NBFIRA implements new amendments
The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) has commenced implementing amendments under the new NBFIRA Act, 2023.
The commencement follows the Act’s amendment by parliament last year. “New provisions have been added to cater for licensing of non-bank financial institutions, controllers or key persons’ approvals, supervision and regulation of non-bank financial institutions as well as supervision of financial conglomerates, among others,” said NBFIRA Head, Communications and Consumer Affairs, Boa Ntebele. Some of the changes under NBFIRA Act, 2023 including supervision of financial groups have been changed to financial conglomerates and new provisions on NBFIRA, designating a group of companies as financial conglomerates and supervision of the financial conglomerates. According to interpretation of the new Act, this allows for better regulation of conglomerates to curb misconduct of companies related to the NBFI. Strengthening the NBFIRA’s inspections and investigations arm, the Act provides for appointment of inspectors and investigators to inspect all offices of an NBFI, including outside Botswana and the mandate has expanded the scope of investigation documents, to include bank documents. In addition, miscellaneous provisions have been expanded to include offenses such as failure to respond to questions by NBFIRA, giving of false and misleading statements, obstruction of the function of NBFIRA and hindering compliance and also provide for general penalties and transitional arrangements. Ntebele said members of the public affected by the changes should ensure full compliance with the Act at all times.