The financial regulatory body of Mauritius, the Financial Services Commission (FSC), issued on Monday a notice regarding its decision to terminate the license of IPG Markets Ltd. for investment dealer/discount broker.
The broker surrendered its license number IT12000004 on 26 April, 2016, according to the notice.
Judging by the FSC’s notice that the license was terminated under Section 28 (5) of the Financial Services Act 2007, we can say that the IPG Markets was the one to initiate the license termination process. The section states that “a licensee may, at any time, surrender its license by giving prior notice in writing to the Commission”. Why the broker has decided to discontinue the license, however, was not clear.
The IPG Markets’ website, ww.ipgml.com, is no longer available and no notice has been left to former clients or interested parties. The broker offered forex, bullion, bonds, stocks, equity and commodities trading solutions to institutional and professional investors in Africa and the Middle East.
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.
Forex brokers with licenses in Mauritius include Alpari, HotForex, BFSforex, and ICM Brokers.