Establishing an Investment Dealer in Mauritius in 2024

1. Why are businesses established in Mauritius?

The Republic of Mauritius offers a unique combination of political, social and financial advantages from which an investment firm can benefit from. Mauritius is a member of the African Union, the United Nations, the World Trade Organisation, the British Commonwealth, the International Organisation of La Francophonie and the Common Market for Eastern and Southern Africa, among others.

The country maintains strong relations with countries from every continent, a fact confirmed by the extensive network of more than 43 double tax treaties and 28 investment promotion and protection agreements. Friendly relations with African states have allowed Mauritian-based investors and firms to enter African markets. Furthermore, the political heritage and dependence of Mauritius on western markets have resulted in the creation of substantial ties with the European Union Member States.

The strategic time zone enables business to be conducted with Africa, Europe, Asia and America on the same day. This is further strengthened by the skilled and well-educated bilingual workforce, speaking both English and French languages. Mauritius has developed a hybrid legal system based on English and French laws and has retained the United Kingdom Privy Council as its ultimate court of appeal.

Additionally, the well-capitalised and sophisticated banking sector facilitates the day-to-day operations of an investment firm with its clients and transactions with different providers around the globe.

To this end, Mauritius provides a versatile securities law with an agile approach to different requirements, concluding the licensing procedure in a sufficient timeframe.

2. What is the applicable Regulatory Framework for Investment Dealer licensed entities?

Operating under an Investment Dealer license in Mauritius requires compliance with the provisions of the Securities Act of 2005, as amended from time to time. The said Act is further reinforced by additional rules and regulations published by the FSC for matters concerning licensees in the securities sector, and the Securities Licensing Rules 2007. The former Act is complemented by additional rules and regulations published by the FSC for matters concerning licensees in the securities sector. Such matters can be relevant, inter alia, to:

• accounting and auditing standards,
• the content and form of financial statements, annual reports and other documents,
• requirements regarding the offer and issue of securities,
• the applications for the grant or renewal of a license,
• the criteria for granting securities licenses,
• the determination of whether a person is fit and proper for the purposes of the Act.

In addition, any financial institution is subject to the requirements of the legislative framework developed for the prevention of money laundering, terrorist financing and corruption. This is comprised of the following acts:

• the Financial Intelligence and Anti-Money Laundering Act (FIAMLA) of 2002,
• the Prevention of Corruption Act of 2002, and
• the Prevention of Terrorism Act of 2002.

3. License Categories and Capital Requirements

An Investment Dealer license provides permission to its holder to establish a trading platform in Mauritius and trade securities and similar products on behalf of clients. As per the table below there are three categories of Investment Dealer licenses that can be issued in the Republic of Mauritius, authorised to conduct different sets of investment activities.

*MUR: Mauritian rupee

The minimum required capital stated for each Investment Dealer license is directly connected to the nature, scale and complexity of the services prescribed under each category. In each case, the applicant shall maintain the minimum stated unimpaired capital or its equivalent in another currency in order to initiate operations.

4. What are the licensing requirements?

There are several requirements for the Investment Dealer license regarding the organisational, compliance and operational aspects of the business, which include:

• A carefully designed and composed, detailed business plan;
• Information on the trading platforms to be used;
• Details on the use of the services of a liquidity provider;
• The applicant’s client target market;
• Information on the persons that will comprise the investment dealer team;
• Compliance with the AML/CFT framework;
• Policies and procedures to be implemented;
• Details regarding physical presence in Mauritius.

5. How SALVUS can support your licensing application

The SALVUS Investment Firms Licensing team has developed an effective project management approach targeting the specific characteristics of each licensing project. Due to our extensive knowledge and expertise, after discussing your business vision and objectives we provide you with the most suitable selection of license categories for your business plan.

We work in coordination with our client’s team to gather all the necessary information and prepare the required paperwork for the submission of a complete application, following regulatory guidelines. Furthermore, we support the efficient allocation of the entity’s financial resources by utilising a combination of human resources, outsourced arrangements and third-party providers.

Please contact us at info@salvusfunds.com or call us at +357 7000 7898, if you require more information about investment activities in Mauritius or to discuss your FSC Mauritius licensing needs; we look forward to being of value.

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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.