The Republic of Mauritius is an island nation in the Indian Ocean about 2,000 kilometers (1,200 mi) off the southeast coast of the African continent. Financial services is one of the growing sectors of the economy. Mauritius has an outsize offshore sector which it built on a low tax regime and extensive treaty network.
The law has divided the license into a number of categories and Subcategories depending on the type and level of activity conducted. These include;
i. Trading in securities as principal with the intention of reselling these securities
ii. Underwriting or distribution of securities on behalf of an issuer.
iii. Giving investment advice which is ancillary to the normal course of its business activities and to manage portfolio of clients.
i. Trading in securities as principal with the intention of reselling these securities
ii. Giving investment advice which is ancillary to the normal course of its business activities and to manage portfolio of clients.
i. Authorized to act as broker in Currency Derivatives only
Minimum Share Capital: $30,000(USD)i. Execution of orders
ii. Portfolio Management
iii. Advisory services on securities transactions
Discount Broker is authorized to execute orders for clients without giving advice.
Minimum Share Capital: $17,000(USD)Authorised to act as broker in Commodity Derivatives only
Minimum Share Capital: $30,000(USD)The Financial Services Commission (“FSC”) shall not grant a licence for Investment Dealer license of any category unless it is satisfied that;
The entity making the application is a Mauritius GBC 1 holding a Global Business Category One License (GBL1).
Legally speaking, a minimum of 2 directors are required for GBC 1 holding a special license such an Investment dealer license.
However, the regulator’s and Mauritius Corporate Governance regime require that:
a. Such an entity has got a well-balanced board in terms of experience, expertise and governance independence;
b. There needs to be fit and proper directors in different areas of running such a regulated Investment Business.
Therefore, the 2 local directors required for the GBC 1 regime, almost always will not satisfy the regulator’s criteria.
There will need to be an additional minimum 2 directors of different backgrounds,
and who are fit and proper with experience in the investment industry.
The investment dealer will need at least one shareholder.
• Corporate shareholding is allowed.
• 100% Foreign ownership is permitted.
An investment dealer shall, at all times, employ at least one representative, who shall be entitled to carry out the functions of the investment dealer, holding a licence.
• The Representative of Investment Dealer should hold a Degree in a relevant field and at least 4 years of relevant experience in investment business.
• The Representative of Investment Dealer must demonstrate compliance with the Technical Competencies and other requirements as laid down in the Competency Standards issued by the Commission.
• The applicant must have before approval of license, appointed a fit and proper MLRO and alternate MLRO.
• They are required to be able to access company records and the regulator and other service providers in Mauritius.
• The MLRO and alternate MLRO is therefore be required to be residents in Mauritius as a common practice.
• The applicant must satisfy the authorities that they have procured and equipped a place of business in Mauritius from where the operations of the company shall be run.
• An investment dealer is required to have its accounts audited annually by an auditor.
• The applicant must put forward at the time of application, the designate auditor for approval by the authority.
• The auditor must be a firm licensed in Mauritius
• The investment dealer is also requested to have a Professional Indemnity cover that varies with the volume of activities and risk of its business.
• An insurance quote must be submitted along with the application for approval by the authority.
• Upon licensing, such insurance cover must be procured within the period set in the license conditions and a copy of the policy submitted to the regulator.
• The minimum stated unimpaired capital shall be fully paid and no amount shall be due or payable.
A licensed Investment dealer must meet the following ongoing obligations at all times to remain compliance with the Act:
The Investment Dealer will need to be structured as a company holding a Global Business Category One License (GBL1).
