A couple of weeks ago we looked at the growth in the number of brokers registered in Mauritius and the Seychelles.
On an absolute basis, Mauritius is more popular with over 450 firms now holding a securities dealer license in the country.
Compliance advisory firm SALVUS Funds has been building up a presence in the country and recently held its first SALVUS Mauritius Annual Forum 2025.
To find out more about what brokers are doing in the country and what the best set up is, we spoke to Hafeez Toofail, who is based in the country and is Managing Director and Partner at SALVUS’s Mauritius entity.
Hafeez previous held roles at the Bank of Mauritius and the Malta Financial Services Authority. He also sits on the boards of several licenced Investment Dealers in Mauritius.
SALVUS’s Mauritius entity is also structured as a Management Company, regulated by the Financial Services Commission of Mauritius.
As we recently looked at on TradeInformer, the number of securities dealers in Mauritius has exploded in the last few years. Over in the Seychelles they have gone through a similar process and it looks like they are trying to reduce the number of license holders. Can you envisage something similar happening in Mauritius?
The number of Investment Dealer licences in Mauritius has grown steadily over recent years, reflecting the increasing sophistication, and attractiveness of the Mauritius Financial Centre. This growth demonstrates both the confidence of international investors in our jurisdiction and the expansion of financial services in areas such as securities, derivatives, and more recently, digital assets. Mauritius has positioned itself as a forward-looking financial centre, combining a stable legal framework with access to global capital markets and offering a highly competitive and attractive tax regime.
A key feature that distinguishes Mauritius from some other jurisdictions is the central role played by licensed management companies. These firms act as an additional layer of professional oversight, ensuring that Investment Dealers operate in full compliance with regulatory standards at all times. Management companies provide operational, governance, and compliance support, helping to maintain robust internal controls and adherence to best practices. Their involvement creates a more resilient and reliable ecosystem, giving both clients and investors confidence in the market’s integrity.
As the sector continues to mature, we anticipate that this combination of strong regulatory supervision and professional management oversight will support sustainable growth. While the number of licences is increasing, the focus remains on quality and compliance rather than mere quantity. Established players like SALVUS, which are fully licensed and adhere to rigorous operational and regulatory standards, are well positioned to thrive in this environment. The market is evolving, and those who can demonstrate strong governance, transparency, and operational excellence will continue to play a leading role in shaping the future of financial services in Mauritius.
If you are a new broker, is it better to acquire an existing license holder or go through the process yourself? What is the normal application processing time?
We believe it is generally easier and more efficient to apply for a fresh licence, particularly when guided by a reliable and experienced service provider like SALVUS.
Starting from scratch allows a new entrant to build a structure that is fully aligned with its business model, operational framework, and compliance culture. It also ensures that the appointed directors, shareholders, and investment dealer team members are selected from the outset to meet both regulatory expectations and the company’s strategic objectives. The process is more transparent and predictable, as the applicant deals directly with the regulator based on its own submissions rather than inheriting a legacy structure that may require significant adjustments.
Acquiring an existing licence holder, on the other hand, can sometimes seem faster but often involves complexities related to regulatory approvals, including a formal Change of Control process with the FSC. The FSC will typically assess the fitness and propriety of the new shareholders and management, the rationale for the acquisition, and any potential risks to existing clients. Such approvals are more straightforward when the acquisition is part of a wider group restructuring or involves an existing book of clients that needs to be transferred under a regulated framework.
In terms of timing, a new licence application generally takes around two to three months to process, depending on the complexity of the structure and the promptness of document submission, whereas a Change of Control process may take a similar or even longer timeframe.
Perhaps the biggest concern for brokers is smooth banking and payment services. Is Mauritius an attractive regulatory jurisdiction in this regard and do you have any insights in this area that could help improve brokers’ banking set up?
When it comes to banking and payments for brokers in Mauritius, practical experience often matters more than theory. The larger and more traditional banks in Mauritius tend to adopt a conservative stance, which can sometimes translate into longer onboarding timelines or outright reluctance to engage with investment dealers – mainly due to limited understanding of the brokerage business model and its associated risk controls. As such, there are a few institutions that brokers are generally advised to avoid for operational efficiency reasons.
That said, there are several other banks in Mauritius that provide a far more pragmatic and business-friendly framework. These institutions offer both corporate and client account solutions, often tailored to the needs of investment dealers. They understand the flow of funds between liquidity providers, client accounts, and operational accounts, and offer smoother onboarding once compliance expectations are clearly addressed. In our experience, Mauritius based banks can be an excellent anchor for a brokerage’s banking setup, but we always recommend diversifying across multiple banking partners, EMIs, and PSPs to ensure redundancy and transaction flexibility.
Additionally, we at SALVUS work closely with certain banks to fine tune their understanding of the investment dealer ecosystem, helping them build confidence in the model and in the controls typically applied by licensed brokers. This has led to a more efficient and transparent onboarding process over time, and an overall improvement in the banking experience for brokers operating from Mauritius.
Do you see brokers making any common mistakes when it comes to getting and operating with a Mauritius license?
Yes, we do see several recurring mistakes made by brokers when applying for or operating under a Mauritius licence. One of the most common is choosing the wrong banking or payment partner, often driven by convenience, without assessing whether the bank truly understands the investment dealer model. This can severely affect the company’s ability to transact smoothly, manage client funds, or meet regulatory expectations. Another major pitfall is underestimating the operational and substance requirements to properly maintain a licence in Mauritius. Many brokers assume that having a licensed entity is sufficient, without realizing the importance of ongoing compliance, local management presence, and adherence to governance standards set by the FSC.
Another frequent issue is over-reliance on intermediaries or agents who may not have a clear understanding of the brokerage business model, leading to poorly structured applications and avoidable delays. Brokers sometimes fail to implement robust internal control frameworks – particularly around AML/CFT, client onboarding, and transaction monitoring – which can raise red flags with regulators or banks. It is also quite common for applicants to focus excessively on minimising upfront / application costs rather than evaluating the long-term financial and compliance commitments of maintaining a regulated entity.
Additionally, some brokers hesitate to engage directly with the FSC for clarification or guidance, relying solely on intermediaries to communicate. This can lead to misinterpretations and missed opportunities to build a constructive working relationship with the regulator. Finally, insufficient planning for tax structuring, cross-border payment flows, and integration with technology providers can create operational bottlenecks post-licensing. A well-prepared broker should approach the Mauritius framework holistically – not just as a licence jurisdiction, but as a long-term operational base that requires foresight, compliance discipline, and the right local partnerships.
Most brokers appear to be getting a securities dealer license, without underwriting permissions. Is that the only option available to them or are there other licenses they can use too?
That’s correct – the Investment Dealer (excluding Underwriting) licence is by far the most popular option among brokers in Mauritius, as it offers the flexibility to deal in securities as principal or agent, execute client orders, and provide brokerage services without engaging in underwriting activities. It remains the preferred choice due to its relatively straightforward operational scope and regulatory expectations.
However, there are other categories of investment dealer licences available under the Mauritian regulatory framework, depending on the business model and the range of services a company wishes to offer. These include the Investment Dealer (Full Service) including Underwriting, which allows the licensee to underwrite or distribute securities in addition to brokerage and dealing activities; the Investment Dealer (Broker), which focuses primarily on executing trades on behalf of clients without taking principal positions; and the Investment Dealer (Discount Broker), which is typically for firms providing execution-only services at lower cost.
The choice of licence depends on the company’s business strategy, and capital structure. In practice, the FSC is quite open to discussing tailored licensing models when properly justified.
Like all financial services businesses, brokers can face customer complaints. Given the volume of firms in Mauritius, do you believe the regulator there is set up to manage these? I ask as we recently saw one Seychelles-regulated entity pull out of a key market, with some speculation that was due to the regulator there being unable to handle client complaint volumes
Our regulator in Mauritius, the FSC is generally proactive and dynamic in its approach.
The regulatory setup in Mauritius is quite distinct from that of Seychelles – in particular, the presence of licensed management companies adds an additional layer of oversight and support between the licensee and the regulator. These management companies are responsible for ensuring that brokers under their administration maintain good governance, proper record-keeping, and adherence to reporting and compliance standards. This structure creates a more controlled and transparent environment, providing both the regulator and clients with added comfort.
Naturally, as with any jurisdiction hosting multiple brokers, client complaints will arise. However, the FSC has clear expectations on how these should be handled. Every licensed entity is required to appoint a complaints handling officer based in Mauritius, ensuring local accountability and timely resolution. The regulator places strong emphasis on responsiveness – complaints must be logged, investigated, and resolved promptly, with records maintained and available for regulatory inspection. Where issues are not dealt with properly or patterns of neglect emerge, the FSC does not hesitate to take a firm stance, including enforcement or remedial actions.
In practice, this framework has worked well because responsibility is clearly distributed – between the licensee, the management company, and the regulator. The system encourages early intervention and continuous communication, which helps prevent escalation or reputational damage. For brokers, the key is to maintain a transparent internal complaints procedure, communicate proactively with clients, and work closely with their management company to ensure all matters are handled in line with regulatory expectations.
