October 27, 2026
The FSC has updated its Disclosure and Reporting Guidelines for ESG Funds. Originally issued in March 2025 to curb greenwashing, this October 2026 revision brings crucial clarity regarding the qualifications of Independent External Certifiers.
Here is a breakdown of the core regulatory requirements:
The 2/3 Rule: Applies to authorized Collective Investment Schemes (CIS) and Closed-end Funds where at least two-thirds (2/3) of the Net Asset Value (NAV) is ESG-focused. Non-compliance must be rectified within 90 days.
Naming Protection: Only registered ESG Schemes can use terms like 'ESG', 'Green', 'Sustainability', or 'Environment' in their names or marketing materials.
Enhanced Disclosure: Offering documents must detail ESG objectives, strategies, metrics, asset allocations, reference benchmarks, and associated risks. Continuous monitoring mechanisms must also be published on the fund's website.
Annual Sustainability Reports: Funds must submit an annual report to the FSC and its investors.
Mandatory Third-Party Certification: Annual reports must be accompanied by an independent third-party certification confirming investment compliance with the offering document.
New Funds & Changes: New or transitioning funds must provide an independent third-party or self-certification aligning objectives with UN SDGs or accepted goals.
To guarantee proper expertise, the certifier must be:
An Audit Firm registered with the Financial Reporting Council.
A Credit Rating Agency licensed or recognized by the FSC.
An Assurance, Specialised ESG, or Impact Verification Firm accredited by an acceptable international professional or regulatory body.
This update reinforces Mauritius's position as a transparent international financial hub committed to sustainable finance and robust investor protection.
For more details/information, please see original document. Click on link to view full document released.
Disclosure and Reporting Guidelines for ESG Funds (PDF)
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