CIPC Sets Out Grounds for Suspending and Revoking BRP Licences
This article will count 0.25 units (15 minutes) of unverifiable CPD. Remember to log these units under your membership profile.
The Companies and Intellectual Property Commission (CIPC) has issued Practice Notice 2 of 2026, setting out the grounds on which a business rescue practitioner (BRP) licence may be suspended or revoked, and the consequences of each. The notice is issued in terms of Regulation 4(b) of the Companies Act Regulations.
According to the notice, the CIPC's aim is to strengthen oversight of BRP conduct, improve regulation of the business rescue regime, and give the industry clearer guidance on what constitutes reasonable grounds for suspension or revocation.
Grounds for suspension
The notice lists two broad categories of conduct that constitute reasonable grounds for suspending a BRP licence.
The first is incompetence or failure to perform the duties of a business rescue practitioner. This includes factual or proven complaints, meaning outcomes determined by a court or an accredited body, and non-compliance with the requirements of the Companies Act, such as the filing of reports.
The second is failure to exercise the proper degree of care in performing the practitioner's functions. The notice lists impartiality, standard of care and diligence, conflict of interest, failure to prioritise employment-related obligations, delaying of processes such as publication of the business rescue plan, and acting without necessary or prescribed approvals.
The notice states that each matter will be assessed on its own merit. The period of suspension and its consequences will be determined by the Commission's assessment. The CIPC adds that it may advise on corrective measures, and that a suspension may remain in effect until those measures are implemented.
Grounds for revocation
The notice sets out five grounds that constitute reasonable grounds for revoking a BRP licence:
The practitioner is engaging in illegal acts or conduct. No time restriction applies to this ground.
The practitioner no longer satisfies the requirements set out in Section 138(1) of the Companies Act.
The practitioner is placed under probation or disqualified through a court order.
The practitioner is incapacitated and unable to perform the functions of the office, and is presumed unlikely to regain that capacity within a reasonable time.
There are proven actions of incompetence or failure to perform the duties of the office.
The notice states that the period of suspension or revocation will depend on the grounds identified, taking into account the relevant provisions of the Act and any determinations made by the courts.
Consequences and periods
In cases involving delinquency, the notice states that the period may range from seven years to a lifetime declaration. Declarations of probation may extend for up to five years. Each matter will be assessed on its own merit to determine an appropriate period.
A practitioner whose licence has been revoked must re-apply for a licence, even after the reason for revocation has been removed.
The CIPC also states that it will remove suspended practitioners, and those whose licences have been revoked, from the list of licensed BRPs. Their names will be recorded on the respective registers of suspended or revoked BRPs.
