The Securities Act 2007 provides the legal framework for brokerage businesses in Seychelles. The Securities Dealer License is issued by the Seychelles Financial Services Authority (FSA), which also supervises licensed entities. A licensed Securities Dealer can perform the following services:

• Advise on investment in securities

• Issue, analyze, or prepare reports on securities

• Manage portfolios of securities for clients

• Trade in securities on their own account (as principal) or as an agent

Securities Dealers can engage in trading shares, bonds, debentures, warrants, futures, CFDs, options, and other financial instruments.

Changes in 2025:

• License Fee Increase: The annual fee for a Securities Dealer will rise from USD 3,000 to USD 6,000.

• New Fees: Introduction of application fees for domains, trade names, and a license replacement fee.

• Structural Changes Fees: New fees for changing key personnel, company name, or other structural changes.

• Capital Requirement: The minimum authorized paid-up capital increases from USD 50,000 to USD 100,000, with funds required to be maintained in a bank account under the Financial Institutions Act, 2004, or an approved jurisdiction.

• Risk Warning Requirement: Securities dealers must include risk warnings in securities advertisements.

• Resident Employee Requirement: Licensees must employ at least one resident person (e.g., a compliance officer) to handle complaints and maintain records.

• Notification Requirement: Licensees must inform the FSA about the countries/jurisdictions they serve and ensure no objections from those jurisdictions for residents to engage with them.

• Outsourcing Restrictions: Non-core functions can be outsourced, but core functions cannot be unless to an affiliated entity.

• Transitional Period: Licensees have an 18-month transition period to comply with new regulations, although new applicants must comply immediately.

Advantages:

• Low Capital Requirement: Minimum capital of USD 100,000.

• Tax Benefits: Attractive tax regime.

• Flexible Offerings: No restrictions on the financial instruments offered.

• Deposit Taking: Can accept deposits from clients.

• Confidentiality: Shareholder and board member confidentiality.

• Foreign Entities Eligible: License can be obtained by foreign entities from recognized jurisdictions.

Prior Experience and Reputation:

• All founders and board members must have impeccable reputations, clean criminal records, and relevant academic qualifications (higher education in law, business, or economics) and experience in financial institutions or related services.

Staff Requirements:

• A licensed Securities Dealer Representative must be employed, or assistance can be provided to obtain the necessary license for one of the directors.

• A local compliance officer is also required.

• Two resident employees are recommended from 2025 onwards