Regulatory Alerts2010-11-02
Added · Updated
Declaration on the Conduct of Activities that are Deemed to be the Acceptance of Deposits from the Public
The Bank of Namibia declares that the issuance of certain preference shares constitutes receiving funds from the public, thereby constituting banking business. Preference shares are classified as debt instruments if they are redeemable at a specified date, perpetual and cumulative with mandatory dividends, or convertible into ordinary shares at the holder's option. Entities issuing such shares to the public for on-lending or investments without Bank authorization are deemed to be conducting illegal banking business. The Bank directs all entities with existing unauthorized preference share schemes qualifying as debt instruments to dissolve them, effective 1 July 2009.
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