# Task 1 QC4

https://www.youtube.com/watch?v=80nyF0V1EGU

[00:03] task 1.
[00:04] task 1 talks about demonstrating an.
[00:05] talks about demonstrating an understanding of the phase act as a.
[00:08] understanding of the phase act as a regulatory framework.
[00:13] task 1 has four qualifying criteria.
[00:17] task 1 has four qualifying criteria let's look at task one qualifying.
[00:19] let's look at task one qualifying criteria for.
[00:22] criteria for describe the role and function of a.
[00:24] describe the role and function of a compliance officer.
[00:29] let's focus on another key player.
[00:32] let's focus on another key player an fsp's compliance officer.
[00:35] an fsp's compliance officer we will talk about their role and.
[00:37] we will talk about their role and responsibilities.
[00:39] responsibilities there are two types of compliance.
[00:41] there are two types of compliance offices that can be approved by the fsca.
[00:46] offices that can be approved by the fsca one is an in-house or internal.
[00:48] one is an in-house or internal compliance officer.
[00:49] compliance officer who is a natural person this one.
[00:52] who is a natural person this one offers his or her services to the fsp.
[00:55] offers his or her services to the fsp that has employed him or her only.
[00:59] that has employed him or her only the other is an external compliance.
[01:02] the other is an external compliance officer.
[01:02] officer or practice this one can be both a
[01:06] or practice this one can be both a natural person
[01:07] natural person or a legal entity that will employ
[01:09] or a legal entity that will employ natural persons
[01:12] natural persons this type of compliance officer can
[01:14] this type of compliance officer can offer its services
[01:16] offer its services to multiple fsps
[01:21] compliance offices must be approved by
[01:23] compliance offices must be approved by the fsca
[01:25] the fsca but only after they have met the fit and
[01:27] but only after they have met the fit and proper requirements
[01:28] proper requirements that are set out for them in the phase
[01:31] that are set out for them in the phase act
[01:33] act once approved by the fsca compliance
[01:36] once approved by the fsca compliance officers may be appointed by an
[01:38] officers may be appointed by an fsp to help with compliance requirements
[01:42] fsp to help with compliance requirements of the phase act
[01:48] the role and responsibilities of a
[01:50] the role and responsibilities of a compliance officer
[01:52] compliance officer can be explained as follows
[01:56] one to oversee the compliance function
[02:00] one to oversee the compliance function insofar as the phase act is concerned
[02:05] two to monitor compliance of an fsp
[02:09] two to monitor compliance of an fsp with this phase act this relates with this phase act this relates particularly to the compliance procedures which an fsp and its representatives should follow in order to ensure compliance.
[02:23] three to identify issues of non-compliance within the fsp and bring those to the attention of the fsp this can be done by preparing written reports for the fsp on a regular basis.
[02:41] a compliance officer must also physically visit the premises of the fsp from time to time to inspect the fsp's operations.
[02:54] 4 to train the fsp on how to rectify the non-compliance issues and 5. to communicate with the registrar by means of an annual compliance report.
[03:14] Let us talk more about the oversight.
[03:16] Let us talk more about the oversight role of the compliance officer.
[03:20] Role of the compliance officer.
[03:23] An FSP must ensure that it establishes a compliance function.
[03:25] Compliance function processes and controls.
[03:28] Processes and controls.
[03:31] Once that is done, the compliance officer should then recommend improvements.
[03:33] Should then recommend improvements and train where weaknesses are identified.
[03:35] And train where weaknesses are identified.
[03:38] Identified part of the oversight role of the compliance officer.
[03:40] Part of the oversight role of the compliance officer is to check that non-compliance issues.
[03:41] Is to check that non-compliance issues that have been identified are rectified.
[03:44] That have been identified are rectified.
[03:46] This means the compliance officer must follow up with an FSP to see that a remedial action was taken.
[03:49] This means the compliance officer must follow up with an FSP to see that a remedial action was taken.
[03:50] Officer must follow up with an FSP to see that a remedial action was taken.
[03:53] Must follow up with an FSP to see that a remedial action was taken.
[03:54] Remedial action was taken.
[03:59] Then when it comes to the monitoring.
[04:02] Then when it comes to the monitoring function.
[04:03] Function, the compliance officer must create procedures and systems.
[04:05] The compliance officer must create procedures and systems that allow monitoring of compliance to take place.
[04:07] Procedures and systems that allow monitoring of compliance to take place.
[04:10] That allow monitoring of compliance to take place.
[04:12] Take place. This refers to processes and controls.
[04:16] this refers to processes and controls in this role a compliance officer will
[04:19] in this role a compliance officer will undertake the following
[04:23] 1. identify weak and vulnerable areas
[04:27] 1. identify weak and vulnerable areas in the fsps business that may lead to
[04:30] in the fsps business that may lead to non-compliance
[04:34] two to ensure compliance processes
[04:37] two to ensure compliance processes and controls are implemented and are
[04:40] and controls are implemented and are effective this is to say
[04:43] effective this is to say that the controls are serving their
[04:45] that the controls are serving their purpose
[04:47] purpose and three constantly test
[04:50] and three constantly test and review controls
[04:54] then we come to the role of
[04:56] then we come to the role of communicating
[04:57] communicating and reporting to the registrar
[05:01] and reporting to the registrar we mentioned that a compliance officer
[05:03] we mentioned that a compliance officer must prepare regular reports for an
[05:05] must prepare regular reports for an fsp which include updates on compliance
[05:09] fsp which include updates on compliance matters
[05:10] matters recommended improvements and training on
[05:13] recommended improvements and training on compliance controls
[05:16] compliance controls the compliance officer must also prepare
[05:19] The compliance officer must also prepare an annual compliance report.
[05:21] An annual compliance report on behalf of the FSP, the annual.
[05:24] On behalf of the FSP, the annual compliance report.
[05:26] Compliance report must be signed by the FSP's key.
[05:28] Must be signed by the FSP's key individual.
[05:29] Individual and submitted to the FSCA.
[05:33] And submitted to the FSCA.
[05:35] Please remember that when we refer to the FSCA.
[05:36] The FSCA, we are referring to the registrar.
[05:41] Do you know when a compliance officer must be appointed by an FSP?
[05:44] Do you know when a compliance officer must be appointed by an FSP?
[05:45] Must be appointed by an FSP.
[05:49] FSP, an FSP that has one or more representatives.
[05:52] FSP that has one or more representatives or more than one key individual must appoint a compliance officer.
[05:55] Or more than one key individual must appoint a compliance officer.
[06:00] The compliance officer, whether in-house or external, must remain objective and independent at all times.
[06:03] The compliance officer, whether in-house or external.
[06:04] Or external must remain objective and independent at all times.
[06:07] Must remain objective and independent at all times.
[06:09] All times.
[06:12] Furthermore, a compliance officer must also comply with the fit and proper requirements of the Fees Act when performing its duties.
[06:14] Also comply with the fit and proper requirements of the Fees Act.
[06:16] Requirements of the Fees Act when performing its duties.
[06:24] Now that we have discussed the role and responsibilities of a compliance officer, let us go through some questions to test our knowledge.
[06:37] Does an FSP always have to appoint a compliance officer in the following instances?
[06:44] What if it has one key individual and no representative?
[06:50] No, what if an FSP has one key individual and one representative?
[07:00] Yes, what if an FSP has more than one representative?
[07:15] Does an FSP always have to appoint a compliance officer in the following instances?
[07:22] Where an FSP has two or more key individuals.
[07:24] where an fsp has two more key individuals
[07:28] yes what about where an
[07:31] yes what about where an fsp is a sole proprietor with one
[07:34] fsp is a sole proprietor with one representative
[07:42] yes
[07:44] yes what are the duties of a compliance
[07:47] what are the duties of a compliance officer
[07:50] is it a compliance officer's duty to
[07:52] is it a compliance officer's duty to ensure that a compliance function exists
[07:55] ensure that a compliance function exists or is established as part of the risk
[07:57] or is established as part of the risk management framework
[07:58] management framework of the business
[08:02] no the responsibility to establish a
[08:07] no the responsibility to establish a compliance function
[08:08] compliance function rests with an fsp a compliance officer
[08:13] rests with an fsp a compliance officer can recommend improvements to an fsps
[08:15] can recommend improvements to an fsps compliance environment
[08:17] compliance environment however the fsp perhaps
[08:21] however the fsp perhaps through its key individual is
[08:23] through its key individual is responsible
[08:24] responsible for ensuring that a compliance function
[08:26] for ensuring that a compliance function exists.
[08:29] is it a compliance officer's duty to.
[08:32] is it a compliance officer's duty to report on material non-compliance issues?
[08:38] yes.
[08:40] yes is it a compliance officer's duty to.
[08:43] is it a compliance officer's duty to ensure.
[08:43] ensure all staff are adequately skilled and.
[08:46] all staff are adequately skilled and trained.
[08:49] no this is another responsibility of the.
[08:52] no this is another responsibility of the fsp through its key individual.
[08:59] is it a compliance officer's duty to.
[09:01] is it a compliance officer's duty to make recommendations to the fsp.
[09:04] make recommendations to the fsp as regards any aspect of the required.
[09:06] as regards any aspect of the required compliance or monitoring functions.
[09:11] compliance or monitoring functions yes.
[09:16] is it a compliance officer's duty to.
[09:19] is it a compliance officer's duty to monitor compliance with the phase act.
[09:21] monitor compliance with the phase act and supervise the compliance function.
[09:26] Yes, is it a compliance officer's duty?
[09:31] Yes, is it a compliance officer's duty to manage compliance with the Phase Act?
[09:33] To manage compliance with the Phase Act and manage the compliance function?
[09:37] And manage the compliance function? No.
[09:44] Is it a compliance officer's duty to?
[09:46] Is it a compliance officer's duty to ensure?
[09:47] Ensure all staff receive their face qualifications?
[09:52] No, this is also responsibility of the FSP.
[09:57] FSP through its key individual.
[10:01] Is it a compliance officer's duty to?
[10:04] Is it a compliance officer's duty to inform the key individual of cases of non-compliance and mention it on the compliance report?
[10:16] Yes.
[10:19] Yes, we hope you enjoyed the video and learned a lot.
[10:22] Please make sure to check out our other Ori videos.
[10:50] you