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2025-01-21

Statutory Instrument No. 52 of 2017: Non-Bank Financial Institutions Regulatory Authority (Supervisory Levies) Regulations

The Minister of Finance and Economic Development issued these regulations to establish annual supervisory levies for non-bank financial institutions, mandating payments calculated to recover operational costs. Institutions may pay levies as a lump sum by April 30 or in two equal installments, with interest charged at the prevailing prime rate on unpaid balances and penalty levies applied to under-collection caused by misstatements. The schedule details fixed and variable levy rates across seventeen regulated entity types, including asset managers, insurance companies, micro lenders, and securities exchanges, while revoking the 2016 supervisory levies regulations.

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Botswana

Non-Bank Financial Institutions Regulatory Authority

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C.318

Statutory Instrument No. 52 of 2017

NON-BANK FINANCIAL INSTITUTIONS REGULATORY AUTHORITY ACT (Cap. 46:08)

NON-BANK FINANCIAL INSTITUTIONS REGULATORY AUTHORITY (SUPERVISORY LEVIES) REGULATIONS, 2017 (Published on 19th May, 2017)

ARRANGEMENT OF REGULATIONS

REGULATION

  1. Citation and commencement
  2. Supervisory levies
  3. Basis of calculation of supervisory levies
  4. Interest on unpaid supervisory levies
  5. Penalty levy
  6. Revocation of S. I. No. 34 of 2016 SCHEDULE

IN EXERCISE of the powers conferred on the Minister of Finance and Economic Development by section 24 as read with section 61 (2) (a) of the Non-Bank Financial Institutions Regulatory Authority Act, and on the recommendation of the Regulatory Authority, the following Regulations are hereby made —

Citation and Commencement

  1. These Regulations may be cited as the Non-Bank Financial Institutions Regulatory Authority (Supervisory Levies) Regulations, 2017 and shall come into operation on the 1st April, 2017.

Supervisory levies 2. (1) A non-bank financial institution shall pay to the Authority in each financial year a supervisory levy specified in the Schedule. (2) Notwithstanding subsection (1), a non-banking financial institution may in each financial year opt to pay the supervisory levy — (a) once off on or before the 30th of April; or (b) in two equal installments, and — i. the first installment shall be payable on or before the 30th of April; and ii. the second installment shall be payable on or before the 31st of October.

Basis of calculation of supervisory levies 3. The basis of calculation of supervisory levies for each financial year shall be the recovery of operational costs associated with carrying out supervisory activities in relation to non-bank financial institutions.

Interest on unpaid supervisory levies 4. (1) A non-bank financial institution shall pay interest on any unpaid supervisory levies to the Regulatory Authority at the end of each financial year. (2) Any interest paid under subregulation (1) shall be at a rate equal to the prevailing prime interest rate.

Penalty levy 5. (1) The Regulatory Authority shall impose a penalty levy on a non-bank financial institution where a misstatement or other non-compliance by the non-bank financial institution leads to an under-collection of a supervisory levy. (2) Any penalty imposed under subregulation (1) shall be at a rate equal to the prevailing prime interest rate per thousand Pula of the under-collection.

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  1. The Non-Bank Financial Institutions Regulatory Authority (Supervisory Levies and Licensing Fees) Regulations are hereby revoked.

SCHEDULE SUPERVISORY LEVIES (regulation 2)

First ColumnSecond Column
Non-Bank Financial InstitutionSupervisory Levy
1. Asset Managers (excluding International Financial Services Centre Asset Managers)P28, 875 and 0.018% per annum of the total values of the investments managed by an Asset Manager at the end of each month of the financial year.
2. Central Securities DepositoriesP173, 250
3. Securities ExchangesP173, 250
4. Custodians of Collective Investment UndertakingsP57, 750
5. Insurance BrokersP11, 500 and 0.1380% per annum of the gross commissions received as reported in their most recently audited financial statements
6. Insurance CompaniesP57, 750 and 0.1380% per annum of the gross premiums written, as reported in their most recently audited financial statements
7. Corporate Insurance AgentsP5, 775
8. International Financial Services Centre CompaniesP31, 760
9. Management Companies of Collective InvestmentP28, 875 and 0.018% per annum of the total value of the assets controlled by a management company in respect of each scheme at the end of each month of the financial year
10. Micro Lenders (a) Average loan book values above P1,000,0000.550% per annum of a micro lender’s total loan book at the end of each month of the financial year
(b) Average loan book values up to P1,000,000P5, 500 per annum
11. Retirement FundsP230 and P15.25 in respect of each member, at the end of the financial year
12. Trustees of Collective Investment UndertakingsP57, 750
13. Central Counter PartyP173, 250
14. Securities Brokers/DealersP52, 500

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15. Transfer Agents/Transfer SecretariesP52, 500 and P3, 150 per counter
16. Participant/Market MakerP26, 250
17. Retirement Funds AdministratorP5, 775 and P525 per Fund
18. Medical Aid FundsP5, 775 and P15.25 in respect of each member, at the end of the financial year
19. Finance and Leasing Companies (a) Average loan book values above P1,000,0000.550% per annum of the total loan book at the end of each month of the financial year
(b) Average loan book values up to P1,000,000P5, 500 per annum
20. Pawnshops (a) Average loan book values above P1,000,0000.550% per annum of the total loan book at the end of each month of the financial year
(b) Average loan book values up to P1,000,000P5, 500 per annum

MADE this 2nd day of May, 2017.

O. K. MATAMBO, Minister of Finance and Economic Development.

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