For Seychelles, economic resilience increasingly depends on diversification. While tourism and fisheries have traditionally provided the foundations of the economy, the country is now seeking to develop several complementary engines of growth, with financial services playing a central role. According to Pascal Morin, CEO of the Seychelles Financial Services Authority (FSA), the country’s future will depend on combining regulatory credibility, innovation, digitalization, and a responsive business environment to attract and retain international businesses.
In this exclusive interview, Morin discusses the evolution of Seychelles’ financial services sector, the growing importance of capital markets and virtual assets, the country’s progress toward international regulatory standards, and the need to build a wider ecosystem rather than relying on individual financial products. He also outlines the FSA’s priorities for the coming years, including digitalization, human capital development, and maintaining the delicate balance between compliance and competitiveness.
From Two Economic Pillars to a More Diversified Economy
Seychelles has long understood the importance of diversification, Morin explains, precisely because its small size makes economic resilience particularly important.
“This has taught us one lesson above all: that we should diversify and become more resilient,” he says.
For decades, the country has relied primarily on two major economic pillars: tourism and fisheries. Both have served Seychelles well, but Morin believes the next stage of development requires a broader economic structure built around several complementary engines.
The financial services sector is at the heart of that strategy.
Since the introduction of Seychelles’ first financial services legislation in 1994, the sector has developed considerably, expanding into international business companies, trusts, foundations, investment funds, and other financial structures.
Morin attributes part of this development to Seychelles’ hybrid legal system, which draws from both English common law and the French Civil Code. This combination, he argues, has provided the flexibility needed to develop structures that can respond to the needs of international businesses.
Capital Markets Gain Momentum
One of the areas Morin sees gaining particular momentum is the capital markets sector.
“Our capital market sector is an area of real momentum,” he says, pointing to the growing presence of securities dealers, investment advisers, fund administrators, and an expanding exchange ecosystem operating under the securities regulatory framework.
The development of this ecosystem is important because it expands the role Seychelles can play in international capital flows.
Rather than being viewed solely as a jurisdiction for corporate structures, the country can increasingly offer a broader range of services supporting the raising, management, and deployment of capital.
“That gives international investors the confidence to raise and deploy capital from the Seychelles,” Morin explains.
For the FSA, the objective is therefore not simply to license individual businesses, but to develop a financial environment in which different parts of the sector reinforce one another.
A Regulated Framework for Virtual Assets
Seychelles has also moved into the rapidly evolving virtual asset sector.
Morin highlights the Virtual Asset Service Provider, or VASP, framework as an important part of the country’s financial services offering. The framework brings crypto exchanges, custodians, and token issuers within a licensing and supervisory regime overseen by the FSA.
“We have the VASP framework, the virtual asset service provider framework that brings crypto exchange custodians and token issuers under the full licensing regime and supervision of FSA,” he says.
For Morin, the objective is to combine innovation with regulatory certainty.
“It’s a balanced approach where you have regulatory clarity paired with operational flexibility,” he explains, arguing that this combination is increasingly necessary for serious international businesses operating in rapidly changing sectors.
The approach also reflects one of Seychelles’ potential advantages as a small jurisdiction: the ability to respond relatively quickly when new industries emerge and existing markets evolve.
Agility as a Competitive Advantage
Morin believes Seychelles’ size can sometimes work in its favor.
The country has had the opportunity to legislate ahead of a number of other jurisdictions in emerging areas, creating a regulatory foundation that has helped attract international players.
“It’s an opportunity for Seychelles because we’ve had a chance to legislate ahead of a lot of other jurisdictions,” he says.
That early positioning has been particularly relevant in the virtual asset sector, where regulatory frameworks continue to evolve around the world.
But legislation alone is not the advantage. Morin argues that Seychelles can also react more quickly to developments because of its relatively small institutional structure.
“As a small jurisdiction, we can react quite fast to things that are evolving,” he says.
For markets that change rapidly, this ability to adjust regulations, policies, and supervisory approaches can be a meaningful competitive advantage over larger jurisdictions where regulatory changes may take considerably longer.
Credibility as the Foundation of Growth
Innovation, however, must be accompanied by credibility.
For Morin, the different components of Seychelles’ financial services sector are ultimately tied together by the country’s ability to demonstrate strong governance and regulatory standards.
“Our recent upgrade to largely compliant by the OECD’s Global Forum is more than just a rating. It signals that growth and good governance go hand in hand” Pascal Morin, CEO of the Seychelles Financial Services Authority
He also points to Seychelles’ removal from the European Union’s list of non-cooperative jurisdictions as another important development.
These developments, Morin argues, strengthen Seychelles’ position among investors who are increasingly evaluating jurisdictions based not only on opportunity, but also on transparency, regulatory certainty, and governance.
The message is important for the evolution of the financial centre: international investors increasingly want both commercial opportunity and confidence that the jurisdiction in which they operate meets international expectations.
Beyond Individual Products: Building an Ecosystem
One of Morin’s central arguments is that Seychelles should not be understood simply through individual financial products.
“It’s not only the product that we have, which is a stable product,” he explains. “It’s the whole ecosystem that we’re trying to develop.”
That ecosystem includes the financial environment within Seychelles, its regional connections, its legal and regulatory framework, and its relationships with international markets.
The country’s network of double taxation treaties is one example of how these different components can work together.
Morin notes that investment funds can benefit from these treaties, creating connections between Seychelles and the markets in which international investors operate.
The broader objective is to ensure that a financial product does not exist in isolation, but fits into an environment capable of providing a complete solution to the needs of clients and investors.
“It’s no longer looking at only one product, but rather looking at how that product fits in an environment that can provide a solution to the client’s need or to the investor’s need,” he says.
Modernizing Established Financial Products
While innovation is important, Morin does not see traditional financial products disappearing.
Trusts and foundations, for example, will continue to play a role in international structures.
However, he acknowledges that these products and the broader ecosystem around them will need to evolve.
“There might well be certain adjustments that need to be done with those products to ensure that they survive,” he says.
The FSA is already undertaking work in this area, reviewing how established products can adapt to changing international expectations and market requirements.
The challenge is therefore not to replace Seychelles’ traditional financial services offering, but to modernize it so that it remains relevant within an increasingly competitive international market.
Digitalization as the FSA’s Next Major Priority
Looking ahead, Morin identifies one development above all others as essential to the FSA’s future: digitalization.
“The main development that we need to do in the next five years is digitalize,” he says.
This includes digitalizing the way licensees are onboarded as well as the way the FSA manages and supervises regulated entities.
The need is particularly pressing in rapidly changing sectors such as virtual assets, where businesses and technologies can evolve faster than traditional regulatory processes.
“Digitalization is the only way that you can achieve all the necessary results that you would need,” Morin explains.
For a small island nation with limited human resources, digital systems can also provide a way to increase institutional capacity without simply expanding the size of the organization.
As the number and complexity of licensees grows, technology becomes essential to maintaining effective supervision while continuing to provide efficient services.
Investing in Human Capital
Digital transformation, however, cannot replace people.
Morin identifies human capital development as the FSA’s second major priority, emphasizing the need to invest in Seychelles’ workforce and create the capabilities required for a sophisticated financial services sector.
“We need to build more human capital. We need to invest in our people,” he says.
This includes participating in the education process, ensuring that the right expertise is available, and retaining qualified staff through appropriate compensation.
Human capital is directly connected to Seychelles’ competitiveness, particularly when the country is competing internationally on service quality, pricing, regulatory expertise, and efficiency.
For Morin, maintaining international standards therefore requires continuous investment in people as well as technology.
International Standards and the Compliance Imperative
Seychelles’ financial services industry operates in an environment where international regulatory standards are increasingly important.
Morin says the country has integrated international best-practice requirements into its laws and believes Seychelles is now at par with major jurisdictions in terms of the standards required for transparency and financial-sector credibility.
“We’ve definitely integrated all the international best practice requirements into our laws,” he says. “And now we are at par with all the main jurisdictions in the world.”
The objective is to ensure that Seychelles’ companies, trusts, and other financial structures can meet the requirements expected by international counterparties and financial institutions.
This is particularly important when it comes to the willingness of banks and other institutions to work with Seychelles-based licensees.
Transparency and regulatory credibility, therefore, are not merely compliance exercises. They can directly affect the ability of businesses to access international financial relationships.
Finding the Balance Between Compliance and Competitiveness
One of the central challenges facing international financial centres is finding the right balance between regulatory compliance and commercial competitiveness.
Morin sees this balance as critical for Seychelles.
“The balance is between being compliant and also being competitive,” he says, emphasizing the importance of transparency in regulation while also providing certainty to clients.
A jurisdiction can have strong rules, but if those rules are unpredictable or excessively burdensome, businesses may look elsewhere. Conversely, excessive flexibility without credible oversight can undermine international confidence.
For Seychelles, the objective is to create a framework where businesses understand the rules, investors have confidence in the regulatory environment, and the jurisdiction remains commercially attractive.
Consultation and Certainty for the Market
Maintaining that balance also requires regular dialogue with the private sector.
Morin explains that the FSA consults with the financial services industry before significant changes are made to legislation or policy.
“We always have a conversation with the sector,” he says.
This consultation process is intended to provide greater certainty to the market and allow regulators to understand the practical consequences of proposed changes.
For international businesses, predictability can be as important as the regulations themselves. Knowing how the framework works and having visibility over its evolution allows companies to make long-term decisions with greater confidence.
Seychelles as a Home for International Business
Morin ultimately sees Seychelles as more than a location for individual financial products.
The country’s regulatory environment, financial services ecosystem, regional connections, legal framework, and international relationships together create what he describes as a broader proposition for global businesses.
“Seychelles is a business-friendly environment,” he says.
The FSA’s goal is to ensure that international businesses feel comfortable operating in the jurisdiction, with access to the authority and a regulatory system that is transparent and clear.
For Morin, this is part of a broader transformation in which Seychelles is positioning itself as a home for international businesses rather than simply a destination for specific financial structures.
“Seychelles is not just a destination that is trusted in the Indian Ocean. It is a home for international businesses.”
A Future-Ready Financial Centre
The wider vision is one of a Seychelles economy that is increasingly diversified, internationally connected, and prepared for future developments.
“The path ahead is clear: a diversified, future-ready economy, competitive and outward looking, that is anchored in a strong regulatory regime,” Morin says.
Financial services will remain central to that ambition, but its success will depend on the strength of the ecosystem surrounding the sector.
Capital markets, investment funds, trusts, foundations, virtual assets, regulatory technology, human capital, and international connectivity all have a role to play.
For Seychelles, the opportunity lies in bringing these elements together while remaining responsive to international standards and changing market conditions.
The result, Morin believes, can be a financial centre that combines the flexibility of a small jurisdiction with the credibility and sophistication expected by international investors.
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