Financial Institutions Act: Notification of Application for Banking Licence
Powers and Purposes
The Memorandum and Articles of Association of the financial institution are annexed to this form. The purpose of the institution is to provide banking services to the people of Lesotho.
Shareholdings in Other Financial Institutions
- Name of Financial Institution: _____________________________________
- Shares Owned: _______________________________________________
- Number Percentage of Capital Amount: _______________________
Fit and Proper Requirements
The Commissioner will assess the fitness and propriety of each person involved with the financial institution. The criteria for assessing fitness and propriety include:
- Educational or technical qualifications, knowledge, skills, and experience
- Failure to discharge responsibilities as a shareholder, director, or officer
- Subject to discipline, punishment, or adverse findings by a court or regulatory agency
- Adverse finding or settlement in civil or criminal proceedings
- Association with a person who has been refused a licence or authorization
- Termination, resignation, or request to resign from a position as director or officer
- Serious failure to manage debts or financial affairs
- Contravention of regulatory requirements or professional standards
- Obstruction, misleading, or untruthful behavior in dealings with a court or regulatory agency
Business Plan Requirements
A business plan is required to be submitted by the applicant under Regulation 9. The business plan must contain the following information:
- Identifying Information: Name and location of the proposed financial institution
- Organizational Structure: Description and diagram of the bank’s organizational structure
- Ownership Structure: Diagram reflecting all subsidiaries and affiliated entities
- Summary: Brief description of how the organizing group came together and reasons for submission of application
Market Analysis
Market
Identify the markets to be served by the bank, including proposed branch or office facilities.
Characteristics
Describe target market demographic and economic characteristics.
Competition
Identify and describe competition in the financial services industry.
The Commissioner will consider any other factor that may render a person prejudicial to the financial condition or stability of the applicant or licensed financial institution.
Note: This article is for informational purposes only and is not intended to be used as legal advice. For specific guidance, please consult with a qualified attorney or regulatory agency.