Commencement of The Related Party Transactions Guidelines
TO: Non-Bank Financial Institutions (NBFIs)
DATE: June 16, 2023
SUBJECT: COMMENCEMENT OF THE RELATED PARTY TRANSACTIONS GUIDELINES
The Non-Bank Financial Institutions (“NBFIs”) are regulated by the Non-Bank Financial Institutions Regulatory Authority (“NBFIRA”) in accordance with the NBFIRA Act of 2016 (“the Act”). Section 4(1) of the Act provides for the Regulatory Authority’s powers and functions to regulate NBFIs for the purposes of improving the fairness, efficiency and orderliness of the non-bank financial sector; the stability of the financial system; and for matters incidental thereto.
1. The Regulatory Authority is empowered by section 4(2)(d) of the Act to make rules, set standards and provide guidelines for NBFIs. In addition, section 4(2)(e) empowers the Regulatory Authority to give directions to any person to ensure compliance with a relevant law, rule or guidelines.
2. In pursuit of the aforementioned, the Regulatory Authority has developed the Guidelines for Related Party Transactions (“the Guidelines”) for NBFIs. The Guidelines are attached herein for NBFIs to adopt and implement effective on the quarter ending September 30, 2023. NBFIs should submit a quarterly report of related party transactions by the 25th of each month following the end of the quarter.
3. Capital Markets Participants are informed that these Guidelines replace those issued by NBFIRA on December 13, 2021.
4. The Guidelines may also be accessed on the Regulatory Authority’s website www.nbfira.org.bw. For further information, please contact your respective NBFIRA Regulatory Departments on +267 3686100.
Download The Related Party Transactions Guidelines here
Ntema Modongo
Ag. DEPUTY CHIEF EXECUTIVE OFFICER- REGULATORY
