Investment Advisers LicenceMauritius
There are three types of Investment Adviser licence in Mauritius. The licence that enables a corporation to give advice on securities transactions is referred to as an Investment Adviser (Restricted) licence, the one that allows the licensee to manage, under a mandate, portfolio of securities in addition to giving advice is defined as an Investment Adviser (Unrestricted) licence and the Investment Adviser – Corporate Finance Advisory licence.
The holder of an Investment Adviser (Unrestricted) licence may also seek approval from the FSC to be appointed as a Fund/CIS Manager for a Collective Investment Scheme (CIS) or a Closed-end Fund (CEF) established in Mauritius or a foreign jurisdiction.
When established for the purpose of providing its services mainly outside of Mauritius, the investment adviser usually takes the legal form of a private limited company holding a Global Business Licence (GBL) with the investment advisor licence relevant to its business activities.
Only a management company licensed by the FSC, such as Blue Azurite , is entitled to submit a licence application to the the FSC.
Benefits of Mauritius
- Access to fair treatment and investment protection through Investment Promotion and Protection Agreements (IPPAs)
- Member of SADC and COMESA
- Ranked 1st in Africa for Ease of Doing Business
- Political stability
- Ranked 1st in the MO Ibrahim Africa Governance Index
- Confidentiality and cost competitiveness
GBL - Tax advantages
- Preferential tax rates under 44 DTAAs
- Eligibility to 80% partial income tax exemption on certain types of income
- No foreign exchange control
- No withholding tax on dividends
- No estate duty
- Foreign tax credit on a source-by-source basis.
Economic Substance Criteria - GBL
- Carry out its core income generating activities from within Mauritius by:
- employing, either directly or indirectly, a reasonable number of suitably qualified persons to carry out the core activities;
- having a minimum level of expenditure which is proportionate to its level of activities.
- Be managed and controlled from Mauritius; and
- Be administered by a Management Company
Investment Adviser – Licence criteria
Both categories of licence:
- Shall provide sufficient justification to the FSC as to the competence of the persons who will be responsible for providing investment advice.
- Must demonstrate that the internal structures such as organisation, technical, financial means and staffing are appropriate and sufficient for the efficient operation of the business.
- Should have appropriate systems and procedures in place to ensure that non-public information is strictly controlled and not circulated to unauthorised parties.
- Should put in place systems and procedures designated to prevent money laundering, the financing of terrorism and conflict of interest.
- Have a professional indemnity insurance cover. The insurance cover shall vary according to the volume of activities and risk related to the business activities.
The applicant for an investment adviser (unrestricted) shall provide sufficient justification to the FSC as to the competence of the persons who will be responsible for managing the investment portfolios. The IA should also have a minimum stated unimpaired capital of 600,000 MUR or its equivalent in a major currency at all times.
This category of investment adviser shall maintain a minimum unimpaired stated capital of 500,000 MUR or its equivalent.
IA – Corporate Finance Advisory
Detailed information here