Change is an inevitable aspect of the global business landscape worldwide, but Mauritius stands out for its ability to offer responsive and innovative approaches to ever-changing regulatory and economic tides. With an economy that once depended on sugar cane exports and agriculture, Mauritius now represents a reputable, robust and thriving international financial centre (IFC), complete with a strong legal and regulatory system and favourable tax regime.
As an IFC, Mauritius has established itself as a global and regional financial hub providing an attractive blend of reliability, efficiency, stability and transparency. Strategically located between Asia and Africa, and with a highly skilled labour force, Mauritius is a vibrant jurisdiction par excellence. These attributes, paired with recent regulatory developments, make the island a desirable and a compelling destination for various investment activities, including the ‘investment dealer’ licence.
Since the enactment of the Mauritius Securities Act 2005 and the Securities Licencing Rules 2007, Mauritius has seen a significant surge in demand for its investment dealer licences. The jurisdiction’s client-centric responsiveness and FATF compliant regulatory and legislative frameworks have helped to streamline the licensing process and enhance competitiveness for global business operations.
This post will explore the types of investment dealer licences available in Mauritius, as well as the benefits of Mauritius as a jurisdiction of choice in relation to investment dealer licensing.
Types of investment dealer licence available in Mauritius
Mauritius offers four main categories of investment dealer licences, each with specific permitted activities and capital requirements.
Investment dealer: full-service dealer (including underwriting)
Entities with this licence type 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 that is ancillary to the normal course of business activities
- Manage portfolios of clients
Minimum capital requirement: MUR 10,000,000 (approx. USD 250,000)
Investment dealer: full-service dealer (excluding underwriting)
Entities with this licence type 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
- Manage portfolios of clients
Minimum capital requirement: MUR 1,000,000 (approx. USD 25,000)
Investment dealer broker
Entities with this licence type are authorised to:
- Execute orders for clients
- Manage portfolios of clients
- Give advice on securities transactions to clients
Minimum capital requirement: MUR 700,000 (approx. USD 17,500)
Investment dealer discount broker
Entities with this licence type are authorised to:
- Execute client orders without giving advice
Minimum capital requirement: MUR 600,000 (approx. USD 15,000)
Regardless of which licence type is selected, the strength of the investment dealer team is a key component in obtaining the licence. Applicants should ensure that at least two members with a proven track record in the provision of investment dealer services are appointed and will be responsible for handling the operations of investment dealer activity.
The benefits of licensing in Mauritius
- Investor-friendly environment: Mauritius allows contract for differences (CFDs) trading, offers a Virtual Asset Broker-Dealer Licence (under 2022 Act), and has quick approval processes as well as a supportive infrastructure for global business activities
- Favourable tax regime: Mauritius has no capital gains tax, no withholding taxes, a low corporate tax rate, and partial tax exemptions for global business corporations
- Regulatory excellence: Mauritius offers a strong regulatory regime that characterises the jurisdiction’s integrity and efficiency as an IFC
- Strategic location: Mauritius’ proximity to both Europe and Asia provides an undeniable advantage in terms of linking commercial and financial interests and has become a preferred destination for many to settle and to conduct financial affairs
How IQ-EQ can help
Becoming a forex broker with an investment dealer licence in Mauritius offers greater flexibility in leverage, competitive capital requirements and tax optimisation.
As a longstanding leader in the financial services industry on Mauritius, IQ-EQ stands apart for the comprehensive support we provide to firms in obtaining an investment dealer licence. With a 100% success rate, we leverage 30 years of experience to ensure a smooth licensing process within 8-12 weeks. Our accreditation and vast experience make us an ideal partner for facilitating investment licensing in Mauritius.
To find out more, please contact me or download our Investment Dealer factsheet.
