Subject Title - INSETA

Registrar, by 31/12/2013.Failure by a representative to meet the competency requirements by therelevant date means that the FSP is required to take appropriate action, asexplained in this circular.The FSB issued a Circular in March 2010 that deals specifically with the issuesaround not meeting the fit and proper requirements and required action bythe FSP. The Circular reads as follows 43 :"Implications if a representative does not meet the qualificationrequirements”Failure by the representative to meet the necessary qualificationrequirements means that the representative is no longer fit and proper interms of section 8(1) of the FAIS Act.Therefore, in terms of section 14 of the FAIS Act, an authorised financialservices provider must ensure that any representative of the provider who nolonger complies with the requirements referred to in section 13(2)(a) isremoved from the register referred to in section 13(3) of the Act.This also applies to any representative who has contravened or failed tocomply with any provision of this Act in a material manner. This means thatany such representative is prohibited by the provider from rendering any newfinancial service by withdrawing any authority to act on behalf of theprovider, and that the representative‟s name, and the names of the keyindividuals of the representative, are removed from the register referred to insection 13(3). Any such provider must immediately take steps to ensure thatthe debarment does not prejudice the interest of clients of therepresentative, and that any unconcluded business of the representative isproperly concluded.Debarment in terms of the Act means that the provider stops therepresentative concerned from rendering further financial services andremoves his or her name from the register mentioned above.Implementation of the debarment provisions in terms of section 14 isobligatory whenever the representative no longer complies with therequirements referred to in section 13 (2) (a) of the Act.43 Ibid108 © INSETA - Section 1 12a