IFSCA Prescribes Qualification, Experience & Mandatory Certifications for Principal & Compliance Officers of FMEs

Professional Eligibility, Educational Qualification & Certifications Required for Principal Officer and Compliance Officer under IFSCA Fund Management Regulations

The International Financial Services Centres Authority (IFSCA) has prescribed detailed eligibility criteria for Key Managerial Personnel (KMPs) of Fund Management Entities (FMEs) operating in IFSC-GIFT City. Among the most important positions are the Principal Officer and Compliance Officer, who play a critical role in governance, regulatory compliance, risk management, and fund operations.

This article provides a comprehensive overview of the professional eligibility, educational qualifications, experience requirements, and mandatory certifications applicable under the IFSCA regulatory framework.

1. Who is a Principal Officer?

A Principal Officer is the senior responsible official of a Fund Management Entity (FME) who oversees fund management activities, regulatory compliance, investor protection, governance, and operational controls.

Under the IFSCA (Fund Management) Regulations, 2025, every FME is required to appoint a qualified Principal Officer based out of IFSC.

2. Educational Qualification for Principal Officer

As per the IFSCA (Fund Management) Regulations, 2025, the Principal Officer must possess any of the following qualifications:

Eligible Educational Qualifications

• Professional qualification; or
• Post-graduate degree; or
• Post-graduate diploma (minimum one-year duration)

in any of the following fields:

• Finance
• Law
• Accountancy
• Business Management
• Commerce
• Economics
• Capital Markets
• Banking
• Insurance
• Actuarial Science

The qualification should be obtained from:

• A university/institution recognized by the Central Government or State Government; or
• A recognized foreign university/institution.

Additionally, the following internationally recognized qualifications are also acceptable:

• CFA (Chartered Financial Analyst)
• FRM (Financial Risk Manager) from GARP
• Any other relevant qualification specified by IFSCA.

3. Relaxation in Educational Qualification

IFSCA has provided a practical relaxation for highly experienced professionals.

If the Principal Officer has:

• Minimum 15 years of experience in fund management-related activities, then the minimum educational requirement is reduced to:

• Graduate degree in any discipline.

This relaxation recognizes industry expertise and practical experience.

4. Experience Requirement for Principal Officer

Apart from educational qualifications, the Principal Officer must possess:

• Minimum 5 years of relevant experience in securities market or financial products.

Relevant Experience Areas Include:

• Portfolio Management
• Fund Management
• Investment Advisory
• Broker Dealer Activities
• Investment Banking
• Wealth Management
• Research Analysis
• Credit Rating
• Market Infrastructure Institutions
• Financial Sector Regulators
• Transaction Advisory
• Deal Due Diligence
• Fund Management Consultancy

5. Consultancy Experience Restriction

IFSCA has clarified that consultancy experience such as:

• Deal due diligence
• Transaction advisory
• Similar consulting assignments

shall be considered only up to a maximum of 2 years for eligibility purposes.

Therefore:

• At least 3 years of core financial market experience is mandatory.

6. Eligibility Criteria for Compliance Officer

The Compliance Officer is responsible for ensuring that the FME complies with:

• IFSCA Regulations
• AML/CFT norms
• Internal controls
• Reporting obligations
• Governance standards

The Compliance Officer generally falls within the category of KMPs under the regulations.

7. Educational Qualification for Compliance Officer

The Compliance Officer is expected to possess qualifications similar to those prescribed for KMPs under the Fund Management Regulations, including qualifications in:

• Law
• Finance
• Accountancy
• Company Secretaryship
• Banking
• Capital Markets
• Risk Management
• Business Administration

Professionals such as:

• Company Secretaries
• Chartered Accountants
• Lawyers
• MBAs (Finance)
• CFA/FRM holders

are generally considered suitable candidates.

8. Experience Requirement for Compliance Officer

IFSCA has prescribed a relaxation for certain KMPs involved in compliance and risk management.

Where the KMP:

• possesses a professional qualification; and
• has experience in compliance or risk management in:
  • a listed company; or
  • an entity regulated by a financial sector regulator, the minimum experience requirement is reduced to:

• 3 years.

This provision is particularly relevant for Compliance Officers.

9. Mandatory AML/CFT Certification for Principal Officer

IFSCA has made it mandatory for all Principal Officers and Designated Directors to complete the following certification:

NISM-IFSCA-01 Certification Course

Course Name:

“NISM-IFSCA-01: Certification Course on Anti-Money Laundering and Counter-Terrorist Financing in the IFSC”

This course has been developed by:

• National Institute of Securities Markets (NISM)
• in collaboration with
• International Financial Services Centres Authority (IFSCA)

The certification is mandatory and must remain valid at all times during the tenure of the Principal Officer.

10. Mandatory Certification for KMPs & Fund Management Employees

IFSCA has further mandated another certification course for KMPs and employees engaged in core fund management activities.

Mandatory Certification Course

Course Name:

“Regulatory Framework for Fund Management in IFSC: AIFs and Retail Schemes”

Offered By:

The Institute of Company Secretaries of India (ICSI)

This certification is mandatory for:

• KMPs
• Employees involved in core fund management activities

under the IFSCA (Fund Management) Regulations, 2025.

11. Deadline for Certification Compliance

All eligible employees and KMPs are required to complete the above certification course on or before:

30^th September 2026

Failure to comply may lead to regulatory non-compliance for the FME.

12. Key Takeaways