Seychelles financial services authority
Being an unregulated brokerage in today’s market is not a savvy business move. Traders are more aware and regulators are more vigilant than ever before, and operating a brokerage without a license is taking an unnecessary risk. There are numerous jurisdictions that provide licenses to offshore forex brokerages, but how do you know which jurisdiction is good for you?
One of the most popular jurisdictions in which to obtain a forex trading license is Seychelles.
A Seychelles forex trading license is issued by the Seychelles Financial Services Authority. Previously known as the Seychelles International Business Authority (SIBA), the regulatory entity is in charge of regulating non-bank financial services, such as trust companies, forex brokerages and other regulated entities falling under the remit of other non-banking financial services legislation in the Seychelles. The responsibilities of the Seychelles Financial Services Authority include the licensing, supervision, monitoring and development of service providers in this sector.
The Seychelles Financial Services Authority was established in 2013 under the Financial Services Authority Act and it has a definite mission to “jointly create a conducive environment for the growth and development of the financial services industry of Seychelles, in alignment with the national economic development strategy and in strict compliance with local international and regulatory norms and best practices.”
A brokerage opting to obtain a Seychelles forex trading license should apply for a Special License Company (CSL), a relatively new structure offered under the Seychelles Companies (Special Licenses) Act of 2003. While the process of obtaining such license is more complex and expensive than starting an International Business Company, it does have more advantages, especially when it comes to licensing the business through the FSA.
In order to apply to a Special License Company (CSL), a company is required to submit a detailed application to the Seychelles Financial Services Authority (FSA). Accompanied with documents, such as corporate documents, a business plan, financial forecasting (professionally prepared), market information and a marketing strategy. Once a Certificate of Approval is issued, the company is submitted to the Seychelles (domestic) Registrar of Companies, for incorporation, at which stage the Registrar issues a Certificate of Incorporation. Upon completion of the aforementioned process, the company is awarded a Special License issued by the FSA, confirming the new company to be a Special License Company.