Monday, January 24, 2022

Competition Authority, NBFIRA partner to fight anti-competitive practices

The Competition Authority (CA) and the Non-Bank Financial Institutions (NBFIRA) have signed a Memorandum of Understanding (MoU) in which they will work together in sharing information and investigation of anti-competitive practices that can affect the non-banking sector.

The MOU is premised on the need to enhance cooperation in the sharing of supervisory information between the two institutions.

Thula Kaira the Chief Executive officer at CA said the collaboration is necessary if ever the authority is to address the anti-competitive practices in the sector.

“The non-bank financial sector is a huge diversified and complex industry we cannot fathom, hence we need NBFIRA experts in the different fields like the insurance industry to work with them,” said Kaira.

He revealed that their main concerns in the non-bank sector are in connection with suspected cartels, abuse of dominance and anti-competitive mergers. The chief executive officer at NBFIRA, Oaitse Ramasedi, said the global financial crisis has reinforced the importance of effective collaboration between regulators and supervisory authorities.

“Regulation and supervising of non-bank financial institutions is vital to ensure financial stability,” said Ramasedi.

He said NBFIRA is also looking at cross border cooperation as it is not possible anymore for any one regulator to adequately and provide solo regulation or supervision of institutions.

The MoU will seek to provide competitive service to avoid the risk of those already in the market barring others from entering into the industry and those with financial muscle using their might to edge others out of the market.

Through the MOU CA will be obliged to provide NBFIRA with information to enforce any violation of NBFIRA regulations that may involve anti-competitive actions that fall under the mandate of CA.
The MoU requires NBFIRA to provide information that would assist in the assessment of any merger and providing information regarding market shares of any enterprise regulated by it.

Meanwhile a joint working committee has been set up to manage and facilitate the smooth running of the MOU.

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