor Relations Support: Assisting with onboarding, documentation, and communication to ensure transparency and trust

Why Choose Mauritius for Your CIS or Closed-End Fund?

Mauritius provides a strategically located, business-friendly, and well-regulated environment with:

• Access to a network of over 40 Double Taxation Avoidance Agreements (DTAAs)
• Political and economic stability with an English common law legal system
• Efficient licensing and regulatory processes with FSC oversight
• Competitive costs and availability of experienced professional services
• Opportunities to tap into growing markets across Africa, Asia, and beyond

Contact Helm Services Ltd to explore how we can assist you with the setup and ongoing management of your Collective Investment Scheme or Closed-End Fund in Mauritius.