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How is the Financial Services Sector Regulated in Saint Lucia?
1.1 Organizational and Legal Structure of St Lucia Forex Companies
Broker companies in Saint Lucia are incorporated under the International Business Companies Act Cap 12.14 (IBC Act), typically as limited liability companies, known as international business companies (IBCs). This incorporation is governed by the Registered Agents and Trustee’s Licensing Act Cap 12.12 (RATLA). IBCs can engage in any legal commercial activity without needing additional approval or licensing from the Financial Services Regulatory Authority (FSRA)【source】.
1.2 Restrictions for IBCs
Under Section 12 (1) of the IBC Act 12.14, IBCs are prohibited from engaging in insurance, banking activities, or operating as a mutual investment fund. Additionally, IBCs cannot raise funds from residents of Saint Lucia or publicly sell company shares. The prohibited activities are further detailed in both the IBC Act and RATLA. Any activity requiring an FSRA-issued license, such as mutual funds, international banking, or international insurance, is also prohibited. However, IBCs can engage in other business activities as long as they operate externally from Saint Lucia.
Does Brokerage Activity Require a License in Saint Lucia?
2.1 Financial Regulation
Currently, there are no legal prohibitions against IBCs engaging in FX and CFDs market activities or declaring such activities in their Articles of Association. Neither the IBC Act, RATLA, nor the Money Services Business Act Cap 12.22 defines the trading of securities or foreign exchange business. Therefore, IBCs can legally engage in these activities without it being considered prohibited under Saint Lucian law.
2.2 Licensing Requirements
An analysis of Saint Lucian legislation and FSRA information indicates that a license for FX and CFDs market services is neither required nor applicable for the IBC dealing with clients out of the jurisdiction under current regulations.
How to Start a Forex Company in Saint Lucia
Application Submission
Brokers applying for the IBC must submit a comprehensive application which will be summarized in the application form provided. This application process ensures that only credible and well-prepared entities are granted approval.
Due Diligence Checks
The business registrar conducts due diligence on the applicant’s directors and key personnel, verifying their integrity and competence to operate the business.
Compliance and Operational Setup
Brokers must establish robust compliance systems to meet Saint Lucia’s requirements, including anti-money laundering (AML) and know your customer (KYC) policies.
Approval and Maintenance
Once approved, brokers receive their Forex and CFD completed IBC incorporation and must adhere to ongoing requirements. Maintaining compliance and a good reputation ensures the brokerage remains in good standing.
Conclusion
Setting up a Forex Company in Saint Lucia offers brokers numerous benefits, including regulatory clarity, tax advantages, cost-effectiveness, and a strategic location. This combination makes Saint Lucia an increasingly attractive choice for forex brokers seeking to establish a reputable operation. In our independent opinion, we believe it is another window of opportunity for the startup broker to start exploring this favorable jurisdiction.
If starting a Forex CFD brokerage business is something on your mind right now, reach us to share your plans.