CIPC Clarifies Grounds for BRP License Suspension and Revocation

Posted 02 June 2026 Written by Acts Online
Category CIPC

Brought to you by SA Accounting Academy: The Companies and Intellectual Property Commission (CIPC) has issued regulatory guidance clarifying the reasonable grounds, procedures, and consequences for the suspension and revocation of Business Rescue Practitioner (BRP) licenses.

In terms of Chapter 6 of the Companies Act, No. 71 of 2008, the CIPC issued Practice Note 2 of 2026 to curb abuse of the business rescue process and protect entities in financial distress. The guidance establishes distinct frameworks for both the suspension and the permanent or long-term revocation of professional BRP licenses.

Suspension of BRP Licenses

Under the new guidelines, the CIPC will assess each suspension matter on its own merits. The specific period of suspension and its associated consequences will be determined based on the Commission’s formal assessment. Key procedural rules include:

  • The CIPC reserves the right to advise the practitioner regarding necessary corrective measures.
  • Suspension periods may remain active and effective pending the full implementation of these corrective measures by the practitioner.
  • Suspended individuals will be temporarily removed from the active register of licensed BRPs.

Revocation of BRP Licenses

The revocation of a BRP license is subject to statutory provisions and court determinations, carrying more severe long-term consequences. The CIPC’s framework outlines the following parameters for revocation:

  • Delinquency: In cases involving delinquency, the revocation period may range from seven years to a lifetime declaration.
  • Probation: Declarations of probation may extend for periods of up to five years.
  • Reapplication Requirement: BRPs whose licenses have been revoked must formally reapply for a license once the underlying grounds for revocation have been resolved or the restriction period has lapsed.
  • Public Registers: The CIPC will maintain official, dedicated registers of suspended and revoked BRPs, and will record the names of affected individuals on these public lists.

Click here to download CIPC Practice Note 2 of 2026.

What this means for you, your business, or your clients

  • For yourself: If you practice as a licensed BRP, you must align your conduct strictly with Chapter 6 of the Companies Act, No. 71 of 2008, to avoid suspension or delinquency declarations that could restrict your practice for seven years or lead to a lifetime ban.
  • For your business: Professional firms offering business rescue and restructuring services must implement compliance checks against the CIPC’s official registers of suspended and revoked BRPs to ensure their employed practitioners remain in good standing.
  • For your clients: Financially distressed corporate clients seeking to initiate business rescue proceedings must verify the licensing status of prospective practitioners against the CIPC’s active and restricted registers before passing any board resolutions to appoint them.

Originally published at https://accountingacademy.co.za/news/read/cipc-grounds-for-the-suspension-and-or-revocation-of-brp-licenses

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