Performance Review Committee Regulations, 2022.
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY (PERFORMANCE REVIEW COMMITTEE) REGULATIONS, 2022
IFSCA/2021-22/GN/REG022 —In exercise of the powers conferred by sub-section (1) of Section 28 read with sub-section (4) of Section 17 of the International Financial Services Centres Authority Act, 2019, the International Financial Services Centres Authority hereby makes the following regulations for constitution, governing the information to be provided, provision of adequate resources and discharge of functions by the Performance Review Committee, namely:
CHAPTER I
PRELIMINARY
- SHORT TITLE AND COMMENCEMENT
(1) These regulations may be called International Financial Services Centres Authority (Performance Review Committee) Regulations, 2022.
(2) These Regulations shall come into force from the date of its publication in the official gazette. - DEFINITIONS
(1) In these regulations unless the context otherwise requires:
(a) “Act” means the International Financial Services Centres Authority Act, 2019 (50 of 2019);
(b) “Authority” means the International Financial Services Centres Authority established under sub-section (1) of section 4 of the Act;
(c) “Board” means the collective body of the members appointed under sub-section (1) of section 5 of the Act;
(d) “Chairperson” means the Chairperson of the Authority;
(e) “Committee” means the Performance Review Committee constituted under sub section (1) of section 17 of the Act;
(f) “International Financial Services Centre” or “IFSC” shall have the same meaning as assigned to it under clause (g) of sub-section (1) of section 3 of the Act.
(2) Words and expressions used and not defined in these regulations but defined in the Act or Acts mentioned in the First Schedule to the Act, or any rules or regulations made thereunder shall have the same meanings respectively assigned to them in those Acts, rules or regulations or any statutory modification or re-enactment thereto, as the case may be.
CHAPTER II
OPERATION AND FUNCTIONS OF THE PERFORMANCE REVIEW COMMITTEE - CONSTITUTION AND COMPOSITION OF THE COMMITTEE
(1) The Authority shall constitute a Performance Review Committee in accordance with sub section (1) of section 17 of the Act, which shall comprise of the following:
(i) Two members of the Authority as nominated by the Board; and
(ii) Upto two independent experts for each review function shall be nominated by the Board, from the panel of names approved by the Chairperson.
(2) The Board shall nominate the independent experts on the basis of the following:
(i) Relevant experience and skills in relation to the specific area of review; and
(ii) Absence of any direct and substantial conflict of interest, which could influence performance of their duties and responsibilities.
(3) The members, including the independent experts, of the Committee shall be nominated for a period of three years and shall not be eligible for re-nomination before expiry of a period of two years. If a vacancy arises in the Committee, the Board shall nominate another member or expert, as the case may be, for the residual period. - SCOPE OF REVIEW BY THE COMMITTEE
The Committee shall review the functioning of the Authority at least once in every financial year in following areas:-
(i) Compliance with the provisions of the applicable laws while exercising powers or performing functions under the Act by the Authority;
(ii) Promotion of transparency and best practices of governance through the regulations made by the Authority;
(iii) Risk management by the Authority in relation to its functions. - COMPLIANCE AND GOVERNANCE
(1) The Committee shall review the compliance and governance functions of the Authority to assess as to whether the Authority has adhered to the provisions of the applicable laws and has promoted transparency and best practices of governance while exercising powers or performing its functions under the Act.
(2) The review of compliance and governance functions shall be conducted by examining as to whether the regulations made by the Authority-
(i) comply with the applicable laws;
(ii) reduces compliance burden of stakeholders and promote transparency and best practices of governance;
(iii) are fair and non-discriminatory to the stakeholders and easily accessible;
(iv) are clear, understandable and provide regulated entities with the predictability and necessary guidance to comply with regulations. - RISK MANAGEMENT
The review of risk management shall be conducted to ensure that the Authority is managing risk to its functioning in a reasonable manner, and it shall be performed by:
(i) reviewing the adequacy and effectiveness of the risk monitoring measures for its activities;
(ii) reviewing whether the risk identification measures are appropriate and assure the safety and soundness of the operations of the Authority while ensuring that any possible harm is mitigated and risks are categorised; and
(iii) reviewing the monitoring and evaluation process and maintenance of record of any breach.
CHAPTER III
ACCESS TO INFORMATION AND MEETINGS - INFORMATION
(1) The Committee shall have access to all the relevant records for the purposes of performing its functions;
(2) The Committee may require attendance of any employee of the Authority to perform its functions; and
(3) No person other than the Chairperson or a person authorized by him shall interact or share information with any person including media about the deliberations and decisions taken by the Committee. - MEETINGS AND COORDINATION
(1) The Committee shall meet at least twice in a financial year;
(2) The quorum necessary for the transaction of business shall be half of the total strength of the Committee, wherein presence of at least one member and one independent expert dealing with each review function shall be mandatory;
(3) The notice, place and agenda for the meetings shall be circulated at least seven working days in advance by the Secretary to the Committee;
(4) The minutes of the meeting shall be recorded in such form and manner as may be considered appropriate by the chair of the Committee;
(5) The Secretary of the Authority shall also act as Secretary to the Committee;
(6) The Committee shall be provided with the adequate resources for carrying out its functions effectively. - COMPLAINT HANDLING SYSTEM
(a) Any incidence mentioned in clause (a) to (d) of sub-section (3) of Section 17 of the Act, may be submitted to the Committee in writing by any person in such form as may be specified by the Authority;
(b) All complaints received by the Committee shall be registered and assigned a number, as per the procedure determined by the Committee;
(c) The Committee may seek requisite information or confirmation, as may be considered necessary, from the complainant for examining the complaint and shall submit report with its findings to the Authority;
(d) The Authority after examining the complaint and the report, if satisfied that no prima-facie case is made out, may dismiss the complaint under intimation to the complainant and the Committee;
(e) In case the Authority is of the view that prima-facie the complaint has some merit, it may forward the same to the authority concerned, for appropriate action in accordance with the applicable laws.
- REPORTING REQUIREMENTS
(1) The Committee shall submit a consolidated report to the Authority, containing the findings of each review area, in the fixed month of every year.
(2) The Authority shall take action on the report under sub-regulation (1) in accordance with section 17(2) of the Act.
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