Non-Compliant Executives in the Security Industry

Section 20(2) of theof the Private Security Industry Regulations Act defines a person performing executive or management functions for or on behalf of a security business as  “in the case of a security business which is a company, close corporation, partnership, business trust or foundation, if every director of the company, every member of the close corporation, every partner of the partnership, every trustee of the business trust, and every administrator of the foundation, as the case may be, is registered as a security service provider.

A security business may only be registered as a security service provider if all persons performing executive or management functions are themselves, in their personal capacity,  registered as security service providers

The requirement for persons performing executive or management functions are however not restricted to the mere registration as a security service provider in the ordinary sense.

Regulation 3 of The Private Security Industry regulations requires that every person contemplated in section 21(1)(a) (ii), (iii), (iv), (v), (vi) or (vii) of the Act, or a person who intends to render a security service contemplated in paragraph (l) of the definition of security service in section 1(1) of the Act, who applies for registration as a security service provider, must have successfully completed, at a training establishment accredited in terms of law, at least the training course described and recognized as “Grade B” in terms of the law and policy applied by the Board acting in terms of the provisions of the repealed legislation and the regulations made in terms thereof, or in terms of a prevailing subsequent policy applied by the Authority, as the case may be.

The following persons are referred to in Section 21

(ii)      if the applicant is a security business, of every natural person performing executive or managing functions in respect of such security business;

(iii)       of each director, if the applicant is a company

(iv)       of each member, if the applicant is a close corporation

(v)        of each partner, if the applicant is a partnership;

(vi)       of each trustee, if the applicant is a business trust; and

(vii)      of each administrator or person in control, if the applicant is a foundation.”

Noncompliance with this training requirement will not only make it impossible to register as a security business but may expose a security business to the risk of deregistration.

Section 26(4) provides that the Security Service Provider’s registration may be withdrawn by written notice served on the security service provider, if:-

(e)        in the case of a security business, the registration of a person referred to in section 20(2) is withdrawn in terms of paragraphs (a), (b), (c) or (d); or in the case of a security business, any of the persons referred to in section 20(2) is for any other reason not registered as a security service provider.

Non-compliance with these provisions may subsequently culminate in the deregistration of a security service provider although such administrative actions will be subject to the requirements set out in our discussion of the lapsing of registration certificates.

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