Investment Dealer Licence – Mauritius
The Mauritius Investment Dealer Licence, issued by the Financial Services Commission (FSC) Mauritius, permits the holder to establish a trading platform in Mauritius and trade securities and similar on behalf of clients.
The legislative requirements and framework for a company holding a Global Business Licence (GBL) and an Investment Dealer Licence in Mauritius are set out in the Securities Act 2005 and the Securities (licensing) Rules 2007. Mauritius offers the benefit of a modern securities law that is adaptive to different requirements, a reasonable timeframe for licence issuance, as well as a highly competitive minimum capital requirement.
The Mauritian Budget 2021 also extended the 80% partial tax exemption on specified income streams to companies holding an Investment Dealer Licence, reducing the effective income tax rate for holders to 3%. This partial exemption has made conducting this type of business in Mauritius even more attractive.
Type of Licence
An Investment Dealer acts as an intermediary in the execution of securities transactions on behalf of its clients. Three categories of Investment Dealer licences are issued in Mauritius under the Securities Act 2005, as follows:
- Investment Dealer (Full Service)
- (i) Including Underwriting:
- The holder of an ‘Investment Dealer (Full Service including underwriting)’ licence is authorised to:
- Act as an intermediary in the execution of securities transactions for clients;
- Trade in securities as principal with the intention of reselling these securities to the public;
- Underwrite or distribute securities on behalf of an issuer or a holder of securities;
- Give investment advice that is ancillary to the normal course of business activities; and
- Manage portfolios of clients.
- An applicant is required to maintain a minimum stated unimpaired capital of MUR10 million (approx. USD230,000), or an equivalent amount in foreign currency. A licensee must also have a Professional indemnity cover that varies according to the volume of activities and risk of its business.
- (ii) Excluding Underwriting:
The holder of an ‘Investment Dealer (Full Service Dealer excluding underwriting)’ licence is authorised to undertake all the activities listed above, except (c). It is not permitted to underwrite or distribute securities on behalf of an issuer or a holder of securities.An applicant is required to maintain a minimum unimpaired stated capital of MUR1 million, or an equivalent amount in foreign currency. A licensee is also required to have a Professional Indemnity cover that varies according to the volume of activities and risk of its business.
- (i) Including Underwriting:
- Investment Dealer (Broker)The holder of an Investment Dealer (Broker) licence is authorised to execute orders for clients, manage portfolios of clients and give advice on securities transactions to clients. An applicant must indicate clearly which of these activities it will engage in and elaborate how it proposes to undertake them.An applicant is required to maintain a minimum unimpaired stated capital of MUR700,000, or an equivalent amount in foreign currency. A licensee is also required to comply with the minimum competency standard requirements for its representatives and officers.
- Investment Dealer (Discount Broker)The holder of an Investment Dealer (Discount Broker) licence is only authorised to execute orders for clients without giving advice.An applicant is required to maintain a minimum unimpaired stated capital of MUR600,000, or an equivalent amount in foreign currency. A licensee is also required to comply with the minimum competency standard requirements for its representatives and officers.
- Investment Dealer (Full Service)
Other key requirements
The FSC’s licensing criteria for an Investment Dealer Licence provides further guidance in respect of the application requirements, including the following:
How Sovereign can assist
Sovereign offers the necessary expertise in setting up companies in Mauritius and assisting with special licence applications. We provide full support during the application process to ensure that your business is properly set up and licenced in Mauritius.
Beyond the application phase we also provide a full suite of services to provide ongoing support to your business. Anything from opening the corporate bank account to accounting services and payroll to specialist insurance services.
We provide administration and management of these licences to ensure that they maintain full compliance with all corporate and licensing requirements and to ensure that their affairs are properly managed and controlled from their place of incorporation.
We also provide compliance support and consultancy services to licencees in Mauritius, including ongoing support to ensure compliance with regulatory requirements and to assist with general compliance functions.
Mauritius offers a wide selection of licence types to specialist financial services providers that are looking to set up and do business in and from Mauritius. Sovereign is ready to assist with any enquiry.
Explore ‘Special Licences’ in Mauritius
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
