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International Jurisdictions

Seychelles Investment Advisors License

Seychelles Investment Advisors License The Seychelles Securities Act, 2007 and Rules & Regulations allow Investment Advisors to be set up and be licensed in Seychelles. It also contains compliance requirements for Investment Advisors and their Representative(s). The Act and the Regulations are administered by FSA.

The governing body for Investment Advisors in Seychelles is the, Seychelles Financial Services Authority (FSA). FSA is conferred powers of licensing and regulation of the Investment Advisors and their Representative in Seychelles.

A Seychelles Investment Advisor License is a license that provides you with the necessary approvals to act as an investment advisor for Funds, Family Offices and High Net Worth Individuals and Families worldwide.

It is particularly beneficial for Investment Groups – individuals or companies worldwide – who manage and advise for investment funds, HNWIs for wealth management, preservation and structuring advice. The Seychelles Investment Advisor License would be tremendously helpful especially if the clients have given you the Power of Attorney to manage and organize their portfolio.

An Investment Advisor is a person:

  • Who carries on business giving advice on securities, or
  • Who holds himself out as conducting such business described below:
    -Advises other persons concerning investment in securities
    - Issues, analyses or reports concerning specific securities; or
    -Manages a portfolio of securities for another person
            -Without holding property of the other person; and
            -On terms that preclude him from doing so

An Investment Advisor may give business advice on securities such as shares, warrants, debentures, loan stock, bonds certificates of deposits, futures, contract for difference and options.

Advantages of Seychelles Investment Advisor License

  • Quick turnaround time to get license
  • Modern and flexible securities law
  • Well regulated jurisdiction
  • Reasonable minimum capital requirement (USD 25,000)
  • Reasonable license fees
  • Law corporate tax rate (business tax rate is 1.5%)

Organisation of Investment Advisors

  • Investment Advisors may be structures as:
    -A company incorporated under the Companies Act, 1972; or similar company incorporated under the laws of a recognized jurisdiction
    -Individuals who satisfy the requirements of Securities Act
  • The applicant company must also apply for an Investment Advisor Representative License for at least one of its employees or directors.
  • An Investment Advisor Representative means an individual in the employment of (including a Director of ), or acting on behalf of or by arrangement with an Investment Advisor, who advises on securities on behalf of that investment advisor, whether he is paid salary, wages, commission or otherwise.
  • An Investment Advisor Representative is simply an employee or a director of the company who has been granted an advisor licence.
  • The applicant company must have at least two directors and two shareholders.
  • The directors ought to be fit and proper to discharge the functions of an Investment Advisor.

Licensing conditions for Investment Advisors:

  • Be a company incorporated under the Companies Act, 1972 or under the laws of a recognized jurisdiction
  • Employ at least 2 (two) natural person directors
  • Employ at least one individual who is licensed as an Investment Advisor Representative
  • Comply with the prescribed minimum issued and paid up capital requirement of USD 25,000/-
  • Comply with the insurance requirement – the licensee ought to have a professional indemnity cover appropriate for the nature and size of the business
  • LSatisfy the Authority that a fit and proper person will be licensed as an Investment Advisor Representative
  • Have specified premises that are suitable for keeping registers, records and other documents of the company

Taxation

Investment Advisors pay Seychelles business tax at the rate of 1.5% of gross income. They are are exempt from all other forms of taxes.

Documents Required

  • The Investment Advisor License Application Form
  • The Investment Advisor Representative License Application Form
  • Certified true copies of the constitutional documents of the applicant company; these include Memorandum and Articles of Association, Certificate of Incorporation, Certificate of Good Standing, Register of Members and Register of Directors
  • Audited financial statements of the applicant company for the last two years, if applicable
  • Business Plan of the applicant company
  • Personal questionnaire (PQ) for each director, senior officer, individual shareholder or beneficial owner of the applicant company
  • The PQ form should be supported by Due Diligence documents which include:
    passport, proof of address, bank reference, 2 passport sized photos, certificates of academic and professional qualifications, updated CV, employee reference and evidence of membership to any professional bodies
  • Compliance Manual, Procedures Manual and the AML Manual
  • A written Notification from the Representative
  • Accreditation of the Representative
  • A copy of the policy of insurance
  • Any other supporting information or documents as the Authority may require

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.