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Financial Institutions

Execution-Only Broking at Scale

The Investment Dealer (Discount Broker) licence is specifically designed for technology-driven, execution-only brokerage platforms, delivering a lean regulatory structure without advisory, underwriting, or complex custody requirements.

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Overview

What is an Investment Dealer (Discount Broker)?

This targeted licence is ideal for online brokerage platforms, automated trading systems, and digital-first brokers who execute client orders without providing investment advice. The simplified regulatory framework, with proportionate capital requirements, makes it the natural starting point for fintech-driven brokerage businesses.

As the Mauritius discount broker framework has attracted interest from technology companies building accessible investment platforms for African and Asian retail markets, this licence represents an increasingly important category within the FSC's regulatory architecture. The lean structure allows technology-first operators to build scalable platforms without the overhead of full advisory compliance obligations.

Aurevya advises discount broker applicants on FSC application preparation, platform architecture requirements, AML/CFT programme design, and ongoing compliance, with a particular focus on the technology and operational controls that regulators scrutinise in digital brokerage businesses.

FSC
Licensed, Securities Act 2005
Full FSC regulatory oversight under the principal securities legislation, providing the regulatory credibility required for institutional relationships and client trust.
USD 100,000
Minimum Stated Capital
The lowest capital threshold in the investment dealer category, enabling early-stage and emerging market fintechs to enter regulated brokerage efficiently.
Technology-Driven
Business Model
The Discount Broker framework is specifically calibrated for platform-based, automated, and digitally-delivered brokerage services, a natural fit for fintech operators.

Scope of Authority

Key Features

Execution-Only Dealing
Authorised to execute client orders in securities without providing investment advice, the core permission of the Discount Broker licence, designed for platforms where clients make their own investment decisions.
Online Platform Compatible
The regulatory framework is specifically designed to accommodate digital, app-based, and online brokerage models, recognising that execution-only services are increasingly delivered through technology platforms rather than human intermediaries.
Fintech-Friendly Structure
Proportionate requirements across capital, personnel, and conduct obligations make this licence accessible to technology-focused early-stage businesses, while maintaining full FSC regulatory standing.
Proportionate Capital
At USD 100,000, the minimum stated capital is the lowest available in the dealer category, enabling efficient capital allocation for businesses where the primary investment is technology and platform development rather than regulatory capital.
Retail Client Access
The Discount Broker licence permits servicing retail clients, making it suitable for consumer-facing investment platforms targeting the growing African and Asian retail investor base.
Low Ongoing Overhead
The execution-only scope eliminates advisory compliance overhead, resulting in a leaner ongoing compliance cost structure compared to full dealing or advisory licences, supporting platform economics at scale.

Process

How It Works

01
Platform Assessment
We review the client's technology platform, intended user base, order execution model, and target securities, confirming that the Discount Broker licence is the appropriate regulatory vehicle and identifying any platform requirements that must be addressed before application.
02
Corporate Setup
Incorporation of the Mauritius entity, appointment of qualified directors and compliance officer, and preparation of the governance documentation required by the FSC for a discount broker application.
03
FSC Application
Preparation and submission of the complete FSC application, including business plan, technology overview, KYC documentation for all relevant parties, AML/CFT programme, and key personnel fit-and-proper submissions.
04
Systems & Controls Review
The FSC scrutinises the technology infrastructure, order management systems, client onboarding processes, and AML/CFT controls of discount broker applicants. We prepare the entity to address these areas comprehensively during the review process.
05
Licence Grant
Upon completion of the FSC review and satisfaction of all conditions, the licence is granted, permitting the entity to commence regulated execution-only brokerage operations from its Mauritius base.
06
Launch
We coordinate the final steps to operational launch, client documentation, terms of service, platform compliance configuration, and establishment of the ongoing FSC reporting framework, ensuring the entity is ready to transact from day one.

Practical Considerations

Requirements & Timeline

Regulatory Requirements

  • Minimum stated capital of USD 100,000 fully paid up
  • Qualified CEO and Compliance Officer with FSC fit-and-proper clearance
  • No advisory services permitted, execution-only model only
  • FSC-reviewed and approved IT systems and order management infrastructure
  • AML/CFT programme including digital onboarding controls
  • Client terms clearly disclosing the execution-only nature of services
  • Periodic FSC reporting on financial position and compliance matters

Indicative Timeline

  • Corporate Setup: 2–3 weeks from completion of KYC and structure documentation
  • Application Preparation: 3–5 weeks, the platform and technology documentation is often the most time-intensive element
  • FSC Review: 8–14 weeks from submission of a complete application
  • Platform Launch: 2–4 weeks post-licence grant for final operational readiness

Common Questions

Frequently Asked Questions

An execution-only service means the broker executes client orders in securities, buying or selling, without providing investment advice. The client makes the investment decision independently; the broker simply executes it. This model eliminates the suitability assessment and advisory compliance requirements that apply when a firm provides investment recommendations. It is the model used by most digital brokerage platforms targeting self-directed investors.
No. The Investment Dealer (Discount Broker) licence does not permit the provision of investment advice. Providing investment recommendations to clients would require an Investment Adviser licence or a Full Investment Dealer licence with advisory permissions. The strict boundary between execution and advice must be maintained through clear client documentation and platform design. Aurevya's compliance team assists in designing platform interfaces and client journeys that preserve this regulatory boundary.
Yes, the Discount Broker licence is one of the most fintech-appropriate regulatory categories available in Mauritius. The low capital requirement, the technology-compatible regulatory framework, and the focus on execution rather than advice align naturally with the business models of digital brokerage platforms, automated investment apps, and neo-brokerage startups. The FSC has demonstrated increasing sophistication in assessing technology-driven business models, and Aurevya's regulatory team has experience preparing applications for digital-first operators.
The FSC assesses the technology infrastructure of discount broker applicants as part of the licence review, including order management systems, data security, client onboarding controls, record-keeping capabilities, and business continuity arrangements. The platform must be capable of maintaining complete and accurate records of all client orders and transactions. Aurevya works with clients to document their technology architecture in a form acceptable to the FSC and identify any system enhancements required before application.
Ongoing costs include the annual FSC licence fee, compliance officer costs, AML/CFT programme maintenance, annual audit and financial statements, and FSC reporting obligations. The execution-only model eliminates many of the advisory compliance costs, suitability frameworks, investment research, and client portfolio monitoring, that drive higher overhead in full dealer or advisory licences. Aurevya provides ongoing compliance retainer services tailored to the discount broker model, allowing clients to maintain regulatory good standing efficiently.

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