Subject Title - INSETA

SummaryDebarment is a drastic action by an FSP and should be done with thenecessary caution.FSPs may use information gathered from their own records, as wellas information obtained from third parties, to debar representativesor key individuals.Key individuals must ensure that conditions of employment andsimilar agreements contain the fact that employees may be debarredfor non-compliance with the FAIS fit and proper requirements.In order to ensure that all the applicable staff meet the fit and properrequirements, FSPs must keep adequate records of training andrelated activities. This includes records of initial and ongoing checkson the fitness and propriety of representatives and key individuals –such as honesty and integrity.Self-Assessment QuestionsPlease note that the questions which follow are formative in nature. Thequestions were not developed by the FSB‟s examination bodies and as suchcannot be used as an indication of the nature/structure/level of the questionsthat you will encounter in the FSB‟s regulatory examination.1. Debarment means to remove:a) a representative, under certain circumstances, fromrendering financial services to clientsb) an FSP, under certain circumstances, from rendering financialservices to clientsc) a compliance officer, under certain circumstances, fromproviding compliance service to clientsd) All the above2. When debarring a person, the FSP must:a) ensure that unconcluded business of the representative isproperly concludedb) take immediate steps to ensure that the debarment does notprejudice the interests of the clients of the representativec) Get the permission from the FAIS Registrar in writingd) a) and b)© INSETA - Section 1 12a 121