Investing Made Easy

Who Helps With What

Oftentimes, we are interested in investing but we just do not know where to start. An important part of the investing journey is to know which type of organisation to contact for your different investment needs.

In this article, we will discuss different types of organisations and introduce you to their typical service offering to make your investment journey easier.

1. Asset Managers: These types of organisations will typically offer investment management services. Asset Managers buy and sell stocks as well as other securities/ assets to build portfolios for their clients.

Typically, asset managers’ clients will be individual clients looking for unit trusts, corporate clients looking for unit trusts and segregated portfolios. If you are looking for a personal investment, an asset manager would probably be a good start.

2. Stockbrokers: A stockbroker is registered with the Botswana Stock Exchange ( BSE) and they facilitate the buying and selling of individual stocks. If you are looking to buy single stocks ( e. g. company A’s shares) then you need the services of a stockbroker.

3. Fund Administrators: Fund administrators are usually assigned to handle the administrative part of institutional funds such as pension funds, provident funds, medical aid funds, and other special funds. These organisations act as an intermediary between asset managers and investors to verify and distribute assets tied to investments.

4. Botswana Stock Exchange ( BSE): The BSE regulates the selling and buying of shares in Botswana; therefore they regulate stockbrokers. BSE assists companies in listing ( selling their shares to the public) and then regulates their trading activities to ensure that everything that listed companies do is in consideration and best interest of the shareholders.

5. NBFIRA: The Non- Bank Financial Institutions Regulatory Authority ( NBFIRA) is responsible for regulating all the activities and stakeholders in financial markets, which are not banks. NBFIRA is the primary regulator for all non- bank financial institutions with responsibilities ranging from licensing to continuous monitoring and evaluation of non- bank financial activities. For any queries/ complaints you might have regarding any financial institution that is not a bank, you will most likely get guidance from NBFIRA.

6. Insurer: An insurance company is one that will assume your financial risks, for a premium. If for instance, you are shopping for insurance on your car or your house, an insurance company will most likely have the right type of solution for you.

7. Financial Advisors: Financial advisors are like a one- stop shop for most of your financial needs. A good financial advisor should be able to assess your financial needs and recommend the right type of institution for your needs. It is always important to check that the institution you are dealing with is regulated by NBFIRA or Bank of Botswana.

This avoids the risk of being defrauded but also affords you a platform to forward any complaints you might have against a service provider in financial markets. Do your own due diligence to find the right institution to support you, and do not shy away from considering and assessing more than one before you make a final decision.