What is a Compliance Officer (CO) under FAIS?
A Compliance Officer is the FSCA-approved compliance function of an FSP. This is a question-led guide to what a CO does, how the Phase 1 vs Phase 2 approval works, and when an FSP is legally required to appoint an external CO.
What is a Compliance Officer under FAIS?
A Compliance Officer (CO) is a natural person approved by the FSCA to fulfil the compliance function of a licensed FSP under the FAIS Act. The CO is responsible for monitoring the FSP’s compliance with FAIS, the FAIS General Code of Conduct, Board Notice 194 of 2017 fit-and-proper obligations, and — jointly with the accountable KI — the FIC Act RMCP requirements.
What is the difference between Phase 1 (FSP6) and Phase 2 (FSP12) approval?
Phase 1 (FSP6) allows a person to be approved as a Compliance Officer to a limited number of FSPs and scope. Phase 2 (FSP12) is the higher tier: broader scope, more FSPs, and additional experience and competence requirements. Phase 2 is what most external / practising Compliance Officers hold when they run a portfolio.
When must an FSP appoint an external Compliance Officer?
The FAIS Act requires an approved Compliance Officer where the FSP has more than one Key Individual, more than a threshold number of Representatives, or where the FSCA specifically directs. Small FSPs with a single KI can operate without a separate external CO — but the KI still carries the compliance function and its accountability, and RegDesk still tracks the same obligations.
What are the CO’s ongoing duties?
The CO monitors compliance across the FSP’s operations, keeps the compliance monitoring plan and register of findings, maintains the Section 17 irregularity register, files the Annual Compliance Report with the FSCA by 15 September (for the reporting period ending 31 May), and reports material irregularities to the FSCA as required by Section 17. The CO also supports the RMCP, TCF policy, complaints framework, and monitors CPD and fit-and-proper.
Can the Key Individual act as the Compliance Officer?
Where the FSCA does not require a separately-approved external CO, the KI carries the compliance function themselves. The KI is then personally accountable for the compliance monitoring, the Annual Compliance Report and Section 17 irregularity reporting. In practice most FSPs still engage an external Compliance Officer or compliance agency to give arms-length assurance and reduce personal risk.
How is a Compliance Officer appointed?
A Compliance Officer is appointed to the FSP via the FSCA FSP6 or FSP12 form (depending on the CO’s approval tier) and a formal appointment letter. The appointment is reflected on the FSCA register. If the CO leaves, the FSP must notify the FSCA within 15 days and appoint a replacement — running without an approved CO where one is required is itself a compliance breach.
What is the CO’s role in the annual compliance report?
The Compliance Officer prepares the Annual Compliance Report on behalf of the FSP: gathering evidence from the monthly compliance monitoring, verifying registers (complaints, gifts and conflicts, CPD, breaches), completing the FSCA Omni-CBR return covering the reporting period ending 31 May, and submitting to the FSCA by 15 September. The KI signs off. RegDesk collates the evidence trail as the year progresses so the September file is a compilation, not a scramble.