Subject Title - INSETA

Ramifications for the FSP if debarment is unfairIt follows that representatives should not be debarred unfairly as they willhave full legal recourse to the FSP (the key individual will be held responsibleas s/he is responsible for management and oversight of the business of theFSP which renders financial service).Summary of the key individual's responsibilities with regard to debarmentRefer to debarment as a consequence of non-compliance in contractsof employment and mandatory agreements.Ensure that the FSP Disciplinary Code includes debarment-relatedoffences and failure to comply with material requirements of the FAISAct and reasons.Ensure internal processes and procedures exist and are followedwhen representatives are debarred.Ensure that all role players get adequate and relevant information ondebarment of representatives.Ensure that the representative register is amended as soon as thedecision is taken to debar.Ensure that the FAIS Registrar is notified of the debarment in theprescribed reporting format (notification of debarment/representative register).Ensure that the necessary action is taken to assess the situation ofthe debarred representative's clients and take immediate action topreserve clients' interests.Check that the compliance officer performs monitoring procedures inrespect of the cases where representatives have been debarred.6.1.3 Debarment by the FAIS RegistrarThe FAIS Registrar can also debar a person, including a representative, interms of Section 14A of the Act.The Registrar can debar a person (including a representative) from providingfinancial services for a specific period of time if:that person does not meet the fit and proper requirement of honestyand integrity; orthat person contravened or did not comply with any provision of theAct.118 © INSETA - Section 1 12a