Subject Title - INSETA

PurposeThis chapter introduces you to the compliance function. As a key individualyou need to ensure that the compliance function is adequately resourced andequipped to meet the legislative requirements.You will get an understanding of the approval process of compliance officersas well as the role and functions of compliance officers. You will have to signoff the compliance report, so it is important to understand the basicrequirements of the function and obligations.9.1 APPROVAL OF COMPLIANCE OFFICERSOne of the role players in the FAIS Act is the compliance officer. An FSP mustappoint a compliance officer to fulfil the functions required by the FAIS Act 109 .Key individuals must oversee and manage the compliance functions althoughthe compliance officer must be objective and must act independently fromthe management of an FSP. (We discuss this in more detail further on in thischapter.)The FAIS Act 110 requires the following in respect of compliance officers andcompliance arrangements:1. An FSP with more than one key individual or one or morerepresentatives must appoint a compliance officer to monitorcompliance with the Act (subject to any FAIS Regulations). 1112. Compliance officers must be approved by the Registrar 112 ;3. The FSP must establish and maintain procedures for compliance withthe Act; and 1134. Compliance officers or FSPs must submit compliance reports to theRegistrar. 114109 Section 17 of the FAIS Act110 Ibid111 Section 17(1)(a) of the Act112 Chapter IV of the Financial Advisory and Intermediary Services Regulations, 2003,Section 17(2)(a) of the Act113 Section 17(3) of the Act114 Section 17(4) of the Act174 © INSETA - Section 1 12a