The Financial Services Authority hereby gives notice to the general public, pursuant to section 28(2)(c) of the Financial Services Authority Act, 2013, that the general insurance licence held by Falcon Insurance Limited has been revoked pursuant to section 110 (1) of the Insurance Act, 2008, effective February 8^th, 2024.

Therefore, note that effective February 8^th, 2024, Falcon Insurance Limited no longer holds the above-mentioned licence.

Financial Services Authority

What are Virtual Assets?

Virtual assets more commonly referred to as crypto assets/ crypto currencies, refer to any digital representation of value that can be digitally traded, transferred or used for payment, but excluding digital representation of fiat currencies, securities, and other financial assets.

What are Contracts for Differences (“CFD”)?

CFD is a leveraged product which is traded over the counter. This can be for a long or short position contract, where the person investing and the dealer (the person making the offering) agree to exchange the difference in the open and closing prices of the underlying asset, with no transfer of ownership of the underlying asset, which in this instance would be the Virtual Asset.
These assets can range from, but not limited to, stocks, indices, foreign exchange, commodities, and now increasingly virtual assets.

What are CFDs in virtual assets?
CFDs in virtual assets allow investors to speculate on a change of price in a virtual asset for example Bitcoin or Ethereum.
It is important to keep in mind that virtual assets may not be issued or backed by a central bank or government, and are subject to significant price volatility which can lead to significant losses which may exceed the amount invested.

What are the risks?
Common risks associated include:
1. Price volatility:- The value of virtual assets being extremely volatile, render the value of the CFD volatile in turn. Same may be subject to rapid changes stemming from global events or market changes.
2. Charged and funding costs:- Charges associated with these types of CFDs may be higher than other CFD products. Same may vary between firms and should be taken into consideration on the likelihood of a profit, whether significant or not, being made.
3. Price transparency:- Differing from fiat currencies, crypto and virtual assets in general, experience significant variations which is used to determine the value of the CFD position. The shifting nature of VA may result in a CFD offering which is not reflective of the actual value of the underlying virtual asset, at the time the contract is entered.

The Financial Services Authority reminds the public, actual and potential investors to take due care when engaging in investment of any kind; and reminds all persons, to consider whether these products are right for you before entering into any trades.

This press release is being issued following a review undertaken by the Financial Services Authority (“FSA”) of the licensees under its purview who are offering Virtual Assets (“VA”) or are acting as Virtual Asset Service Providers (VASP).

Ministry of Finance, National Planning and Trade

Liberty House, P.O Box 313/Victoria/ Mahé, Seychelles

Press Release

Wednesday 20th December, 2023

Consultation phase for proposed framework for the VA and VASP regulation gets underway

The National Anti-Money Laundering and Countering the Financing of Terrorism Committee (NAC) has today launched the consultation phase for the proposed framework for the regulation of Virtual Assets (VA) and Virtual Asset Service Providers (VASP).

The framework has been developed with a view to encouraging innovation and supporting the growth of the VA industry in a responsible and sustainable manner, whilst also importantly addressing and safeguarding against the potential financial crime risks associated with the misuse of VA products and VASP services offered in or from the Seychelles.

The NAC has been actively engaged in an action plan to address such risks and the requirements of the Financial Action Task Force (FATF) Recommendation 15 which relates to new technologies. The NAC intends to submit a request for re-rating for Recommendation

15 by March 2024 for consideration by the Eastern and Southern African Anti-Money Laundering and Countering the Financing of Terrorism (ESAAMLG) Task Force in September 2024. The consultation phase being launched today is a key component of this action plan.

A copy of the policy and draft laws can be downloaded from the Financial Services Authority’s (FSA) website at the link below:

 https://fsaseychelles.sc/media-corner/white-papers-and-industry-comments/whitepapers

Any interested parties wishing to comment are requested to make their submission in electronic format to the email address: [email protected] by close of business 8^th January 2024.

A public meeting will follow on 9^th January 2024 at the STC Hall Conference Room at 1:30pm to present the policy and draft laws, respond to queries and comments and take on board suggestions in relation to the proposed framework. For interested parties wishing to attend this public meeting, please contact the FSA on [email protected] to obtain the registration link.

The NAC welcomes active engagement in this consultation process, with an objective of achieving a framework which balances the importance of encouraging responsible innovation with safeguarding against potential risks associated with the misuse of VA and VASP.

END

Click here to download the press release

In view of the disasters recorded during the early hours of the 7^th December 2023, the Financial Services Authority (“FSA”) would like to express its solidarity and support with all those affected.

In view of such, FSA hereby notes the Insurance Association’s affirmation that necessary measures will be undertaken in order to ensure that any queries and/or grievances lodged are dealt with in a timely and collective manner.

In line with its objectives, FSA remains committed and stands ready for any queries that the general public may have.

In order to provide more clarity to policyholders and stakeholders regarding the current situation, the below Frequently Asked Questions (“FAQ”) have been prepared. However, for any further queries or clarifications, please do not hesitate to contact the FSA on +248 2643227.

Frequently Asked Questions 

1. Has the FSA been affected by this disaster?

Yes, we wish to advise that the FSA offices at the Sunshine Commercial Building, Providence will remain closed until further notice.

In view of such, FSA is operating via a combination of staff working in-office at the Headquarters at Bois de Rose complemented by staff working remotely to ensure the smooth running of our daily operations.

The FSA will continue to monitor the situation and will provide updates accordingly

2. What is the role of the FSA in dealing with the situation?

The FSA being the regulator of the insurance sector is working actively and closely with the insurance companies in order to discuss the situation further and strategise on the way forward to deal with the matter at hand.

All policyholders are advised to contact their respective insurers and the FSA for any queries and/or grievances that they may have.

3. What advise does the FSA have for the general public?

The FSA wishes to reassure the general public that it remains committed to the safety and protection of all policyholders and is available via a dedicated hotline +248 2643227 for any queries and/or issues that you may have. 

4. Does my Householders insurance policy cover any loss or damage?

A Householders cover will meet homeowners’ needs by providing compensation in the event you suffer damage to or loss of your home caused by any one or more perils.

In the event you took additional covers for contents to cover valuable possessions such as jewellery, paintings or furniture within your home this may also be indemnified as per the terms and conditions of your respective policy.

Please consult your broker and insurer (as applicable) for the terms and conditions of your insurance policy.

5. When should I report my claim to my insurance company?

You should report your claim as soon as possible, this can be done in person, via email and telephone call to your insurer or broker (as applicable).

6. Does my business interruption policy cover such loss and damage?

Please consult your broker and insurer (as applicable) for the terms and conditions of your insurance policy.

7. Does my motor vehicle insurance policy cover such loss and damage?

There are two types of motor vehicle insurance policies currently being offered by various insurance company in Seychelles.

Comprehensive insurance coverage covers losses like theft, fire, vandalism, flood storm, and also have additional covers for windscreen, loss of use and personal accident.

Third-party insurance coverage protects you against any legal liability, accidental liability, or property damage in case of an unfortunate event.

Please consult your broker and insurer (as applicable) for the terms and conditions of your insurance policy.

Financial Services Authority

In view of the State of Emergency which has been declared by the President, we wish to advise that the FSA offices at the Sunshine Commercial Building, Providence, the Headquarter, FSA zone and its warehouses at Bois de Rose will remain closed for the duration of the declaration of the State of Emergency.

In view of such, FSA staff will be working remotely to ensure the smooth running of our daily operations and we can be contacted via email.

In regards to the FSA zone, FSA staff will allow access to tenants and employees providing supplies to essential services only. Limited access will be considered for tenants to inspect their warehouses and stocks but not for normal operations. No access will be permitted to the zone to the general public.

The FSA will continue to monitor the situation and will provide updates accordingly.

Financial Services Authority