The Regulator’s Communication 16 of 2021 (FAIS) provides clarity to stakeholders, FSPs, key individuals and compliance officers regarding the submission of compliance reports, handover reports and irregularity reports for 2021.
Compliance Reports and Handover Reports for 2021
The Authority is in the process of developing a Conduct of Business Report (“CBR report”) that will apply to all regulated entities which will have to be submitted to the Authority on an annual basis. The CBR report, once finalised, will replace the compliance report contemplated in section 17(1)(c) of the FAIS Act. The Authority has decided, as was the case in 2019 and 2020, that no compliance reports need to be submitted to the Authority during 2021.
The Authority has further decided that there will be no prescribed format for a handover report during 2021, as there are no compliance reports to report on. The “statement” referred to in section 17(1)(c), read with section 19(5)(a) of the FAIS Act, containing the reasons for the compliance officer’s termination, can therefore be submitted to the Authority in any form and manner. For example, when a compliance officer resigns, he/she can merely send an e-mail or letter to the Authority setting out the reason/s for and effective date of such resignation.
For clarity purposes, the following compliance reports and handover reports, are not required to be submitted in 2021:
- Category I FSP with a Compliance Office;
- Category II and IIA FSPs (Bi-Annual Report);
- Category III FSP (Bi-Annual Report);
- Category IV FSP;
- Foreign FSP;
- Category I FSP without a Compliance Officer;
- Compliance Officer Handover Report; and
- Key Individual / Sole Proprietor Handover Report.
Submission of Irregularity Reports
If a compliance officer is aware of any material irregularity or suspected irregularity by the FSP, he/she must inform the Authority in writing. Similarly, if a compliance officer resigns from an FSP and is aware of any material irregularity or suspected irregularity by the FSP, he/she must, in addition to the handover report, submit an irregularity report to the Authority.
Outstanding Compliance Reports
FSPs or compliance officers that have not submitted the required compliance reports from date of approval up to 2018, are still required to submit such outstanding reports.
Please note that the failure to submit such reports might lead to regulatory action being instituted against such non-compliant FSPs.
