In April 2023 this decision of the Financial Services Tribunal application was made for reconsideration of the decision of the FSCA to debar a natural person.
In the context of the FAIS Act a fit and proper person is someone who is considered to have the necessary integrity, competence and financial soundness to operate as a financial service provider. That Act does not provide a specific definition as to what constitutes a fit and proper person but sets out a number of factors to be taken into account when assessing a person’s fitness and propriety.
The factors include the person’s honesty, integrity, reputation, their financial soundness and solvency, their competence and qualifications, and whether they have been convicted of any criminal offences or have been found guilty of any misconduct in relation to their business activities.
A fit and proper person is an honest person who has integrity and be of good standing.
The Tribunal considered the three jurisdictional requirements for debarment.
On the facts the Tribunal held that the employer’s information found on its erstwhile employee’s e-mails constituted confidential intellectual information and trade secrets. That information by itself was very sensitive and should not have been transferred without the authority of the employer to any third party. The harm that the employer could suffer if its confidential and intellectual property ends up in the wrong hands could not be gainsaid.
Blog 1 of 4: The FAIS Act and debarment: fit and proper