An Investment Dealer acts as an intermediary in the execution of securities transactions on behalf of its clients. Three categories of Investment Dealer licences are issued in Mauritius under the Securities Act 2005, as follows:
a) Investment Dealer (Full Service)
i. Including Underwriting:
The holder of an ‘Investment Dealer (Full Service including underwriting)’ licence is authorised to:
- Act as an intermediary in the execution of securities transactions for clients.
- Trade in securities as principal with the intention of reselling these securities to the public.
- Underwrite or distribute securities on behalf of an issuer or a holder of securities.
- Give investment advice that is ancillary to the normal course of business activities.
Manage portfolios of clients. - An applicant is required to maintain a minimum stated unimpaired capital of MUR10 million (approx. USD230,000), or an equivalent amount in foreign currency. A licensee must also have a Professional indemnity cover that varies according to the volume of activities and risk of its business.
(ii) Excluding Underwriting:
The holder of an ‘Investment Dealer (Full-Service Dealer excluding underwriting)’ licence is authorised to undertake all the activities listed above, except, it is not permitted to underwrite or distribute securities on behalf of an issuer or a holder of securities.
An applicant is required to maintain a minimum unimpaired stated capital of MUR1 million, or an equivalent amount in foreign currency. A licensee is also required to have a Professional Indemnity cover that varies according to the volume of activities and risk of its business.
b) Investment Dealer (Broker)
The holder of an Investment Dealer (Broker) licence is authorised to execute orders for clients, manage portfolios of clients and give advice on securities transactions to clients. An applicant must indicate clearly which of these activities it will engage in and elaborate how it proposes to undertake them. An applicant is required to maintain a minimum unimpaired stated capital of MUR700,000, or an equivalent amount in foreign currency. A licensee is also required to comply with the minimum competency standard requirements for its representatives and officers.
c) Investment Dealer (Discount Broker)
The holder of an Investment Dealer (Discount Broker) licence is only authorised to execute orders for clients without giving advice.
An applicant is required to maintain a minimum unimpaired stated capital of MUR600,000, or an equivalent amount in foreign currency. A licensee is also required to comply with the minimum competency standard requirements for its representatives and officers.
