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Investment Dealer (Broker)

The Securities Act 2005 and rules & regulations made under it allow for Investment Dealer Companies to be set up and licensed in Mauritius. These are particularly beneficial for Brokerage Houses operating worldwide. Mauritius has the advantage of having a modern and flexible securities law, it issues clear Investment Dealer licenses within a reasonable time, requires reasonable minimum capital requirement, charges reasonable license fees, and has a low tax rate. Mauritius is one of the best places to save on costs for Brokerage Houses and at the same time enjoy the array of service providers in the country.
Timeframe From 2-4 Months
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Outstanding Advantages

  • Low corporate of just 3% for your FX company
  • Quick approval and application process
  • 100% Western standard in the legal framework
  • 100% White Listed internationally
  • Fantastic banking infrastructure
  • Guaranteed full bank account openings with multi-currency accounts (suitable also for customers third-party funding)
  • No problems to arrange partnerships with overseas brokerage institutes or liquidity providers.
  • Mauritius is a member of ESAAMLG, the assessment of the implementation of anti-money laundering and counter-terrorist financing (AML/CFT) measures in Mauritius was conducted by the International Monetary Fund (IMF) and adopted by ESAAMLG since 2008.
  • English is business and trade language along with French
  • Only 2 hours’ time difference to Central Europe – so strategically you can reach Europe, Asia, and the US within one business day

An Investment Dealer (Broker) is authorized to:

execute orders for clients;

manage portfolios of clients; and

give advice on securities transactions to clients.

Legal Requirements in Mauritius

Requirements Description
General  
Corporate vehicle permitted

Category 1 Global Business Company
Physical office in Mauritius No
Share capital or equivalent  
Minimum paid-up capital None
Directors  
Minimum number 2
Corporate directorship allowed Corporate directorship allowed
Local director required Local director required
Shareholders  
Minimum number 2
Corporate shareholder allowed Corporate shareholder allowed
Local shareholder required No
Service Providers Required  
Company Secretary Company Secretary

Application for a License as an Investment Dealer

  • The person applying for a License as an investment dealer shall file the following information and documents with the FSC –
    • Certified copy of the resolution of the board of directors authorizing two members of the board to sign the application and appointing an officer responsible and a manager responsible for any branch office;
    • Copy of the constitution or similar constitutive document;
    • A complete description of the proposed activities: type of customers, products, and services to be offered (brokerage, CIS securities, portfolio management, etc.);
    • The amount, type, and distribution of the shares of the applicant, including the list of shareholders and the number of shares owned directly or indirectly;
    • If the applicant wishes to offer portfolio management services, a copy of a model of the contract to be signed between the investment dealer and the client;
    • Copy of the contract relating to internet trading, if any;
    • Copy of the internal procedures manual;
    • Details of membership, applications for membership or shareholding in a securities exchange, a clearing and settlement facility, a securities trading system or a self-regulatory organization or of applications for membership;
    • A detailed description of systems and procedures to prevent conflicts of interest, money laundering, and financing of terrorism;
    • Personal questionnaire form specified in the FSC Rules for every officer or proposed officer, shareholder, and beneficial owner of the applicant.
  • Subject to paragraph 3, in the case where the person applying for the License is not yet legally constituted, the information or the documents that would apply to a legally constituted person may be filed in draft form.
  • In the case mentioned in paragraph 2, the FSC shall only grant approval in principle for a License and the License shall only be issued when the FSC has received final

Licensing conditions for Investment Dealer (Broker)

The Financial Services Commission (“FSC”) shall not grant a license for Investment Dealer (Broker) unless it is satisfied that the applicant meets all the requirements of the Securities (Licensing) Rules 2007, and in particular, the minimum stated unimpaired capital requirement.

Minimum stated unimpaired capital requirements for Investment Dealer (Broker)

  • Subject to paragraph 2, the applicant for an Investment Dealer (Broker) License shall maintain a minimum stated unimpaired capital of MUR700,000 (Rs) or equivalent
  • The minimum stated unimpaired capital shall be fully paid and no amount shall be due or payable.
  • The licensee shall inform the FSC immediately where its minimum stated unimpaired capital falls below the minimum required

Scope of Service

Financial Service Include:

  • Keeping, Investing, and Managing Money, securities, and investments portfolios on behalf of third parties
  • Shares or stocks in the share capital of a company, whether incorporated in Mauritius or elsewhere, other than a collective investment scheme;
  • Debentures, debenture stock, loan stock, bonds, convertible bonds, or other similar instruments;
  • Rights warrants, options or interests in respect of securities mentioned in paragraphs (a) and (b);
  • Treasury bills, loan stock, bonds, and other instruments creating or acknowledging indebtedness and issued by or on behalf of or guaranteed by the Government of the Republic of Mauritius or the government of another country, a local authority or public authority, as may be prescribed;
  • Shares in, securities of, or rights to participate in, a collective investment scheme;
  • Depository receipts or similar instruments;
  • Options, futures, forwards, and other derivatives whether on securities or commodities;

FAQs

Global Business (GB) is a framework available in Mauritius to a resident corporation which proposes to conduct business activities outside Mauritius. GB is regulated by the Financial Services Commission (the ‘FSC’) under Section 71(1) of the Financial Services Act 2007 (FSA). There are 2 categories of Global Business Licences: 

  • Category 1 Global Business Licence (GBL1);
  • Category 2 Global Business Licence (GBL2).
Corporate Requirement:
  • Certificate of Incorporation;
  • Certificate of current standing (where applicable);
  • A certified true copy of any licence/registration/authorisation held;
  • List of controlling shareholders and directors;
  • Latest audited financial statements; 
  • Corporate Profile – in case the latest audited accounts are not available;
  • Confirmation from the applicant/Management Company to the effect that it holds on record CDD documents on the controlling shareholders of the corporate body and that these will be made available to the Commission.
According to the FSC Investment Dealer (Broker) for Section 2.2 can do the following activities: 
  • Procedures with respect to onboarding and risk profiling of clients;
  • Details on the trading platform to be used; 
  • Process and transaction flow;
  • Execution of trades;
  • Details on trade confirmations to clients;
  • Details on monitoring of clients activity. 

The applicant shall maintain a minimum stated unimpaired capital of Mauritian rupees 7 00,000 or an equivalent amount and submit evidence pertaining thereto. 

For a Global Business Company, the following should be submitted: 
  • An undertaking that the applicant shall at all times maintains the prescribed minimum stated unimpaired capital (currently, MUR 700,000 or it’s equivalent in another currency).
  • An undertaking that the applicant will not start its operations, trade, or incur any liabilities prior to meeting its minimum unimpaired stated capital of MUR 700,000 
  • An undertaking that within one month of the licence being issued evidence that the proceeds of the share issue amounting to MUR 700,000 or its equivalent have been credited to the applicant’s bank account will be submitted to the Commission. 
For a domestic company applying for an Investment Dealer (Full Service Dealer excluding Underwriting) Licence, the following should be submitted: 
  • The applicant should ensure that the stated capital of MUR 700,000 is injected prior to the licence being issued.
  • Certified true copies of statutory filings with respect to the share capital.
  • Confirmation that the stated capital is fully paid
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