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

Zenith Capital, a fund management entity (FME) in GIFT IFSC, has been registered to manage non-retail schemes. Its founder says that a separate compliance officer is optional because the principal officer already supervises operations. Which view is correct under the IFSCA fund management framework?

The FME must appoint a compliance officer. The role exists to monitor compliance with the IFSCA regulations and circulars. It is not optional, cannot be absorbed by the principal officer's supervisory duties, and does not depend on scheme type or fund size.

  1. AA compliance officer is optional if the principal officer holds a professional qualification
  2. BThe FME must appoint a compliance officer to monitor compliance with the regulationsCorrect
  3. CA compliance officer is needed only for retail schemes, not for non-retail schemes
  4. DA compliance officer is needed only after the fund's assets cross a prescribed size

Explanation

The framework expects every FME to have a compliance officer who monitors compliance with the regulations and circulars. The role is not replaced by the principal officer's supervisory role, and it does not depend on whether schemes are retail or on fund size.

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