Debarment of representatives
Frequently Asked Questions
A Financial Services Provider (“FSP”) has been given a regulatory tool in the form the debarment process to ensure that persons it employs meet and continues to meet the requirements in terms of the FAIS Act. In the event, a representative fails to meet the aforementioned requirements the FSP has an obligation to effect debarment of that individual. To ensure that this power is not abused by Financial Services Providers it is required to follow a strict process before it may affect a debarment.
The FSCA recently published a guidance note in which it provides guidance to FSP’s surrounding debarment Guidance note 1 of 2019 (FAIS).
In the following document, we answer some frequently asked questions surrounding this topic FAQ - Debarment of representative.