Regulatory Alerts2025-12-22
Added · Updated
PFR2 Pension Fund Investment Rules
Issued by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA), these rules establish mandatory investment limits, policy frameworks, and risk management standards for all licensed Retirement Funds in Botswana. The regulations require Boards of Trustees to maintain diversified portfolios with at least fifty percent invested domestically, restrict borrowing to twenty-five percent for liquidity purposes, and permit derivatives strictly for efficient portfolio management or risk reduction. Funds must also implement robust Environmental, Social and Governance (ESG) integration, appoint dedicated risk, compliance, and AML/CFT officers, and submit periodic actuarial certifications to ensure long-term asset sustainability and fiduciary compliance.