SPECIAL LICENCES
The Securities Act 2005 and the Securities (Licensing) Rules 2007 constitute the main legal framework governing the operational parameters of the Investment Dealer licence. Mauritius has built itself a reputation over the past years for the set up of Investment Dealers and is growing in popularity among Brokerage Houses worldwide. Mauritius has the advantage of having a modern and flexible securities law, it issues clear Investment Dealer licences within a reasonable time, requires reasonable minimum capital requirement, charges reasonable licence fees and has a low tax rate. Mauritius is one of the best places to save on costs for Brokerage Houses and at the same time enjoy the array of service providers in the country. There are five categories of Investment Dealers under the Securities Act:
1. Full Service Dealer with or without Underwriting
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 (if this option is chosen);
give investment advice which is ancillary to the normal course of his business activities;
manage portfolios of clients.
2. Discount Broker
Authorised to execute orders for clients without giving advice.
3. Broker
Authorised to execute orders for clients, to manage portfolios of clients and to give advice on securities transactions to clients.
4. Investment Dealer (Commodity Derivatives Segment)
Authorised to act as broker in Commodity Derivatives only.
5. Investment Dealer (Currency Derivatives Segment)
Authorised to act as broker in Currency Derivatives only.
MSIM Limited provides the following services with respect to the activities of Investment Dealers:
Advice and formation of the Investment Dealer
Application and renewal of the Investment Dealer Licence
Provision of registered office address
Provision of professional directors and qualified company secretary resident in Mauritius
Opening and administration of bank accounts
Preparation of quarterly accounts and filing with the authorities
Preparation and filing of tax returns