Investment Dealer

The Investment Dealer licence as issued by the Financial Services Commission in Mauritius is getting increasing popularity among many of the Brokerage Houses worldwide. Application for Investment Dealer licence must be made under the structure of a Global Business Company (GBC) and licence is granted subject to the approval of the Financial Services Commission. The Securities Act 2005 coupled with the the Securities (licensing) Rules 2007 remain the main legal framework governing the provisions and setting the parameters within which a GBC with an Investment Dealer licence can operate.

The Securities (licensing) Rules 2007 clearly set out the activities authorized to be carried out under an Investment Dealer licence:

1. KYC of Directors/Shareholders/Ultimate Beneficial Owners as per Due diligence Checklist
2. Consent form of Director & shareholder to be signed (will send those forms duly filled in for signature once order confirmed).
3. Personal Questionnaire Form (PQ) to be filled in and signed by the Director/Shareholder/ Ultimate BO (form to be sent later).
4. Detailed Business Plan
   There is no specific format for the business plan, but should include the following details, among others:
   • • Introduction and background of director(s)/beneficial owner(s)/shareholder(s)
     • The rationale for setting up the company in Mauritius
     • Business objective, strategy and proposed activity
     • Detailed description of the products (securities) on which the services will be provided
     • Details on the pricing methodology of ‘securities’
     • Confirmation with related details whether company will be linked to any securities exchange
     • Capital investment and source of funding
     • Details on the Organization structure/team

   Note: Need to ensure that the company has at all times two officers based full time and who are conversant with the operations of an investment broker.

   • Composition of members of the investment brokerage team (inc. qualifications & experience)
   • An indication as to who will be responsible to carry out the AML/CDD checks and where these documents will be kept with confirmation that these will be made to the FSC upon request
   • Target customers/Client profile and targeted geographic markets
   • Location where the business activity will be conducted
   • Place where server will be hosted
   • Minimum amount client needs to open an account with the company
   • 3 years’ financial forecasts (Profit & Loss, Cash Flow and Balance sheet)

    

5. Draft copy of the Operations and Compliance Manual
   The manual should be well detailed including information like:
   • Internal procedures describing the operational & compliance processes
   • Indication as to who will be responsible to conduct due diligence checks on clients and confirmation that same will be kept at its registered office address.
   • Organizational structure with clear lines of responsibility, supervision & authority
   • Detailed description of measures to be put in place with regards to infrastructure, confidentiality, security and safety of client information and records.
   • Details of IT infrastructure to support the day to day operations
   • Internal controls systems
   • Risk management policies & procedures
   • Policies and processes on conflict management & monitoring of unethical conduct & market abuse
   • Policies and processes to ensure compliance with applicable laws and regulations
   • Internal audit procedures
   • Internal dispute resolution system
   • Draft copy of the Disaster Recovery and Business Continuity Plan.
   • Procedures for complaints handling and indication as to who will be responsible to handle complaints & the time frame within which complaints will be handled.

    

6. Draft customer agreements
7. An indication of the amount of professional indemnity insurance cover that the company intends to subscribe to, along with a quote from the insurer.

NOTE: The above are the standard documents which are normally requested by the Financial Services Commission (FSC) but given that each application is dealt with on a case-to-case basis, additional information may be requested by the FSC upon review. If the promoters of the proposed company already have investment-related licence in some other jurisdictions, then this will definitely act as an advantage for the review of the application.

For more information and guidance, please contact Us