Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) > Chapter 14 : Ombuds > Part 2 : Recognition of industry ombud schemes > 200. Procedure for varying, suspending and revoking recognition

(1)

(a)	Before the Ombud Council varies a condition of, or suspends or revokes, the recognition of a recognised industry ombud scheme, it must—

(i)	give the industry ombud scheme notice of the proposed action and a statement of the reasons for it; and

(ii)	invite the industry ombud scheme to make submissions on the matter, and give it a reasonable period to do so.

(b)	The period referred to in paragraph (a)(ii) must be at least one month.

(2)	The Ombud Council need not comply with subsection (1) if the industry ombud scheme has applied for the proposed action to be taken.

(3)	In deciding whether to vary a condition of, or suspend or revoke, recognition, the Ombud Council must have regard to all submissions made within the period specified in the notice in terms of subsection (1)(a)(ii).

(4)

The Ombud Council may take the action without having complied, or complied fully, with subsection (1) if the delay involved in complying, or complying fully, with that subsection in respect of a proposed action is likely to lead to material prejudice to financial customers or defeat the object of the action.

(5)

(a)	If the Ombud Council takes action without having complied, or complied fully, with subsection (1) for the reason set out in subsection (4), the industry ombud scheme must be given a written statement of the reasons why that subsection was not complied with.

(b)	The industry ombud scheme may make submissions to the Ombud Council within one month after being provided with the statement.

(c)	The Ombud Council must have regard to the submissions, and notify the industry ombud scheme, as soon as practicable, whether the Ombud Council proposes to amend or revoke the variation, suspension or revocation.

[Section 200 to take effect on 1 April 2020, per Notice No. 1130 of 2019, GG 42677, dated 30 August 2019]