Data from the Financial Services Commission in Mauritius shows that 12 brokers have received a local license in the last month.
The data fits with a wider trend we’ve seen over the last few years, with more and more firms moving out of Europe and instead focusing on doing emerging market business using an offshore license.
Mauritius and the Seychelles have both become the go-to hubs for the industry. However, concerns about regulatory changes in the Seychelles and the potential for more banking problems there, mean that Mauritius has arguably become a more attractive option for firms.
The companies that received a license in the last month also show another trend we see in the online trading industry.
Many start up firms will start out with an entity where no regulation exists, like St Lucia or St Vincent and the Grenadines.
This is more cost effective and allows them to get started. However, after getting some traction, it’s common for firms to upgrade to either a Seychelles or Mauritius license.
The other interesting point is that Leverate – which is a B2B services provider – also acquired a license in Mauritius in the last month.
That appears to be for the company’s liquidity offering. Setting up in Mauritius is probably so the company can get better tax benefits and a lower regulatory burden.
