Mauritius : Investment Dealer (Full Service Dealer excluding Underwriting)

An Investment Dealer (Full Service Dealer excluding Underwriting) is authorised to:

1. act as an intermediary in the execution of securities transactions for clients;
2. trade in securities as principal with the intention of reselling these securities to the public;
3. give investment advice which is ancillary to the normal course of his business activities; and
4. manage portfolios of clients.

Licensing conditions for Investment Dealer (Full Service Dealer excluding Underwriting)

The Financial Services Commission (“FSC”) shall not grant a licence for Investment Dealer (Full Service Dealer excluding Underwriting)

1. unless it is satisfied that the applicant meets all the requirements of the Securities (Licensing) Rules 2007, and in particular the minimum stated unimpaired capital requirement.
   
2. unless it is satisfied that the applicant has established procedures designed to prevent conflicts of interest and the use of inside information by an effective segregation of its different activities.
   
3. The procedures mentioned in paragraph 2 shall ensure that the investment decisions concerning the portfolio of clients shall not be communicated or be available to any unauthorised third party.

Minimum stated unimpaired capital requirements for Investment Dealer (Full Service Dealer excluding Underwriting)

1. Subject to paragraph 2, the applicant for an Investment Dealer (Full Service excluding Underwriting) licence shall maintain a minimum stated unimpaired capital of MUR1,000,000 (Rs) or equivalent
   
2. The minimum stated unimpaired capital shall be fully paid and no amount shall be due or payable.
   
3. The licensee shall inform the FSC immediately where its minimum stated unimpaired capital falls below the minimum required.

Application for a Licence as an Investment Dealer

1. The person applying for a licence as an investment dealer shall file the following information and documents with the FSC –
   
   (a) certified copy of the resolution of the board of directors authorising two members of the board to sign the application and appointing an officer responsible and a manager responsible for any branch office;
   
   (b) copy of the constitution or similar constitutive document;
   
   (c) complete description of the proposed activities: type of customers, products and services to be offered (brokerage, CIS securities, portfolio management, etc.);
   
   (d) amount, type and distribution of the shares of the applicant, including the list of shareholders and the number of shares owned directly or indirectly;
   
   (e) if the applicant wishes to offer portfolio management services, a copy of a model of the contract to be signed between the investment dealer and the client;
   
   (f) copy of the contract relating to internet trading, if any;
   
   (g) copy of the internal procedures manual;
   
   (h) details of membership, applications for membership or shareholding in a securities exchange, a clearing and settlement facility, a securities trading system or a self-regulatory organisation or of applications for membership;
   
   (i) detailed description of systems and procedures to prevent conflicts of interest, money laundering and financing of terrorism;
   
   (j) personal questionnaire form specified in the FSC Rules for every officer or proposed officer, shareholder and beneficial owner of the applicant.
   
   
2. Subject to paragraph 3, in the case where the person applying for the licence is not yet legally constituted, the information or the documents that would apply to a legally constituted person may be filed in draft form.
   
3. In the case mentioned in paragraph 2, the FSC shall only grant approval in principle for a licence and the licence shall only be issued when the FSC has received final documents and information from the applicant and is satisfied that the final information and documents are consistent with the drafts filed.