Public Lecture at Ba Isago University: NBFIRA Mandate

As part of its stakeholder outreach efforts, the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) was honored to participate in a public lecture at Ba Isago University to expound on its mandate.

Speaking to an audience of faculty staff and students from the Department of Risk Management, Insurance and Actuarial Science (RIMIAS), Mr. Oaitse M. Ramasedi, Chief Executive Officer of NBFIRA unpacked the regulatory and supervisory processes of the Authority in a presentation entitled “The mandate of NBFIRA, all the way from licensing of NBFIs to enforcement”. 

The insightful presentation outlined that the Authority is mandated to regulate and supervise Non-Bank Financial Institutions (NBFIs) in line with international best practices for the purpose of contributing toward financial stability. This is done by fostering five (5) key functions within the NBFI sector that include but are not limited to but include the Stability of the Financial System, Safety and Soundness of NBFIs as well as the Reduction & Deterrence of Financial Crime.

Mr. Ramasedi also underlined that the as at December 2018, NBFI sector had a total assets valued at P121 billion. These assets accounted for 55% of total assets in the local financial system.

When delving into the regulatory process of the Authority, Mr. Ramasedi explained the distinction and importance of both Prudential and Conduct regulation. While the former aims to ensure that the sector doesn’t take excess risks, the latter seeks to ensure that customers of NBFIs are treated fairly.

The regulatory and supervisory process ranges from licensing of prospective entities and the assessing if the key personnel meet the “Fit and Proper” requirement.  It also involves conducting investigations and inspections of regulated entities to assess their operations. The Authority also resolves complaints between members of the public and entities where the two have failed to reach an amicable solution. The Authority ensures effective compliance with applicable legislation, rules and guidelines and then taking appropriate enforcement action against entities that have not been compliant.

Mr. Ramasedi’s presentation was the catalyst for interesting dialogue with the audience addressing a range of issues pertaining to the insurance industry and the Know Your Customer (KYC) requirements.

Mr. Samuels, Chief Executive Officer of Botswana Life Limited also gave an inspiring presentation at the public lecture on associated challenges and opportunities within the Insurance Industry.