Removing Reps from the Register: a Better Option?

A lot has been said about what should be done where representatives did not write the obligatory Level 1 regulatory examination by 30 June, and are therefore no longer fit and proper to conduct business.

The word “Debarment” crops up everywhere, but is it the only, or best, option?

Debarment is usually a harsher measure, with longer term implications than simply removing a rep from the register. It may well entail a disciplinary hearing, the result of which is to debar the rep. When the problem is rectified, one has to apply to the FSB, with reasons, why the debarment should be lifted.

Normally, the severity of the transgression will determine the action to be taken.

Reps who failed to write the Level 1 RE by the end of June need not, necessarily, be debarred. They can simply be prohibited from conducting business by removing them from the reps register on 30 June, and notifying the FSB in the 15 days period allowed.

When such a rep then writes and passes the Level 1 RE, they can be placed back on the register, and the FSB duly informed.

There are, of course, a multitude of scenarios, and one will have to treat each case on its own merit.

Consider the situation where a rep refuses to write the RE. There is very little else a key individual can do, but go through the disciplinary process, and debar the rep.

Where the rep has all the intentions of writing, but did not do so, for whatever reason, you can consider removing such a person from the register and prohibiting him or her from conducting business of any nature until such time as he/she passes the exam.

This should have been done by 30/6/2012, of course, and your amended register submitted to the FSB on the prescribed form by this coming Sunday, 15 July.

Wakker slaap, Ouboet!

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