09 Jul 2023

Minister of Finance, Ms Peggy Serame has presented the Non-Bank Financial Institutions Regulatory Authority(NBFIRA) Bill (Bill No. 2 of 2023) for the second reading.

Presenting the bill last Thursday July 6, Minister Serame said the proposed amendments sought to provide and improve on the definitions in the act so as to align the definitions with international requirements and best practices and to continue with the establishment of the NBFIRA and its objectives and functions.

Additionally, she said the amendments sought to enhance the regulatory capacity of the authority by giving it the power to give directions, enforce undertakings and ensure accountability of key persons or controllers of NBFIs.

She also said the authority would enforce corporate governance in the non-bank financial sector by empowering the regulatory authority to provide for reporting requirements by developing administrative rules and providing guidance on the appointment and removal of key persons or controllers.

The minister said the authority would provide for matters relating to compromises, arrangements, amalgamations, statutory management and the winding up of NBFIs in order to ensure standardisation and fairness. It would also provide for the regulation of conglomerates in line with the needs occasioned by the growth and the development of the non-bank financial sector.

The finance minister said clauses 1 to 3 of the bill provided for preliminary matters such as the interpretation of terms and how to deal with cases where there was conflict between the law and other laws. 

She said clauses 4 and 5 provided for the continuation of the objectives and functions of the regulatory authority while clauses 6 to 13 provided for matters relating to the NBFIs regulatory board.

She said clauses 14 to 19 provided for meetings and proceedings of the board, clauses 20 to 26 for the appointment and the tenure of the chief executive officer and clauses 27 to 36 for the funding of the authority and the need for maintenance of proper accounts as well as the submission of annual estimates and the annual report to the minister.

Clauses 37 to 40 make provisions for supervisory levies as well as fees and charges to be imposed by the regulatory authority while clauses 41 to 47 provide for the licensing of NBFIs. Clauses 48 to 51 provide for the approval of controllers of NBFIs while clauses 52 to 58 empower the regulatory authority to regulate arrangements and compromises for NBFIs.

Clauses 81 to 84 make provisions for the appointment of inspectors and investigators, clauses 85 to 88 for the establishment of the Non-Bank Financial Institutions tribunal whilst clauses 89 to 110 provide for miscellaneous matters such as publication of notices and the establishment of advisory bodies. Ends