The Financial Services Commission (FSC) of Mauritius has revoked the licenses of forex broker FXPrimus, the regulator said on Monday.
The FSC has revoked the broker’s Investment Dealer (Currency Derivatives Segment) license, Investment Dealer (Full Service Dealer excluding Underwriting) license and Category 1 Global Business license.
The news comes as no surprise since in end-May 2015 the regulator suspended FXPrimus’ licenses for an indefinite period. The FSC’ decision was confirmed by the Enforcement Committee after it found FxPrimus was in breach of the following:
- the specific provisions provided under the Financial Services Act (FSA);
- the Code on the Prevention of Money Laundering and Terrorist Financing; and
- the licensing conditions attached to its licenses.
Mauritius is known as an offshore destination for forex brokers, preferred by many for its favorable set up costs, low capital requirements of about €17,000, and favorable tax regime. Licensed entities need to be incorporated in the country and operate an office there. Under the FSC’ regulatory framework, financial service providers are required to hold a FSC license in order to operate.
FXPrimus offers trading in forex, commodities, energies, precious metals, indices, and stocks. In December 2014, FXPrimus Europe (CY) obtained a license from the Cyprus Securities and Exchange Commission (CySEC), which allows it to operate in and target clients in all EU member states. It is also registered with the relevant authorities in several EU countries, including the UK, Germany, France, and Spain.
Forex brokers with licenses in Mauritius include Alpari, HotForex, BFSforex, and ICM Brokers.