Update on Appointment and Change of Key Managerial Personnel by Fund Management Entities 

The International Financial Services Centres Authority (“IFSCA”), vide circular dated 20 February 2025, has issued guidelines regarding the appointment and change of Key Managerial Personnel (“KMP”) by Fund Management Entities (“FME”) operating in International Financial Services Centres (“IFSC”).

As per Regulation 7 of the IFSCA (Fund Management) Regulations, 2025, FMEs must appoint KMPs who are based in IFSCs and meet the prescribed educational and professional experience requirements. Any appointment or change in KMPs must follow the procedure specified by the IFSCA.

Key Points from the Circular:

1. FMEs must file an intimation to the IFSCA regarding any proposed appointment or change of a KMP in the prescribed format (Annexure) along with the applicable fee.
2. The applications regarding appointment / change of a KMP which are pending for approval of the IFSCA as on the date of issuance of the Circular may be refiled in accordance with this circular along with the proof of payment already made in this regard.
3. The IFSCA will communicate any comments or observations within seven (7) working days from the date of filing.
4. FMEs must plan their recruitment and succession in advance.
5. If a KMP position becomes vacant, the FME must identify a suitable replacement and inform the IFSCA within 3 months.
6. The vacancy must be filled within 6 months to ensure smooth operations.

For detailed guidelines and the prescribed format, FMEs should refer to the Annexure attached with the circular.

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