The Vanuatu Securities Dealer License (or SDL), is a preferred regulatory regime by many online Forex & CFD brokers. The Republic is located in the western South Pacific, 1900 kilometers east of Brisbane, Australia. The jurisdiction consists of 83 islands, belonging to the Melanesian Islands. The land area is 860,000 square kilometers and the population is about 270,000. Political stability strictly abides by Commonwealth laws, and the main industries are agriculture and tourism.
In recent years, many brokers chose the country as its preferred jurisdiction to be regulated under because Vanuatu’s financial industry received strong support from the Government, which later established the Financial Services Commission VFSC in 1993. The VFSC issued forex license continue to become a popular structure for global foreign exchange companies who seek regulatory supervision.
VFSC is the official regulatory body that help approve financial institutions in carrying out their business and set the rules and regulations for the country’s financial services sector. Being regulated by the VSFC, broker dealers may within their permitted capacities, support a variety of financial services, such as remittance businesses, payments, foreign exchange trading, commodities, securities trading, financial advisory, etc.
The Commission maintains a high degree of confidentiality for companies registered in their jurisdiction. When a broker is licensed, application for payment gateways and the alternatives to manage deposits from the business will be wider in choices. Requirements for license applications are reviewed and modified from time to time, however for a start, the applicant will need to fulfil general KYC requirements, such facilitating notarized copies of IDs and address proof for all shareholders and directors, paper proof that all parties are free from any criminal records, and many other detailed relevant information as set out by the Commission. To note, a paid-up capital of approximately US$50K has to be parked with the regulator. If all documents are submitted and prepared promptly, although it is still subject to the regulator, time to approval can be relatively short, without having to spend any hefty amount. It is one of the preferred jurisdiction for most startup online Forex and CFD brokers to attain their brokerage licenses.
If you need to know more on applying for the Vanuatu Securities Dealer License issued by the VFSC, please do not hesitate to contact us