The document titled “Guideline on the Determination of Reappointment of Debarred Representatives”, published on 13 July 2011, was withdrawn in a notice published on Friday, 20 October 2017.
No reason for the withdrawal was given, nor was any indication provided as to whether it would be replaced by an amended guideline.
The debarment process is arguably one of the most contentious sections in the regulations which resulted in many abuses by FSPs when trying to get rid of representatives for reasons other than them not conforming to fit and proper requirements. Often, when a representative left to join a competitor, he or she was debarred without due process being followed.
Conversely, reappointments were made contrary to the requirements which applied up to last Friday.
The fact that section 14 of the FAIS Act was scrapped in its entirety in the new legislation bears testimony to its failure to effect the desired outcomes.
Failure to replace the guidelines is likely to lead to even more abuse.
