Financial Sector Regulation Act, 2017 (Act No. 9 of 2017)Chapter 10 : EnforcementPart 5 : Debarment153. Debarment |
| (1) | The responsible authority for a financial sector law may make a debarment order in respect of a natural person if the person has— |
| (a) | contravened a financial sector law in a material way; |
| (b) | contravened in a material way an enforceable undertaking that was accepted by the responsible authority in terms of section 151(1); |
| (c) | attempted, or conspired with, aided, abetted, induced, incited or procured another person to contravene a financial sector law in a material way; or |
| (d) | contravened in a material way a law of a foreign country that corresponds to a financial sector law. |
| (2) | A debarment order prohibits the natural person, for the period specified in the debarment order, from— |
| (a) | providing, or being involved in the provision of, specified financial products or financial services, generally or in circumstances specified in the order; |
| (b) | acting as a key person of a financial institution; or |
| (c) | providing specified services to a financial institution, whether under outsourcing arrangements or otherwise. |
| (3) | A debarment order in respect of a natural person takes effect from— |
| (a) | the date on which it is served on the person; or |
| (b) | if the order specifies a later date, the later date. |
(4)
| (a) | A natural person who is subject to a debarment order may not engage in conduct that, directly or indirectly, contravenes the debarment order. |
| (b) | Without limiting paragraph (a), a natural person who is subject to a debarment order contravenes that paragraph if the natural person enters into an arrangement with another person to engage in the conduct that directly or indirectly contravenes a debarment order on behalf of, or in accordance with the directions, instructions or wishes of, the natural person who is subject to the debarment order. |
| (5) | A licensed financial institution that becomes aware that a debarment order has been made in respect of a natural person employed or engaged by the financial institution must take all reasonable steps to ensure that the debarment order is given effect to. |
| (6) | The responsible authority that made a debarment order may, by order and on application by the debarred natural person— |
| (a) | reduce the period of the debarment order; or |
| (b) | revoke the debarment order. |
| (7) | The responsible authority must publish each debarment order, and each order under subsection (6), that it makes. |