Business Licensing - FAQs

Licensed financial advisers are required to prepare and lodge with MAS a true and fair profit and loss account and a balance sheet made up to the last day of its financial year in accordance with the provisions of the Companies Act (Cap. 50), where applicable. The above documents are to be lodged together with an auditor‘s report in Form 17. In addition, they are required to submit Forms 14, 15, and 16, where applicable. These documents are to be lodged within 5 months, or within such extension of time as may be permitted by MAS, after the end of the financial adviser‘s financial year

The types of services provided by financial planners vary widely. Some planners assess every aspect of their clients' financial profile, including savings, investments, insurance, tax, retirement, and estate planning, and help them develop detailed strategies to meet their financial objectives. Others may call themselves financial planners, but only provide advice on a limited range of products and services.

MAS regulates all financial planning activities related to securities, futures, and insurance. Tax and estate planning activities do not come under our regulatory ambit. Hence, only financial planners who conduct activities regulated under the FAA are required to be licensed as a financial adviser. A financial planner may conduct other activities such as tax planning, but these are not subject to supervision by MAS.

Banks, merchant banks, finance companies, insurance companies, insurance brokers registered under the Insurance Act, holders of a capital markets services license under the Securities and Futures Act (Cap 289). are exempt from holding a financial adviser's license to act as a financial adviser in Singapore in respect of any financial advisory services. Nonetheless, exempt financial advisers and their appointed and provisional representatives are required to comply with the business conduct requirements stipulated in the FAA.

There is no need for a licensed financial adviser to renew its license. The license is valid until – 

• The licensed financial adviser ceases to act as a financial adviser (pursuant to the Financial Advisers Regulations [―FAR‖], the licensed financial adviser would need to notify MAS within 14 days of its cessation by submitting Form 5); 
• Its license is revoked by MAS; or 
• Its license lapses in accordance with section 19 of the FAA.

A "master fund" means a mutual fund incorporated or established in the Cayman Islands that holds the investments of and conducts trading activities on behalf of one or more regulated feeder funds. A "regulated feeder fund" means a CIMA regulated mutual fund that conducts more than 51% of its investing through another mutual fund.

The Cayman Islands anti-money laundering and countering terrorist financing (AML) regime requires mutual funds to maintain AML procedures as appropriate to the size of the fund.

The requirements include: 

• Adoption of a risk-based approach to monitoring investors and financial activities, together with adequate systems to identify risk (including checks against all applicable sanctions lists) in relation to persons, countries, and activities of the mutual fund; 
• Observance of the list of countries that are non-compliant, or do not sufficiently comply, with the recommendations of the Financial Action Task Force; 
• Procedures for: 
  • investor identification and verification 
  • risk-management;
    record-keeping; 
  • suspicious activity reporting;
    monitoring, and testing the systems for, compliance with AML and proliferation financing regulatory requirements; and 
  • Other internal control and communication procedures (eg a risk-based independent audit function)

The revised definition both clarifies the position for certain entity types and extends the scope of the PFL to additional entities. This clarification and extension may have changed the position for a number of entities, including but not limited to certain master funds, certain alternative investment vehicles and funds formed for a single investment.

The PF Law provides that private funds covered by the legislation must be registered by 7 August 2020. This applies both to private funds that were carrying on business on the date of the commencement of the PF Law (being 7 February 2020) and private funds that commence business within the six-month transitional period from 7 February 2020 to 7 August 2020. Private funds that launch on or after 7 August 2020 will need to comply with the registration timing requirements contained in the PF Law, as summarised below.

Securities Investment Business Law (SIBL) defines "securities" as:

• Shares or stock of any kind of the share capital of a company (endnote)
• Debentures, loan stock, bonds, certificates of deposit, and any other instrument that creates or acknowledges debt (excluding various banking and monetary instruments e.g. cheques, mortgage instruments, and land charges).
• Warrants and other instruments that allow the holder to subscribe to certain securities
• Certificates or other instruments which confer contractual or proprietary rights
• Options on any security and on any currency, precious metal or an option on an option
• Futures
• Rights under contracts for differences (e.g. cash-settled derivatives such as interest rate and stock index futures, forward rate agreements and swaps)

Under the Securities Investment Business (Financial Requirements and Standards) Regulations, Securities Investment Business licensees are required to have base financial resource requirements. In the case of broker-dealers, market makers, and securities managers, the base financial resource requirement is CI$100,000 and in the case of all other licensees, the requirement is CI$15,000.

All Securities Investment Businesses licensed under the Securities Investment Business Law (the “SIBL”) must have and maintain adequate insurance coverage. The licensee must have insurance to cover 

• Professional Indemnity, 
• Professional Liability of Senior Officers and Corporate Secretaries, and 
• Business Interruption, as required by Section 4(1) of the Securities Investment Business (Conduct of Business) Regulations.

Please refer to Authority’s Statement of Guidance – Professional Indemnity Insurance for Trust, Insurance, Mutual Fund Administrator, Securities Investment Business and Company Management Licensees and Directors for guidance.

Electronic money is a monetary value represented by a claim on the issuer, which is: 

• Electronically-including magnetically-stored (e.g. chargeable internet based account, magnetic card). 
• Issued on receipt of funds for the purpose of making payment transactions (conversion of bank money into electronic money). 
• Accepted by a natural or legal person other than the electronic money issuer.

The establishment of a PI or an EMI in Cyprus seems to be a natural strategic decision mainly driven by the following key factors: 

• EU member states are compliant with EU laws and regulations. 
• Eurozone member, making penetration in EU markets easier. 
• Strong fundamentals for PI and EMI operations and a growing demand basis for such activities from many industry verticals active in Cyprus. 
• Cost-effective setting up and on-going operational services. 
• English is the language of Business. 
• Business-friendly and transparent regulatory system. 
• Opportunities in the local corporate and institutional market. 
• Convenient time zone for conducting 24 hours a day business. 
• Access to an extensive network of double tax treaties allowing for tax-efficient structuring. 
• Favorable tax system. (e.g. no withholding tax on dividend distributions to foreign shareholders, 12.5% corporation tax with the possibility to drop up to 2.5% thanks to Notional Interest Deduction (NID), tax incentives for non-domiciled tax residents, etc.). 
• Availability of a number of highly qualified professional service providers (e.g. accounting firms, legal firms, consultancy firms, etc.). 
• Favorable tax regime for Intellectual Property (IP) rights, under specific requirements. 
• Efficient regulator Central Bank of Cyprus (CBC) which provides streamlined procedures, reduced bureaucracy, and lower regulatory fees. 
• Sophisticated infrastructure.

Global Business (GB) is a framework available in Mauritius to a resident corporation which proposes to conduct business activities outside Mauritius. GB is regulated by the Financial Services Commission (the ‘FSC’) under Section 71(1) of the Financial Services Act 2007 (FSA). There are 2 categories of Global Business Licences: 

• Category 1 Global Business Licence (GBL1);
• Category 2 Global Business Licence (GBL2).

Corporate Requirement:

• Certificate of Incorporation;
• Certificate of current standing (where applicable);
• A certified true copy of any licence/registration/authorisation held;
• List of controlling shareholders and directors;
• Latest audited financial statements; 
• Corporate Profile - in case the latest audited accounts are not available;
• Confirmation from the applicant/Management Company to the effect that it holds on record CDD documents on the controlling shareholders of the corporate body and that these will be made available to the Commission.

According to the FSC Investment Dealer (Broker) for Section 2.2 can do the following activities: 

• Procedures with respect to onboarding and risk profiling of clients;
• Details on the trading platform to be used; 
• Process and transaction flow;
• Execution of trades;
• Details on trade confirmations to clients;
• Details on monitoring of clients activity. 

The applicant shall maintain a minimum stated unimpaired capital of Mauritian rupees 7 00,000 or an equivalent amount and submit evidence pertaining thereto. 

For a Global Business Company, the following should be submitted: 

• An undertaking that the applicant shall at all times maintains the prescribed minimum stated unimpaired capital (currently, MUR 700,000 or it’s equivalent in another currency).
• An undertaking that the applicant will not start its operations, trade, or incur any liabilities prior to meeting its minimum unimpaired stated capital of MUR 700,000 
• An undertaking that within one month of the licence being issued evidence that the proceeds of the share issue amounting to MUR 700,000 or its equivalent have been credited to the applicant’s bank account will be submitted to the Commission. 

For a domestic company applying for an Investment Dealer (Full Service Dealer excluding Underwriting) Licence, the following should be submitted: 

• The applicant should ensure that the stated capital of MUR 700,000 is injected prior to the licence being issued.
• Certified true copies of statutory filings with respect to the share capital.
• Confirmation that the stated capital is fully paid

With Foreign Exchange License in Vanuatu, Businesses can be accepted by all clients in the world. Moreover, businesses can be advertising their services & products in any way it might be deemed appropriate for it under the circumstances

Some key characteristics of the Vanuatu Foreign exchange Business License include but are not limited to the very low costs compared to most regulated jurisdictions, the recognition it receives on an international level for its efforts in combating money laundering (important if later the broker will apply for a license with another jurisdiction), the swift adaptation in controlling and supervising uninterrupted relative to the increase in demand for its forex licenses, the favorable tax conditions (no tax on profit or capital gains).

If you have an Institutional business as a network and operate through a forex IB or White Label program, jurisdictions like Vanuatu are a great option to start your own brokerage, before moving forward into more complex and expensive alternatives. Unlike working unregulated, Vanuatu will provide comfort to your clients who need a regulated broker to support their trading needs.

Businesses will need this list of the document below:

• Each beneficial owner, shareholder, director, authorized signatory and secretary must provide
• CV of the director/shareholder dated and signed, showing at least 5 years on related experience in fund management securities and investment
• A notarized copy of a valid passport (an English translation of the certification)
• A notarized copy of proof of residential address (ex. utility bill that is not older than 3 months) (an English translation of the certification)
• Independent references confirming CV and showing at least 5 years on related experience in fund management securities and investment (x2)
• Criminal record from the native country of the applicant and notarized translation of it into English (if needed)
• Notarized copies of university Diplomas in English, certified transcripts
• A second ID of the shareholder(s) / director(s)
• Professional letter / bank reference on director / shareholder (x2)
• Bank statement proving the source of funds

Businesses also need the document for Account Opening and AML officer (Detail in the document required tab)

From 4-6 Months