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.
Investment Dealer License In Mauritius
The Republic of Mauritius’ steps in evolving a sound, respected and competitive financial and investment services centre are of note. These have been greatly strengthened by the establishment, development and growth of the Financial Services Commission (FSC), Mauritius, the regulator tasked with the supervision of the non-bank financial services sector and global businesses.
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. A carefully designed and composed, detailed business plan;
B. Information on the trading platforms to be used;
C. Details on the use of the services of a liquidity provider;
D. The applicant’s client target market;
E. Information on the persons that will comprise the investment dealer team;
F. Compliance with the AML/CFT framework;
G. Policies and procedures to be implemented;
Details regarding physical presence in Mauritius.
Read Also: Business License In Mauritius
What is the applicable Regulatory Framework for Investment Dealer licensed entities?
Operating under an Investment Dealer license in Mauritius requires compliance with the Securities Act of 2005 provisions, 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. Such issues can be relevant, inter alia, to:
a. accounting and auditing standards,
b. the content and form of financial statements, annual reports and other documents,
c. requirements regarding the offer and issue of securities,
d. the applications for the grant or renewal of a license,
e. the criteria for granting securities licenses,
f. the determination of whether a person is fit and proper for the Act.
In addition, any financial institution is subject to the requirements of the legislative framework developed to prevent money laundering, terrorist financing and corruption. This is comprised of the following acts:
a. the Financial Intelligence and Anti-Money Laundering Act of 2002,
b. the Prevention of Corruption Act of 2002, and
c. the Prevention of Terrorism Act of 2002.
What is the securities dealer Licence in Mauritius?
The Mauritius Investment Dealer Licence, issued by the Financial Services Commission (FSC) Mauritius, permits the holder to establish a trading platform in Mauritius and trade securities and similar on behalf of clients.
What is an investment dealer?
Dealers are people or firms who buy and sell securities for their account, whether through a broker or otherwise. Dealers are regulated by the Securities and Exchange Commission (SEC). Dealers are important because they make markets in securities, underwrite securities, and provide investment services to investors.
What is the difference between a dealer and a trader?
While a dealer buys or sells securities as a part of a business, making this an integral part of their business activities, the traders merely buy or sell securities and assets from their accounts and this is not done as a part of any business activities.