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Marketing of Foreign Collective Investment Funds to Botswana Residents

By Tatenda Caroline Dumba

The Collective Investment Undertaking Act, 2007 was repealed and re-enacted as the Collective Investment Undertaking Act, 2021 (“CIU Act 2021”). The CIU Act, 2021 came into operation on the 28 February 2022.

The CIU Act, 2021 was amended to align with the recommendations of the assessment of the East and Southern Africa Anti-Money Laundering Group and Financial Action Task Force.  The CIU Act, 2021  in comparison to the Old Act has introduced restrictions on foreign collective investment undertakings to market and provide cross border non-bank financial services to residents in Botswana.

The CIU Act, 2021 has introduced a number of requirements including registration or obtaining an exemption with the Non-Bank Financial Institutions Regulatory Authority in regard to foreign collective investment undertakings marketing or soliciting investor residents in Botswana. Foreign collective investment undertakings are advised to consider the provisions of the CIU Act, 2021 prior to marketing their funds and solicit advice on issues regarding registration or exemption requirements, private placement regime and reverse solicitation.