IFSCA Mandates Certification Course for KMPs and Employees

OVERVIEW

 
  • The International Financial Services Centres Authority (IFSCA) has issued two circulars outlining mandatory certification requirements for key managerial personnel (KMPs) and employees in fund management entities (FMEs) and capital market intermediaries (CMIs) operating within the IFSC.
  • By mandating that Key Managerial Personnel (KMPs) and employees handling core activities complete a certification course on the regulatory frameworks, it ensures that these employees are well-versed in the legal and operational standards governing the sector.
  • This will help improve compliance with IFSCA regulations, reducing the risk of regulatory breaches.
  • The certification also strengthens the IFSC’s reputation as a professional and well-regulated financial hub, promoting higher standards of operational excellence.

CERTIFICATION REQUIREMENT FOR FME

 
  • The first circular (IFSCA/13/2026-Capital Markets/1, dated April 1, 2026) specifies the certification course that all Key Managerial Personnel (KMPs) and other employees involved in core fund management activities within FMEs must complete.
  • The name of the course is “Regulatory Framework for Fund Management in IFSC: AIFs and Retail Schemes” offered by the Institute of Company Secretaries of India.
  • All relevant personnel must successfully complete this certification by September 30, 2026
  • The responsibility for ensuring that KMPs and core fund management employees complete the certification course lies with the FME and its controlling individuals.
  • Employees not directly involved in fund management but working in support functions (such as Trustees, Intermediaries, and Fund Administrators) are also encouraged to take this course to enhance their professional competence and ensure regulatory preparedness.

CERTIFICATION REQUIREMENT FOR CMI

 
  • The second circular (IFSCA-PLNP/80/2024-Capital Markets, dated April 2, 2026) focuses on Capital Market Intermediaries, specifying a similar certification course for their KMPs and employees.
  • The name of the course is “Regulatory Framework for Capital Market Intermediaries in IFSC,” also offered by the Institute of Company Secretaries of India.
  • CMIs are required to ensure that their relevant personnel successfully complete the certification by September 30, 2026.
  • All relevant personnel must successfully complete this certification by September 30, 2026.
  • Similar to the FME circular, CMIs are encouraged to have their non-operational employees, such as support staff, undertake this certification to promote higher operational standards within the IFSC.

BUILDING PROFESSIONAL COMPETENCE IN IFSC

 
  • By requiring KMPs and employees directly involved in core activities of FMEs and CMIs to complete the specified courses, the IFSCA is ensuring that these individuals gain a comprehensive understanding of the regulatory framework governing the IFSC.
  • This knowledge is crucial for making informed decisions and ensuring adherence to regulations.
  • Moreover, by encouraging employees in non-operational and support roles, to undertake these courses, the IFSCA is fostering a culture of regulatory preparedness across the entire organization.

CONCLUSION

 
  • The IFSCA’s certification requirements mark a critical initiative to professionalize the workforce within the IFSC ecosystem.
  • This initiative not only boosts the regulatory compliance of entities but also encourages broader industry-wide engagement with high standards of operational competence.
  • As IFSC continues to grow as a global financial hub, these steps are crucial in maintaining its competitive edge, fostering trust, and ensuring that all stakeholders are equipped to meet the evolving challenges of the financial services sector.

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