Can A Financial Services Provider Debar Its Own Representative?

What is a Category 1 FAIS representative?

(a) Category I A Category I FSP renders financial services other than the financial services mentioned in Categories II, IIA, III and IV.

(b) Category II – Discretionary FSP ‘Discretionary FSP’ means a discretionary FSP as defined in the Notice of Codes of Conduct for Administrative and Discretionary FSPs, 2003..

What are the fit and proper requirements?

The “fit and proper” criteria (or “fit and proper test”) make reference to requirements for evaluating managers, directors and shareholders. Particularly, the ability to fulfill their duties (“fitness”) as well as their integrity and suitability (“propriety”) are examined.

What does debarring mean?

verb (used with object), de·barred, de·bar·ring. to shut out or exclude from a place or condition: to debar all those who are not members. to hinder or prevent; prohibit: to debar an action.

What are intermediary services?

Intermediary Service: A person acts as an intermediary between the client and the relevant product supplier where the client does not deal directly with the product supplier. Intermediary services include: … receiving, submitting or processing a client’s claim against a product supplier.

Who can be debarred?

Firms, individuals, and non-governmental organizations can be debarred. In cross-debarment, organizations and agencies agree to mutually exclude others based on debarment by affiliates.

How do you get debarred?

A debarment may be based on convictions, civil judgments or the agency’s independent evidence proving by a preponderance of the evidence that a company or individual were involved in fraudulent conduct on public contracts, such as, contract and financial assistance fraud, embezzlement, theft, forgery, bribery, poor …

How long can a representative work under supervision?

72 monthsIf you are appointed as a Representative, but do not yet meet the above requirements, you will need to operate under supervision until all the above requirements are met. A Representative may only work under supervision for a maximum of 72 months from their date of first appointment (DOFA).

What constitutes advice fais?

In section 1 of FAIS, “advice” means “any recommendation, guidance or proposal of a financial nature furnished by any means or medium to a client in respect of purchasing any financial product, or in respect of the investment in any financial product or on the conclusion of any other transaction including a loan or …

What are the responsibilities of a key individual?

A Key Individuals (KI) is responsible for managing and overseeing the activities relating to the rendering of any financial service. KIs have an enormous responsibility to ensure that they carry out their duties with the necessary due care, skill and diligence.

What is the relationship between FSP and their representatives?

In terms of the Act, a representative engages in the same activities as its principal but does so for and on behalf of the FSP. This relationship is either based on the fact that the representative is an employee of the FSP or holds a mandate from the FSP.

Can a key individual debar a representative?

This means that the responsibility rests with the FSP to debar any Key Individual or Representative that: Does not meet the fit and proper requirements; and. has contravened or failed to comply with the provisions of the FAIS Act in a material manner.

How do you check if you are debarred?

When checking for a debarred individual, conduct the search by typing the name in the top bar. Click “SEARCH” to retrieve a list of results. Entities with “Exclusion” listed in purple are currently debarred, while those labeled “Entity” in green do not have exclusions.

Who does the FAIS Act apply to?

The Purpose of the FAIS Act is to: protect consumers of financial products and services. regulate the selling and advice-giving activities of FSPs. ensure that consumers are provided with adequate information about the financial product they use and about the people and institutions who sell these financial products.

What is FDA debarment check?

The HireRight FDA Debarment List Check finds records of criminal conduct, relating to development or approval of a drug product, that prevent an individual from engaging in similar activities. It is intended to help organizations comply with regulations relating to drug applications and related activities.

Who is authorized to debar a representative?

list the information an FSP must submit to the Registrar after it has reappointed a debarred representative. If a person is debarred under section 14 of the FAIS Act, it prevents a person from rendering any financial services as a representative of any FSP, and not only the FSP who brought about the debarment.

What happens when you get debarred?

Debarred means you have a shortage of attendance. In VIT the minimum requirement of attendance is 75%. If you have less than 75% attendance before any Internal/ Final assessment, you will not be allowed to write the examination.

What is FAIS Act?

FAIS, the Financial Advisory and Intermediary Services Act, is legislation that impacts on the financial services industry and aims to regulate the giving of advice and rendering of intermediary services to clients, as well as certain other issues.

What is the purpose of debarment?

The purpose of debarment Ensure that un-concluded business of the representatives is properly concluded.