Mauritius to amend Stock Exchange (brokerage) regulations

The Minister of Financial Services and Good Governance will soon promulgate the Stock Exchange (Brokerage) (Amendment) Regulations 2022, under the Securities (Amendment) Act 2021.

According to 22 January Cabinet papers, the proposed amendments to the existing Stock Exchange (Brokerage) Regulations intend to provide for an appropriate Regulatory framework for all licensed Securities Exchanges and Clearing and Settlement Facilities to be able to apportion the brokerage fees for securities transactions notably for equity.

In view of the fact that currently there is more than one Securities Exchange and each one has its own licensed Clearing and Settlement Facility to clear and settle transactions, the Financial Service Commission (FSC) has called for the “apportionment of the brokerage fees so that the appropriate fees are paid to the relevant Clearing and Settlement Facility.”

The new Regulations provide for each investment dealer to determine its own brokerage fee.

The FSC will also amend its Rules which relate to Brokerage Fees to give effect to the proposal of allowing intermediaries to set their own fees.