Regulatory Compliance for Compliance Officer: Key Notes
Key points Function of the Compliance Officer: Overseeing the Compliance Function Submitting compliance report to FSCA Responsibility of Key Individual: Although the compliance function is the responsibility of key individuals, the compliance officer assesses its adequacy. Two-Phase Approval: FSP appoints and ensures compliance officer meets FSCA license requirements. Appointment is approved by FSCA. Phase I: […]
Regulatory Compliance for Compliance Officer: Topic 1
Function of the Compliance Officer A compliance officer must offer an objective and independent compliance service, as outlined in the FAIS Act. Monitoring Compliance with FAIS Act for Regulated Officers The compliance officer is tasked with monitoring the adherence of regulated officers (representatives and key individuals) to the FAIS Act and ensuring they meet all […]
Regulatory Compliance for Key Individual: Key Notes
Key points Financial Soundness Not Required: Note that financial soundness is not a required standard for key individuals under the FAIS Act. However, it remains a consideration for FSPs overall. FSCA Conditions on Key Individual Appointments Only: The FSCA can impose conditions specifically on key individual appointments. While conditions and restrictions are applicable to FSP […]
Regulatory Compliance for Key Individual: Topic 1
Introduction A Key Individual holds responsibility for overseeing an FSP’s activities related to financial services. Key requirements include: Registration Requirement: If the FSP is a sole proprietor or single-person governed entity such as a company with only one director, the sole proprietor or director must be registered as the key individual. Appointment Flexibility: In other […]
FSP Licensing Responsibilities: Key Notes
Key points General Requirements: FSPs, key individuals, and representatives must have knowledge and expertise in financial services, meet fit and proper standards, and maintain ongoing competence. Policies and Procedures: FSPs must have systems to ensure compliance, technical knowledge, client suitability assessments, and participation in CPD. Ongoing Evaluation: Regular assessments of key individuals’ and representatives’ competency […]
FSP Licensing Responsibilities: Topic 1
Licensing Responsibilities for an FSP This lesson reviews the licensing responsibilities of a Financial Services Provider (FSP). Full details of these responsibilities should be studied directly from the RE5 guide. Key licensing responsibilities include: Display of License: A certified copy of the license must be prominently displayed in a frame at the FSP’s head office […]
Fit and Proper Requirements for FSP: Key Notes
Key points Financial soundness requirements apply to all FSPs and juristic representatives, except for natural person representatives, Key Individuals, registered banks, and insurers compliant with their specific acts. FSPs and juristic representatives must maintain adequate financial resources to meet obligations. Comprehensive financial strategies are required, especially for FSPs (excluding Category I without client funds). Cat […]
Fit and Proper Requirements for FSP: Topic 1
Introduction Financial Services Providers (FSPs) must meet fit and proper requirements in honesty and integrity, financial soundness, and operational ability. Honesty, Integrity, and Good Standing An FSP must be owned and managed by individuals demonstrating honesty, integrity, and good standing. The FSCA will evaluate directors, members, or owners based on any past transgressions. Refer to […]
FSP Licensing Application: Key Notes
Key points The compliance function includes the people and processes within a business that ensure the FSP adheres to required standards and responsibilities. The Key Individual establishes and maintains the compliance function, whereas the Compliance Officer oversees the compliance function. Forms Required for FSP Application: FSP 1 Form: Business Information of Applicant FSP 2 Form: […]
FSP Licensing Application: Topic 2
FAIS Division of the FSCA The FAIS Division within the FSCA regulates Financial Service Providers (FSPs) and is organized into four departments: Registration, Supervision, Compliance, and Enforcement. Below are the key responsibilities of each department: Registration Department The Registration Department handles: Processing new license applications. Approving compliance officers. Managing profile changes for key individuals and […]