Regulatory Alerts2025-09-24
Financial Resources Requirements Rules for Securities Brokers or Dealers
The Non-Bank Financial Institutions Regulatory Authority of Botswana has issued the 2023 Financial Resources Requirements Rules to mandate minimum capital and liquidity standards for all licensed securities brokers and dealers. The rules require entities to maintain net assets of at least P250,000 or three months of operational expenditure, alongside mandatory professional indemnity and fidelity insurance, while establishing clear protocols for immediate breach notifications and detailed asset calculations. Coming into force on April 1, 2023, these regulations supersede the 2021 Capital Adequacy Guidelines and empower NBFIRA to verify compliance, impose sanctions for shortfalls, and require boards to conduct ongoing capital adequacy assessments.