Mauritius Investment Adviser License Overview

The Investment Adviser License in Mauritius is regulated under the Securities Act 2005. Mauritius is a popular location for financial businesses due to its flexible regulations, making it an attractive option for investment advisers. Compared to other onshore jurisdictions, the requirements for obtaining this license are relatively straightforward.

Categories of Investment Adviser License:

1. Investment Adviser (Unrestricted):

   • Paid-up Capital: Approx. US$18,000.

   • Can manage portfolios and provide advice on securities transactions.

2. Investment Adviser (Restricted):

   • Paid-up Capital: Approx. US$15,000.

   • Limited to offering advice on securities transactions.

Staff Requirements:

• The staff must have the relevant experience and qualifications as outlined in the Securities Act - proven regulated experience of at least 3-5 years in a similar industry/ performing similar tasks.

• The licensed entity must have at least two officers based in Mauritius with experience in managerial positions in an investment advisory firm - this can be outsourced locally.

Insurance Requirements:

• The applicant must provide Professional Indemnity Insurance covering risks such as:

  • Fraudulent employee activities.

  • Fraudulent instructions.

  • Losses due to corruption of electronic data or transactions.

  • Legal liability from breaches of professional duties.

Application Process:

To apply for a license, the following documents must be submitted to the Financial Services Commission (FSC):

1. Board resolution authorizing the application and appointing officers.

2. Company constitution or similar document.

3. Detailed description of activities, customers, and services.

4. Shareholder details and share distribution.

5. Portfolio management contract model (if applicable).

6. Internet trading contract (if applicable).

7. Internal procedures manual.

8. Membership details in exchanges or clearing facilities (if applicable).

9. Anti-money laundering, conflict of interest, and terrorism financing procedures.

10. Personal questionnaires for officers, shareholders, and beneficial owners.

If the company is not legally constituted yet, draft documents can be submitted, with final approval granted upon the receipt of completed documents.

Company Structure:

• Incorporation + License: Takes 2.5 - 5 months, excluding bank account opening time.

• Paid-up Capital: Depends on the license type.

• Shareholders: At least 1 (no residency or nationality restrictions).

• Directors: At least 2 (must be natural persons, with at least two directors being residents of Mauritius - can be outsourced).

• Local Office: Recommended to have a local presence through a support office with local staff.

Confidentiality:

• Beneficial Owner and Shareholder details are not part of the public record.

• Director details are part of the public record.

Additional Requirements:

• Secretary/Resident Agent: Required.

• Registered Office: Required.

• Insurance: Required.

Bank Account Opening:

• Takes 3-4 weeks depending on the due diligence documents and bank reference letter.

Permitted Currencies:

• Any currency, except the Mauritian Rupee (MUR).