Forex Licenses - Mauritius

Investment Dealer Licence (FX Market Maker) – 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.

Licence overview

An Investment Dealer license is the perfect solution for those wishing to establish an FX/CFD broker in Mauritius. The license is in many respects similar to a market maker level investment firm license in the EU, and aside from the regular order execution allows both acting as portfolio manager for the clients and providing investment advice. There are two types of Investment Dealer license available:

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
Manage portfolios of clients

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.

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:

An applicant must establish procedures designed to prevent conflicts of interest and the use of inside information through the effective segregation of its different activities.
Where a trading platform is to be used, an applicant must submit details about the platform and how it will be used.
The promoters, shareholders, directors, beneficial owners, and key staff members must all comply with fitness and propriety requirements.
Details on the proposed anti-money laundering and counter-terrorist financing (AML/CFT) framework, including appointment of the Money Laundering Reporting Officer (MLRO), Deputy Money Laundering Reporting Officer (DMLRO) and Compliance Officer.
Members of the investment dealer team must have relevant experience and qualification as required under the Securities Act 2005.
An applicant is also required to meet the relevant ‘economic substance’ requirements when using a Global Business Company.

Timeframes

Normally, it takes up to 10-12 months to obtain an FX license in Mauritius. However, by taking advantage of our extensive connections in Mauritius and our expertise we can expedite the process and ensure that you get your license within 3-4 months after the date of application.

How FinSpace can assist

FinSpace offers the necessary expertise in setting up companies in Mauritius and assisting with investment dealer license applications. We provide full support during the application process to ensure that your business is properly set up and licensed in Mauritius.

Aside from taking care of your license application package, we shall:

Open bank and payment processing accounts
Procure local non-executive directors at a competitive price
Provide you with local MLRO and compliance officer, as required by law (at an extra fee)
Offer you several options for local office rent
Introduce you to a friendly and discreet local firm of accountants

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. We are ready to assist with any enquiry.