04 Aug 2013

The Non-Bank Financial Institution Regulatory Authority (NBFIRA) has drafted regulations to safeguard the pawn shops industry in the country. 

According  to senior technical advisor at NBFIRA, Mr Melville Brown, the regulations sought to formally license and regulate the pawn shop sector in order to safeguard the stability, fairness and the efficiency of the non-bank financial sector.

The proposal came after NBFIRA conducted extensive research into the scope of pawn shop operations in Botswana and the region in order to include the business of this financial sub sector within a best practices regulatory framework. Mr Brown said the goals of the drafted regulations included formalising a regulatory framework for the business of pawn brokers and promoting ethical standards in pawn  broking.

Other goals were enhancing consumer protection standards, limiting the trade in stolen goods and providing for the equitable and enforceable regulatory oversight in all matters incidental to the operations of pawn shops. Mr Brown said the regulations shall be effected immediately after approval from the Minister of Finance and Development Planning, adding that they are still soliciting input from members of the community.

According to Mr Obed Siade of Ntshwarelela Pawn Shop, they have been hearing of the regulations but noted that some of the proposed arrangements would not be good for the industry. He said for example, there would be instances where customers are to liaise with NBFIRA before proceeding to pawn their property which would be tedious.

“We have been on the ground, NBFIRA needs to consult with us because we have been in the business for some time,” he added. However, just like others who preferred anonymity, Mr Siade accepted the new development saying it would protect the integrity of the industry. “We need to have a regulatory body to monitor those taking chances and taking advantage of customers,” he concluded.  ENDS