I was recently approached by an ex key individual who was debarred by the FSB in response to information supplied by the bank who previously employed him. The reason for the debarment was not disclosed to me – I assume that it was something major in terms of honesty and integrity requirements.
He claims that no FSP wants to employ him in view of his debarred status. I explained to him that the approval and debarment of a key individual is the prerogative of the FSB, not an FSP.
There is a substantial amount of information available on debarment and reinstatement of representatives, but I am unable to find something significant on the process regarding reinstatement of key individuals. I referred the enquiry to the FSB and received the following response.
Dear Mr Kruger
Without the benefit of the full facts and information in this matter I am unable to provide you with a comprehensive response. However, in broad terms, I am of the opinion that key individuals cannot be reinstated to the position that they once occupied unless the old or new provider makes a fresh application. Unlike a representative, a key individual is appointed by virtue of the responsibilities that he or she holds in the FSP and if they have been dismissed from employment, they cannot be restored to the position without reviving the employment contract. In my view, the person has to be re-employed by a provider to be a key individual as such position does not stand in vacuum.
It would seem then that, in the application for re-instatement, the FSP would have to motivate such an application, very much in the same manner as it would have to do for a representative.
The FSB would obviously be led by the information supplied by the debarring FSP in coming to a decision.
Please click here to download the debarment guidelines for representatives from the FSB.