Subject Title - INSETA

The legislation 116 also requires that the "compliance function must beexercised with such diligence care and degree of competency as mayreasonably be expected from a person responsible for such function".The General Code requires specific control measures, which we discussedunder "Risk Management". The internal control procedures include theestablishment of a compliance function as part of the risk managementframework of the business.The compliance officer must provide the FSP with written reports on thecompliance-monitoring duties and must also make recommendations to theFSP as and when required in relation to the compliance or monitoringfunctions.It is possible for the FSP to outsource the compliance function – in otherwords not having to appoint a fulltime employee to act as compliance officer.Care must be taken to ensure that the outsourced compliance practice hasadequate staff, resources, skills, etc. and that the approval requirements aremet.Remember the establishment of the compliance function is the responsibilityof the FSP/key individual and it includes the appointment of a compliancepractice.9.2.2 The duties of a compliance officerThe compliance officer must: monitor compliance with the Act 117 supervise the compliance function 118 make recommendations to the provider as regards any aspect of therequired compliance or monitoring functions (Regulations Ch IVparagraph 5); 119 submit reports to the Registrar as required by the Act. 120116 Part IV, Section 5(2) of the FAIS Regulations 2003, GG 25092117 Section 17(1)(a) of the Act118 (Regulations Ch IV paragraph 5)119 ibid120 Section 17(4) of the Act© INSETA - Section 1 12a 181