Anyone embarking on a FAIS process to debar a financial service provider or representative would do well to read a recent Financial Services Tribunal decision setting out what constitutes a lawful, reasonable and procedurally fair process. The matter is Mothei v Advicecube (FSP35/20).
The decision sets out the statutory and regulatory basis for debarment
A financial services provider debarred an employee and representative (who had taken up other employment whilst still employed and lied about it) without giving the representative notice and a fair hearing in terms of the Promotion of Administration Justice Act (PAJA) before doing so. The representative sued for damages for lost income based on this
If a financial services provider debars one of its representatives in terms of section 14(1) of the FAIS Act 2002 on grounds relating to honesty and integrity, the debarment means that the representative is debarred on an industry-wide basis from rendering financial services to the investing public. This issue was dealt with by the Supreme
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,