1. Investment Dealer License – Mauritius
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:
a) 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.
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, 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.
b) 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.
c) 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.
2. Investment Adviser Licence – Mauritius
The Mauritius Investment Adviser Licence is one of the three classes of ‘Securities or Capital Market Intermediary’ provided for by the Securities Act 2005 and regulated by the Financial Services Commission (FSC) Mauritius under the Securities (Licensing) Rules 2007. According to Section 30 of the Securities Act 2005, no unlicensed person is permitted to:
Advise, guide, or recommend other persons, or hold himself out to advise, guide or recommend other persons, whether personally or through printed materials or by other means, to enter into securities transactions; or
Manage or hold himself out to manage, under a mandate, whether discretionary or not, a portfolio of securities, without an investment adviser licence issued by the FSC or without being licensed as a representative of an investment adviser by the FSC.
An application for the Investment Adviser Licence using a Global Business Licence (GBL) entitles the applicant to take advantage of the preferential GBL tax regime in Mauritius under which 80% of ‘gross revenue’ is exempted from taxation. The balance is designated as ‘taxable income’ and is subject to taxation at 15%, thereby reducing the effective income tax rate for GBL holders to 3%. This ‘partial exemption’ has made conducting this type of business in Mauritius even more attractive.
The FSC can issue three types of Investment Adviser Licence under the Securities Act 2005, as follows:
a. Investment Adviser (Unrestricted)
The holder is authorised to manage, under a mandate, portfolios of securities and give advice on securities transactions, other than corporate finance advisory, through printed materials or any other means. The holder is required to maintain a minimum unimpaired stated capital of MUR600,000 (approx. USD13,600), or its equivalent in foreign currency.
b. Investment Adviser (Restricted)
The holder is authorised to give advice on securities transactions, other than corporate finance advisory, through printed materials or any other means. The holder is required to maintain a minimum unimpaired stated capital of MUR500,000, or its equivalent in foreign currency.
c. Investment Adviser (Corporate Finance Advisory)
The holder is authorised to provide corporate finance advisory services with respect to securities transactions through printed materials or any other means. Such services cover, amongst other things, compliance with the listing requirements of any security exchange, the raising of funds through the issue of securities, and arrangement or restructuring of a corporation, including takeovers and mergers and acquisitions. The holder is required to maintain a minimum unimpaired stated capital of MUR 1 million, or its equivalent in foreign currency. Investment Adviser (Corporate Finance Advisory)
Our Mauritius licensing services include:
- We provide full support during the application process to ensure that your business is properly set up and licenced in Mauritius.
Post licensing support. - We provide ongoing operational 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 licences in Mauritius, including ongoing support to ensure compliance with regulatory requirements and to assist with general compliance functions.
