Regulatory Alerts2025-11-01
BoU Guidelines on Financial Holding Companies 2025
The Bank of Uganda issued these 2025 guidelines to regulate the establishment, governance, and operations of non-operating Financial Holding Companies (FHCs) across all supervised financial institutions in Uganda. The framework mandates a two-phase regulatory approval process, requiring promoters to demonstrate adequate capitalization, submit comprehensive business plans, and satisfy fitness and probity tests before commencing operations. It strictly limits FHC activities to equity holding and arm’s-length shared services, prohibits day-to-day subsidiary management and unregulated affiliate creation, and enforces consolidated prudential oversight to safeguard financial system stability.
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