The Seychelles Financial Services Authority (FSA) is the regulatory agency that oversees all businesses that wish to operate in the country. It is also responsible for implementing the protocols and processes for those that want to apply for any licenses relating to their business activities such as Forex brokers. FSA is responsible for licensing, regulating, and developing financial companies in Seychelles while ensuring that consumers are protected against any risk of abuse or fraud.
Brokers that are regulated by the FSA are required to adhere to a specific set of guidelines that have been drawn up as per the Financial Services Authority Act. The regulatory authorities in Seychelles have been working hard to create an environment where offshore businesses can thrive and the local economy can continue to grow.
The FSA has only been regulating Forex brokers for a few years so Seychelles has not yet been able to gain a strong reputation as a licensing provider in the industry. That does not mean that it is not a good choice for those looking to establish a Forex brokerage.
Anyone wanting to operate a Forex brokerage must have a license. In Seychelles, the Securities Dealers License allows those that hold it to buy, sell, and trade securities including Forex, shares, bonds, and options. It also allows them to manage a portfolio of investments on behalf of a client.
Here are the steps you need to take to acquire a license for a Forex broker in Seychelles.
- First you need to incorporate a domestic company within Seychelles and this must have a share capital of no less than $50,000. It must also have two shareholders and two directors but an individual is able to be both a shareholder and a director of the same company.
- Once the company has been incorporated (which takes around two weeks) the applicant must show they have a fully furnished and operational office that meets the standards of the FSA. They must also be able to show they have been paying rent, utility bills, have an active phone number and basic internet, and other services.
- The company is also required to employ a compliance officer who is responsible for communication with the FSA and keeping all mandatory records.
- As well as a compliance officer, the company must have an individual who is designated as a Security Dealer License Representative.
- The company must also be covered with a professional indemnity insurance policy suitable for the exercise of its operations.
- A legal advisor is also required to be appointed by the company.
- The company must be prepared to submit annual financial statements based on the nature and the number of transactions during the applicable timeframe.
- Periodic auditing is also required, again based on the volume and nature of transactions within a specific time frame.
Once all of these conditions are satisfied or prepared for, the following documents need to be submitted to the FSA.
- Police good conduct certificate
- Certified copy of passport for directors, shareholders, beneficial owners
- Certified copy of utility bills for all of the above, no older than three months
- Professional reference letters for all of the above, no older than three months
- CV of all of the above, demonstrating experience in Forex brokering and qualifications in support of license application
- Certified bank reference letter for all of the above
- Declaration of no bankruptcy for all of the above
Incorporating a Forex brokerage in Seychelles means a much lower cost and straight forward process than many other jurisdictions. For those that are starting out with their first brokerage, or who want to keep costs down, Seychelles Forex broker licensing is the best option.
Fast Offshore have been assisting their clientele in applying for licenses for various activities since 1998. Experienced in matters relating to applications, regulations, incorporations, fiscal considerations, bank account opening and other matters, our team is on hand to help and guide you, every step of the way. If you want to acquire a Seychelles Forex broker license, contact us today.