Subject Title - INSETA

A licence of ANY FSP may lapse in the following instances: 145The licensee (FSP) is FINALLY LIQUIDATED or DISSOLVEDThe BUSINESS of the licensee (FSP) has become DORMANTIn ANY OTHER CASE where the licensee VOLUNTARILY ANDFINALLY SURRENDERS THE LICENSE TO THE REGISTRARThe Registrar must be advised in writing by the licensee, any key individualof the licensee, or another person in control of the affairs of the licensee, ofthe lapsing of a licence and the reasons therefore and the Registrar MAYpublish the lapsing of a licence by notice in the Gazette and, if necessary inany other appropriate public media announcement.11.1.2 Difference between lapsing and suspension or withdrawal of a licenceSuspension or withdrawal of a FAISlicenceSuspension or withdrawal of a licenceis initiated by the Registrar followingactions or omissions by the FSP.The Registrar may allowreinstatement of a suspended licenceunder certain conditions.After withdrawal of a licence, theperson will be debarred fromapplying for a new licence.This is slightly different to debarmentas it is applicable to honesty andintegrity requirements.There are implications for accreditedFSPs under the Medical Schemes Act(discussed above) as the FSP willlose the accreditation if the FAISlicence is suspended or withdrawnand vice versa.Lapsing of a FAIS licenceLapsing of a licence is initiated by theFSP following an event, which gavereason for the lapse.There are no provisions in the Act forthe reinstatement of a lapsed licence.There are no requirements fordebarment in terms of lapsing alicence.Accreditation in terms of the MedicalSchemes Act (where applicable) alsodeemed to have lapsed.145 Section 11 of the FAIS Act© INSETA - Section 1 12a 211