In its April 2023 Tribunal decision, discussed here, the Tribunal discussed the three jurisdictional requirements for debarment.

They should be borne in mind before proceeding with any debarment steps:

“The reason for debarment must have occurred or must have been known to the financial service provider while the person was a representative of the provider. This jurisdictional factor is a common cause between the parties. The reason for debarment occurred while the applicant was a representative of the first respondent.

Before effecting a debarment, the FSP must ensure that the debarment process is lawful, reasonable and procedurally fair. The procedural fairness is in dispute. The applicant alleges that the debarment was procedurally unfair. We deal with this issue later in this ruling.

A debarment that is undertaken in respect of a person who no longer is a representative of the FSP must be commenced no longer than six months from the date that the person ceased to be a representative of the FSP. This issue is common cause between the parties. The debarment was undertaken within six months after the applicant ceased to be a representative of the first respondent “

Blog 2 of 4: The jurisdictional requirements for FAIS debarment