Mauritius: The Variable Capital Company (VCC), introduced in 2022 in Mauritius, will encourage more funds to be domiciled in the country and enhance the international fund management centre, highlighted this morning, the Minister of Financial Services and Good Governance, Mr Mahen Kumar Seeruttun in Ebène.
He was speaking at the opening of an awareness session aiming to promote the visibility of the VCC for more financial investment in the country.
At the outset, Minister Seeruttun reiterated his continued commitment to enhancing the attractiveness and competitiveness of Mauritius as an International Financial Centre of repute, excellence and substance. Referring to the Financial Services sector as an important engine of growth, the Minister pointed out that it presently accounts for some 13.8% of the Gross Domestic Product. He emphasised that Government’s vision is to double this figure by 2030.
The Minister observed that the VCC concept has been very successful in other jurisdictions, such as Singapore, with approximately 160 VCCs established in the first year of the introduction. The VCC, he said, will benefit the economy and, ultimately, create attractive jobs for Mauritians.
Speaking about the features of the Mauritius VCC, Minister Seeruttun mentioned that it provides the flexibility of dividend distribution, including private equity structures, open or close-ended investment funds, hedge funds, and venture capital funds; taxation; variation of capital; and management.
As of the end of December 2022, there were 940 Global Funds which were set up and administered from Mauritius, he added.
The Minister further indicated that a number of International Financial Centres around the world have greatly benefitted from the introduction of the VCC in their palette of products. As such, he underlined, the Gujarat International Finance Tech City has set up a Committee of Experts to examine the feasibility of the VCCs in India.
Minister Seeruttun also dwelt on the need to rapidly move ahead in a bid to have a better understanding of this specialised product.
“As we deepen the financial sector and make it more competitive while better engaging with world markets and bringing more investment to Mauritius through the training arm of my Ministry, the Financial Services Institute will keep providing relevant training, awareness-raising sessions and career development opportunities for early and mid-career professionals, as well as for specialists in the sector”, he remarked.
It is recalled that a VCC is a company-type structure where activities may be segmented through sub-funds and Special Purpose Vehicles. A VCC incorporated in Mauritius needs authorisation from the Financial Services Commission to operate as a VCC Fund.