Vanuatu Dealers in Securities License.

Financial services in Vanuatu are regulated by the Vanuatu Financial Services Commission (VFSC). The licence is obtained under the Dealers in Securities (Licensing) Act [CAP 70] and permits the holder to manage portfolios of investments and to buy and sell securities for, or on behalf of, the client. The company must appoint an Anti-Money Laundering officer registered with the Financial Intelligence Unit (who cannot be a director), plus an alternate AML officer.

Since 8 January 2019, the Principal’s licence is divided into Class A, Class B and Class C: Class A and Class C cover dealing in defined securities, while Class B covers dealing in futures contracts and derivative products including futures and options.

Company structure

• Only one shareholder (can also be a legal person; no nationality or residency restrictions)
• Only one director (natural person only; no nationality or residency restrictions)
• AML Officer
• Alternate AML Officer

Requirements for managers / directors

• Must be natural persons only
• Shall normally reside for 6 months within each year in Vanuatu
• Must have at least 5 years’ experience dealing in securities and be competent to meet the obligations of a licensee as required by the VFSC

Confidentiality

• Beneficial owners’ details – not part of public record
• Shareholders’ details – not part of public record
• Directors’ details – not part of public record

Taxation

• 0% – for 20 years, Vanuatu forex brokerage companies are exempt from local taxes on income derived outside Vanuatu

Accounting and audit

Financial statements must be prepared by an independent auditor (approved in advance by the Commissioner) and submitted 3 months after the anniversary date, in accordance with the International Accounting Standards. The licensee must also submit quarterly and annual reports to the Commissioner.

Physical premise and other requirements

• Registered Agent – required
• The company must operate from a physical premise in Vanuatu maintaining filing, management/accounting, business-continuity and software/server systems
• Adequate insurance / professional indemnity cover — minimum VT 5,000,000 per claim, aggregate not less than VT 50,000,000, maximum deductible VT 500,000

Steps to obtain licence

1. 1
   Registration of a Vanuatu company
2. 2
   Preparation and submission of all necessary documents to the VFSC
3. 3
   Drafting of anti-money-laundering procedures and a business plan for the company
4. 4
   Finalizing the steps with the VFSC for receipt of the licence
5. 5
   Account opening for operational purposes