Where an FSP takes action to debar a representative, the representative must be given the right to make submissions in their defence. The representative must be put in possession of information that will render the right to make representations real. The nature of the charges against him or her have to be spelt out. Secondly, the person must be given a reasonable time in which to assemble information relating to the defence and time to prepare and put forward whatever representations they wish to make in answer to the allegations of unfitness or incompetence.

If a representative, having been given that full opportunity of a hearing, resigns and does not take the opportunity to defend themselves, the debarment can go ahead as long as it is based on fair grounds.

The court in Financial Services Board v Barthram found that principles of procedural fairness were not followed. The debarment was set aside.

A hearing need not be with all present. It can be in writing or electronic as long as it’s fair.