Task 5 — Debarment Process

Section 14 of FAIS empowers an FSP (and in certain circumstances the FSCA itself) to debar a representative or KI who no longer complies with Fit and Proper requirements, or who has contravened a material provision of any financial-sector law in a way that materially affects their honesty, integrity or competence. Debarment is a serious administrative act with lasting career consequences.

• 01Procedural fairness is non-negotiable: written notice, opportunity to make representations, reasons for the decision and a right of internal review.
• 02Notification: a debarment must be reported to the FSCA within five business days of the decision and recorded on the central debarment register.
• 03Duration: debarment remains in force until the FSCA is satisfied that the underlying conduct has been remediated and the person re-qualifies.
• 04A debarred person may not be appointed as KI, representative or compliance officer at any other FSP while the debarment subsists.

• 01Sequence of procedural steps — examiners love asking 'what happens immediately after the notice of intent to debar?'
• 02Difference between FSP-initiated debarment under section 14(1) and FSCA-initiated debarment under section 14(2).
• 03Grounds that justify debarment versus grounds that justify only a written warning.
• 04Effect of debarment on policies sold by the representative prior to debarment.