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

Zenith Capital Managers, a registered Fund Management Entity (FME) in GIFT IFSC, is preparing its internal compliance framework. Which arrangement is consistent with the ongoing obligations expected under the IFSCA fund management framework?

The FME should appoint a compliance officer to monitor compliance with IFSCA requirements and report any non-compliance. The FME itself carries the regulatory responsibility, so it cannot shift this to investors or custodians, or wait for a show-cause notice from IFSCA.

  1. AAppointing a compliance officer who monitors the FME's adherence to IFSCA requirements and reports non-complianceCorrect
  2. BLeaving compliance monitoring entirely to the fund's investors
  3. CRelying on the custodian alone to track all regulatory requirements of the FME
  4. DDeferring any compliance function until IFSCA issues a show-cause notice

Explanation

A registered FME is expected to have a compliance officer who monitors compliance with the regulations and reports lapses. Investors and custodians cannot take over the FME's own regulatory responsibility, and waiting for a notice defeats the purpose of ongoing compliance.

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