Regulatory Alerts2024-10-02
FSCA Communication 38 of 2024 (FAIS): Addressing and Preventing Regulatory Examination Fraud
The Financial Sector Conduct Authority (FSCA) has issued Communication 38 of 2024 to combat rising fraud in FAIS regulatory examinations by mandating financial services providers (FSPs) to implement robust due diligence and direct verification of exam certificates. The directive addresses prevalent misconduct including forged documents, exam impersonation, and third-party scams, while requiring FSPs to authenticate certificates directly with Moonstone or the FSCA and enforce strict debarment under section 14 of the FAIS Act. FSPs must maintain detailed verification records, educate representatives on legitimate examination channels, and uphold a zero-tolerance stance to ensure only competent individuals operate within the financial sector.
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