The Financial Institutions Act 2004 is an official document of the Uganda Law relating to the regulatory environment for the financial industry in the country.
This Act revises and consolidates the law relating to financial institutions; it also provides for the regulation, control and discipline of financial institutions by the Central Bank and repeals the Financial Institutions Act, Cap. 54.
Parts one and two discuss the:
- Application of the Act;
- Procedures for applying for a license;
- Various factors that are taken into consideration while granting a license;
- Duration, processing/ granting of license, license fee and refusal of license.
Part three deals with:
- Shareholding pattern of financial institution;
- Various entities that are eligible to hold shares in financial institutions;
- Procedures for registration for the shares.
Parts four and five highlight the:
- Capital requirements;
- Prohibitions and restrictions on lending against different instruments, and under certain given circumstances.
Parts six and seven discuss:
- Financial reporting structure and the corporate governance of the institution;
- Duties and responsibilities, board meetings, removal of directors, audit committees and its functioning.
Parts eight, nine and ten highlight the supervision, corrective actions, and the receivership guidelines relating to these financial institutions, i.e. the various options available to the receiver and the prohibitions on proceedings against institution in receivership.
