FSCA extends exemption on compliance officer visits

The FSCA has once again extended – this time until 31 December 2023 – the exemption on compliance officers’ prescribed visits to FSPs’ business premises.

The exemption was granted in 2017 to the end of December 2019, and in 2019 extended to the end of December last year.

FAIS Notice 142 of 2021, published on 15 December, exempts compliance officers from the minimum intervals for visits and reports prescribed in section 4(4) of Board Notice 127 of 2010, “Qualifications, experience and criteria for approval as compliance officer”.

The exemption remains subject to a compliance officer’s adhering to certain conditions, which are:

• Conducting “sufficient” visits to an FSP’s business premises, the frequency and number of which must be determined by taking into account:

1. 1. The nature, scale and complexity of the business, and the nature and range of financial services, activities and ancillary services offered;
   2. The FSP’s compliance risks;
   3. The availability and adequacy of off-site monitoring tools; and
   4. Off-site access to the FSP’s data.

• Implementing a monitoring programme that covers all areas of the provider’s financial services, activities and relevant ancillary services, to ensure that compliance risks and changes to those risks are comprehensively monitored.
• Reviewing the monitoring programme regularly, as well as on an ad-hoc basis when necessary, to ensure that emerging risks are taken into consideration.
• Regularly reporting to the provider on at least the following:

1. 1. The adequacy and effectiveness of the overall control environment for financial services and activities; and
   2. The risks and deficiencies that have been identified; and
   3. The remedies undertaken or to be undertaken.

• Informing the FSP of the applicability of this exemption to the service.

A compliance officer who fails to adhere to any of the conditions will lose the exemption.