The FSCA recently published Guidance Notice 1 of 2019: Debarment Process which provides general guidance on the application of section 14, the debarment process, of the Financial Advisory and Intermediary Services (FAIS) Act, 2002.
The notice provides guidance on the rationale to be applied and process to be followed by Financial Services Providers (FSPs) when effecting debarments. It also highlights important factors that require consideration when FSPs effect debarments and clarifies the function of the FSCA upon receipt of the notification of such debarments.
The notice further provides clarity on the obligation on FSPs to debar persons, the requirements for debarment, the duties of FSPs after debarment and the recourse available to debarred persons.