Regulatory Alerts2024-01-01
Micro Finance Deposit-Taking Institutions (Corporate Governance) Regulations, 2024
The Central Bank of Uganda has issued the 2024 Micro Finance Deposit-Taking Institutions (Corporate Governance) Regulations to establish comprehensive governance standards for licensed microfinance entities. The regulations mandate boards of at least five directors with a majority of independent non-executive members, clearly delineate the roles of the chairperson and managing director, and require the establishment of specialized committees for audit, risk, credit, and compensation. Institutions must implement robust risk management frameworks, maintain independent control functions including internal audit and compliance, enforce strict director duties and codes of conduct, and adhere to defined succession planning and remedial sanction procedures.