Subject Title - INSETA

One of the main functions of a compliance officer is to monitor compliance byall the role players, with the FAIS Act.What does "monitor" mean?In compliance terms, monitoring is to:1. identify and improve weak/vulnerable areas in business;2. ensure that the compliance controls in business are effective andimplemented;3. constantly test/review the integrity of the compliance controls.As discussed above an internal compliance officer approved by the Registrarmay not delegate the compliance monitoring function, unless certainprescribed conditions are met 121The monitoring duties of the compliance officer must be performed within thescope and application of the categories and subcategories for which the FSPis licensed.The Act also requires compliance officers to „supervise‟.In essence this means that the FSP is responsible for the establishment of thecompliance function, including all the control requirements and thecompliance officer is responsible for all the related compliance functions. 122The compliance officer must in effect only ensure that the requirements ofthe Act are met through the procedures, which the FSP (key individual) mustestablish – hence the requirement for the compliance officer to "supervise".There must be adequate measures in place to ensure that non-complianceissues identified by the compliance officer are rectified.Written reports to FSPThe compliance officer also has to submit written reports to the FSP oncompliance issues relating to the business and make recommendations asrequired. This should enable both FSP (key individual) and compliance officerto assess compliance with the FAIS Act and to identify and implementremedial steps where required.121 BN 127 OF 2010122 Section 17(3) of the Act182 © INSETA - Section 1 12a