A newly published document by the Registrar attempts to address some of the practical problems experienced in the past.
“16. The frequency of representative complaints reported to the Registrar’s office, and the intensity of debate around the issue of debarments by FSPs in terms of section 14(1), prompted the Registrar on 5 November 2013 to issue a revised Guidance Note regarding the application of that section. The Guidance Note can be accessed via the website of the Financial Services Board.”
“17. In order to provide further clarity as regards an FSP’s responsibilities, an amendment to section 14 was proposed to and passed by Parliament during August 2017. The aim of the amendment, inter alia, is to entrench the provisions of PAJA in the FAIS Act to ensure that FSPs act fairly and follow due administrative process when exercising the power to debar a representative. The amendment not only enhances the requirements FSPs must comply with when exercising the power to debar representatives but also provides a representative who was debarred by an FSP a right of appeal to the Appeal Tribunal. The amendment will come into effect on a date to be determined by the Minister of Finance.”
At a first reading, the newly published Guidance Note reminds me of the Johnny Nash song “There are more questions than answers”.
One commentator said: “The new Guidelines deal in great detail with the significance of S 14(1) of FAIS when this section has been repealed and will no longer exist once the effective date of the FSRA is determined.”
We will address the whole document in more detail soon.
Please click here to download the Guidance on reappointment of debarred reps