PRESS RELEASE

The Financial Services Regulatory Authority (“FSRA”/ “Authority”) has noted with dismay a recent announcement made by one of its supervised financial services providers, Likhwane Beneficiary Fund (“Likhwane”), which was circulated and published in the local newspapers on the 1st November 2023. The FSRA would like to provide the public with clarity and correct any misconceptions that may have arisen as a result thereof in light of the recent events surrounding the business operations of Likhwane as well as the application for liquidation which was launched by the Authority. At the outset the FSRA respectfully notes the judgement of the Honourable High Court and makes no comment on the Judgement at this time. Having said that, it is to be noted that by dismissing the application for the winding up of Likhwane, the Court Order simply places Likhwane back to the position that it was in before the liquidation proceedings commenced. Likhwane is, therefore expected to carry out its duties and execute its legal obligations towards the beneficiaries in a fiduciary manner. The powers of the Authority to execute its mandate as per the dictates of the law remain intact and have not been curtailed. The FSRA’s core functions are expressly detailed in Section 4 of the FSRA Act of 2010, and its powers detailed in Sections 5 and 6 of the Act. These include issuing guidelines, codes of practices and directives to financial services providers like Likhwane in order to foster financial stability within Eswatini for the protection of all stakeholders and all funds invested in the entities that the Authority supervises. The directive issued to Likhwane to cease and desist from taking on new business was issued in a bid to protect the beneficiaries and the Funds. The notices to concerned and affected businesses will remain in full force and effect until the prudential concerns of Likhwane Beneficiary Fund are addressed. We implore all Trustees of Funds to exercise due care and diligence. The FSRA’s priority as regulator of financial services providers in the country commits itself to ensure that the highest standard of conduct is maintained by all financial services providers and it will continue to discharge its functions in accordance with the dictates of the law without fear or favour. The FSRA will continue to monitor the situation in regard to the Likhwane beneficiary Fund and all other Funds.