Regulatory Alerts2025-01-01
Financial Services (Investment Management of Life Insurers and Pension Funds) Directive 2025
Issued by the Registrar of Financial Institutions in Malawi, this Directive mandates life insurers and pension funds to establish board-approved investment policies and adhere to prescribed exposure limits across authorized asset categories including government securities, equities, property, derivatives, and qualifying infrastructure assets. It enforces strict valuation standards, look-through principles for collective schemes, hedging-only derivatives, and comprehensive private placement disclosures to ensure prudent risk management and portfolio diversification. Additionally, the Directive compels pension funds to allocate at least five percent of their assets to qualifying infrastructure projects within a thirty-six-month transition period, while empowering the Registrar to enforce compliance through administrative penalties and targeted sanctions.