Non-Bank Financial Regulatory Authority - Licensing Of Non-Bank Financial Institutions (Ss 42-48)

Link to law: http://www.elaws.gov.bw/desplaylrpage1.php?id=1347

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[Ch4608s42]42. Non-bank financial institutions to be

licensed

(1) A

person who carries on a business as a non-bank financial institution otherwise

than in accordance with a licence commits an offence and on conviction is

liable to a fine not exceeding P2,500 for each day on which the offence occurs

or continues to occur or to imprisonment for a period not exceeding five years,

or to both.

(2)

For the purposes of, but without limiting, subsection (1), carrying on a

business as a non-bank financial institution includes carrying on such a

business by providing financial services to a person outside Botswana.

[Ch4608s43]43. Licensing

(1)

The Regulatory Authority may, on application made as prescribed, accompanied by

such documents and statements as are prescribed and as the Regulatory Authority

directs, grant a person a licence as a non-bank financial institution of a kind

specified in the licence.

(2)

The Regulatory Authority may require an applicant for a licence to give it

further information in connection with the application.

(3)

The Regulatory Authority is not bound to deal further with the application

until the requirement is satisfied.

(4)

The Regulatory Authority shall not grant an application for a licence unless

satisfied that the applicant-

(a) will carry on the activities to be covered

by the licence with integrity, prudence and professional skill;

(b) will maintain a sound financial position

and not cause or promote instability in the financial system; and

(c) otherwise meets and will continue to meet

the requirements of the financial services laws.

(5)

The Regulatory Authority may impose conditions on a licence.

(6) A

financial services law may prescribe additional criteria for granting licences.

[Ch4608s44]44. Period of licence

Regulations

shall be made providing for the duration, expiration, renewal and revocation of

licences issued under this Act.

[Ch4608s45]45. Display of licence

(1)

If the Regulatory Authority grants an application for a licence, it shall issue

the licence to the applicant.

(2)

The Regulatory Authority shall publish notice of the grant of a licence in the Gazette.

(3) A

licensed non-bank financial institution shall prominently display a copy of its

licence at its offices in Botswana.

(4) A

licensed non-bank financial institution that contravenes subsection (3) shall

be liable to a civil penalty not exceeding P5,000 to be imposed by the

Regulatory Authority.

[Ch4608s46]46. Variation, suspension or cancellation of

licence on request

The

Regulatory Authority may, on written request by a licensed non-bank financial

institution, by notice to the institution-

(a) vary the conditions of the institution's

licence (including by imposing additional conditions);

(b) suspend the institution's licence for the

period specified in the notice; or

(c) cancel the institution's licence.

[Ch4608s47]47. Variation, suspension and cancellation of

licence

(1)

This section applies if it appears to the Regulatory Authority that a licensed

non-bank financial institution-

(a) is not carrying on, or is likely not to

carry on, the business for which it is licensed with integrity, prudence and

professional skill;

(b) is in an unsound financial position or is

likely to become in an unsound financial position;

(c) is causing or promoting instability in the

financial system, or is likely to do so;

(d) is not complying or is likely not to comply

with a financial services law;

(e) is or is likely to be involved in financial

crime;

(f) has failed to submit reports as required

under section 52; or

(g) has failed to pay a civil penalty imposed

by the Regulatory Authority under this Act.

(2)

If this section applies, the Regulatory Authority may, by notice to the

licensed non-bank financial institution-

(a) vary the institution's licence-

(i) restricting the activities that can be

carried on in terms of the licence; or

(ii) including further conditions on the

licence;

(b) suspend the institution's licence for the

period specified in the notice; or

(c) cancel the institution's licence.

(3) A

financial services law may prescribe additional criteria for variation,

cancellation or suspension of licences.

(4)

The Regulatory Authority shall not act in terms of subsection (2) in relation

to a licensed non-bank financial institution unless-

(a) the Regulatory Authority has given the

institution written notice of the proposed action, setting out the reasons for

the proposed action and stating that the institution has a specified period (at

least 21 days) to make representations to the Regulatory Authority about the

matter; and

(b) the Regulatory Authority has taken into

account any representations made by or for the institution within that period.

(5)

The Regulatory Authority may suspend the licence of a licensed non-bank

financial institution without giving a notice in terms of subsection (4) if

satisfied on reasonable grounds that it is necessary to do so to prevent or

mitigate damage to the interests of nonbank financial institutions, clients of

non-bank financial institutions or the financial system, but the Regulatory

Authority shall-

(a) give the institution the notice as soon as

practicable;

(b) give the institution the opportunity

mentioned in subsection (4) (a); and

(c) having considered any representations made

by or for the institution, determine whether the suspension should be

confirmed.

[Ch4608s48]48. Exemptions from and modifications of this

Part

(1)

The Regulatory Authority may, by notice in the Gazette-

(a) exempt a person wholly or partly, as

specified in the notice, from this Part; or

(b) declare that this Part applies in relation

to a person as modified in the declaration.

(2)

An exemption or declaration may-

(a) apply generally or to a specified case or

class of cases; or

(b) apply unconditionally or subject to

specified conditions