Invitation for Commentary on the Related Party Transactions Guidelines

TO: The Non-Bank Financial Institutions (NBFIs)                         

DATE: January 26, 2021

1. The Non-Bank Financial Institutions (“NBFIs”) in Botswana 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.
2. 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.
3. In pursuit of the aforementioned, the Regulatory Authority has drafted the Guidelines for Related Party Transactions (“the Guidelines”) for NBFIs. The Guidelines are attached herein for NBFIs to review and make comments.

4. NBFIs are encouraged to share their written comments, suggestions and feedback, on or before February 26, 2021, with their respective regulatory departments at the following email addresses.

1. Capital Markets: mmodise@nbfira.org.bw & kntebang@nbfira.org.bw;   
2. Insurance: otshoswane@nbfira.org.bw & gmolojwane@nbfira.org.bw;
3. Lending Activities: gsechele@nbfira.org.bw&tlekorwe-modibedi@nbfira.org.bw; and
4. Retirement Funds: bndlovu@nbfira.org.bw & kmarumo@nbfira.org.bw.

You can view the "Related Party Transactions Guidelines" here