Retirement Funds

The Non-Bank Financial Institutions Regulatory Authority Act and the Pension and Provident Funds Act regulate the establishment, licensing and operation of retirement funds in Botswana.

The Non-Bank Financial Institutions Regulatory Authority has supervisory powers over funds which include investigating any part of the affairs of a licensed fund, or business that the Authority suspects is carrying on the business of a fund.

The Income Tax Act; regulates the taxation of retirement fund contributions, investment income and benefits.

Licensing of NBFI's

NBFIRA is mandated with the licensing of retirement funds within Botswana and as such,In accordance with Section 5 of the Pensions and Provident Funds Act, the information below will assist Retirement Funds, Fund Administrators and Fund Custodian if they so wish to license as such.

  • Requirements For Licensing - Stand Alone & Sub Funds
  • PFA1_New License Application-Pension or Provident Fund
  • PFA2_New License Application-Fund Administrator
  • PFA3_New License Applicantion-Fund Custodian

Vetting of Controllers

  • Vetting of Controllers - Circular
  • Application For Controllers - Pension Fund
  • Security Vetting Form (DIS)
  • PFA1 Appendix D_Questionnaire for Trustees

Prudential Rules

Section 50 of the NBFIRA Act empowers The Regulatory Authority to make and publish rules that prove to be a significant contributor in preventing or minimising financial sector risks. Below are rules passed with respect to retirement funds. To access the rules, click on the Documents tab.

  •       PFR1_Funding Valuation Rules
  •       PFR2_Fund Investment Rules
  •       PFR6_Fund Actuarial Triennial Report
  •       PFR7_Conditions For Exemption from Actuarial Valuation
  •       PFR8_Suitability of Investments-Pensions
  •       PFR10_Conduct Expected of Board of Trustees
  •       New License Application –Pension or Provident Fund (PFA1)
  •       New License Application- Fund Administration (PFA2)
  •       New License Application- Fund Custodian (PFA3)
  •       Funding Valuation Rules (PFR1)
  •       Fund Investment Rules (PFR2)
  •       Fund Administrators Return (PFR5)
  •       Fund Actuarial Triennial Report (PFR6)
  •       Conditions for Exemption from Actuarial Valuation (PFR7)

 

Statutory Returns

As per Section 30 of the Pension and Provident Fund Regulations, Retirement funds must annually submit audited financial statements including completed return forms to the Non-Bank Financial Institutions.

  • PFR3_Annual Returns Pension Funds - Submitted annually along with the audited financials.
  • PFR4_Quarterly Return Pension Funds - Submitted quarterly.
  • PFR5_Fund Administrators Returns - Submitted annually.

The return forms can be accessed under the Documents tab.

 

Risk Assessment Questionnaire

Risk based supervision can be simply defined as a systematised decision making framework and procedure to prioritise regulatory activities and deploy resources, principally relating to inspection and enforcement, based on an assessment of the risks that regulated firms pose to the regulator’s objectives.

This in mind, NBFIRA makes use of the risk based quetionnaire that all retirement funds need to complet and submit on an annual basis along with the audited financials of the fund or as and when NBFIRA requires.

Download the PFR9_Risk Assessment Questionaire - Retirement Funds.