Investment Adviser Licence – Mauritius


The Mauritius Investment Adviser Licence is one of the three classes of ‘Securities or Capital Market Intermediary’ provided for by the Securities Act 2005 and regulated by the Financial Services Commission (FSC) Mauritius under the Securities (Licensing) Rules 2007.

According to Section 30 of the Securities Act 2005, no unlicensed person is permitted to:

01
Advise, guide or recommend other persons, or hold himself out to advise, guide or recommend other persons, whether personally or through printed materials or by other means, to enter into securities transactions; or
02
Manage or hold himself out to manage, under a mandate, whether discretionary or not, a portfolio of securities,

without an investment adviser licence issued by the FSC or without being licensed as a representative of an investment adviser by the FSC.

Mauritius offers the benefit of a modern securities regime that is adaptive to different requirements, a reasonable timeframe for licence issuance, as well as a highly competitive minimum capital requirement.

An application for the Investment Adviser Licence using a Global Business Licence (GBL) entitles the applicant to take advantage of the preferential GBL tax regime in Mauritius under which 80% of ‘gross revenue’ is exempted from taxation. The balance is designated as ‘taxable income’ and is subject to taxation at 15%, thereby reducing the effective income tax rate for GBL holders to 3%. This ‘partial exemption’ has made conducting this type of business in Mauritius even more attractive.

Type of Licence


The FSC can issue three types of Investment Adviser Licence under the Securities Act 2005, as follows:

  1. Investment Adviser (Unrestricted) – The holder is authorised to manage, under a mandate, portfolios of securities and give advice on securities transactions, other than corporate finance advisory, through printed materials or any other means. The holder is required to maintain a minimum unimpaired stated capital of MUR600,000 (approx. USD13,600), or its equivalent in foreign currency.
  2. Investment Adviser (Restricted) ­– The holder is authorised to give advice on securities transactions, other than corporate finance advisory, through printed materials or any other means. The holder is required to maintain a minimum unimpaired stated capital of MUR500,000, or its equivalent in foreign currency.
  3. Investment Adviser (Corporate Finance Advisory) – The holder is authorised to provide corporate finance advisory services with respect to securities transactions through printed materials or any other means. Such services cover, amongst other things, compliance with the listing requirements of any security exchange, the raising of funds through the issue of securities, and arrangement or restructuring of a corporation, including takeovers and mergers and acquisitions. The holder is required to maintain a minimum unimpaired stated capital of MUR 1 million, or its equivalent in foreign currency. Investment Adviser (Corporate Finance Advisory)

Other key requirements


The FSC’s licensing criteria for an Investment Adviser Licence include the following:

01
The applicant must establish procedures designed to prevent conflicts of interest and the use of inside information through the effective segregation of its different activities.
02
Details of the services to be provided, including the means through which the advice will be provided and whether the advice will be binding or non-binding.
03
The promoters, shareholders, directors, beneficial owners and key staff members must all comply with ‘fit and proper’ requirements.
04
Details of the proposed anti-money laundering and counter-terrorist financing (AML/CFT) framework, including the appointment of a Money Laundering Reporting Officer (MLRO), Deputy Money Laundering Reporting Officer (DMLRO) and Compliance Officer.
05
Members of the investment advisory team must have relevant experience and qualifications as required under the Securities Act 2005 and the applicant should ensure that at least two members are appointed to ensure business continuity.
06
An applicant is also required to meet the relevant ‘economic substance’ requirements when using a Global Business Company in compliance with the FSC Circular letter.

How Sovereign can assist


Sovereign offers the necessary expertise in setting up companies in Mauritius and assisting with special licence applications. We provide full support during the application process to ensure that your business is properly set up and licenced in Mauritius.

Beyond the application phase we also provide a full suite of services to provide ongoing support to your business. Anything from opening the corporate bank account to accounting services and payroll to specialist insurance services.

We provide administration and management of these licences to ensure that they maintain full compliance with all corporate and licensing requirements and to ensure that their affairs are properly managed and controlled from their place of incorporation.

We also provide compliance support and consultancy services to licencees in Mauritius, including ongoing support to ensure compliance with regulatory requirements and to assist with general compliance functions.

Mauritius offers a wide selection of licence types to specialist financial services providers that are looking to set up and do business in and from Mauritius. Sovereign is ready to assist with any enquiry.

Get in Touch

Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.