Regulatory Updates

This Circular is being issued to all licensees under the International Corporate Service Providers Act, 2003, Mutual Fund and Hedge Fund Act, 2008 and Securities Act, 2007.

In its effort to streamline processes and to improve the service delivery standard in respect to the processing of Gainful Occupational Permit (“GOP”) applications (initial GOP applications of individuals proposed to be employed within the sector and any other applications submitted thereafter), the FSA has consulted the Ministry of Employment, Immigration and Civil Status (“Ministry”) in order to devise a more efficient manner in processing such applications, whereby the following has been agreed by the FSA and the Ministry

This Circular is being issued to all licensees under the Seychelles Gambling Act, 2014.

In its effort to streamline processes and to improve the service delivery standard in respect to the processing of Gainful Occupational Permit (“GOP”) applications (initial GOP applications of individuals proposed to be employed within the sector and any other applications submitted thereafter), the FSA has consulted the Ministry of Employment, Immigration and Civil Status (“Ministry”) in order to devise a more efficient manner in processing such applications, whereby the following has been agreed by the FSA and the Ministry:

Issued August 30th 2019

This advisory is issued by the Financial Services Authority (“FSA”) pursuant to section 4(1) m of the Financial Services Authority Act, 2013 (“FSA Act”) and is addressed to the general public and to potential investors in respect to the scope of the FSA’s regulatory function.

This circular aims at addressing practices observed in respect to specified entities  being subjected to fees agreed between a licensee under the International Corporate Service Providers Act, 2003 (“ICSP Act”) and  a third party.

As part of its function as the Regulator of non‐bank financial services being provided in or from within Seychelles, the Financial Services Authority (“FSA”) is mandated to protect the interest of the public in accordance with relevant legislations. The FSA’s purview also extends to the review of complaints against licensees to ensure that all licensees are operating in accordance with their obligations under the relevant legislations.

In undertaking its function in that regard, the FSA has observed an increase in complaints relating to specified entities being subjected to fees agreed between a licensee under the ICSP Act and a third party (in a majority of cases being Foreign Regulated Persons as defined by the Anti‐Money Laundering Act, 2006), whereby the specified entity had not been made aware nor agreed to such fees.

At this juncture, the FSA deems it necessary to inform all licensees that in line with the principle of privity of contract, the FSA’s position is that unless licensees are able to demonstrate that specified entities had been made aware and agreed to such fees, it shall not be subjected to same.

Therefore, for clarification purposes, note that licensees under the ICSP Act shall not refuse to provide the consent required per section 169(3) of the International Business Companies Act, 2016 for non‐payment of fees (including but not limited to transfer/exit fees) unless otherwise previously agreed by the licensee and specified entity through a service level agreement or any other documented method.