The Non Banking Financial Institutions Regulatory Authority (NBFIRA) said Thursday that it is concerned by slow reaction to new regulatory requirements by industry players.
Speaking at the Stanbic Bank Non Banking Financial Institutions (NBFI) seminar, NBFIRA Acting Manger Investment Institutions Mbiganyi Modise said that the authority is concerned about the challenges around non- compliance by some investment institutions.
He also noted that there is limited utilisation of the recently introduced Risk Based Supervision System (RBSS) portal. At the same time, Modise acknowledged that there is limited knowledge and understanding of the requirements of the NBFIRA Act, insurance industry Act and its regulations.
“Our regulatory developments includes introduction of risk based supervision system as well as licensing of Funds Administrators. Key regulatory reforms are underway as well as retirement Funds Act and regulations,” said Modise.
Meanwhile the seminar was also told that the retirement Funds Regulations have been drafted, and are expected to be gazetted in due course.
NBFIRA data shows that Botswana’s Management Companies and Asset Managers held total Assets under Management (AUM) of P50 billion as at December 31, 2015, a significant decrease of 19 percent from P62 billion in 2014. On the other hand, Collective Investments Undertaking (CIU) assets recorded a 70 percent increase from the previous year, this showing an increase in the number of individuals and institutions opting to invest as a collective.