10 Jul 2023

Minister of Finance, Ms Peggy Serame has presented the Securities (Amendment) Bill of 2022 for second reading.

Presenting the bill recently, Ms Serame explained that the Securities Act commenced in 2017 to consolidate and amend the laws relating to the regulation and supervision of the securities industry in Botswana. She said the act provided for the regulation and supervision of securities institutions and markets and to prohibit insider trading and other forms of market abuse.

The minister said unfortunately the Non-Bank Financial Institutions Regulatory Authority (NBFIRA), as the implementing authority for the securities act, had applied without success for membership of the International Organisation of Securities Commissions (IOSCO), which was the international body that brought together the world’s securities regulators and was recognised as the global standard setter for the securities sector.

To conclude the multilateral Memorandum of Understanding (MMOU), Minister Serame said the technical assistance project team of IOSCO recommended that NBFIRA should reform the securities laws and amend the NBFIRA Act to be compliant with the provisions and obligations of the MMOU.

For that reason, she said the amendment of the Securities Act was consequent to the re-enactment of the NBFIRA Act, adding that the specific inspection and investigation provisions of the Securities Act had been moved to the NBFIRA Act.

The bill, therefore, she said sought to amend clauses 2 to 18 of the Securities Act in order to ensure consistency and align definitions in the act with definitions under the NBFIRA Act.

The minister said the amendments sought to empower the regulatory authority to prohibit the appointment or continuing in office of an officer whose fitness and probity was detrimental to the issuer or securities infrastructure business or may be prejudicial to interests of investors, clients or the financial services sector.

Clause 6 seeks to empower the minister to prescribe minimum activities to be undertaken in Botswana, including the substantive administration and control of a securities business as well as additional criteria for the granting, variation, suspension or cancellation of a licence.

Additionally, Ms Serame said Clauses 10, 11, 12 and 13 of the bill sought to enable the regulatory authority to develop a criteria for determining whether a transaction had a commercial bearing.

She said section 33 of the act sought to ensure consistency and align the regulatory authority’s powers to investigate, including powers of entry and search, with its powers under the NBFIRA Act.

Meanwhile, Minister of Justice, Mr Machana Shamukuni presented the Crimes of International Concern Bill of 2023 for first reading. Minister of Defence and Security, Mr Kagiso Mmusi presented the Arms and Ammunition (Amendment) Bill, 2022 (Bill No.25 of 2022).

Additionally, Assistant Minister of Health, Mr Sethomo Lelatisitswe presented the Mental Health Bill, 2023 (Bill No. 10 of 2023) for first reading, Minister of Trade and Industry, Mr Mmusi Kgafela presented the Botswana Trade Commission (Amendment) Bill, 2023 (Bill No. 11 of 2023) for first reading, while Assistant Minister of Local Government and Rural Development, Mr Sethabelo Modukanele presented the Wildlife Conservation and National Parks (Amendment) Bill, 2022 (Bill No. 24 of 2022) for first reading on behalf of Minister of Environment and Tourism, Ms Philda Kereng. ENDS