Legislative Framework and Market Access

The recent amendments to the Maldives Securities Act and Business Registration Act empower the CMDA with comprehensive regulatory oversight, designed to ensure transparency, robust governance, and investor protection. The reforms enable foreign participation under clear ownership limits: foreign investors may acquire equity stakes up to 10% per investor and hold 100% ownership in bonds and other securities as approved by CMDA.

This regulatory evolution establishes the Maldives as an attractive market with open access to international capital.

Eligibility and Compliance

To maintain market integrity and attract credible long-term investors, an eligibility criteria have been introduced. Foreign investors must be domiciled in jurisdictions recognized by the International Organization of Securities Commissions (IOSCO) and must not be subject to sanctions or blacklisting by international bodies such as the United Nations or the Financial Action Task Force (FATF).

Introduction of Foreign Investment Agents

The CMDA has introduced a new category of licensed intermediaries known as Foreign Investment Agents. These entities serve as critical facilitators, streamlining regulatory compliance and administrative processes for international investors. Responsibilities include investor registration, managing capital flows through bank accounts operated by the FI Agent, periodic reporting, and supporting audit requirements to promote transparency and accountability.

First National plans to obtain the FI Agent License

First National will be obtaining the CMDA-authorized Foreign Investment Agent license, aiming to serve as a key enabler for international investors. Our comprehensive suite of services will include:

• Investor Registration (including KYC documentation)
• Investment Advisory services, Fund Management and Brokerage Services
• Record keeping services
• Inward Investment Account Management
• Advisory on exit strategies and divestment procedures
• Industry Insights & Reports

Key Takeaways for International Investors:

• Direct access to a fast-growing, diversifying market
• Contribute to sustainable development through ESG/Impact investment options
• Regulatory environment ensuring transparency and investor safeguards
• Equity investment capped at 10% ownership, with full ownership allowed for bonds and other securities
• Eligibility criteria fostering stable, compliant foreign capital inflows
• Designated Foreign Investment Agents to ease compliance and administration
• Opportunity to contribute to and benefit from investment opportunities in the Maldives, a globally renowned luxury tourism destination that has attracted multi-billion-dollar investments across its hospitality and infrastructure sectors.

First National remains committed to supporting investors with expert guidance and seamless market entry. We invite you to explore this promising frontier and participate in shaping the future of the Maldives’ capital markets. For more information contact us at [email protected]