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Financial Institutions

Distribution of Financial Products Licence

For entities seeking to distribute regulated financial products to retail and institutional clients in Mauritius, Aurevya provides full licence advisory, application management, and ongoing compliance support under the Financial Services Act.

Overview

What is a Distribution of Financial Products Licence?

The Distribution of Financial Products (DFP) licence is issued by the Financial Services Commission under the Financial Services Act and authorises the holder to distribute regulated financial products to clients in Mauritius. The licence is required for any entity that markets, sells, or facilitates the subscription to financial products, including collective investment schemes, structured products, unit trusts, and insurance-linked investment products, without acting as the product manufacturer or fund manager.

The DFP framework is designed for boutique distribution houses, financial advisory firms, and broker networks that operate as intermediaries between product providers and end investors. It is distinct from the investment adviser and investment dealer frameworks, which regulate advice and dealing in securities respectively. The DFP licence specifically addresses the distribution function, providing a proportionate regulatory framework for product placement and sales activities.

Key applications include: independent financial advisory firms distributing third-party funds and structured products to Mauritian and international clients, distribution arms of international financial product providers seeking a regulated Mauritius gateway, insurance distribution intermediaries placing insurance-linked investment products, and wealth management firms providing product access to private clients and family offices.

FSC
Licensed & Regulated
Issued by the Financial Services Commission under the Financial Services Act, conferring regulated standing for product distribution activities.
Multi
Product Categories
Covers distribution of mutual funds, structured products, unit trusts, insurance-linked investments, and other FSC-regulated financial products.
B2C & B2B
Distribution Models
Supports both retail client distribution and institutional or wholesale placement models, subject to appropriate client classification and conduct requirements.

What We Provide

Key Features of the DFP Licence

Collective Investment Scheme Distribution
Authorises the marketing and distribution of CIS products including open-ended funds, unit trusts, and exchange-traded funds to eligible investors in Mauritius, subject to the applicable disclosure and suitability requirements.
Structured Product Distribution
Permits the placement of structured financial products including capital-protected notes, market-linked products, and hybrid instruments with retail and institutional clients, provided the product has received appropriate FSC clearance or is distributed under an applicable exemption.
Insurance-Linked Investments
Covers the distribution of investment products with an insurance wrapper, including investment-linked assurance schemes and similar products distributed through licensed insurance intermediaries or financial advisory channels.
Conduct & Suitability Obligations
DFP licence holders are subject to FSC conduct of business requirements, including client classification, product suitability assessment, disclosure obligations, and fair dealing standards applicable across all distribution activities.
AML/CFT Compliance
As a regulated financial services provider, a DFP licence holder must maintain a robust AML/CFT compliance programme, including client due diligence, transaction monitoring, and suspicious transaction reporting procedures.
Ongoing Regulatory Reporting
Annual returns to the FSC, maintenance of distribution records, and prompt reporting of material changes to the business ensure that the licence remains in good standing and that the regulator is kept appropriately informed of the holder's activities.

Process

How It Works

01
Regulatory Assessment
We assess whether the client's intended distribution activities require a DFP licence or whether an alternative regulatory category such as investment adviser or investment dealer is more appropriate for the scope of the business.
02
Application Preparation
Aurevya prepares the full FSC application including business plan, compliance framework, product distribution agreements, KYC documentation for all controllers and key personnel, and financial projections demonstrating commercial viability.
03
FSC Submission & Engagement
The completed application is submitted to the FSC and Aurevya manages all subsequent regulatory correspondence, query responses, and supplementary submissions required during the assessment process.
04
Compliance Infrastructure
Concurrent with the FSC assessment, Aurevya assists in establishing the compliance infrastructure required for the DFP licence, including AML/CFT programme documentation, conduct policies, client classification procedures, and product suitability frameworks.
05
Ongoing Compliance Support
Post-licence, Aurevya provides ongoing regulatory compliance support, including annual FSC returns, licence condition monitoring, and proactive guidance on regulatory developments affecting the distribution of financial products in Mauritius.

Practical Considerations

Requirements & Timeline

Regulatory Requirements

  • Mauritius-incorporated entity or registered foreign company with Mauritius presence
  • Minimum stated capital as prescribed by the FSC for DFP licence holders
  • Fit and proper assessment for all directors, shareholders, and key personnel
  • Comprehensive compliance and AML/CFT framework documentation
  • Business plan detailing product categories, distribution model, and target client profile
  • Distribution agreements with product providers or manufacturers
  • Appointed compliance officer with appropriate qualifications and experience
  • Professional indemnity insurance as required by the FSC

Indicative Timeline

  • Application Preparation: 4-6 weeks from engagement to submission-ready application
  • FSC Assessment: 6-10 weeks from submission, subject to FSC processing and any queries
  • Compliance Infrastructure Setup: Concurrent with FSC assessment, 4-6 weeks
  • Licence Grant: Following satisfaction of all FSC conditions precedent
  • Operational Readiness: Typically 12-18 weeks from initial engagement

Common Questions

Frequently Asked Questions

A DFP licence authorises the distribution of FSC-regulated financial products including collective investment schemes such as mutual funds and unit trusts, structured financial products, insurance-linked investment products, and other regulated financial instruments as defined by the FSC. The specific product categories permitted are confirmed as part of the licence application and any material change in product scope requires FSC notification.
Yes, in most cases. Where a Mauritius-based entity is distributing foreign-domiciled funds or financial products to clients, FSC licensing will typically be required. The specific regulatory pathway depends on the structure of the distribution arrangement, the nature of the products, and the profile of the target clients. Aurevya assesses the licensing requirement as part of its initial regulatory review.
The DFP licence covers distribution activities, not the provision of investment advice. Where a client wishes to provide advice in addition to distribution, an Investment Adviser licence (Unrestricted or Restricted) may be required in addition to the DFP licence. Aurevya advises on the appropriate licence combination based on the full scope of the intended business activities.
Minimum capital requirements are prescribed by the FSC and reflect the scope of distribution activities. They are generally lower than those applicable to dealing licences, as the DFP framework does not authorise the holder to deal in securities as principal. Specific capital requirements are confirmed as part of the licence strategy discussion at the outset of the engagement.

Continue Exploring

Related Services

Investment Adviser (Unrestricted)
Where investment advice is required in addition to product distribution, the Investment Adviser (Unrestricted) licence provides the broadest advisory mandate for securities and investment products.
Learn More →
CIS Manager & Collective Investment Schemes
For entities seeking to manage, rather than distribute, collective investment schemes in Mauritius, the CIS Manager licence provides the appropriate regulatory framework.
Learn More →
Risk Management & Regulatory Compliance
Ongoing AML/CFT compliance support, FSC engagement, and conduct of business compliance for all regulated financial services entities in Mauritius.
Learn More →

Begin Your Engagement

Our regulatory specialists will identify the optimal licence structure and guide you through every stage of the application process.

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