Seychelles Forex & Brokerage (FX) Seychelles Securities Dealer Licence
Contributed by Atrium Legal Lab
30 March, 2020
The Securities Act 2007 provides the legal framework for the provision of Securities Dealer Services. A Seychelles Securities Dealer licence is a licence which allows a company to trade in securities either as a principal (on its own account) or as an agent (on behalf of its clients).
The regulatory authority, which grants the authorization for such a firm, is the Financial Services Authority (Seychelles)
This licence is particularly beneficial for Companies worldwide, who deal/trade in securities. This licence is an important tool for your organization to attract more clients. The licence will give your firm more credibility in the eyes of your wholesale broker and your clients!
Effectively, an entity that holds a Seychelles Securities Dealer licence can:
- Advise other persons concerning investment in securities
- Issue, analyze or prepare reports concerning specific securities
- Manage a portfolio of securities for another person
A Securities Dealer licence is basically a broker licence that allows a company to trade in securities either as a principal (on its own account) or as an agent (on behalf of its clients).
Offshore Securities Dealers Licence (SDL)
Why Seychelles for Securities Dealer Licence?
The growing popularity of Seychelles as a preferred jurisdiction for setting up a Securities Dealer licence is due to some of the elements below.
- Modern, expedient and flexible Seychelles Securities law
- Proven track record with a steady growth (10%+)
- Is an extensively researched law
- Outstanding political and social stability Is an enabling law
- Regulator flexibility
- Convenient time zone at GMT+4
- Enhanced privacy
- Excellent facilities in terms of service providers, communications, service businesses etc.
- Favorable corporate tax rate (1.5% p.a. on income)
- Attractive corporate and personal tax environment and access to tax treaties
- Allows the foreign Securities Dealers from recognized jurisdictions
- Free remittance of profits and capital
- Low required capital / no blocked capital. The required capital to get the licence granted is just USD 50,000. That amount needs to be hold in a bank account at the Seychelles (e.g. with our lawyers) and can be withdrawn as soon as the licence is issued. It can be used for building up the company, infrastructure measures etc.
- There are no restrictions in the number of clients to be accepted
The Seychelles Forex Securities Dealers licence enables you to carry out the following services:
- Selling your own shares to third parties
- Issuing your own Managed Account products
- Carry out trading on behalf of others (LPOA) etc. / CTA activities
- Deposit-takings of third parties
- Offering trading (self-trading or managed) in FX/Forex, CFDs, Futures
- Managed Accounts Forex
- Forex CTA activities
- Trading in commodities (also agricultural commodities and spot metals)
- Creation of your own price and fee schemes (managed account fees, profit shares, spreads, mark-ups etc.)
Seychelles is one of the most sought-after jurisdictions among Brokers for obtaining a Forex licence.
Licensing Requirements for Securities Dealers
The applicant company must:
- Be a company incorporated under the Companies Ordinance, 1972 or under the laws of a recognized jurisdiction (Please refer to Appendix for list of recognized jurisdictions)
- Employ at least 2 (two) natural person directors
- Employ at least one individual who is licensed as a Securities Dealer Representative
- Comply with the prescribed minimum issued and paid up (non-blocked) capital requirement of USD 50,000
- Comply with the insurance requirement Ã¢â¬â the licencee ought to have a professional indemnity cover appropriate for the nature and size of the business
- Satisfy the Authority that a fit and proper person will be licensed as a Securities Dealer Representative
- Have specified premises that are suitable for keeping registers, records and other
Why choose Atrium Legal Lab
- Extensive experience and knowledge of the Seychelles Regulation system
- We are a reliable, well established and stable company
- Moderate prices
- Adept and rapid handling of the application process
Atrium Legal Lab has worked with many clients assisting them in every step of the application process resulting in the acquisition of a Seychelles Forex Security Dealer licence; this makes us specialists in this field and able to offer brokerages amazing benefits.
Should you have any question or matter you would like to discuss or clarify with us, or should you like to receive further information about our application services and fees, our Business Development Managers Team will be ready to guide and assist you!
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