The FSA will be restructured to enable it to adapt with the on-going changes in the regulatory landscape and the envisioned long-term growth of the organisation, and the non-bank financial services sector as well. The re-organisation will aim to improve FSA’s operating efficiency, facilitate decision making and enable better communication both internally and externally.

The restructuring which consist of re-classifications and re-organisation of existing roles and also the creation of new roles and functions, forms part of the organisation’s strategic realignment to create a modern and well-structured organisation. This will result in a more effective arrangement of functions to allow it to attend more effectively to the Authority’s mandate.

The following changes to the organisation will become effective as of 1^st of August 2021.

• Converting the ‘Legal Unit’ and ‘Communications Unit’ into independent Units away from the Policy Unit. This will allow the two units to provide a more coherent support to the overall organisation.

• Restructuring of the Policy and Legal Section into the ‘Policy, Research and Statistics Section’ and catering for two responsibilities in the newly restructured section; a ‘Product Development Unit’ and a ‘Policy and Statistics Unit’. Emphasis is to be given to carrying out extensive research into development of new products that would be relevant to the Seychelles financial services for the industry to potentially adopt. Existing enabling laws are also under review to bring them at par to international standards to meet the respective industry’s current operating environment and enforce supervision.

• The AML/CFT as a stand-alone unit from the Fiduciary Supervision will ensure that the Authority’s supervisory purview can be better administered through sectorial risk assessments and enforcing mitigating measures to address the identified risks in the relevant sectors.

• Creation of a new Risk Management Unit to mitigate potential threats to the financial stability of the authority, operational efficiency, reputation so as to ensure compliance with local and international financial services legislations.

• The Insurance and Pension Supervision have been merged with the Gambling Supervision to enrich and enlarge the responsibilities of these functions, in order to also maximize the resources of the authority.

Following the closure of the China’s representation Office on 1^st July 2021 following a review of the office operations, the restructuring will be followed by the launch of the FSA’s Strategic Plan 2021 – 2025, in the coming months. The new structure is aimed to align the organization with the transformation and vision that is expected to be brought by the new management.

The FSA as the autonomous regulatory body responsible for non-bank financial services in the Seychelles remains committed to meeting strategic objectives while maintaining soundness and resilience of the financial services sector and adhering to international norms and standards.

The organisation structure can be found here.

Financial Services Authority

The newly appointed Chief Executive Officer of the FSA, Mr. Damien Thesée, the Deputy CEO, Ms. Zenabe Daman and other representatives of the FSA held a virtual meeting with the vice-chairperson of the Seychelles International Financial Services Association (SIFSA), Mrs. Tatiana Balabanova on the 13^th May, 2021. The invitation was extended to Mrs. Balabanova to be introduced and to give her the opportunity to raise and discuss, with the new management, the key challenges currently being faced by the CSPs. SIFSA is an independent organization representing voluntary members of Corporate Service Providers and Trustees (CSPs) operating in the Seychelles.

Mr. Thesée expressed the need to transform the authority to ensure it places focus on its primary role as a regulator, whilst also ensuring that the sector continues to thrives. Whilst the Authority has been more reactive previously in regards to its regulatory mandate, it is now important that we ensure we mitigate such risks that is associated with the financial sector.

In addition, the new CEO advised that the Authority is currently engaged in reviewing certain of its financial services products, as well as working on its strategic plan, which it will engage with the Industry to share their contributions.

Some of the pertinent issues raised were in regards to the industry’s effective compliance with the ever-ending changes in the legal landscape such as amendments under the Beneficial Ownership Act and the Anti-Money Laundering and Countering the Financing of Terrorism Act. It was highlighted that members of the industry, especially the smaller CSPs, have expressed major concerns as a result of not having the adequate resources to keep up with the ever-changing requirements. This is especially important now in view that the most efficient system requires IT intervention and there is a lack of human capacity in that area.

Concerns regarding the introduction of new products was raised by Mrs. Balabanova. It was pointed out that, despite having a work plan put in place 3 years back by the FSA Products and Legislation Committee (a committee set up by the FSA comprising of private sector representatives to assist in the development of the financial services industry in the Seychelles), which included the development of new products, the Authority had been preoccupied with other priority matters such as those concerning the OECD standards, EU standard and FATF standard. The Authority acknowledged that although it is of paramount importance to change existing laws it is equally important to develop new products, and therefore agreed to allocate more resources in that regard.

Mrs. Balabanova also stated that the industry welcomes the consultation process set forth by the Authority but that it needs to be improved in terms of putting in place a more formal structure and clear processes to make it more efficient and effective for quality results.

Another area where the industry feels that the Authority can improve its efficiency is in providing timely responses to licensees regarding its position on certain legal matters.

Overall, the matters raised were well received and the new CEO reassured Mrs. Balabanova of the Authority’s continued support and engagement with the industry as they work towards the most effective solutions to meet the industry’s needs.

As part of its function as the Regulator for non-bank financial services, the FSA is committed to maintain contact and develop good relations with industry partners and stakeholders for the effective regulation and development of the sector.

The Financial Services Authority (FSA) and Seychelles Revenue Commission (SRC) have taken a step further to increase greater collaboration and coordination in the discharge of their regulatory and supervisory functions between both parties by signing a new Memorandum of Understanding (MoU).

The MoU has been built based on the mutual concern that both authorities have in relation to nonbanking financial services in Seychelles and this will enable them to consult regularly regarding their supervisory requirements and issues of relevance to the interest of both authorities.

The MoU also sets forth the intent of both parties to establish a framework to the full extent on cooperation permitted by regulations and rules under each authorities’ mandate, principally for: -

   i. the exchange of information pertaining to tax, accounting records and ownership of licensees;

   ii. the exchange of information and data in line with the monitoring substantial activity as per the OECD’s requirements for licensees that falls under the Securities Act and Mutual Fund and Hedge Fund Act;

   iii. the exchange of information and data in relation to European Union’s requirements for monitoring of economic substance that would be coming to force in the near future;

In a nutshell, all the above would ensure compliance by collaborating and to conduct risk-based supervision through onsite inspections and exchange relevant information and findings.

The MoU was signed by the FSA’s Chief Executive Officer, Dr. Steve Fanny and SRC’s Commissioner General, Mrs Veronique Herminie.

National Anti-Money Laundering and Countering the Financing of Terrorism Committee holds second meeting

Tuesday 12th March 2019: The National Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Committee, has started work towards its objective of strengthening the Seychelles’ AML/CFT  framework.

Email: procurement@fsaseychelles.sc