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CS Professional · IFSCA - Regulations, Listing and Compliances · Fund Management Services

Orion Wealth Managers IFSC Pvt Ltd is applying to IFSCA as a fund management entity. Its draft plan has no compliance officer. The founders say they will appoint one only after the first scheme is launched and that, because only restricted schemes are planned, the role is optional. Which statement is correct?

Orion must have a compliance officer in place as a condition of operating, whatever type of scheme it manages. The requirement does not depend on the number of employees or on restricted schemes serving sophisticated investors, and a trustee cannot cover it until a later appointment.

  1. AThe role is optional because restricted schemes serve only sophisticated investors
  2. BA compliance officer is needed only if the FME has more than ten employees
  3. CA compliance officer may be appointed after launch if the trustee agrees to oversee compliance until then
  4. DThe FME must have a compliance officer in place as a condition of operating, whatever the type of schemeCorrect

Explanation

An FME in an IFSC must have a compliance officer responsible for ensuring compliance with IFSCA regulations, and this is part of its basic organisational requirements. The requirement does not depend on scheme type, headcount, or on a trustee covering the gap. Appointing the officer after launch would leave the FME non-compliant when it starts operating.

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