TradeInformer understands that the Financial Services Commission (FCS) in Mauritius is restricting copy trading for CFD brokers.
According to two sources familiar with the matter, the regulator is prevented firms with licenses issued from 2025 onwards from offering the service.
New licensees are also apparently being provided with instructions that they cannot offer copy trading services to clients, although this is not actually bind.
There is a lack of clarity on how the rules are actually going to be applied to firms, with firms that have already held a license prior to 2025 apparently not being subject to the same rules as new licensees.
Is there an alternative?
Assuming the rules are in play, it’s plausible it could spell the end of copy trading services being offered under a Mauritius-regulated entity.
Regulation around copy trading is often murky.
However, in the UK, firms must have an asset management-style license to offer the services to clients.
The European Securities and Markets Authority also requires firms to have investment advice or portfolio management permissions in order to offer the product.
