The Seychelles Financial Services Authority (FSA) is an independent regulatory authority responsible for regulating and overseeing the international non-bank financial services sector in Seychelles.
The FSA was established by the Financial Services Authority Act 2013, and is primarily responsible for licensing, monitoring, and supervising financial services providers, ensuring compliance with the local laws and international standards.
The Authority regulates several areas, including fiduciary services, capital markets, collective investment schemes, insurance, gambling (including casinos, slot machines, and interactive gaming), and international trade zones.
The Authority also issues and administers international business companies (IBCs), foundations, limited partnerships, and international trusts, which makes Seychelles a favorable jurisdiction for global business.
Development and Background
The FSA traces its origins back to 1994, with the establishment of the Seychelles International Business Authority (SIBA).
Initially, SIBA had a finite role to monitor, supervise, and promote international business from Seychelles.
However, as the financial sector evolved and demand for greater transparency and accountability emerged, the SIBA Act was repealed and replaced with the Financial Services Authority Act, 2013.
This transition was a significant step towards building a modern, practical, and robust regulatory framework intended to promote investor confidence and better the reputation of Seychelles as an international financial services jurisdiction.
To this day, these principles remain in place at the FSA, which has proceeded with over 25 years of financial sector regulation.
Mandate and Objectives
The FSA operates under the Financial Services Authority Act, 2013, and has a mandate to:
• License, monitor, and regulate entities operating in or from the non-bank financial sector in Seychelles.
• Administer registries for IBCs, foundations, partnerships, and trusts.
• Develop legal and supervisory frameworks for the regulation of the financial sector to improve efficiencies and effectiveness.
• Educate and inform the public about financial services and the role of the FSA to ensure a safe and secure place for business.
• Take enforcement action against unlicensed operators conducting financial services business without permission.
These objectives underscore the FSA's commitment to fostering a stable, transparent, and resilient financial system in Seychelles, thereby demonstrating international best practices.
Main Functions
The FSA has several primary functions for measuring trust and efficiency in the financial markets of Seychelles:
• Licensing and Regulation
FSA issues the licenses for service providers in fiduciary services, capital markets, investment funds, and all levels of insurance that are regulated and licensed by the FSA.
• Market Oversight and Supervision
The FSA maintains oversight of day-to-day operations to ensure compliance with legal and regulatory obligations, while ensuring a high standard of professional conduct is maintained.
• Policy and Framework Development
The Authority continually assesses its regulatory framework to keep pace with the evolving financial landscape, meeting the demands of international partners and investors.
• Consumer and Investor Awareness
The FSA recognizes the varying levels of awareness among investors and businesses and assures them by educating and providing information to assist with understanding, enabling them to make informed decisions.
• Compliance and Enforcement
The FSA investigates misconduct and, as necessary, takes action against providers or individuals deemed to be operating unlawfully, maintaining Seychelles' reputation as a secure and well-regulated jurisdiction.
Seychelles as a Financial Services Global Hub
The Seychelles has established itself as a preferred backdrop for international business and investment, primarily due to the modern regulatory approach by the FSA.
The Authority works to balance delivering growth to the business community while protecting credibility and compliance, ensuring that Seychelles remains an attractive, credible, and competitive jurisdiction on the World stage.
The FSA ensures that Seychelles continues to be viewed as a credible centre for providing financial services by upholding internationally accepted norms and standards in regulatory oversight and policy implementation, and delivering secure,risk-aware, and fair services and innovation.
