Regulatory Alerts2023-01-01
Financial Institutions (Preference and Appraised Book Value) Regulations 2023
The Bank of Uganda issued these 2023 regulations to establish legal preference and appraised book value standards for specified financial contracts, including repos, securities lending, and derivatives. The rules ensure that deliveries, payments, collateral realizations, and netting arrangements remain valid and enforceable during a financial institution's management takeover or closure, unless fraud is proven. By mandating yield-curve-based pricing and standardized haircuts set by the Treasurers’ Forum, the regulations enhance market stability while revoking prior 2019 provisions.
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