Subject Title - INSETA

Internal compliance officer:where the compliance service will be rendered in respect of categoryI and IV FSPs, the applicant must have the ability to conduct annualvisits to business premises, units and branches of FSP and anyrepresentatives.where the compliance service will be rendered in respect of categoryII, IIA and/or III FSPs the applicant must have the ability to conductquarterly visits to business premises, units and branches of the FSPand any representatives.9.1.3 Delegation of the rendering of a compliance serviceAs mentioned above, no person or compliance practice may rendercompliance services without having obtained Phase I and II approval. This issubject to one exception: an internal compliance officer may delegate therendering of compliance services but only on the following conditions:such other person must be a natural person in the employ of the FSP,ANDmust comply with the Phase I requirements unless the person will docompliance monitoring in terms of documented procedure and willexercise no judgement, ORBe an approved compliance practice.The internal compliance officer must still oversee such person and remainsaccountable for the service rendered. The internal compliance officer mustalso maintain a register of the names of persons to whom the rendering ofthe compliance service has been delegated.As with representatives and key individuals, there are transitionalarrangements that apply to compliance officers already approved prior to theimplementation of the new amendments. In this regard, existing complianceofficers do NOT have to meet the qualification requirement and will have tocomplete the Regulatory Exam within three years of publication of the BoardNotice.9.1.4 Board Notice 126: the rendering of compliance services undersupervisionBN 126, also published in September 2010, has introduced the option forcompliance services to be rendered under supervision. The requirement is,178 © INSETA - Section 1 12a