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 managed 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 receive a Vanuatu Forex license. The minimum capital required can be as low as 2000 US Dollars, and opting for Vanuatu Forex regulation also has several other advantages, such as:1) No local office in Vanuatu is required. 2) No local staff in Vanuatu is required.It is the fastest available regulation on the market today by far.All these facts make Vanuatu a more financially viable option for Forex brokers looking for regulation with a smaller budget.

How COI can Help Brokers Interested in Vanuatu Forex Regulation

COI & Associates, together its local Lawyers, has been offering legal services related to acquiring a Vanuatu Forex license since 2006 and are today able to assist clients with every step needed in order to receive one.The license will be issued by the Vanuatu FSC Financial Services Commission, the entity regulating and supervising the financial industry in the country.

The steps required include incorporating a company in Vanuatu, applying for the license, paying all the necessary fees, guidance on compliance and other practical matters Forex brokers need to be aware of.Additionally our lawyers 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 lawyers 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.The first year’s License fee is refundable should the application be declined.

Low Costs and Fast Registration

In addition to the above, perhaps the two main reasons for the quick increase in popularity for Vanuatu licenses are:

(a) The fact that this is the fastest available Forex/Binary Options regulation out there (it is possible to be granted a license in only 2 to 3 months); and

(b) Very low capital requirements even compared to other known licensing jurisdictions, such as Mauritius and Belize for example. Currently, the capital requirements for brokers looking to be regulated in Vanuatu are only $2000!

(c) There are no capital requirements or other licensing requirement (provided the company does not do business in Vanuatu, but only overseas).

There are, naturally, some additional expenses in connection with the regulation process, such as incorporation and administration of a Vanuatu financial company, annual registered office and secretarial services fees, application for trading in financial and commodity-based derivative instruments and other securities from VFSC, including VFSC regulatory application fees, governmental fees, agents consulting fees, legal fees, etc. However, these expenses are still smaller compared with other regulating jurisdictions.

Contact Us

Should you require additional information, request a quotation or clarify any related matter, please contact one of our Consultants who will be happy to assist with your enquiries.

Disclaimer

COI ´s services are subject to its Terms and Conditions.The information provided by COI is intended as informative material and should not be relied solely upon in decision-making, especially if it concerns international tax planning and financial structuring as these areas are subject to frequent changes, although its efforts to keep all information on its website regularly updated.

COI strongly recommends that each potential user of its services seek tax and legal advice before deciding on implementing a solution employing international financial structures. COI will not be liable for any damages, costs and expenses resulting from or incurred as a result of any action taken or omitted based upon any such information provided by COI.