Investment dealer licence
Forex licence in the Republic of Mauritius
The licence for forex trading activities, known as the Investment Dealer licence, enables a company to carry out financial services, such as forex brokerage, trading platforms, and provide advice or act as intermediary in forex transactions. The regulatory authority governing financial services is the Financial Services Commission (FSC).
Given its strategic location in the Indian Ocean, Mauritius is a Republic recognised as a reliable and well-managed financial hub. It is attractive to investors due to its political and economic stability.
Mauritius provide five main types of investment dealer licence:
- Investment dealer: full-service dealer (including underwriting)
Licensed companies are 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 which is ancillary to the normal course of his business activities; and
- manage portfolios of clients.
2. Investment dealer: full-service dealer (excluding underwriting)
Licensed companies are 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;
- Give investment advice that is ancillary to the normal course of business activities; and
- Manage portfolios of clients.
3. Investment dealer Broker
Licensed companies are authorised to execute orders for clients, to manage portfolios of clients and to give advice on securities transactions to clients.
4. Investment dealer Discount broker
Licensed companies are authorised to execute orders for clients without giving advice.
5. Investment dealer (Derivatives)
Licensed companies are authorised to:
(i) act as an intermediary in the execution of orders for clients in derivatives contracts only; and
(ii) act as market maker.
Types of investment dealer licence
Benefits of obtaining a forex licence in Mauritius
Comprehensive legal framework: Mauritius is a hybrid legal system, combining both French civil law and English common law. The Judiciary is an independent and the Apex Court of Appeal being the UK Judicial Committee of the Privy Council.
Strategic Location: Located in the Indian Ocean, Mauritius serves as a bridge between Africa and Asia. We benefit from a favourable time zone, sharing the same time zone as Dubai.
Political Stability: Mauritius is a democratic state and has a stable political environment, which is vital for investment activities to minimise risks.
Business-Friendly Regulations: The Government of Mauritius has put in place business-friendly regulations to attract foreign investment. These regulations include favourable tax policies, ease of doing business, and investor-friendly laws.
Tax treaties: Mauritius is signatory to 54 Double Taxation Avoidance Agreements (DTAA) and 46 Investment Promotion and Protection Agreements (IPPA), making it an attractive location for international investors looking to minimise tax liabilities and conducive environment for doing business.