Mauritius has become an increasingly popular destination for investment advisors who are looking to set up their business.
With its thriving economy and stable political environment, Mauritius offers plenty of opportunities for the acquisition of an Investment Adviser Licence. If you’re thinking of making the move, this article will provide you with all the information you need to get started. So read on to find out more about what Mauritius has to offer!
To set up an investment advisor company in Mauritius, you will have to meet very specific criteria. The Securities Act 2005, along with The Securities (Licencing) Rules 2007 allows for Investment Advisor companies to be set up and licensed in Mauritius. You must be aware of all the rules and regulations that apply. Failing to provide essential information may result in delays in your application. it is vital that one ensures everything is correct before submitting it for processing or else risk losing precious time with this process. It’s worth noting that no application shall be made for this particular licence unless it’s a corporation.
Licences
There are three types of licences:
- An unrestricted licence
Authorised to manage, under a mandate, portfolios of securities and give advice on securities transactions through printed materials or any other means. This licence does not include advice on corporate finance.
- Restricted licence
Authorised to give advice on securities transactions through printed materials or any other means, may also not advice on corporate finance
- Corporate finance advisory
Authorised to provide corporate finance advice and services regarding securities transactions through printed materials or any other means.
Application
As part of the application you will need a detailed business plan, here are some of the key items that will need to be covered:
● Introduction and background of director(s)/beneficial owner(s)/shareholder(s);
● Business objective, strategy and proposed activity – The Applicant has to show that the proposed advisory activity is in line with Section 30 of the Securities Act 2005 and Rule 5 of Securities (Licensing) Rules 2007.)
● Organisation chart;
● Target market and client profile;
● Source of funding;
● 3 years’ financial forecasts (Profit & Loss, Cash Flow and Balance sheet); and Any other relevant information.
Additional requirements include:
· Copy of the constitution, duly dated and signed, accompanied by a legal certificate.
· Certified true copies of statutory documents lodged with the Corporate and Business Registration Department (CBRD) with respect to the incorporation of the applicant.
Licensing Criteria – Investment Adviser (Unrestricted) Licence 3
A detailed Business Plan including, but not limited to, the following:
· Introduction and background of director(s)/beneficial owner(s)/shareholder(s);
· Business objective, strategy and proposed activity – The applicant has to demonstrate that the
· proposed activity is in line with Section 30 of the Securities Act 2005 and Rule 5 of Securities
· (Licensing) Rules 2007.)
· Organisation chart;
· Target market and client profile;
· Source of funding;
· 3 years’ financial forecasts (Profit & Loss, Cash Flow and Balance sheet); and
· Any other relevant information.
·
It must be noted that the Company must show that it will do business outside Mauritius.
Any business is only as good as the team and an investment advisory is no different. Each of the role players will need to supply the relevant information to substantiate the licensing.
Directors:
Will need to supply the following information and documents:
The applicant has to show compliance with Circular Letter CL280313 on Directorships.
CV;
PQ Form;
Valid passport copy or National Identity Card;
Proof of address
Officers:
There have to be two full time officers at all times, who have a clear understanding of the operations of an investment adviser.
The advisory team:
Details of the members of the investment advisory team,
Who is responsible for handling the operations of investment adviser activity together with the submission of their PQ (Personal Questionnaire) forms and CV (demonstrating a proven track record in the provision of investment Advisory services);
To ensure business continuity the applicant should ensure that at least 2 members be appointed on the investment advisory team;
The applicant needs to indicate whether or not these persons are already regulated or hold a licence from a regulated authority. If they do, the applicant needs to supply the relevant proof.
The strength and the commitment of the team is key, if this can be clearly demonstrated it goes a long way with assisting with the application.
Conclusion:
If you are looking to set up an investment advisor company in Mauritius, it is important that you familiarise yourself with all the necessary criteria and regulations.
Mauritius has successfully endeavoured to make a business sector as captivating as their beaches with interest rates and smooth, efficient systems that work.
At Loita Management Services Ltd., we can help you through every step of this process and make sure everything runs smoothly. Contact us today for more information!
By Kim Guého
