IFSCA Mandates Annual Compliance Audit Reporting for CMIs

The International Financial Services Centres Authority (IFSCA) has issued reporting formats and compliance norms relating to the Annual Compliance Audit of Capital Market Intermediaries (CMIs) operating in International Financial Services Centres (IFSCs).

The framework standardises the submission of compliance audit reports and checklists across all categories of intermediaries regulated by the Authority.

1. Annual Compliance Audit Report (ACAR) Mandatory

Under the revised framework, all categories of Capital Market Intermediaries are required to submit an:

• Annual Compliance Audit Report (ACAR); and
• Annual Compliance Audit Checklist (ACAC)

to the IFSCA in the prescribed format.

The audit is intended to assess compliance with applicable regulatory requirements governing CMIs in IFSCs.

2. Submission Deadline Fixed as 30 September

CMIs must submit the ACAR and ACAC on or before 30 September of each year for the preceding financial year.

The prescribed timeline ensures timely reporting and regulatory oversight of intermediary compliance activities.

3. Standardised Reporting Format Prescribed

IFSCA has specified uniform reporting formats for submission of:

• Annual Compliance Audit Reports; and
• Annual Compliance Audit Checklists

The standardisation is intended to ensure consistency in compliance reporting and facilitate efficient regulatory review.

4. Annual Compliance Audit Checklist (ACAC)

The framework requires the Annual Compliance Audit Checklist (ACAC) to include a checklist covering:

4.1 General Obligations and Responsibilities

The checklist must contain compliance requirements relating to the general obligations and responsibilities applicable to all Capital Market Intermediaries.

This enables systematic verification of adherence to regulatory standards and governance requirements.

5. Applicability to All Categories of CMIs

The reporting requirements apply to all categories of Capital Market Intermediaries regulated by IFSCA within IFSCs.

Accordingly, intermediaries falling within the scope of the framework are required to ensure compliance with the audit, reporting and submission requirements prescribed by the Authority.

6. Objective of the Framework

The reporting framework seeks to strengthen compliance monitoring, improve regulatory transparency and promote uniform compliance standards across IFSC market participants.

By mandating submission of the Annual Compliance Audit Report and Annual Compliance Audit Checklist in a standardised format, IFSCA aims to enhance regulatory oversight, identify compliance gaps at an early stage and reinforce good governance practices among Capital Market Intermediaries operating in IFSCs.