The Seychelles FSA Introduces Significant Changes To The Regulation of Forex & CFD Brokers
The Financial Services Authority (FSA) of Seychelles has introduced significant changes to their regulatory framework. Forex brokers already holding regulation in Seychelles will be granted an 18 month grace period to adapt to the new requirements. With that in mind, brokers looking to submit a new application for a forex broker license in Seychelles must comply with the changes outlined in today’s article.
The Seychelles FSA Increases Capital Requirements For Licensed Forex & CFD Brokers
One of the biggest changes to the regulation of forex & CFD brokers in Seychelles is the 50% increase in capital requirements from $50,000 to $100,000. In our comparison between Seychelles and Mauritius we outlined how the similarity in capital made the decision between the two regions challenging. With this increase in paid up capital, it is clear that Mauritius is now the more attractive offshore region due to the relatively lower capital of $33,000 compared to $100,000 in Seychelles.
Local Maintenance Costs Have Increased
The Seychelles FSA now requires a local director to be responsible for the handling of complaints and record maintenance. While this in itself is not a drastic change, it does increase the monthly costs needed to remain compliant. Ideally the licensed broker would employ a local compliance officer, however, such a role will involve higher costs due to the skill level required to meet regulatory demands.
A New Legal Opinion Requirement Introduced by the Seychelles FSA
The Seychelles FSA requires all licensed forex brokers to outline all jurisdictions in which they intend to operate. Based on the discretion of the FSA, a legal opinion for certain regions could be required. Furthermore, the FSA may reject some of the intended jurisdictions the broker wishes to target if sufficient proof cannot be provided.
Licensed Forex Broker in Seychelles Are Now Subject To Additional Fees
In addition to more stringent local office requirements, the Seychelles FSA has introduced a series of new fees that will impact changes and updates brokers may request throughout the licensing period. For example, there are now additional fees set in place for removing / adding new directors, company structure adjustments, and changes to the company name. Finally, licensed forex brokers in Seychelles will now be subject to annual domain and trade name fees.
Atomiq Consulting – Your Partner for FX Broker License Consultation
What separates Atomiq Consulting from other consulting agencies? Our deep knowledge and expertise in global regulations as demonstrated in today’s article is just one example. Whether the subject is Seychelles, Mauritius or other offshore jurisdictions, we have an intimate understanding of the latest regulatory changes and developments impacting forex brokers. Not only can we help explain these changes at length we can also guide your broker in planning how to prepare for them.
To learn more about our consulting services and discuss applying for a forex broker license in more detail, feel free to contact one of our consultants today!
