Generates video with AI, in Mauritius

Government Notice No. 128 of 2021, made by the Financial Services Commission under section 93 of the Financial Services Act (Mauritius) · Read the law's page

• It reaches you if you provide digital and personalized advisory services through a computer program or artificial intelligence enabled algorithms with limited human intervention, which the Rules call Robotic and Artificial Intelligence Enabled Advisory Services: do not carry out those services without a Robotic and Artificial Intelligence Enabled Advisory Services licence issued by the Financial Services Commission of Mauritius, and apply for it in accordance with Part IV of the Financial Services Act (clauses 2, 3 and 4). A person already carrying out the services when the Rules began had to apply within 3 months of commencement (clause 14).
• At all times keep your principal bank account in Mauritius, an office and relevant infrastructure in Mauritius, adequate internal controls, risk management (including cyber risk management) and governance policies and procedures, a business continuity and disaster recovery plan, a board of at least three directors with one independent director resident in Mauritius, an adequate number of competent officers, and a code of conduct and ethics that binds your officers (clause 5(1)).
• Preserve the integrity and privacy of clients' information in conformity with the applicable Data Protection Laws of Mauritius, and where clients' information is stored and processed through cloud computing facilities for analytics, keep it under adequate security and access controls, accessible to you at all times and to the Commission on request (clause 5(1)(e) and (2)).
• Maintain at all times a minimum unimpaired stated capital of MUR 600,000 or its equivalent in a foreign currency, and a professional indemnity insurance policy for at least MUR 2 million or a higher amount the Commission may determine (clauses 6 and 7).
• Keep clients' funds separate from your own, in an account with a duly licensed bank (clause 8).
• Conduct due diligence on your clients under the Financial Intelligence and Anti-Money Laundering Act, the Financial Intelligence and Anti-Money Laundering Regulations 2018 or similar regulations, and the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act, and make sure any investment advice given through your platform is suitable for the client after assessing the client's needs, objectives, financial situation and, to the extent relevant, risk tolerance, knowledge, experience and understanding of the risks involved (clause 9).
• Through your board, keep adequate policies, processes and controls so that your algorithms continue to perform as intended, a robust framework for designing, monitoring and testing them through periodic and random reviews, and competent officers to develop and review their methodologies even if that work is outsourced; do not outsource the key processes and management of your client-facing tools (clause 10).
• Give clients clear, fair and non-misleading information about your services, products, suitability method and risks, and disclose in writing any actual or potential conflict of interest (clause 11(1) and (2)).
• Enter into a service-level agreement with each client before providing any services, stating any exclusivity agreements and the conditions or triggers that can discontinue the service and allow human judgment to be used or to replace it; display the Commission's notice that it does not vouch for the correctness of information on your robotic or artificial intelligence interface and that clients are not protected by statutory compensation arrangements in Mauritius, in the agreement, on your website and on your platform; and obtain each client's written confirmation, before providing services, that the client understands the scope, nature, risks and limitations of the advisory services (clause 11(3) to (6)).
• Keep, in addition to the records required by section 29 of the Financial Services Act, a copy of the advice given and the output of the investment, the client information relied on to generate the advice, and details of all algorithms and software you use (clause 12).
• Submit audited financial statements for every financial year, and independent evaluation reports on your algorithms and software systems to the Commission at least once every two years from the date of your license and after any material change, seeking the Commission's prior approval before appointing the independent persons or experts (clause 13).