Manage and Oversee the Accounting and Auditing Requirements

A focused task on the FSP's financial reporting obligations — particularly where the FSP receives and holds client funds, where the requirements go beyond a generic annual financial audit.

QC1 & QC4: Beyond the Generic Annual Audit

Where an FSP receives and holds client funds, specific accounting and auditing requirements apply on top of standard annual financial statements — connecting directly to the custody-of-funds obligations covered in Task 6. QC4 is explicit: a generic financial audit is not automatically sufficient in this situation. The report actually submitted to the FSCA must meet the specific regulatory standard that circumstance requires.

QC2: This Stays the KI's Job, Not the Accountant's Alone

It's tempting to treat accounting compliance as a specialist silo, fully delegated to an external accountant or auditor. That's a mistake.

QC3: Who May Be Appointed

Specific requirements govern who may act as the FSP's auditor or accounting officer — this isn't an open commercial choice made purely on cost or convenience. The appointee must meet prescribed criteria, similar in spirit to how a Compliance Officer must meet Board Notice 127's approval criteria before they can act in that role.

Quick Recap

• FSPs receiving or holding client funds face accounting and auditing requirements beyond a standard annual audit
• The KI's oversight duty extends to accounting compliance, even where a competent external accountant does the technical work
• Auditor and accounting officer appointments must meet specific prescribed criteria, not just general professional competence
• A generic financial audit report is not automatically sufficient where the FSP receives client funds