The Securities Act 2007 provides the legal framework for the provision of Securities Dealer Services. A Seychelles Securities Dealer License is a license 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). The regulatory authority, which grants the authorization for such a firm, is the Financial Services Authority (Seychelles)
This license is particularly beneficial for Companies worldwide, who deal or trade in securities. This license is an important tool for your organization to attract more clients. The license will give your firm more credibility in the eyes of your wholesale broker and your clients!
a) The Act, defines a Securities Dealer as one;
• who carries on the business of dealing in securities, or
• who holds himself out as conducting such business described below:
i. makes or offers to make an agreement with another person to enter into or offer to enter into an agreement, for or with a view to acquiring, disposing of, subscribing for or underwriting securities or in any way affects or causes to effect a securities transaction; or
ii. causes any sale or disposition of or other dealing or any solicitation in respect of securities for valuable consideration, whether the terms of payment be on the margin, instalment or otherwise or any attempt to do any of the foregoing; or
iii. participates as a securities dealer in any transaction in a security occurring upon a securities exchange; or
iv. receives as a securities dealer an order to buy or sell a security which is executed; or
v. manages a portfolio of securities for another person on terms under which the first-mentioned person may hold property of the other person.
b) Permitted Securities Under this License;
• Shares,
• Warrants,
• Debentures,
• Loan Stock,
• Bonds,
• Forex
• Futures
• CFD
• Options.
c) Main Licensing conditions for Securities Dealers
• A local company incorporated under the Companies Act, 1972
• Employ at least 2 (two) fit and proper natural person directors (no nationality restriction)
• Minimum 2 (two) shareholder (corporate shareholders is allowed)
• Employ a licensed securities dealer representative (can be one of the Directors)
• Minimum issued and paid-up capital requirement of US$ 50,000
• Obtain a professional indemnity cover appropriate for the nature and size of the business
• Operating office in Seychelles
• Employ a Seychelles resident compliance officer and an alternate compliance officer (can be outsourced locally)
