639 1
The Malawi Gazette Supplement, dated 13th July, 2018, containing
Regulations, Rules, etc. (No. 18A)

GOVERNMENTNOTICE No. 51
• FINANCIAL SERVICES ACT
(CAP. 44:05)
FINANClAL SERVICES (RISK AND GOVERNANCE REQUIREMENTS FOR
BANKS AND BANK HOLDING COMPANlES) DIRECTIVE, 2018
ARRANGEMENT OF PARAGRAPHS
PARAGRAPH

PART 1-RELIMINARY
1. Citation
2. Interpretation

PART IJ--0BJECTJVE
3. Objective

PART In-REGULATORY REQUIREMENTS
4. Obligations of shareholders
5. Restrictions on shareholders
6. Shareholder loan
'7. Board charter
8. Directors' powers and responsibilities
9. Company secretary
10. Balance of power on the Board
11. Removal of Board member
12. Liability of directors and senior management officials
l 3. Board composition
14. Residence of directors
15. Board chairperson
16. Restrictions on directors
17. Restriction on independent directors
18. Board committees
19. Internal audit
20. Risk management function

pART IV-ENFORCEMENT
21. Monetary penalties
22. . Administrative penalties
IN EXERCISE of the powers conferred by section 34 (2) (b) of the Financial Service
Act, I, DR. DALITSO KABAMBE, Registrar of Financial Institutions make the following
Directive-