Investment Dealer vs Investment Adviser: Understanding the Difference

Mauritius offers two distinct FSC licence categories for firms engaged in securities activities: the Investment Dealer Licence and the Investment Adviser Licence. Both are regulated under the Securities Act 2005, but they authorise different activities, carry different capital requirements, and suit different business models. This article explains the key differences to help you determine which licence fits your operation.

What Is an Investment Dealer?

An Investment Dealer is authorised to act as an intermediary in securities transactions, trade as principal, underwrite and distribute securities, and manage client portfolios. The licence covers four sub-categories: Full Service Dealer (with underwriting), Full Service Dealer (excluding underwriting), Broker, and Discount Broker. Capital requirements range from MUR 600,000 (~USD 15,000) for a Discount Broker to MUR 10,000,000 (~USD 250,000) for a Full Service Dealer with underwriting.

What Is an Investment Adviser?

An Investment Adviser is authorised to advise on securities transactions, manage portfolios under mandate, and provide corporate finance advisory. The licence covers three categories: Unrestricted (portfolio management and advisory), Restricted (advisory only), and Corporate Finance Advisory (M&A, capital raises, listing advisory). Capital requirements range from MUR 500,000 (~USD 11,000) for Restricted to MUR 1,000,000 (~USD 22,000) for Unrestricted.

Key Differences

Tax Treatment

Both licence types benefit from the same tax regime when held by a Global Business Corporation (GBL). Mauritius has a 15% headline corporate tax rate. Qualifying foreign-source income may benefit from the 80% Partial Exemption Regime, subject to applicable statutory and substance requirements, resulting in an effective rate of approximately 3%. No capital gains tax and no withholding tax apply.

Which Licence Do You Need?

Choose an Investment Dealer licence if you need to trade as principal, underwrite securities, or execute transactions on behalf of clients. Choose an Investment Adviser licence if your business is primarily advisory, portfolio management or corporate finance consulting. Many firms hold both licences for full-service capabilities.