Subject Title - INSETA

Annual Report to RegistrarThe compliance officer‟s report of the FSP must also include reporting anyirregularity or suspected irregularity in the conduct of the FSP business ofwhich the compliance officer is aware and that the compliance officer regardsas material, to the Registrar. This must also be done if the services of thecompliance officer have been terminated by the FSP. 123The reporting duties of a compliance officer in terms of the FAIS Act go widerthan just compliance with the FAIS Act and include reporting on the FICA aswell.In addition to these „formal‟ reports, compliance officers must report anymaterial breach by the FSP to the FAIS Registrar – at any time.9.2.3 Avoid conflict of interestOne of the Phase I requirements for approval of a compliance officer by theRegistrar, is the avoidance of conflict of interest between the duties ofcompliance officer with the duties of other employees, internal audit andcontrol and functions of representatives.Why is this required?The functions and role of a compliance officer require that such person mustbe able to monitor, supervise and report on the functions of the FSP andrepresentatives. If there are conflicts of interests across the functions, thecompliance officer will not be able to perform the function objectively, nor toidentify and report on instances of non-compliance or irregularities.Another requirement is that the compliance officer must have direct access tosenior management and must have the "demonstrable" support of seniormanagement.The functions of internal audit and compliance should also be separated asthe scope of the functions is quite different.Internal auditors do not „monitor‟ or „supervise‟ FAIS-related functions -compliance officers do that.123 Section 17(3) read with S19(4) of the Act.© INSETA - Section 1 12a 183