Investment License – FSC Mauritius
What is the FSC Mauritius and what does it do?
The Financial Services Commission (FSC) Mauritius is the integrated regulator for the non-bank financial services sector and global business of the Republic of Mauritius. Established in 2001, the FSC Mauritius is responsible to license, regulate and supervise the conduct of business activities in the securities, insurance, private pension schemes and virtual assets sectors. The FSC Mauritius aspires to be an internationally recognised financial supervisor, committed to the sustained development of Mauritius as a sound and competitive financial services centre.
Why acquire an Investment License in Mauritius?
An Investment License holder in Mauritius benefits from:
- A strategic time zone that enables business to be conducted on four different continents on the same day.
- The extensive network of double taxation avoidance agreements with more than 43 countries.
- A broad range of investment promotion and protection agreements.
- A sophisticated and well-capitalised banking sector comprised of local and international banks, that offers a complete range of services including corporate banking and custodian services.
- A skilled and educated workforce that speaks both the English and French languages.
- A hybrid legal system based on English and French law, with the United Kingdom Privy Council acting as the ultimate court of appeal.
- The option to choose from more than one hundred accounting and audit firms to establish a business relationship with.
Authorised Activities
Each license category authorised by the FSC Mauritius prescribes a specific set of authorised activities. The license categories concerning the provision of investment services are the Investment Dealer and the Investment Adviser. The two categories are further broken down into subcategories based on the activities prescribed as per the table below.
| License Category | Authorised Activities |
|---|---|
| Investment Dealer - Full Service including Underwriting | • 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 holder of securities; • Give investment advice that is ancillary to the normal course of business activities; • Manage portfolios of clients. |
| Investment Dealer - Full Service excluding Underwriting | • 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; • Give investment advice that is ancillary to the normal course of business activities; • Manage portfolios of clients. |
| Investment Dealer - Broker | • Execution of orders for clients; • Manage portfolios of clients; • Advise on securities transactions to clients. |
| Investment Dealer - Discount Broker | • Execution of orders for clients without advising on securities transactions. |
| Investment Adviser - Unrestricted | • Manage, under a mandate, portfolios of securities; • Advise on securities transactions, other than corporate finance advisory, through printed materials or any other means. |
| Investment Adviser - Restricted | • Advise on securities transactions, other than corporate finance advisory, through printed materials or any other means. |
| Investment Adviser - Corporate Finance Advisory | • Provide corporate finance advisory services for securities transactions, through printed materials or any other means, such as: - compliance with listing requirements of any security exchange; - raising of funds through the issue of securities; - arrangement or restructuring of a corporation, including takeovers, mergers and acquisitions. |
Regulatory Capital Requirements
Minimum regulatory requirements vary between the different license categories and subcategories as per the table below.
| License Category | Capital Requirements |
|---|---|
| Investment Dealer - Full Service including Underwriting | MUR 10 million (approx. 220,000 USD) |
| Investment Dealer - Full Service excluding Underwriting | MUR 1 million (approx. 22,000 USD) |
| Investment Dealer - Broker | MUR 700,000 (approx. 15,000 USD) |
| Investment Dealer - Discount Broker | MUR 600,000 (approx. 13,000 USD) |
| Investment Adviser - Unrestricted | MUR 600,000 (approx. 13,000 USD) |
| Investment Adviser - Restricted | MUR 500,000 (approx. 11,000 USD) |
| Investment Adviser - Corporate Finance Advisory | MUR 1 million (approx. 22,000 USD) |
Application Fees
FSC Mauritius application fees depend on the Category of License to be acquired and more specifically the License Subcategory. Other one-off fees are also applicable to the incorporation of the Company and additional regulatory requirements.
Annual Fees
License renewal fees are fixed and depend on the type of License Subcategory held. Additional fees apply depending on the regulatory obligations of the Company and the ancillary services included in the license.
Licensing Timeframe
In our experience, the FSC Mauritius licensing procedure can be concluded in 3 months. This depends on the quality and completeness of the required information that has been provided and the applicant’s capacity in delivering a clear business plan and vision. Yet, we advise our clients to budget for 4 to 6 months, in anticipation of the varying workload of the FSC Mauritius and the time it may take to revert to the FSC Mauritius promptly with the requests for additional information and documents.
Obtaining an FSC Mauritius Investment License with SALVUS
The SALVUS Investment Firms Licensing team manages each licensing project through a project management approach.
We leverage our experience in dealing with the FSC in Mauritius to gather all the necessary information and prepare the necessary documentation for the submission of a complete and well-supported application. In addition, we assist our clients with the optimal allocation of their financial resources through a selection of in-house employees, outsourcing arrangements, and third-party providers.
Please contact us at info@salvusfunds.com to discuss your FSC Mauritius or other licensing needs. We recognise that your business may encounter distinctive challenges, and we are prepared to assist you in achieving your business goals. We look forward to working together and being of value.