Investment Dealer License

There is a growing demand for the Mauritius Investment Dealer Licences by the global brokerage community. The main legal framework within which an Investment Dealer Licence can operate is defined by The Mauritius Securities Act 2005 and the Securities Licensing Rules 2007. In order to apply for an Investment Dealer Licence, the applicant should also be licensed as a GBC.

Categories

There are three categories of Investment Dealers which are issued under the Securities Act:

a) including underwriting 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 to the public
  • underwrite or distribute securities on behalf of an issuer or a holder of securities
  • give investment advice; and
  • manage portfolios of clients.

Minimum unimpaired stated capital of MUR 10 million or an equivalent amount and shall have a Professional Indemnity cover that varies with the volume of activities and risk of its business.

b) excluding underwriting does not allow the licensee to underwrite or distribute securities on behalf of an issuer or a holder.

Minimum unimpaired stated capital of MUR 1 million at all times or equivalent. The licensee is also requested to have a Professional Indemnity cover that varies with the volume of activities and risk of its business.

Is authorised to execute orders for clients, to manage portfolios of clients and to give advice on securities transactions to clients (mainly derivatives)

Minimum unimpaired stated capital of MUR 700,000 or equivalent and it should also comply with the minimum competency standard requirements for its representatives and officers.

Is authorised to execute orders for clients without giving advice.

Minimum unimpaired stated capital of MUR 600,000 or equivalent and it should also comply with the minimum competency standard requirements for its representatives and officers.

Taxation aspect
  • Resident in Mauritius for tax purposes.
  • No capital gains tax
  • No withholding tax on payment of dividends, interests or royalties.
  • No stamp duties or capital taxes.
  • No inheritance tax
  • A Corporate tax at the rate of 3% only
Administrative aspect
  • All categories are required to file audited financial statements within 6 months of financial year end.
  • Staff employed must have relevant experience and qualification as required under the Securities Act
  • Two local Directors are required and board meetings must be held in Mauritius.
  • Must at all times have a registered office in Mauritius where the accounting records and statutory documents must be kept.
Statutory Fees

Application Processing Fee to FSC Annual Fees to FSC
Investment Dealer (Full-Service Dealer including Underwriting) US$ 3,000 US$ 9,500
Investment Dealer (Full-Service Dealer excluding Underwriting) US$ 750 US$ 2,500
Investment Dealer (Broker) US$ 500 US$ 2,000
Investment Dealer (Discount Broker) US$ 250 US$ 1,500