FiveComply

NAYIA XIARI

Global Head of Licensing at FiveComply

Go Offshore; Why FiveComply decided to expand in Seychelles

It is always very challenging for an investor to prudently evaluate his options prior setting up his forex brokerage; there are lots of different criteria and strategic decisions that need to be taken into consideration, in order to choose the right jurisdiction in terms of cost and time efficiency. This is where FiveComply’s expertise in the financial sector becomes crucial, in assisting investors to properly assess their options for the establishment of their brokerage and also to achieve compliance with regulatory obligations.

FiveComply, as a global consultancy firm that acquired licenses for investors in more than 15 jurisdictions, has strategically decided to expand and enhance its Seychelles team to be able to assist its clients with A-to-Z solutions. In this interview, given by the Global Head of Licensing and Compliance Support, Nayia Xiari, we are able to get a closer look on why getting a Seychelles forex license is considered one of the best offshore options right now, for setting up, but also operating your license.

Q Why FiveComply decided to expand to Seychelles?

Let me mention that, FiveComply specialises in the Seychelles jurisdiction for over 5 years now. Our CEO Gabriel Styllas, has been a specialist in the licensing and regulatory compliance sector for over 20 years and has built a brilliant team of experts that are able to offer tailored made solutions based on each client’s needs. In the last three years, FiveComply has acquired a vast number of licenses in Seychelles, with investors being more and more interested in the Securities Dealer License regulated by the Financial Serviced Authority (FSA) of Seychelles. Our primary aim, is to constantly develop and enhance our operations in order to provide to our clients’ multiple options and the best results possible. Thus, while observing the Seychelles market during this period of years, we understood that, more professionals were needed, especially in terms of compliance support. Thus, we have composed our own team of compliance support experts focused on the Seychelles legislative and regulatory scheme. In addition, we have a local office operated by Mrs. Chantal Senterre who is FiveComply’s Seychelles Office Manager and an FSA Approved Outsourced Compliance Officer.

Q What can the FiveComply Seychelles team offer to its clients?

Let’s break FiveComply’s services in four main parts; pre-application stage, post-application stage, license activation stage and post-license ongoing compliance and legal support stage.

Pre-application stage: Firstly, FiveComply assists clients in acquiring their Securities Dealer License. Our team reviews and advises on the corporate structure, the proposed directors and shareholders CVs and KYC/DD documentation and also prepares all the manuals and the Company’s Business Plan according to each client’s business model.

The clients have also the option to appoint our FiveComply compliance officers to whom they can outsource the compliance function of the company.

Post-application stage: Once the application is submitted to the FSA for examination, FiveComply responds to all the queries raised with the FSA and follows-up on a constant basis with the FSA responsible officers to ensure a smooth and prompt coordination in regards to each application. We consider it of paramount importance to build and maintain a relationship of trust with each and every regulator, this is why Gabriel our CEO along with myself and other key members of FiveComply, travel on an ongoing basis to Seychelles and arrange face-to-face meetings with the FSA. In this way, we utilise the feedback we get to upgrade our applications and be proactive according to the FSA’s updated internal policies.

License activation stage: Once the license is acquired, FiveComply offers ongoing compliance support to its clients to help clients activate their license; this entails assistance with opening of a bank / EMI account, detailed plan in regards to the activation process and actions needed, assistance in obtaining a professional indemnity policy and constant support in regards to regulatory obligations imposed under the FSA regulatory scheme.

Post-license ongoing compliance and legal support

stage: After activation of the Securities Dealer License, the FiveComply team, assists clients on a constant

basis with meeting their regulatory obligations and with any enquiries the clients have. At the same time, we do have continuous communication and face to face meetings with all our clients, as we consider this, the key to successful cooperation.

Q How does FiveComply’s local personnel be of assistance to your clients?

First of all, we offer to clients the possibility to appoint the FiveComply approved compliance officers, to whom they can outsource the compliance function of their entity. It is really important to mention that, it is a legislative requirement for the compliance officer to be local or resident in Seychelles. Thus, it is very difficult for clients to source a suitable candidate that is either willing to move to Seychelles or is a Seychelles resident and also acquires the relevant qualifications to be approved by the FSA. With our approved outsourced compliance officers that are residents in Seychelles, clients minimise costs and maximise efficiency.

In addition, we assist clients with office visits requested from the FSA; in this way, clients do not need to travel there on short notice. FiveComply may, also amongst others, arrange to collect office keys, arrange for office furniture, office signs, collection of originals from the FSA, etc.

Our presence in Seychelles has proved very helpful for clients so far, and this is why we are enhancing our Seychelles team on an ongoing basis.

Q Why an investor to choose Seychelles for setting up his brokerage?

Usually, investors want to set up their brokerages in jurisdictions that there is a clear picture in terms of regulatory obligations, cost and time efficiency to acquire and operate the license, as well as, for the regulator to carry a positive reputation throughout the investment community.

So, let’s keep it simple; in terms of organisational requirements an investor can start a brokerage in Seychelles with USD 50,000 as minimum capital to be deposited, two directors that can have multiple roles in the entity and a local outsourced compliance officer, that is provided by FiveComply. So, in terms

of organisational requirements and capital, we do not consider Seychelles to be a burdensome jurisdiction, but on the contrary, it provides flexibility while at the same time, it keeps high compliance standards.

In terms of time and cost-efficiency, the Securities Dealer License is relatively fast to be obtained and the cost of set up and operations is quite low. In addition, let’s also not forget that, Seychelles offer a beneficial tax regime.

In terms of regulatory obligations, FSA imposes reasonable obligations that with the compliance support of FiveComply’s experts, can easily be dealt with. Last but not least, there are no leverage restrictions; this enables our clients to do business according to the business model they would like to establish.

The FSA is also considered a reputable regulator that has made huge steps of improvement both on a regulatory but also a practical perspective.

In summary, we believe that Seychelles is one of the best choices to set up your brokerage, as it provides leverage flexibility, cost and time efficiency and is also considered a reputable regulator.

Q Based on your experience with the FSA, is it an approachable and responsive regulator?

Based on our experience with different regulators across the globe, we consider the Financial Services Authority (FSA) of Seychelles to be one of the most approachable and reasonable regulators. The FSA consists of a team of individuals that is open to discussion and new ideas; during face-to-face meetings that we had, but also during our ongoing communication on different matters, we can see that our feedback is being taken into consideration. In 2022 and due to some changes in the FSA’s management, we have also seen a huge improvement in the time needed from the FSA to examine and finalise the applications of clients. From both a practical and regulatory perspective, we would say that, the FSA is well-balanced, as it aims for utmost compliance of its licensees, but at the same time, does not impose on them excessive regulatory burdens, deeming the operation of the license impossible.

Q Do you believe that there is future for the financial industry in Seychelles?

Yes, in my opinion, this is certain. Seychelles’ economy depends a lot on the financial industry and its stakeholders and based on our meetings with the FSA in Seychelles, it is clear that, their aim is to grow and stay ahead. For example, currently the FSA is conducting a strategic National Risk Assessment in relation to Virtual Assets (VAs) and Virtual Assets Service Providers (VASPs), in order to assess whether they are proceeding with the establishment of this regime. In addition, the National Assembly in Seychelles has recently approved the Financial Consumer Protection Bill 2022, that aims to enhance financial consumer protection and promote fair practices. Lastly, the FSA is conducting trainings in coordination with the Chartered Institute for Securities & Investment (CISI), as their plan is to enhance professionalism in the sector by providing the necessary talent pool / experts in the financial sector, in order to attract foreign investors and diversify their portfolio of sectors operating in the industry.

Q We know that FiveComply as a global consultancy firm, specialises in other jurisdictions and services, as well. Are there some other recent developments for FiveComply?

Firstly, let me just refer to some background details related to FiveComply that readers might not be aware about. FiveComply’s name has dual meaning; on the one hand, it means the five pillars of compliance (i.e. identification, prevention, monitoring and detection, resolution, advisory) while at the same time, it means the five main pillars that FiveComply’s experts / departments focus on; advisory (including mergers and acquisitions), licensing, internal audit, risk management and compliance support. Within these five pillars of expertise, we are able to offer to our clients A-to-Z solutions from incorporation and licensing of entities to compliance support, internal audit, risk management, etc. We also have a dedicated Payments and Banking Relations Department which can assist clients in selecting the most cost and time efficient options among Banks /EMIs / PSPs. FiveComply specialises in licensing, set-up and operations of brokerages, establishment of cryptobusinesses and funds in different jurisdictions. In this last year, we strategically decided to focus on licensing of entities in Seychelles, Mauritius and Cyprus, that we consider the most successful jurisdictions at the moment in terms of acquiring and operating a license. The Financial Services Commission (FSC) Mauritius has also made significant progress and together with the FSA Seychelles is considered amongst the most credible and efficient offshore regulators.

We would be extremely happy if our readers meet us at Booth 133 of the iFXEXPO event taking place at Palais des Sports/Spyros Kyprianou, in Limassol, Cyprus from the 7-9 June 2022. There, we would be able to meet in person, have a chat in regards to our services and how we are able to assist potential clients. In the meantime, you can reach us at info@fivecomply.com for any information you might need in regards to our services; we are happy to provide further information, arrange a call or a face-to-face meeting!

You can find more information via our website: www.fivecomply.com