The Regulatory Sandbox Licence (RSL) is an initiative proceeding from the Mauritius 2016/2017 National Budget. The RSL regulation was promulgated under the Investment Promotion Act in October last year and the relevant guidelines were subsequently put in place.

The RSL is an innovative measure that offers the possibility for an investor to conduct a business activity for which there exists no legal framework, or no adequate provisions under existing legislation in Mauritius. The RSL allows for promising projects to be tested within set parameters, where such ventures were previously unable to start so long as a complete set of regulatory framework was not yet in place. This initiative, which opens the door for creativity to take wings and innovative projects to germinate, has been inspired from highly successful economies.

The RSL is issued by the Board of Investment (BOI) after consultation with the other relevant authorities and ministries and the terms and conditions attached to this particular licence are tailored to the proposed activity. Once the testing period is completed and upon demonstration of applicability, compliance and benefits of the project, the temporary framework may be used as basis for devising/ setting permanent regulations for these new industries.

As at date, the BOI has issued three RSL licences. ITL is proud to have successfully applied for and been issued, on behalf of ITOO Film Services Limited (ITOO), for an RSL pertaining to the introduction of the Completion Guarantee Bond in Mauritius. The Completion Guarantee Bond, although tried and tested in other countries, is a novel concept being introduced by ITOO in Mauritius with the aim of consolidating the foundation for a reliable ecosystem for the film industry. It is an arrangement whereby the Guarantor (ITOO) will ensure the completion and prompt delivery of the film or other audiovisual products in accordance with the script and schedule.

The other two RSL licences issued by the BOI include a licence issued to an online crowdlending platform and for the production of stem cells to be used in medical treatments.

As Mauritius aspires to become a high income economy, the RSL is a bold step taken to embrace innovation as a driving force for the country’s development.

The RSL is a unique opportunity for investors wishing to introduce groundbreaking business concepts in Mauritius, and ITL would be pleased to assist in these endeavours. For more information about the RSL, please liaise with your usual contact person at ITL or write to us on info@intercontinentaltrust.com.