Regulatory Alerts2025-01-01
Financial Institutions (Corporate Governance) Amendment Regulations 2025
The Bank of Uganda issued the Financial Institutions (Corporate Governance) Amendment Regulations 2025 to modify key board oversight and directorship rules for regulated financial institutions. The amendment introduces a new provision allowing institutions to request Central Bank approval for reappointing independent non-executive directors who have served over nine years, granting a one-year extension to secure a suitably skilled board chairperson. It also updates the board's approval mandates for credit facilities exceeding management sanction limits and those extended to shareholders, directors, executive management, and related parties.
1087 STATUTORY INSTRUMENTS 2025 No. 48 The Financial Institutions (Corporate Governance) (Amendment) Regulations, 2025 (Under section 141 (1) of the Financial Institutions Act, Cap. 57) IN EXERCISE of the powers conferred on the Central Bank in consultation with the Minister in section 141 (1) of the Financial Institutions Act, these Regulations are made this 25th day of March, 2025.
- Citation These Regulations may be cited as the Financial Institutions (Corporate Governance) (Amendment) Regulations, 2025.
- Amendment of S.I No. 25 of 2024 The Financial Institutions (Corporate Governance) Regulations, 2024, in these Regulations referred to as the principal Regulations, are amended in regulation 7 by inserting immediately after subregulation (6), the following— “(6a) Notwithstanding subregulation (6), a financial institution may, in writing, request the Central Bank to approve the reappointment of an independent non-executive director who has served on the board for more than nine years, for a period not exceeding one year to enable the financial STATUTORY INSTRUMENTS SUPPLEMENT No. 20 16th May, 2025 STATUTORY INSTRUMENTS SUPPLEMENT to The Uganda Gazette No. 38, Volume CXVIII, dated 16th May, 2025 Printed by UPPC, Entebbe, by Order of the Government.
1088 institution to appoint a board chairperson with the required skills and experience.” 3. Amendment of regulation 28 of principal Regulations The principal Regulations are amended in regulation 28 (2), by substituting subregulation 28 (2) (c) and (d) with the following— ““(c)” to approve the credit facilities that are above the sanction authority of management as the board may direct; “(d)” to approve the credit facilities granted to shareholders, directors, executive management and other related parties as the board may direct;” MICHAEL ATINGI-EGO, Governor, Bank of Uganda.