Securities License – FSA Seychelles
What is the FSA Seychelles and what does it do?
The Seychelles Financial Services Authority (FSA) operates as an autonomous regulatory body overseeing non-bank financial services within Seychelles. Established by the Financial Services Authority Act of 2013, the authority is tasked with licensing and supervising persons engaged in activities related to capital markets, collective investments, insurance, and fiduciary services. The primary objective of the FSA is to enhance and expand Seychelles’ non-bank financial services sector by implementing a robust regulatory and supervisory framework. This initiative aims to safeguard the jurisdiction’s reputation while ensuring the protection of investments for consumers and stakeholders.
Why acquire a Securities License in Seychelles?
A holder of a Securities License in Seychelles benefits from:
- A strategically positioned time zone facilitating business transactions across four continents in a single day, offering closer proximity and broader access to African markets.
- Access to a skilled and well-educated workforce, with English as the official language, easing communication for international companies aiming to establish a presence in Seychelles.
- Favourable tax regulations, with preferential tax rates for licensees who meet substantial activity requirements.
- The opportunity to engage in dealings or advise on securities through a modern and adaptable legal framework governing securities.
- Enhanced privacy and asset protection due to the confidentiality guaranteed by Seychelles’ corporate laws, ensuring restricted public access to information regarding company directors and shareholders.
- Low initial capital requirements and affordable fees for business incorporation and licensing.
Securities Business
Each license category authorised by the Seychelles FSA prescribes a specific set of business activities. The license categories concerning the provision of services related to securities are the Securities Dealer and the Investment Advisor. The two categories prescribe the following activities as per the table below.
| License Category | Securities Business |
|---|---|
| Securities Dealer | Acting as a principal or agent by way of business: • makes or offers to make an agreement with another person to enter into or offer to enter into an agreement, for or with a view to acquiring, disposing of, subscribing for or underwriting securities or in any way effects or causes to effect a securities transaction; • causes any sale or disposition of or other dealing or any solicitations in respect of securities for valuable consideration, whether the terms of payment be on margin, installment or otherwise or any attempt to do any of the foregoing; • participates in any transaction in a security occurring upon a securities exchange; • receives under an order to buy or sell a security which is executed; • manages a portfolio of securities for another person on terms under which that person may hold property of the other person. |
| Investment Advisor | Carrying on business of giving advice on securities by way of business: • advises other persons concerning investment in securities; • issues, analyses or report concerning specific securities; or • manages a portfolio of securities for another person: - without holding property of the other person; and - on terms that preclude him from doing so. |
The term securities encompasses shares, debt instruments, derivatives such as futures, options, forwards, contracts for differences (CFDs) and swaps on stocks, bonds, metals, commodities, and currencies, including cryptocurrency.
Regulatory Capital Requirements
Both licenses issued by the Seychelles FSA mandate minimum regulatory capital requirements. Specifically, a licensed securities dealer must maintain a minimum issued and paid-up capital of 50,000 USD, whereas a licensed investment advisor is required to uphold a minimum issued and paid-up capital of 25,000 USD.
Application Fees
The application fees set by the Seychelles FSA vary according to the specific category of license being sought. In the case of an investment advisor, the fees may further depend on whether the applicant is an individual or a legal entity. Additionally, there are one-time fees applicable for company incorporation and other regulatory requirements.
Annual Fees
The renewal fees for licenses remain fixed and are contingent upon the type of license held. For an investment advisor, the fees may also differ based on whether the applicant is an individual or a legal entity. Furthermore, supplementary fees may be incurred based on the regulatory obligations of the company.
Licensing Timeframe
Based on our experience, the licensing process with the Seychelles FSA can be concluded within 3 months. However, this duration is contingent upon the completeness and quality of the provided information, as well as the applicant’s ability to present a well-defined business plan and vision. To accommodate potential variations in the Seychelles FSA’s workload and the time taken for responses to additional information requests, we recommend our clients budget for 4 to 6 months.
Obtaining a Seychelles FSA Securities License with SALVUS
The SALVUS Investment Firms Licensing team has crafted an advanced project management methodology to oversee each licensing project methodically. Utilising our extensive experience working with the Seychelles FSA, we adeptly gather pertinent information and meticulously prepare all required documentation for a complete and well-supported application. Moreover, we guide our clients in optimising their financial resources by assisting in the strategic allocation of in-house staff, outsourcing arrangements, and third-party service providers.
Please contact us at info@salvusfunds.com to discuss your Seychelles FSA or other licensing needs. We recognise that your business may encounter distinctive challenges, and we stand by to support you in achieving your business goals. We look forward to working together and being of value.