Corrective Measures of the Financial Services Regulatory Authority
The Financial Services Regulatory Authority (FSRA) encourages compliance and adherence
to the rules and regulations that govern persons who are licenced to operate within the nonbank financial services sector in Swaziland.
The FSRA is mandated in terms of section 67 of the Financial Services Regulatory Authority
Act, 2010 to take corrective measures against non- complaint persons operate within the nonbank financial services sector. Prior to initiating a corrective measure, the Authority guides
regulated persons towards compliance by issuing out directives and setting timelines for the
remedying of their non- compliance with the rules and regulations applicable to that regulated
person. Failure to abide by these directives and timelines results in the process of initiating
corrective measures in bid to encourage compliance.
The process of initiating corrective measures entails the convening of a hearing wherein the
non-compliant person is given an opportunity prior to the imposition of a corrective measure;
to state their case regarding their non-compliance.
The FSRA uses three key forms of corrective measures in order to encourage the compliance
of persons who have been found to have contravened provisions of the non-bank financial
services laws.
Suspended Sentence
The first form of a corrective measure is a Suspended Sentence issued by the FSRA. The
effect of a suspended sentence is that; where a person has been found to be guilty of
breaching a provision of a non-bank financial services law, the effective imposition of a
corrective measure is suspended on condition that; should the person or entity be found to
have committed the same offence within a specified time frame, the corrective measure
previously waived would be re-imposed. A person or entity who is under a suspended
sentence imposed by the FSRA is still deemed to be fit and proper to operate within the
industry, subject to the non-commission of a similar offence within a specified period of time.
Administrative Penalties
The second form of a corrective measure is an Administrative Penalty issued by the FSRA.
Administrative penalties are monetary penalties imposed by the FSRA in order to; encourage
compliance and cooperation from the regulated community as well as to ensure consumer
protection. Administrative penalties imposed are essentially aimed at effective deterrence of
non-compliance by regulated persons.
Debarment and Revocation of license to Operate
The third form of a corrective measure is a debarment and revocation of a license to operate
within the non-bank financial services industry. The Financial Services Regulatory Authority
(FSRA) Act, 2010 lists in section 46 of the Act, the standards of market conduct that all
regulated persons are expected to uphold in the conduct of their business. These standards
include:
I.
II.
III.
IV.
V.
Acting honestly and fairly in the interest of all stakeholders.
Acting with due skill, care and diligence.
Avoiding conflict interest.
Maintaining adequate financial resources to meet business commitments.
Adequate protection and segregation of stakeholder’s assets in their care.
Failure to uphold these standards of market conduct as well as non-compliance with other
regulatory requirements which point to the inability and/or refusal to abide by regulatory
requirements as prescribed in legislation is likely to lead to a person being declared non
desirable person and eventually result in the debarment and revocation of a license to operate
in the industry.