NOTICE OF ONSITE INSPECTION IN TERMS OF SECTION 132 OF THE FINANCIAL SECTOR REGULATION ACT, NO 9 OF 2017
Financial Sector Conduct Authority (the Authority) conducts inspections in terms of section 132 of FSR Act
The purpose for which the Financial Sector Conduct Authority (the Authority) may conduct a supervisory onsite inspection (inspection) of a supervised entity is to;
- check compliance by the entity with a financial sector law for which the Authority is the responsible authority, a directive issued by the Authority or an enforceable undertaking accepted by the Authority;
- determine the extent of the risk posed by the entity of contraventions of a financial sector law for which the Authority is the responsible authority; and
- assist the Authority in supervising the relevant financial institution.
It is important that all key personnel directly involved in the core activities of the FSP are available during the inspection. In this regard, you are requested to assist in securing interviews with the following individuals:
- Key individual/s;
- Managing Director;
- Operations Manager;
- Compliance Officer; and
- Risk Officer.
In preparation for the inspection, the following business documents will be requested for review :
An explanation and description of all services offered including a detailed explanation
The client-take on process + Sample of documents used in the client take on process i.e. mandates, presentations
Number of funds managed by the FSP and details thereof e.g. legal structure, date of inception, domicile,
investment objectives, permissible investments, prime broker, administrator
Investment management process and policy + research process + investment committee minutes (12 months)
Mandate breach register for February 2022 to date.
Treating Customers Fairly (TCF) framework and policy.
The complaints process and policy + register (12 months)
Conflict of Interest policy.
Up to date Professional Indemnity Cover (PI Cover) schedule.
Compliance structure, framework and policy.
Monthly compliance monitoring reports of the compliance officer including client records sampled (12 months)
An updated risk assessment for the year
The Risk Committee minutes for February 2022 to date.
Management accounts for the period ended date.
Financial soundness monitoring working papers for September 2022 to date.
Business continuity and disaster recovery policy.
More on this to follow in our next news update.
CRUX Compliance Practitioners