Regulatory Alerts2025-01-21
NBFIRA Related Party Transactions Guidelines for Non-Bank Financial Institutions
The Non-Bank Financial Institutions Regulatory Authority of Botswana has issued guidelines establishing comprehensive requirements for related party transactions across non-bank financial institutions. The framework mandates arm’s-length pricing, predefined equity-based exposure ceilings for directors and shareholders, and a structured approval process involving dedicated committees, boards, and independent shareholders. Regulated entities must implement robust disclosure policies, report quarterly exposures to the regulator within specified formats, and promptly address any deviations or conflicts of interest.
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