Mauritius: a prime jurisdiction for investment dealer licencing

By Lorna Pillay,  Head of Corporates, Private and Institutional Asset Owners,  Africa, India and Middle-East, and Tony Laguette, Associate Director, Business Development

In today’s rapidly evolving financial services industry, there’s a constant tug-of-war between cutting-edge innovation and regulation. Against this backdrop, Mauritius has emerged as a compelling jurisdiction for entities seeking investment dealer licences (IDLs). Known for both its robust regulatory framework and its openness to new financial products and services, Mauritius offers a unique proposition for modern-day investment dealer firms that wish to expand their global footprint strategically. Here’s a look at why the jurisdiction deserves serious consideration from brokers seeking an IDL.

Why choose Mauritius for an investment dealer licence?

The Mauritius International Financial Centre (MIFC) has been in existence for over 30 years. And in this time, it has developed into a leading financial hub with a strong regulatory framework, earning recognition from major international regulatory bodies such as the Financial Action Task Force (FATF) and the European Union (EU). The robust regulatory framework in place in Mauritius today should not be overlooked by firms looking to obtain an IDL. In recent years, it has become harder for entities licensed in jurisdictions with less stringent regulatory requirements to obtain white-label services from financial technology firms.

But it’s not just about the regulatory framework here. The beauty of Mauritius’ financial industry is that it also champions innovation and flexibility, allowing for the development of new financial products and services. For example, the jurisdiction currently offers four different categories of investment dealer licences in an effort to cater to a wide range of financial institutions and business models. And since 2022, it has been offering virtual asset broker-dealer licences. Given this combination of sound regulation and flexibility, as well as the tax benefits on offer (companies are subject to 15% corporate tax on net profits but may enjoy 80% tax exemption if their core income-generating activities are located domestically), many well-known dealers/brokers have established themselves in Mauritius in recent years, solidifying its position as a trusted and secure hub for international business.

The benefits of engaging a service provider

It should be noted, however, that while Mauritius has a lot to offer brokers, obtaining an IDL from the jurisdiction has its challenges. This is due to the fact that authorities require a substantial amount of information from applicants, including a comprehensive business plan, information on the trading platforms to be used, details on liquidity providers, information on the individuals that will comprise the investment dealer team, compliance with the AML/CFT framework, details regarding the firm’s physical presence in Mauritius, and more. These requirements are a testimony of the robustness of the jurisdiction and have brought confidence to the dealers/brokers that have already chosen Mauritius.

Given the complex nature of Mauritius IDL applications, it can be wise to engage a service provider that has a strong understanding of the licensing requirements. Partnering with a service provider can streamline the application process by outsourcing tasks, saving time and resources. And once a licence is in place, a service provider can facilitate the day-to-day running of the IDL through relationships with authorities, banks, liquidity providers, CRM providers, and e-verification software providers, allowing brokers to concentrate on the growth of their businesses.

How IQ-EQ can help

At IQ-EQ, we have many years of experience helping firms apply for and manage IDLs in Mauritius, with a dedicated team focused specifically on this area of financial services.  We can help brokers get set up with a licence quickly, gathering all the necessary information, and preparing the required paperwork for the submission of a complete application that is in line with regulatory guidelines. We can also assist firms with the ongoing administration of IDLs, as we offer a wide range of related services including compliance services, bank transaction monitoring, accounting reporting, and legal and tax services.

Case study: management of an investment dealer licence from Mauritius

A client with a background in the brokerage industry came to us seeking an investment dealer licence in a well-regulated jurisdiction to gain access to liquidity providers, payment service providers (PSPs), and platform service providers. This client was already set up with licences in alternative jurisdictions such as Cyprus, Lebanon, and St. Vincent and the Grenadines, but was looking at Mauritius due to its reputation as a leading financial hub with an internationally-renowned regulatory framework.

Based on the requirements of the client, we provided a turnkey solution for the setting up of an IDL in Mauritius, which included the handling of the accounting, company secretary, compliance, and administration of the entity within the appropriate deadlines. We also opened a bank account for the client with a Mauritius-based banking institution. Today, we remain a dedicated partner of the client, assisting with their day-to-day operations and ensuring the smooth management of the IDL. This allows the client to focus on their core area of expertise and accelerate the growth of their business.

To find out more about how we can help you obtain an IDL in Mauritius, please contact us or download our investment dealer factsheet.

About the author

Lorna Pillay, Head of Corporates, Private and Institutional Asset Owners at IQ-EQ, has been with the company since 2003. She brings extensive expertise with regard to client service delivery and corporate secretarial services, global business entity setup, fund, trust and foundation structures. Lorna holds a master’s in business administration, a bachelor’s in psychology, and is a qualified Company Secretary from ICSA: The Governance Institute.

Tony Laguette is Associate Director for Business Development, based in Mauritius. With nearly 20 years’ experience in the industry, he has specialist experience in financial data analysis, market research, banking, relationship management and business development and sales.