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Forex
Vanuatu Securities Dealers Licenses
Vanuatu
Increasingly Popular among Binary Options and FX Brokers

Vanuatu is one of the best offshore locations for your forex company registration.

Vanuatu has a very user-friendly Act, the Prevention of Frauds Act which allows an individual or a company to apply for a Securities Dealers License.
This license allows you to buy, sell, trade securities such as shares, bonds, options etc. and manage a portfolio of investments for and on behalf of your clients.

This License can be useful for investment/fund management institutions such as Brokerage firms, mutual or hedge funds etc. who may have clients wishing to invest in securities which may not be permissible or must comply with onerous and costly compliance of their resident jurisdiction. Such investments can be done through an entity incorporated in Vanuatu licensed to carry on Securities dealing business thereby bypassing these constraints legally.

Dealer in Securities

The island nation of Vanuatu, located in the South Pacific Ocean is becoming a preferred jurisdiction for many Forex brokers looking for regulation, mainly due to the low capital requirements that Forex brokers need to meet in order to set up a licensed Forex company in Vanuatu.
The capital required can be as low as to VATU 5,000,000 (approx. US$45.000) for every new application, and now to be paid to the Vanuatu Financial Services Commission.

Vanuatu Securities Dealers License
Advantages

Setting up a licensed forex company in Vanuatu will offer excellent benefits.

Holding a Vanuatu Forex license (VFSC – Vanuatu Financial Services Commission) is very useful to brokerages as it allows them to buy, sell and trade investments like shares, options, bonds amidst several other instruments. The license also enables brokerages to manage investment portfolios on behalf of traders.

The business-friendly environment of the region makes it attractive to not only FX brokerages. Other investment and fund management institutions such as brokerage firms and hedge funds who have clients wishing to invest in securities not permitted in their resident jurisdiction or that require complicated and costly compliance steps, may find holding a Broker Dealer License in Vanuatu very useful.

By having a Vanuatu Forex License, these types of investments can be done through a brokerage incorporated in Vanuatu, licensed to trade securities, thus bypassing constraints existing in other countries in a legal manner. This is one of the main advantages of register brokerage licensed company in Vanuatu.

Moreover, Vanuatu offers high level of confidentiality for beneficiary owners, shareholders and officers, while the company is exempted from capital gains, tax on profits and stamp duty after incorporation for 20 years.

Vanuatu
Applying for a Securities Dealers License

To obtain a Securities Dealers License in Vanuatu, it is required to incorporate a company. This process is quite fast.

Financial services in Vanuatu are regulated by Vanuatu Financial Services Commission (VFSC).

Application for a Principal’s license or a Representative’s license is not expensive and basically requires providing a set of basic information for the applicant. Also, it requires to confirm and to provide information of previous or existing activities related to financial services and additional information regarding any negative experience or records linked to the applicant. It enables to hold the applicant liable in case of any submitted false information or for activities that will be performed and overall, it regulates the issuance of Vanuatu forex license.

The forex brokerage license can be obtained based on Dealer's in Securities (Licensing) Act [CAP 70]. An application can be made for a Dealers in Securities License under this act by a Vanuatu international company or by an individual, who is a Director / Officer of the company. Moreover, the clients can benefit from this license because it permits the holder to manage the portfolio of investments and to operate with securities (sell and buy) for the client or even on his behalf.

The Company should have a responsible Anti-Money Laundering officer, who is registered with the Financial Intelligence Unit in Vanuatu. This AML officer cannot be the director or take any other position within the Company. Alternate Anti-Money Laundering officer must be appointed as well.

Vanuatu Securities Brokerage Dealer License
Capital Requirement
Bond Increase to VATU 5,000,000

The increase of the bond which has been decided by the regulator, amounts now to VATU 5,000,000 (Approx. US$45.000) for every new application and has now to be paid to the Vanuatu Financial Services Commission and not to the Supreme Court of Vanuatu anymore.

KYC Requirements

The insertion of the KYC requirements includes the filing of at least the following documents (non-exhaustive list):

Application form in the prescribed form
A bank reference letter as proof of source of funds to pay the Capital

An outline of the business plan
An AML&CTF Registration Form
An AML&CTF Compliance Officer Appointment Form
An AML&CTF compliance report form
An AML Manual
For the applicant (private person):
Notarized and recent (less than 3 months) Police clearance
Notarized passport
Certified Copies of Academic Transcripts (Diplomas),
A signed and dated CV
2 (two) independent references on related experience in fund management securities and investment

A statement of the director outlining the financial standing affairs, current assets, contingent liabilities and insurance including professional indemnity showing cover of the appointed representative and other officers of the applicant;

If the applicant has been operating for more than twelve (12) months prior to the date of the application for the license, the applicant must provide a financial statement showing the latest profit and loss report and balance sheet of the applicant which have been audited by an independent auditor and certified by a Public Notary or with the Commissioner agreement, it’s equivalent;

A statement clearly detailing the activity to be carried out under the license and the manner or medium in which the applicant proposes to conduct the business (including the details of the product which the applicant will hold itself out as being able to provide;

Details of the applicant’s internal organization, internal controls and corporate governance, including details on keeping the current books and records detailing receipt of investment, how it is held and dealt with, and outline of mechanisms used for the withdrawal and/ or maturity of investment;

A certified independent risk assessment report highlighting Anti Money Laundering and Counter Terrorist Financing compliance;

Disclosure of internet related business or e-commerce business and clearly showing the information of the licensee;

A resolution of directors appointing the Representative of the Principal Licensee (if applicable); and

A declaration by the applicant and the directors that it is not aware of any matter that might reasonably cause the Commissioner to doubt that it and its Representative have the competence, integrity or financial resources to be able to undertake business in accordance with the Act.

However, in the case of TBA clients, we do not expect the process to be more stringent since we have been applying most of these enhanced KYC due diligence requirement to all the clients for which we act as Registered Agent.

Vanuatu
Further Advantages

While most of the jurisdictions used to apply for a Securities Dealers License, do currently require the applicant to have a local physical presence at the jurisdiction, where business is being managed from, and others requiring a local resident Director as a member/officer of the Company, so far, Vanuatu still does not apply such requirements.

This means that, unless new legislation comes out, no physical presence or resident directors are legally required.

How Atrium Legal Lab Can Help You
Setting up your Licensed
Securities Brokerage License in Vanuatu

Atrium Legal Lab, together with our local Lawyers, has been offering legal services related to acquiring a Vanuatu Forex and is today able to assist clients with every step all over the process, being the best option for those who are looking for set up securities license and Forex Rehistration in Vanuatu.

Additionally we offer free and non-binding consultations for Forex brokers and potential Forex brokers in order to help them understand if they fulfil the requirements set by the Vanuatu Financial Services Commission for a license.

Our experienced staff offer regulation related services in many other popular jurisdictions as well and can therefore advise brokers who have not decided on the most suitable jurisdiction yet on what the most beneficial jurisdiction is.

We offer solutions to clients by combining the traditional legal fabric with new technologies.

If you would like more information as to how to become a licensed Brokerage Dealer in Vanuatu, we welcome you to get in touch with our Business Development Managers.

Should you wish to decide for your Forex Company set up in Vanuatu,
you will be allocated a Business Development Manager
to provide you full guidance and assistance
all over the process.

One of our Customer Representatives will be most pleased to help and assist you

Send us your message Now!
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